Campaign Setup
Advertisers upload creatives and define targeting, budget, and goals within the DSP, aligning campaign needs with the capabilities of demand-side platform advertising.
04.12.2024
The eco-system of programmatic advertising can be pretty difficult to wrap your head around at first.
Hopefully this blogpost can be your guiding hand through it all, putting extra focus on exactly what Demand Side Platforms and Supply Side Platforms are.
Reach out to me on LinkedIn if you have any further questions!
Sander Boesen
Content Marketing Manager / Zuuvi
Quick guide:
Digital advertising has evolved way beyond those static, old-school banner ads. The rise of programmatic advertising platforms has reshaped how brands reach audiences, making ad buying smarter, faster, and more precise than ever. And at the heart of this programmatic revolution? Demand-side platforms (DSPs). For today’s digital marketers, DSPs are the ultimate tools to reach target audiences across devices, at scale, and with serious precision.
In this guide, we’ll break down what programmatic advertising is, how demand-side platforms work, and why DSPs are game-changers for digital campaigns. Whether you’re looking to streamline campaigns or supercharge results, consider this guide your go-to for demand-side platform advertising.
What is Programmatic Advertising?
Programmatic advertising is all about automation. It’s a way for brands to buy ad space instantly – without time-consuming manual negotiations – using data-driven tech to reach the right people at the right moment. Through programmatic advertising platforms, advertisers access digital ad space across websites, social media, and even mobile apps. The magic? These platforms evaluate user data in real time to help brands bid on ad placements that match their target audience.
When a user visits a site, the programmatic platform quickly analyses factors like browsing habits, location, and demographics. If the user fits the advertiser’s profile, a lightning-fast auction happens to decide which ad they’ll see. It all happens in a split second, and it’s exactly what makes programmatic advertising so effective.
Why Does Programmatic Advertising Matter for Brands?
In just one word: efficiency.
Programmatic advertising takes the hassle out of buying ad space by automating the whole process. With real-time bidding (RTB), brands scale their campaigns seamlessly, reaching audiences on display, video, and through social media – all while keeping costs down and relevance up.
What is a Demand-Side Platform (DSP)?
A Demand-Side Platform (DSP) is like a programmatic command center for ad buyers. It’s the tool that allows advertisers to manage multiple campaigns across websites, apps, and video channels from a single interface. Demand-side platforms simplify everything – they let brands access premium ad inventory, control bidding, and adjust targeting on the go. With DSPs, advertisers have the flexibility to buy ad space from various publishers, all in one place, without hopping from site to site.
Popular DSPs are platforms such as Google Ads, Adform, Xandr, and Google Marketing Platform.
Zuuvi integrates with all of them, as well as many other platforms. Read more about all our integrations right here.
How does Demand-Side Platform Advertising Work?
But, back to how these platforms work!
Demand-side platform advertising is an automated process that streamlines digital ad buying. Through DSPs, advertisers manage campaigns, set targeting, and control budgets from a single interface, accessing ad spaces across the web, apps, and social media in real-time. Here’s how it works:
Real-Time Bidding (RTB)
When a user visits a site, demand-side platform advertising springs into action and evaluates whether the impression fits the advertiser’s criteria. If so, the DSP bids instantly in an RTB auction.
Ad Display
If the DSP wins the auction, the ad displays immediately, reaching the target audience at the optimal moment. This instant process ensures demand-side platform advertising delivers relevant ads seamlessly.
Real-Time Optimisation
DSPs track performance metrics like clicks, conversions, and spend, allowing for continuous adjustment.
Real-time optimisation is a core benefit of demand-side platform advertising, helping advertisers maximise impact and efficiency mid-campaign.
Let's dive deeper into Real-Time Bidding (RTB).
What is Real-Time Bidding (RTB) in Demand-Side Platforms
Real-time bidding (RTB) lets demand-side platforms (DSPs) bid on individual ad impressions in milliseconds. Think of it as a matchmaking service for brands and audiences, ensuring you’re not wasting budget on irrelevant placements. RTB’s magic lies in its precision: it evaluates each impression's value against your targeting and puts your budget where it counts most. This approach boosts efficiency and ad performance, delivering personalised, high-impact campaigns. It's not just about speed - it's about being smart with every ad dollar while staying dynamic in a competitive space.
