6 Things To Know About Demand Side Platforms


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Display advertising has become one of the most common channels marketers use for outreach, and when targeting is done correctly, the channel can be extremely powerful at producing quick conversions.

Effective ad targeting strategies come from having great data – and since organizations are now leveraging multiple martech solutions, channels and marketing initiatives in their outreach, marketers are able to collect massive amounts of profile data on their audience along the way. This data is crucial for a brand’s ability to execute strategic segmentation strategies, but this data isn’t always connected to other solutions so it can be acted on.

So how can a marketer connect all of this data and then expect to deliver the right ad, at the right time, with the right message to achieve a conversion? By taking advantage of a powerful martech combination that has recently emerged into the martech space…

Enter the powerful duo of the CDP and DSP. 

Customer Data Platforms (CDP) and Demand Side Platforms (DSP) are here to provide real-time data, and connectivity of that data, across all marketing channels Click To Tweet

Wondering what a DSP is compared to a CDP? How it works? What type of data it’s being powered by and where it acquires the data?

In Tealium’s newest whitepaper, ‘Today’s Most Powerful Martech Duo: The CDP and DSP’ marketers can learn how to better connect data sources in achieving powerful customer-centric campaigns and strategies.

Here are the 6 key things to know about a DSP:

What is a DSP?
A Demand Side Platform is a software platform that automates and optimizes the digital media buying process. They are what enables buyers to programmatically bid on available digital advertising spaces within exchanges and connect buyers (brands and agencies) to suppliers (exchanges, networks and publishers). 

How does a DSP work?
By leveraging a DSP an advertiser can programmatically purchase digital advertising inventory (referred to as impressions) across a wide range of publisher sites, networks and exchanges. Impressions are made available to purchase through the ad exchanges – a process referred to as programmatic media buying – and a DSP will decide which of those impressions to buy based on targeting criteria defined by the advertiser.

What does the targeting process look like in a DSP?
Targeting criteria within a DSP can include geography, demographics, psychographics, browsing behavior and more. DSPs automate the transaction of this buying process on behalf of the advertiser (brands and agencies), eliminating the need for human interaction, and return their bid to the ad exchange for qualifying impressions which initiates a near real-time transaction.

Keep reading to see detailed answers to questions like “How are the ads purchased in a DSP?”, “Where does a DSP get it’s data from?” and “What is 1st party vs 2nd party vs 3rd party data?”

Read the paper ‘Today’s Most Powerful Martech Duo: The CDP and DSP’ today!

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