How Does the DSP Work and Affect the Market?

Img source:

The automated advertising purchase, as well as ad network, is used to make the jobs of sellers and advertisers easier, as well as to make the advertising of products and services better. In many different ways, these purchases can be made through

Different Viewpoints

From a technical standpoint, when it comes to the programmatic process of advertising, two parties are generally involved. The first one is the sell side, and the second one is the buy-side or the advertiser. When it comes to the seller, there exist SPP platforms or the Supply/Sell-Side platforms, which sell advertising space on the sites of publishers. Also, there are Ad Exchanges and Ad Networks. The interests of the buyers are protected by the DSP platforms when they purchase the ad space. Usually, there is no interface for managing the shopping and advertising with the DSP. Instead, the Trading Desk or TD is utilized, which is basically the user interface of the DPS designed to configure all of the parameters of the advertising and purchasing processes.

Img source:

Advertising Purchase Options

The working model that allows full service consists of the entire setup, planning, and optimizing of the advertising campaign, carried out by DSP and TD professionals for the clients of the agency. In a case like this, the company with a DSP provides the clients with a whole package of services that includes coordinates media plan, targeting, KPI, promotional materials, and links.

On the other hand, self-service is the independent purchase of traffic performed by users. The advertiser is the one who gains access to the DSP that has sets everything up and loads it. This is how advertising agencies work and not customers. As an unwritten rule here, the mutual settlements on the principles of cost+ are utilized in instances where the commission of the platform is the section that is charged on the media cost, for which the traffic was bought.

Img source:


The user accesses the website, which sends a request and displays the ads on the exchange by using the SSP. This serves as a lot on the auction. The SSP then places the information about the put in a request on the exchange where DSPs are used. DSP checks the user ID in the databases they have. Also, it can purchase the data from the DMP. According to the data that is present in the SSP lot, your own data as well as the one from the DMP, the DPS makes bets, but only if the user meets the requirements which the advertiser has. The SSP will then select the highest-paid bid from the ones offered, and reduce it to the previous bet size, or the second price. The website also gets promotional material from the winner of the auction and shows it to the user that is targeted.

Also, popular now is Header Bidding, a mechanism that organizes an auction and allows the conducting immediately on the site where the ad has been sold. The site of the publisher has banner space that is sent to the SSP, and the SSP then sends it to the DSPs and wins. With Header Bidding, inventories simultaneously go to more SSPs, and directly to the DSP. Before this, the markets worked on the ‘waterfall’ scheme. Here, the site publisher would send the info about a possible display to each SSP sequentially. Hence, the site could not really have time to sell the show. For the DSP, Header Bidding allows access to more attractive inventories and the redeeming of the best shows. If DSP connects directly to the publishers, the SSP falls out of this chain, and it is cheaper without the commission is yet another participant in the whole process.

Img source:

A huge amount of impersonal info regarding the history of user visits on internet websites exists, including domains, URLs, user IDs, times of the visits, and more. All of this data is available for purchase through sources like browser plugins, thematic sites, social plugins, buttons, providers, and so on.

A transparent image of JavaScript code is Pixel, used to transfer the information about shows to a system that conducts the counting. Pixels are utilized as recording devices of the actions of users. They record page visits, registrations, conversations, etc. Also, different parameters are analyzed and predicted, like the reactions of segments of the audience to the ads, what works the best, which channels are the most effective for which audience, etc. If the Pixel is not installed on the website of the brand, the predictions do not work and the system cannot analyze the parameters. It basically works blindly and greatly reduces the possible success of the whole campaign.