Demand-Side Platforms (DSP) vs Supply-Side Platforms (SSP)
Demand-Side Platforms (DSPs) and Supply-Side Platforms (SSPs) might sound similar, but they have distinct roles in programmatic advertising. Knowing how they differ – and how they’re linked – can help you understand the full programmatic picture.
What is a Supply-Side Platform (SSP)?
An SSP, or Supply-Side Platform, is a tool that helps publishers (the sellers of ad space) list and sell their ad inventory. SSPs connect with multiple ad exchanges and DSPs, giving publishers a bigger pool of potential buyers. SSPs also allow publishers to set their minimum bid prices, ensuring they get fair value for their inventory through real-time bidding.
How DSPs and SSPs Work Together
In programmatic advertising, DSPs handle the demand (ad buyers), while SSPs handle the supply (publishers selling ad space). Here’s how demand-side platforms and supply-side platforms connect in real-time bidding:
Inventory Listing
Publishers make their ad space available on SSPs, which list this inventory on ad exchanges. DSPs can then access and bid on this space through ad exchanges.
RTB Auctions
When a user lands on a publisher’s website, the SSP sends a bid request to the ad exchange, notifying all connected DSPs that an impression is available. The DSPs then evaluate the impression and place bids based on targeting and relevance.
Winning Bid and Ad Display
The highest bid wins, and the SSP serves the ad to the publisher’s site in milliseconds.
Together, DSPs and SSPs bring advertisers and publishers together in a programmatic ecosystem, automating the ad-buying process to benefit both sides.
I'll leave the programmatic eco-system as a whole below. This might give a better idea of the relationship between each sector.
Key Differences Between DSPs and SSPs
Although they work closely, DSPs and SSPs have distinct functions:
Purpose
DSPs buy ad space on behalf of advertisers; SSPs sell ad space on behalf of publishers
Primary Users
DSPs are used by advertisers and agencies, while SSPs are used by publishers looking to monetise their content.
Control Over Pricing
SSPs allow publishers to set their minimum price per impression, while DSPs decide how much to bid based on the campaign’s budget and targeting.
How Demand-Side Platform Advertising Enhances Programmatic Campaigns
For brands looking to optimise their campaigns, demand-side platform advertising brings huge advantages. Here’s how DSPs make programmatic advertising even more effective:
Automated Efficiency
DSPs take the hassle out of ad buying, automating bidding, targeting, and optimisation.
Advanced Targeting Capabilities
Demand-side platforms let brands reach specific audiences based on demographics, behaviour, and even geography.
Cross-Channel Reach
DSPs allow advertisers to run campaigns across multiple channels – from display and video to mobile and social media – all from one place.
Real-Time Campaign Optimisation
DSPs provide live data on performance, allowing advertisers to adjust targeting, budgets, and creatives on the fly.
By focusing spend on high-potential impressions and audiences, DSPs help brands reduce waste and get the most out of their ad budget. Every penny works harder, making programmatic a cost-effective choice for businesses of all sizes.
Programmatic Advertising Platforms and Data-Driven Targeting
One of the biggest benefits of programmatic advertising is the ability to harness data for ultra-precise targeting. DSPs combine data from multiple sources, allowing brands to create specific audience segments and reach users who are most likely to engage. These are 4 types of data used by DSPs for targeting:
Behavioural Data
User interactions, from past purchases to ad clicks, offer insights for better targeting.
Demographic Data
Age, gender, location, job title – all essential for reaching the right audience.
Contextual Data
Info about the content a user is browsing, allowing ads to appear in relevant settings.
Device Data
Knowing the user’s device type helps DSPs deliver ads in optimal formats.
With these data sources, demand-side platforms make it easy for brands to deliver personalised experiences that drive engagement and conversions. Whether it's placing an ad on a fashion blog frequented by young professionals or serving a video ad optimised for mobile devices, DSPs ensure every impression is impactful. This precision leads to better click-through rates, higher engagement, and ultimately more meaningful customer connections.
Why Demand-Side Platforms are Essential for Programmatic Success
For digital marketers, demand-side platforms are at the core of programmatic advertising. By automating the ad-buying process, DSPs provide advanced targeting, cross-channel reach, and real-time insights that help brands achieve their goals faster and more efficiently. DSPs are the ultimate tools for digital success, letting brands tap into programmatic advertising platforms to reach their target audiences at scale.
Whether you’re just starting with programmatic or looking to refine your strategy, demand-side platform advertising offers a powerful way to optimise your campaigns. Embrace the power of DSPs, unlock new opportunities, and watch your digital marketing reach new heights.