DSP 101 – why using a DSP is a profitable decision


Many digital marketers have begun to realize that programmatic advertising is a crucial part of their advertising strategy. However, some may still be uncertain if investing in it is worth it. If that is the case for you, you have come to the right place. 

In this post, you will gain a thorough understanding of the basics of programmatic advertising and all of the advantages it can provide for your business, should you utilize it correctly. 

What is programmatic advertising? 

Put simply, programmatic advertising is a way of buying (and selling) digital advertising space that involves automated technology, an abundance of data, and algorithmic tools. It replaces manual methods and consequently offers greater efficiency, leaving more time for campaign optimization, and better focus on the important metrics relevant for your app or brand. 

How does it work? 

Programmatic advertising uses a platform like a Demand-Side Platform (DSP) and Supply-Side Platform (SSP) that allows buyers and sellers to interact and buy/sell ad slots in the blink of an eye, almost without any human interference. 

Real-time bidding (RTB or Open RTB) describes media buying via open auction in real-time. In this automated auction, all advertisers can participate, and the highest bidder wins the ad placement. Private Marketplace (PMP) works similarly to RTB, but advertisers must receive an invitation from the publisher to join the closed auction. Programmatic advertising platforms guarantee is a form of programmatic direct advertising where a fixed price and specific inventory are agreed upon in advance, but the advertiser isn’t obliged to purchase it. With Preferred deals, a fixed price and specific inventory are prearranged between the advertiser and the publisher, however, the advertiser is not obligated to buy the placement and if declined, the deal will be transferred to the Open RTB or Private Marketplace. 

Programmatic advertising’s benefits for advertisers. 

Programmatic advertising offers plenty of advantages for advertisers, with improved efficiency, additional time for optimization, and a sharper focus being among the most prominent. Here are some of the other key reasons why programmatic advertising could be a great asset to your business: it saves time, optimizes budget spending, enables target marketing, ensures data privacy, provides detailed tracking and analytics, allows real-time adjustment, and more. 

Here are some main challenges hitting advertisers’ daily work, that might be resolved using advanced programmatic software: 

  • Reaching the right audience: With the vast number of devices, platforms, and applications, it can be difficult to reach the desired target audience with relevant ads. 
  • Inefficient use of resources: Without proper targeting, advertisers may waste resources on impressions that do not reach their desired audience, leading to low conversion rates and a poor return on investment. 
  • Ad fatigue: With the increasing number of mobile ads, users may become fatigued and less likely to engage with them, leading to decreased effectiveness of advertising efforts.  
  • Lack of transparency: Traditional mobile advertising methods can lack transparency, making it difficult for advertisers to track the effectiveness of their campaigns and make informed decisions.  
  • Complexity: The process of purchasing and managing mobile ad impressions can be complex, requiring specialized skills and knowledge. 

Why use a DSP for mobile

Outstanding reach:  

When it comes to digital advertising, as mentioned before, a DSP allows marketers to bid on ad inventory in real time while targeting specific audiences based on accumulated data such as demographics, browsing behavior, and location. DSPs typically use sophisticated algorithms to optimize campaigns and improve performance, and they provide detailed reporting and analytics to help advertisers make informed decisions about their digital advertising strategy. Furthermore, the reach of a DSP is crucial, as it allows advertisers to connect with potential customers across a vast network of publishers and micro publishers, reaching audiences on various devices and platforms and providing a more efficient way to target and engage with potential customers. The reach of an advertisement is calculated by dividing the total impressions by the frequency of the ad. KPIs such as awareness, interest, consideration, and preference can be achieved by reaching the desired audience with the optimal frequency. 

Algorithmic bidding on auctions (RTB): 

The process of RTB has many advantages for example it provides advertisers with greater efficiency, it improves targeting owns higher transparency, is cost-effective, and can have a wider audience reach, making it a valuable tool in the digital advertising landscape. 

  • Increased efficiency: RTB allows advertisers to purchase ad impressions in real-time, allowing them to target the right audience at the exact right time. This increases efficiency and reduces the need for manual optimization. 
  • Improved targeting: RTB allows advertisers to target specific audiences based on factors such as demographics, behavior, interests, and location. This enables them to serve more relevant ads to a wide range of users, which expands the chances of conversion. 
  • Greater transparency: RTB provides more transparency as advertisers can see the specific websites and apps where their ads are being displayed. This enables them to optimize their campaigns more effectively.
  • Cost-effective: RTB is cost-effective as advertisers can bid on ad impressions in real-time, based on their specific needs and budgets. This reduces the chances of overspending and enables them to get the most out of their ad spend. 
  • Access to a wider audience and enhancing brand awareness: RTB enables advertisers to reach a wider audience by purchasing ad impressions across multiple publishers and ad networks. This increases the reach of their campaigns and can help to improve brand awareness. 

Maximize your own first-party data (connect to your MMP): 

Collecting first-party data when it comes to mobile app marketing is crucial when wanting to engage with existing and new users. It’s probably one of the most important tools a company has in order to understand its audience. To retain current customers and gain new ones, this understanding is vital. The accumulated data about customers and potential customers allows better retargeting and reaching the most profitable geos as well as predicting trends that could become valuable to the business. For example, first-party data such as a website’s cart information, page visits, etc., helps implement the right retargeting strategies. Connecting to an MMP of your choice gives you the ability to create look-alikes and expand reach and outreach to new and unexpected audiences based on the data collected.  

Conclusion about mobile DSP: 

Investing a great deal of your marketing efforts in a DSP platform may be one of the smartest decisions you could make for your business. Its ability to provide highly targeted ad campaigns and an exceptional audience reach with more precision and by spending less is a huge advantage to any advertiser. 

If you’re looking to simplify your ad-buying process and reach more users, check out our mobile DSP technology and start watching your numbers grow.  

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