Guide

Demand-side platform (DSP)

Definition, importance, examples, how it works

A demand-side platform (DSP) is a tool that allows advertisers to buy digital ad inventory across multiple exchanges in real time. DSPs enable automated, information-driven media buying to reach relevant audiences efficiently.

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A demand-side platform (DSP) is a technology that automates the purchase of digital advertising across publishers, supply-side platform (SSP) and exchanges, enabling advertisers to reach desired audiences in real time. With integrated advanced controls, advertisers choose relevant audiences, ad placements and pricing. It also provides analytics to understand impact and for optimizing campaigns. DSPs streamline cross-channel ad buying, enhancing efficiency and return on investment (ROI). By using a DSP, advertisers can effectively monitor and manage their campaigns.

What is a demand-side platform (DSP)?

A demand-side platform (DSP) is a technology that automates the purchase of digital advertising across publishers, supply-side platform (SSP) and exchanges, enabling advertisers to reach desired audiences in real time. With integrated advanced controls, advertisers choose relevant audiences, ad placements and pricing. It also provides analytics to understand impact and for optimizing campaigns. DSPs streamline cross-channel ad buying, enhancing efficiency and return on investment (ROI). By using a DSP, advertisers can effectively monitor and manage their campaigns.

How does a DSP work?

A DSP works because it uses real-time bidding (RTB) to purchase ad inventory. When someone visits a web page, the DSP evaluates the available ad inventory and bids on it within milliseconds, ensuring the ad reaches the right audience at the right time. This media-buying process is automated, and relies on sophisticated algorithms and digital analytics to make quick decisions. Additionally, advertisers gain advanced controls over reach, bidding and placements, which helps them meet their specific advertising goals effectively. By leveraging RTB, DSPs can provide real-time adjustments and optimizations for ongoing campaigns.

programmatic lifecycle

The programmatic lifecycle brings together demand-side platforms (DSPs) on the buy-side with supply-side platforms (SSPs) on the right.

How does the programmatic lifecycle work?

To simply understand the programmatic lifecycle, let’s start with the audience, or consumers, an ad is ultimately served to:

  1. Audience loads page on publisher website in their browser
  2. Publisher ad server announces via SSP that ad inventory is available
  3. DSP informs the advertiser via an ad exchange linking to a DSP trading desk who select inventory based on the type of consumer they want to advertise to

Why use a DSP?

Using a DSP is beneficial because it automates the media-buying process, saving time and effort. A DSP allows advertisers to access a vast network of inventory across publishers and the open web. DSPs help advertisers reach the right audience based on measurements, optimize ad performance through real-time bidding (RTB), and maximize the efficiency of advertising budgets.

With audience optimization, advertisers can reach specific groups of consumers who are most likely to be interested in their products or services. This ensures that ads are more relevant and effective. DSPs also provide comprehensive analytics and reporting, allowing advertisers to refine their programmatic advertising strategies and improve ROI.

What is the difference between a DSP and a supply-side platform (SSP)?

A DSP enables advertisers to buy ads, while a supply-side platform (SSP) allows publishers to sell ad space. Think of it like this: DSPs are the shoppers at the auction, and SSPs are the sellers. Both DSPs and SSPs work together to ensure ads reach the right customers at the right time. While DSPs cater to advertisers, SSPs cater to publishers, facilitating the sale of their ad inventory.

What are the components of a DSP?

Now that we’ve explored how a DSP transforms the ad buying process, let’s break down its core components to understand the mechanics behind this seamless operation.

Components of a DSP

  • Bidder: Handles the real-time bidding process
  • Ad server: Manages the delivery and measurement of ads
  • Campaign reporting: Provides insights and reports on ad performance through a centralized dashboard
  • Budget manager: Controls the spending and allocation of your ad budget
  • Ad exchange and SSP integration: Connects with solutions to find the best ad inventory
  • Creative management: Enable advertisers to programmatically manage DSP ad creatives (supporting display, video, audio, third-party and component formats)
  • Fraud detection and brand safety measures: Implements measures to protect against ad fraud, and ensures that ads are displayed in brand-safe locations
  • Third-party integrations: Allows seamless integration with third-party tools and services to enhance campaign capabilities

Types of DSPs

There are two types of DSPs: self-serve and full service.

Self-serve DSPs:

These allow advertisers to manage their own campaigns. They are user-friendly and perfect for those who prefer control over their media-buying strategies.

