What is a DSP (Demand-Side Platform)?
A DSP is software advertisers use to buy ad inventory programmatically across exchanges and publishers. It centralizes targeting, bidding, and reporting.
Understanding DSPs
DSPs provide controls for audiences, frequency, brand safety, and budgeting in one place. They connect to ad exchanges and CTV supply to run display, video, native, and more across the open web. Curated marketplaces and private deals can improve quality and transparency. First‑party audience activation and contextual signals help replace legacy third‑party data. Reporting unifies performance across many sites and formats.
Operating a DSP well requires simple structures and guardrails. Start with focused geos and placements, then expand based on results. Frequency caps and viewability targets protect quality while you scale. Product feeds and dynamic creative add relevance without hand‑building every asset. Brand safety settings and allow/block lists keep inventory aligned with standards.
Why DSPs matter
DSPs matter because they let advertisers reach many sites, apps, and CTV from one platform with consistent controls. They provide frequency, pacing, and brand safety tools that keep delivery efficient and safe. They also enable first‑party audience activation and contextual targeting as cookies fade.
- Scale: Reach many sites/apps/CTV from one platform.
- Control: Frequency caps, allow/block lists, geo, and pacing.
- Data: Activate first-party audiences and contextual signals.
How DSPs work
DSPs work by allowing you to set up campaigns with targeting and creatives, then bidding in real time in eligible auctions. The highest eligible bid wins and serves the ad, and the DSP records delivery and context. Frequency caps, viewability filters, and brand safety rules determine which impressions qualify. First‑party audiences and contextual signals guide where bids go. Product feeds enable dynamic creative so ads remain relevant without manual swaps. Simple reporting that tracks CPA/POAS and incrementality keeps optimization grounded.
Key Takeaways
- A DSP (demand-side platform) lets advertisers buy ad inventory programmatically across multiple exchanges and publishers.
- DSPs provide centralized campaign management, bidding optimization, and audience targeting.
- Use DSPs for display, video, CTV, and cross-platform campaigns with real-time bidding.
- Pair DSPs with enriched feeds and templates for scalable catalog advertising.
