DSP: definition, how it works and programmatic

A DSP connects advertisers to ad inventory available on thousands of sites and apps via marketplaces called ad exchanges. When a user loads a web page, the publisher's SSP sends a bid request. In milliseconds, the DSP:

1. 1Evaluates the user's profile
2. 2Compares it against defined audience criteria
3. 3Calculates a bid and submits it
4. 4If the bid wins, the ad is displayed

This process constitutes RTB (Real-Time Bidding). DSPs offer advanced features:

• Audience targeting: demographics, interests, purchase behaviour
• Contextual targeting: page content type
• Retargeting and lookalike audiences
• Brand safety: excluding inappropriate content
• Frequency capping: limiting exposures per user

Major DSPs include Google Display & Video 360, The Trade Desk, Amazon DSP, Xandr and MediaMath.

DSPs revolutionised media buying by replacing manual negotiations with automated, optimised buying. They make it possible to reach precise audiences at the right moment on the most relevant placements, while optimising ROI via machine learning algorithms.

For performance marketing teams, mastering a DSP is a significant competitive advantage when managing display budgets at scale.

1. 1Precisely define your target audiences and performance KPIs (CPA, ROAS, target CPM).
2. 2Configure remarketing lists based on behavioural data from your analytics tool.
3. 3Test multiple bidding strategies (fixed CPM, optimised CPM, vCPM).
4. 4Exclude converted audiences to avoid budget waste.
5. 5Regularly analyse placement reports to exclude low-performing sites.