Full-service DSPs:

In addition to self-service options, full-service DSPs provide comprehensive support and management, making them ideal for those who prefer to leave the details of media buying to professionals.

Amazon DSP examples

Here are some examples of how brands have used Amazon DSP.

Case studies

Califia Farms used Amazon DSP to boost brand visibility and drive sales, achieving a 58% increase in detail page views and a 45% increase in new-to-brand sales through precise audience reach and effective media buying.

A man

Case studies

Pip & Nut leveraged Amazon DSP to enhance their digital marketing efforts, resulting in a 40% increase in sales and a 30% increase in brand awareness by effectively reaching the right audience.

Pip & Nut

Case studies

General Mills used Amazon DSP to optimize their ad campaigns, leading to a 3.1X return on ad spend (ROAS) and a 12% increase in purchase rate through strategic audience reach.

A girl

Case studies

Comfort leveraged Amazon DSP and sponsored ads in a full-funnel campaign supporting the campaign with Amazon Fresh branded bags, resulting in a 65% increase in purchase rate compared to previous campaigns.

Comfort

Case studies

Barriz used Amazon DSP video ads to boost brand awareness in Japan and help drive customers to product detail pages at a lower cost per click (CPC).

Bro Glo

Everything you need to know about Amazon DSP

Are you ready to transform your advertising strategy? Dive into the world of Amazon DSP, and see how it can simplify your media-buying process, reach the most relevant audience and maximize your campaign performance. Don’t just keep up with the competition – outshine them.

Getting started with Amazon DSP

If you’re ready to get started, Amazon DSP is available for you. Whether or not you sell products on Amazon, you can use the self-service and managed-service options available. You can register today to start using Amazon DSP, or contact an Amazon Ads account executive to learn more.

Pricing and buying options for Amazon DSP depend on the format and placement of your ads. You have no shortage of options when using Amazon DSP: You can purchase audio ads, display ads and video ads. For self-service customers, there are no management fees, since you’ll have full control of your campaigns. For managed services, it typically requires a minimum spend of USD $50,000 (minimum may vary per country).

How does Amazon DSP work?

Amazon DSP allows you to programmatically buy ads, and it’s available to advertisers whether or not they’re selling products on Amazon. Programmatic advertising is the automation of buying and selling digital ads, which can show up on the web, mobile, apps, video and social media. Using a DSP is beneficial because it helps efficiently display ads to relevant audiences, and then measure the performance of the ads for even further optimization.

Reporting capabilities of Amazon DSP

One of the biggest benefits in using Amazon DSP is the exclusive insights you’ll get that can help you connect your ads with relevant audiences. The campaign reporting capabilities include marketing metrics such as detail page view rate (DPVR) and add to list (ATL) counts, as well as new-to-brand (NTB) metrics, reach, frequency and viewability metrics. Eligible advertisers can also use third-party measurement solutions, like brand lift studies and offline sales lift.

How to optimize Amazon DSP

With Amazon DSP, you have a variety of options, from creating custom ads to using our exclusive Amazon creative options. For example, our display creatives can include your product image, then automatically generate various elements to form the best results possible.

Amazon DSP can also work alongside our other ad products. For instance, Sponsored Display is a self-service display advertising product, and display ads can be included in programmatic purchases with Amazon DSP. You can also conduct custom analytics across Amazon DSP campaigns with the help of Amazon Marketing Cloud.

FAQs

What is programmatic advertising?

Programmatic advertising automates the buying and selling of online ads. It uses software to handle ad transactions, making the process more efficient and effective.

What is an ad network?

An ad network connects advertisers to websites that want to host ads. It’s like a marketplace where ad space is bought and sold.

What is an ad exchange?

An ad exchange is a digital marketplace where advertisers and publishers buy and sell ad space in real time.

What is an ad server?

An ad server stores, delivers and measures online ads. It ensures the right ads are shown to the right audience.

What is private marketplace (PMP) advertising?

PMP advertising involves buying ad space through private, invite-only auctions. It’s like having VIP access to premium ad inventory.

What is an agency trading desk?

An agency trading desk is a service provided by advertising agencies to manage programmatic media buying for their clients. It’s like having a dedicated team to handle all your ad-buying needs.

What is media buying?

Media buying involves purchasing advertising space across various locations to reach a specific audience. Learn more about Amazon Ads Media Planning Suite.

If you have limited experience, contact us to request services managed by Amazon Ads. Budget minimums apply.