Demand-side platform

A demand-side platform (DSP) is a concept that combines various software for advertisers (or advertising agencies) to automate the process of buying and selling ad impressions in real time.

This platform provides digital advertising inventory with a dashboard, where the advertiser can manage their campaign by defining the target audience, bid amount, overall budgets, ad format, and other parameters, while getting feedback about ad impressions and audience behavior.

Much like paid search, using DSPs allows users to optimize based on set key performance indicators such as effective cost per click (eCPC) and effective cost per action (eCPA).

There are 2 types of DSPs:

  • Full-service is a hands-off management model from the agency-side, in which the planning, launch and optimization of an advertising campaign is carried out by account managers of the DSP platform.
  • Self-service, in contrast, is like full-service but the management is carried out by the agency or advertiser themselves to allow more control and autonomy rather than let the account managers of the DSP manage the campaign.
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