Have you ever asked yourself, how does ad serving work? If yes, let us delve a little into the essence of the technology of the advertising purchase algorithm. Namely, let us discover the role of DSP and Ad exchange in the mechanism of programmatic work and answer the most popular questions in this area.
What Is DSP?
DSP is an abbreviation for a demand-side platform. Therefore, it is a side platform that represents the demand for the target audience from the advertiser. It is worth noting that, given the specifics of working with big data and the accuracy of targeting, the object of demand now is the target audience, which will be most effective in showing ads, not the ad space itself.
Such a platform allows the advertiser to choose a place for brand presentation among a wide range of websites. At the same time, the selected place will be targeted directly to a specific user because the browser search history or geolocation is taken into account (depending on what characteristics of the consumer are important for the advertiser).
DSP connects to the Ad Exchange platform, where website representatives expose their advertising platforms.
Next, the analysis of the offer from the SSP (Supply/sell-side platform) takes place. This side platform provides a place for advertising. DSP analyzes the offer and, as an advertiser, makes a bid and buys the right place. For an additional fee, it is possible to place ads in a more advantageous place that will promote user interaction.
What Is the Difference between Ad Network and DSP?
Ad Exchange platforms can be of two types:
- Open, with free access for any advertiser interested in the advertising space.
- Closed, where the publisher regulates which advertisers can buy ad space on the website and at what price.
A demand-side platform is a logical continuation of the ad network in the mechanism for choosing the purchase of advertising space.
The common between these two systems is that both platforms provide access to a wide range of advertising platforms and targeting.
What is the difference? DSP provides the tools to centrally purchase, host, and track the results of an advertising campaign, with the possibility to optimize all of its campaigns. Keep in mind that all this happens on a single platform.
At this stage, you can ask yourself whether this is another step towards taking over the world by the means of artificial intelligence.
In some ways, of course, that is right. However, this will be a problem only for avid fans of collecting tons of signatures to approve a single decision.
After all, the role of DSP is to significantly simplify the life of advertising managers. This platform frees you from the most monotonous and routine processes during the development of an advertising campaign.
Such processes include, for example, approving a bid for ad placement or setting the necessary requirements for the parameters of an advertising space manually every time.
As a result, the effectiveness of the campaign increases because the risk of mechanical error of the advertising manager is completely eliminated.