As part of the programmatic package, DSP is used by numerous businesses to boost their advertising efficiency. It is equally beneficial for business owners, media buyers and agencies, and there are some very good reasons for that – which we are going to take a look at.
No matter if you are already familiar with DSP or a complete newbie, let’s dive deeper into the concept and analyze why it will work in your particular case.
DSP FOR SMALL AND MEDIUM BUSINESSES
Every entrepreneur’s goal is spreading the word of their business quickly and efficiently with minimal financial spends. With the arrival of programmatic advertising, this goal became more easily reachable.
This is how programmatic works: AI-based software is used to purchase advertising inventory. It is usually done via a real-time bidding system, where DSP (demand-side platform) and SSP (supply-side platform) unite advertisers and publishers respectively.
A user clicks a link to a page where ad space is available. Within milliseconds, programmatic AI analyzes all the data available on this user to decide how likely they are to engage with a particular advertiser’s ad. The advertiser who is deemed by the AI to be the best fit thus wins the auction, and their ad is displayed to the user.
The factors that go into these decisions are numerous. Programmatic advertising has the most detailed targeting options, from user’s browsing history to the physical locations they frequently visit, to the brands they normally purchase. An ad will never be shown to irrelevant users, so there will be no completely wasted impressions.
Most businesses report a significant increase in ROI after switching to programmatic.
DSP FOR MEDIA BUYERS
Programmatic advertising changed the quality of work for media buyers everywhere. Gone are the drawn-out negotiations, weeks spent trying to get a hold of the publisher and work the schedule around numerous business meetings and different time zones; no more insertion orders being forwarded back and forth. The automation takes care of every routine task and eliminates every chance of human error, giving media buyers time to focus on optimizing, improvement and brainstorming new strategies.
Monitoring campaigns to make adjustments on the fly is another great advantage of programmatic advertising. With traditional contracts, you could end up being locked in unfavorable conditions that couldn’t be changed according to the terms of the IO. This is no longer a problem with programmatic.
Finally, using a DSP gives media buyers the possibility to manage multiple accounts within a single interface. With the rapid increase in the number of publishers, it is a necessity rather than convenience.
DSP FOR AGENCIES
Agencies need DSP for the same reasons media buyers and business owners do, and some more. The advanced targeting options help calibrate ad campaigns to every client’s need, and the possibility to unite all the accounts in one place is invaluable.
In the past, the problem of ad relevance used to be a huge obstacle that kept many business owners from working with agencies. Finding the best fit among all publishers for a particular client’s ads was a complicated task, and many impressions were wasted on irrelevant traffic.
Programmatic got rid of that problem by making sure the ad is always relevant to the user, no matter where they see it. Moreover, the list of possible inventory expanded, too: now it’s easy to run the same ads on a number of vastly different sources, from YouTube pre-rolls to gaming apps.
Providing only relevant impressions means a great increase in CTR. Switching to programmatic advertising greatly improves the quality of the traffic offered by agencies, and as a result, client satisfaction and agency’s reputation.
There is very little doubt that programmatic is the future of digital advertising. Business owners and marketers are switching to it because of the greater ROI, media buyers and agencies get a great workload taken off their shoulders and can focus on more important tasks.
For any type of client, DSP is a safe and effective tool to at least try out. And after trying it out, very few people go back to more traditional methods.