What is a DSP?

A demand-side platform is software used by advertisers to buy mobile, search, and video ads from a marketplace on which publishers list advertising inventory. These platforms allow for the management of advertising across many real-time bidding networks, as opposed to just one, like Google Ads. Together with supply-side platforms, DSPs enable programmatic advertising.

How a DSP works?

Demand-side platforms are independent of individual networks. If you’re managing ads through Google Display Network manager, you’re buying impressions on Google publishers only. If you’re using the Facebook Ads Manager to buy ads, you’re buying impressions on Facebook or Instagram specifically. Demand-side platforms are independent of these networks. They are third-party software that allow you to purchase, analyze, manage ads across many networks from a single place.

What issues does a DSP solve?

How to save money on media buying?
Eliminate commissions paid to external DSPs and calculate the exact cost of each media purchase.
How to eliminate white label fees?
Buy media content in-house and avoid substantial fees associated with using a white-labeled DSP.
How to customize the platform?
Implement your own sales strategies, optimize algorithms and create custom functions to improve advertising and targeting performance.
How to generate more revenue?
Sell your own DSP to customers and increase your company's revenue.
How to integrate it with other in-house platforms?
Keep your media-buying process under one roof by integrating a custom DSP with other ad tech platforms.

What is programmatic advertising?

Programmatic advertising is the process of buying and selling ads with software and publishing those ads contextually based on complex algorithms. Most online advertising now is done programmatically through real-time bidding and direct deals.

What is a DMP?

A data management platform (DMP) is a unifying platform to collect, organize and activate first-, second- and third-party audience data from any source, including online, offline, mobile, and beyond. It is the backbone of data-driven marketing and allows businesses to gain unique insights into their customers.

How does DMP collect data?

A DMP can collect data via a server to DMP integration. A DMP can collect data from various systems via an API. If a large publisher wants to send its website data to its DMP, it could use tags.

What are the main functions of a DMP?

Robust data collection:
The ability to collect various offline and online sources.
Data classification & structure:
The ability to structure your data based around user attributes for future segmentation, engagement, flexible event definition and value assignment.
Integration with media buying platforms (networks, exchanges, DSP)
Integration with 2nd and 3rd party data providers
Centralized audience analytics & reporting: providing on a campaign and audience level
If you step back and take in the view of what a Data Management Platform has to offer, you begin to see a much larger picture than you could have truly imagined. In an era when minute-by minute campaign reporting is possible, no brand can afford not to examine its potential.

Why do you need a DMP?

62% of marketers noted that they are already investing in data marketing solutions, with additional 26% planning to start investing within the next two years. Marketers are beginning to see worth and become aware of the benefits of a data-driven marketing strategy in driving more engaging real-time customer interactions and as a result a much more valuable customer experience. But with all this data to our disposals, marketers are still finding it difficult to connect the dots. A DMP is a dream come true for data driven marketers. With all the technology we have at our disposal, the challenge is to bring all the data into one place, and to be able to analyze it in real time and then act upon it in order to optimize our campaigns. One of the biggest challenges for marketers today is to build a single view of their customer. We collect data from different sources, such as social media, email, media campaigns, and our website as well as offline channels such as our call center. Then adding the dots becomes almost impossible. But, what if you could imitate a Kaleidoscope to create one single view of your customer across the entire buyer journey? Well, you can. The solution is to implement a Data Management Platform that will allow you to break the silos and unify all your data in one place.