Why Are Demand-Side Platforms Important?

Demand-side Platforms

Technological advances have brought online and OTT advertising to a whole new level thanks to DSPs (demand-side platforms).

You can hear this abbreviation everywhere, but what is it about, and why you may need a white label DSP platform for proper advertising?

Let’s find it out.

Why Do You Need DSP?

DSP need

DSP is an automated way to purchase advertising space. These platforms are often used by agencies to purchase advertising space due to a few reasons.

1. Depersonalization of the ideal advertising space selection

Before this tool was invented and introduced into our lives, only experts decided whether some space is suitable for advertising or not. Now, this process is fully automatized.

2. Saving time and money

The bid is set and approved in a fraction of a second after the user has visited the site. All conditions are uploaded to the platform in advance, and the total cost is less than for other methods.

How Does It Work?

With the help of DSP, advertisers can purchase media from different sites and owners.

The system analyzes the user by considering previous interests in the network, geolocation, or other important aspects. Only those users who meet the brand’s needs will see the ad.

Owners of the sites submit their offers to DSP. It analyzes them and prepares the best combinations for all the people who are involved in the process.

To some extent, DSPs have taken over some functions of advertising networks. However, thanks to the ability to manage an advertising campaign from a single platform, DSPs are now gaining more popularity.

Buying, managing, tracking – all of this is possible based on one software.

Is DSP an alternative to ad networks?

It is possible to say so. However, do not rush to buy ad networks. Due to the fact that brands began to turn to DSP developers more often, ad networks started to modify and add features to new platforms. The same thing happens with DSP. Most likely, there will be a complete merger of the two sites.

What are the prospects for advertising space buyers if all business processes are fully automated with DSP?

It is quite possible that there will be fewer intermediaries in the media procurement chain. DSP platforms make life easier for both website owners and media buyers.

However, one way or another, you will need high-quality analysts and advertising campaign managers who will be able to analyze and quickly make decisions as the campaign progresses.

Are DSPs replacing agency functions?

This is also observed. In terms of advertising space purchases, DSP has shown positive results in working directly with the client. When it comes to strategizing and business consulting, agencies are still the best choice.

Altogether, DSPs have gained so much popularity due to the affordable prices for their use and the cost-effective way of operation.

The platform can find the most optimal way for your advertisement and provide you with other useful features including an analysis of the activity.


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