The digital marketing landscape is constantly evolving, and demand-side platforms (DSPs) are perhaps one of the most exciting developments that have emerged from that rapid transformation.
As an advertiser, DSPs provide you with unprecedented control and insights into the reach, efficacy, and efficiency of your paid ad campaigns. With that in mind, let’s dive in and unravel the power and utility of these platforms.
What Are Demand-Side Platforms?
A demand-side platform is a digital system that allows advertisers to buy ad inventory from multiple sources through a single interface. It makes for a powerful tool to include in your digital advertising toolkit, simplifying the ad-buying process by automating both it and the placement of your ads across various platforms, including social media, mobile apps, and websites.
The most popular type of DSPs focuses on connected TV (CTV) advertising, whose channels include streaming services like Netflix, Hulu, and HBO Max. These channels use supply-side platforms to manage and sell their supply of ad space. But without a DSP along them, you would have to purchase advertising space on each of these channels separately.
DSPs consolidate and streamline the process, allowing you to get more bang for your buck and market across multiple channels. In turn, you’ll enjoy greater reach and simplified campaign management, leaving you with more time to focus on other aspects of brand-building.
4 Benefits of DSPs
Demand-side platforms offer a plethora of benefits, such as:
1. Automation
Where the traditional method of purchasing digital ads was time-consuming on top of being prone to inefficiencies, DSPs have revolutionized the entire process. Through the use of algorithms, DSPs can choose and purchase ad space, all in real-time, based on your preferences, such as audience demographics and interests, location, and budget.
With the automation capabilities DSPs provide, you can increase the odds that your ads are seen by the right audience. In turn, you’ll enjoy improved advertising efficiency and minimize how many ads are shown to people outside of your target market.
2. Granular Targeting
Another standout feature of DSPs is their sophisticated targeting capabilities. Whether you’re targeting a specific age group in a particular geographic location or users with certain browsing behaviors, DSPs can help you reach your ideal customer with unprecedented precision.
When working for a local and regional business, you don’t want to waste time and money advertising to people outside of your service area. And you must ensure that ads are delivered to specific segments within your target region. In these cases, granular targeting is particularly useful.
3. Cost-Effectiveness
The best DSPs make use of real-time bidding (RTB) technology, allowing you to (as the name implies) bid on ad space in real time. RTB isn’t just about increasing ad placements, though. Its primary function is to give you more control over your advertising budget.
When setting up your campaigns, you’ll decide how much to bid on specific placements and channels. Then, in a fraction of a second, the RTB tool will analyze your opportunities and place the highest bid in the slot for you.
4. Transparency and Control
Advertising online can be costly without adequate visibility into where you are displaying your content. DSPs solve the issue of lacking transparency while simultaneously giving you total control over spending, campaign length, and who you target.
Increasing control over your campaigns takes the guesswork out of digital marketing while also enabling you to adjust based on the evolving needs of your business.
Making the Most of Demand-Side Platforms
DSPS can quite literally change the game for advertisers. However, they aren’t quick fixes. You still need to set the stage for a successful campaign. And as part of that process, you need to do the following:
Identify Your Audience
First, decide who you want to market to. Understand your audience and prioritize the channels where they are most active. Just because a DSP gives you access to multiple platforms doesn’t mean you should run ads everywhere. Focus on your customers’ preferred social media apps and streaming channels.
Set Clear Goals
Next, determine what it is you are trying to achieve. If your campaign goals involve acquiring more leads, you’ll need to take a much different approach than you would if the priority was to drive foot traffic to a new brick-and-mortar store. Once you know what your goals are, you can build a campaign to achieve them.
Use a Multifaceted Process
Don’t rely on DSPs alone. Instead, think of them as a foundational part of your marketing mix. You should also deploy search engine optimization, email, and other tools to build strong relationships with your audience.
Step Into the Future of Advertising
Altogether, DSPs represent a key cog in the future of online marketing. By investing in them, you can elevate your brand presence and drive real business results.
