Demand Side Platform

A demand-side platform is a tool or software that allows advertisers to buy ad placements automatically.

How does DSP advertising work?


The purpose of the DSP is to buy the impressions on the suitable inventory and show them to the users that meet the target requirements for the optimal (minimum) price.

The DSPs transmit the bids from advertisers along with inventory requirements to SSPs. When the winner of the RTB auction is defined, taking into account the interests of both parties (advertiser and publisher).

DSP streamlines the process of ad buying for advertisers and allows them to buy impressions across a number of different sites, mobile apps, podcasts, and digital out of home (DOOH) media.
DSP targets specific users based on their behaviors and preferences. Depending on the provider, DSP can provide targeting options based on geolocation, type of device, browser, domain URL, and the traffic category.

DSPs can provide targeting criteria, this may include:
• Social/demographic — ability to set up targeting for a specific social demographic audience or interest.
• Context — targeting specific content categories.
• Environment — ability to choose web, in-app, CTV, etc.
• Geo — set targeting by cities / regions.
• IP — the ability to target a campaign on a specific IP address or list of IP addresses.
• Device — this type of targeting allows you to select the type of device on which your ad will be placed, for instance, target by manufacturer or model.
• Connection type and provider — the ability to target by connection type (2G, 3G, 4G, Wi-fi, Ethernet, Cellular Unknown, Unknown), as well as by provider.
• Operating systems — setting this targeting will allow you to display on a given
• Browser — the ability to target the required browser or exclude it.
• Screen extension — the ability to target a certain extension, for cases when you display a non-standard format, that would lose in quality on smaller screens.
• Day / Time — if necessary, you can set specific periods of time and day. With such settings, the campaign will be active only on the day and the time specified in this targeting. For example, you can target your customers on the nights of the weekend.
• Audience Groups — targeting based on groups gathered on owned media or previous campaigns

Every Demand-Side Platform has own pricing model. DSPs work on CPM, CPA, CPE, CPI or a CPC basis, each of which has its own specifics of calculation. As a rule, CPM (cost per mille) is one of the most widespread of them. In such a model, the payment is counted per thousand impressions.

CPM (cost per mille)
Cost per mille, often abbreviated to CPM, means that advertisers pay for every thousand displays of their message to potential customers (mille is the Latin word for thousand). In the online context, ad displays are usually called “impressions.” Revenue generated can be measured in Revenue per mille (RPM)

CPA (Cost per action)

Cost per action is an online advertising measurement and pricing model, referring to a specified action – for example a sale, click, or form submit (e.g., contact request, registration etc.)

CPE (cost per engagement)
Cost per engagement aims to track not just that an ad unit loaded on the page (i.e., an impression was served), but also that the viewer actually saw and/or interacted with the ad.

CPI (cost per install)
The CPI compensation method is specific to mobile applications and mobile advertising. In CPI ad campaigns brands are charged a fixed of bid rate only when the application was installed.

CPV (cost per view)
Cost per view video advertising.




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