What is a DSP? A Full Breakdown of Demand-Side Platforms for Marketers
As a marketer, I’m no stranger to ad managers like Google Ads and Meta Ads. However, I was interested to learn that there’s a third option for ad buying: demand-side platforms (DSP). What is a DSP, you ask? These tools are essentially an automated way to purchase and manage your online ads. If you’re like me and are curious about what a DSP is and how it can benefit your paid ad strategy, I want to cover how these platforms work, why you should use one, and the best platforms available. Table of Contents What is a DSP? Benefits of Using a DSP 7 DSP Advertising Tools With a DSP, you can purchase mobile ads on apps, banner ads on search engines, and video ads on Facebook, Instagram, Google, and even more platforms. Instead of using both Google Ads and Facebook Ads, for instance, you can purchase those ads in one place on a DSP. The purpose of this is to make ad buying faster, cheaper, and more efficient. Now, let’s dive into how DSP platforms work and why you should use them. How do DSPs work? DSPs work by using programmatic advertising, which is the buying and selling of ads in real time through an automated system. With real-time bidding, ad placements are auctioned off in milliseconds. When you get started with DSP advertising, you’ll need to begin strategizing how much you want to spend. Think about what an effective cost per click and cost per action might be. This will help you set up your online ads so the platform knows how much to spend in any given auction. The best DSP platforms will allow you to include multiple rich media ads, including video, images, and animation. What is DSP advertising? DSP advertising is the automated process of bidding on and buying ads through a programmatic advertising platform. According to a study published by Statista, the US was the largest programmatic advertising market worldwide, spending an estimated $264.66 billion in 2024. Marketers are increasingly using DSPs as a way of purchasing, managing, and tracking online advertising. Benefits of Using a DSP To understand why marketers choose to use a DSP for their paid advertising strategy over other platforms, I spoke to Sean Edwards, the Director of Programmatic and E-Commerce Media at Exverus Media. Seamless Ad Buying Experience One of the main reasons for using a DSP is that it makes your digital ad experience easier and more cost-effective. You can control, track, and maximize all your digital ads in one place. This means you can manage an entire ad campaign across sites on one dashboard. For example, you can show someone an ad on Google, then show them ads on Facebook, and then across other sites they visit — all in one campaign. “The DSP we use most often is The Trade Desk because it allows us to activate and measure media campaigns on many different channels from a single platform,” says Edwards. “This saves us and our clients time and money, while clarifying previously hard-to-see patterns in the complex customer journey.” Access to Premium inventory DSPs often have access to a wide range of ad inventory, including premium placements on popular websites and apps, according to Edwards. This means you can advertise on many networks, including all the major publishers. With an increased number of networks, you’ll have a more global reach. “This access allows advertisers to reach target audiences across a variety of channels with added visibility, control, and opportunity to optimize towards the most successful tactics and placements,” he says. More Control Over the Ad Experience Using a DSP also provides marketers with more control over the ad experience compared to traditional platforms. This is especially important when it comes to brand safety. “Programmatic platforms offer tools to ensure ads are displayed in brand-safe environments pre- and post-bid,” says Edwards. “These parameters can help protect a brand’s reputation by avoiding ad placement on inappropriate sites or within unsuitable content. High-quality media placements yield stronger results.” Precision Targeting Programmatic advertising allows you to target specific audiences based on various criteria such as demographics, interests, and behavior, says Edwards. “This precision targeting allows advertisers to reach the right people, at the right time, with the highest likelihood to complete the desired outcome, whether that’s purchase, video view, download, or subscription,” he says. Additionally, DSPs often partner with third-party data providers, giving you better tracking and reporting capabilities than a single network usually provides. And in the planning process, the targeting options are more personalized, meaning you can get better conversion rates. Now that you know more about DSP advertising and how it works, let’s discuss the platforms that can help you do it. When choosing a DSP to work with, I like to look at how many ad exchanges the DSP has access to because that affects how many people you can reach. I also like to consider cost, training (full-service or self-service), support, and ease of use. Here are some of the best DSP advertising tools to choose from: 1. Basis Technologies Source Best for: Large or enterprise-level companies Basis Technologies is an omnichannel DSP built to generate better outcomes for your ad campaigns. In my opinion, one of the best features is that it uses AI machine learning to automatically analyze data from numerous campaign parameters to optimize your ads. With this DSP, you can target hyper-local audiences across devices and multiple touchpoints. You‘ll also get access to the industry’s leading exchanges, along with 25,000+ audience segments across over 30 different data providers. Why I like it: Basis Technologies harnesses the power of machine learning to analyze data and automate processes. I also like how automated monitoring helps ensure brand reputation and safety. 2. Google Marketing Platform Source Best for: Small to large businesses or agencies Google Marketing Platform is Google’s unified advertising and analytics platform for smarter marketing and better results. This DSP has several products for both small businesses and enterprise companies,