What does Demand Side Platform mean in marketing terminology?

Demand Side Platform

A Demand Side Platform (DSP) is a type of online advertising platform used by advertising buyers to help manage, bid for, and execute ad campaigns. It's an automated system used to purchase targeted advertising space on a range of digital properties, including websites, mobile apps, video sites, out of home (OOH) networks, and digital TV providers. The DSP allows these buyers to bid on different types of digital impressions in real-time, optimising their campaigns in an effort to achieve their goals.

DSPs were designed to simplify digital advertising and provide better control over ad spending. It essentially helps buyers of online advertising better manage the buying process. It can be used to track and analyse user behaviour, delivering targeted ads to users who are more likely to be interested in them. In contrast to a traditional advertising network, DSPs allow buyers to access a variety of advertising options and pricing structures, and to make decisions about which ads to buy and when or how to target them.

The DSP platform makes use of sophisticated analytics and various types of data in order to determine the best targeting and buying options. The DSP then uses this data to make decisions about which ad to purchase, when to buy it, and how much to pay for it. In addition, the platform allows buyers to segment audiences based on criteria such as geography, demographics, interests, and other criteria.

Using a DSP platform, buyers can make use of multiple tools and features to improve the performance of their campaigns. These tools include automated bidding, traffic insights, campaign optimisation, and segmentation capabilities. Depending on the platform, buyers may also be able to access additional features such as audience retargeting and optimization, campaign tracking, and analytics.

Overall, the primary purpose of the DSP is to help buyers succeed with their campaigns by making it easier for them to purchase and optimize their digital advertising, making it more cost-effective and providing better targeting options.

General Guidelines and Best Practices:

1. Research and understand the DSP platform: Before you begin using a DSP, it's important to do your research and understand how it works. Take some time to read up on the platform, learn about its features, and explore the type of campaigns you could run.

Become a Sales & Marketing Rainmaker

Learn valuable skills to win more customers, grow your business, and increase your profits.
The Rainmakers Club

2. Set and implement realistic goals: With a DSP, it's important to set realistic goals and objectives for each of your campaigns. Try to identify the objectives you wish to accomplish and keep them in the forefront of your mind when developing strategies on the platform.

3. Utilize technology: Make sure to take advantage of the advanced features and technologies available on the platform. Automating parts of the buying process, such as bidding and analytics, can increase efficiency and optimize your campaigns.

4. Optimise campaigns: Optimising campaigns should be a regular part of the strategy on a DSP platform. Utilise real-time bidding, targeting, and other optimisation tools built into the platform to continually improve the effectiveness of your campaigns.

5. Monitor and measure performance: Track the performance of your campaigns to understand what's working and what isn't. Setting clear KPIs and using metrics to understand and measure the performance of your campaigns can help you determine the best tactics for optimising them.

6. Strategize for success: Have a solid strategy for your campaigns. Utilise a mix of strategies such as direct buys, programmatic buys, and other ways to target audiences throughout the buying process.

7. Plan for the long-term: Focus on long-term success rather than short-term wins. Try to build campaigns that have staying power and have the potential to bring in repeat customers in the future.

By following these general guidelines and best practices, buyers can get the most out of their Demand Side Platform. By understanding how the platform works, setting realistic goals, and utilizing technology, buyers can maximize the effectiveness of their campaigns and achieve the results they want. Ultimately, the power of the DSP lies in its ability to help advertisers efficiently scale their campaigns and find the right audience.