DSP Meaning in Marketing – What Is a Demand-Side Platform

Manual media buying is becoming a thing of the past, as algorithms have replaced direct agreements. For affiliate marketers, media buyers, and affiliate teams, DSP has now become a working tool. If you also want to scale up and not waste time monitoring platforms, you definitely need to know what a Demand Side Platform is and understand DSP’s meaning marketing – in affiliate and performance.

What Does a Demand-Side Platform Do

DSP (Demand Side Platform) – software that automates the purchase of digital ads in real time. It is the main tool on the buyer’s side of traffic. Instead of knocking on each publisher’s door separately, you can manage campaigns on thousands of sites through a single interface.

DSP is used to purchase ad impressions from various data-driven sources, algorithms, and specified targets. When a user visits a website, information about them (location, device, interests) is instantly transmitted to the ad exchange. DSP analyzes this data and, if the user’s profile matches your targeting settings, places a bid. All this happens in milliseconds.

The main task of the Demand Side Platform is to make traffic purchasing as effective and profitable as possible through RTB auctions. Key functions of the DSP platform: 

Real-time traffic purchasing (Real Time Bidding)

The platform connects to advertising exchanges and SSPs and participates in auctions for DSP ad impressions in real time. Bid on ads is generated automatically based on the specified campaign parameters – audience, price, format, and campaign goals.

Precise targeting

Demand Side Platform advertising can be flexibly configured by geography, device, operating system, interests, behavioral data, time of day, providers, and dozens of other parameters, as well as contextual targeting advertising.

Budget and bid management

The platform automatically redistributes the budget in favor of the most effective sites and combinations, strengthening those that show the best results.

Data management

The Demand Side Platform (DSP) uses its own algorithms, first-party, and third-party data to improve traffic quality.

Campaign scaling

A single ad launch can cover thousands of websites and mobile apps. This is very important if you work with large volumes of traffic.

In short, DSP marketing meaning is a campaign management center where all decisions are made quickly and based on numbers.

Top Demand-Side Platform Providers

The DSP software market offers universal platforms and solutions for specific niches and formats, as well as global platforms for large brands and more flexible solutions for affiliates. The top demand side platforms today include:

1. The Trade Desk – a powerful independent platform offering access to premium inventory worldwide.
2. Google Display & Video 360 (DV360) – another one of the best DSP platforms, part of the Google ecosystem, provides access to a huge number of sites and deep integration with analytics.
3. Amazon DSP – the ideal choice for those working with e-commerce, as it allows you to use data about Amazon users’ purchases.
4. Adobe Advertising Cloud – a demand-side platform for complex cross-channel campaigns and working with large amounts of data.

The choice of Demand Side Platform providers depends on the tasks, budget, geography, and type of traffic you are working with. Classic DSPs (such as DV360 or The Trade Desk) rarely work directly with individual verticals (iGaming, finance, and mobile offers). Therefore, arbitrageurs choose specialized DSPs for affiliate and performance marketing that support the necessary formats. Here are some demand-side platform examples:

• Moloco Ads –  DSP advertising platform with a strong focus on mobile and in-app traffic, providing access to in-app inventory through major sources such as AppLovin and Unity.
• ClickAdilla (Traffic DSP) – An advertising platform with its own DSP engine, where you can purchase push, pop, native and other formats.
• ExoClick – although it is more of an advertising network, it has RTB/programmatic elements and is often used by affiliate marketers for iGaming traffic.
• Zeropark is an advertising DSP with good targeting tools (including pop and push traffic). 

Is Facebook a Demand-Side Platform?

Media buyers often ask whether Facebook (Meta Ads) can be considered a DSP platform. In fact, no, Facebook is not a classic Demand Side Platform marketing.

Meta Ads uses similar auction algorithms, but it is a closed advertising ecosystem. Here, traffic is purchased only within Meta resources (Facebook, Instagram, and Audience Network). Facebook does not touch external advertising exchanges, so technically it is an advertising network with elements of programmatic buying.

The DSP platform, on the other hand, works with many independent sources and exchanges. It is not limited to a single ecosystem and offers more freedom in scaling. Therefore, Facebook is a powerful advertising source, but it is by no means a pure Demand-Side Platform.

Why Use a DSP in Affiliate Marketing?

For affiliates, using Demand Side Platforms is a way to reach a new level. Once your links have been sufficiently tested, you need volume. DSP gives you access to a global reach that no single ad network can offer. It is important to understand not only what is a DSP in advertising, but also what practical benefits its use brings to affiliates. 

Benefits of Using a DSP for Affiliate Marketers

• Scaling without losing control – you can purchase millions of ads DSP impressions in different geos simultaneously.
• Time savings. You don’t need to create accounts in ten networks, as all the statistics are in front of you in one window.
• Low entry threshold for RTB. DSP enables advertisers to buy traffic on a CPM model (per 1000 impressions) at very competitive prices.
• Higher quality traffic – accurate targeting and filters help weed out ineffective sources. The best demand-side platforms are integrated with fraud protection services, which reduces the percentage of “empty” clicks.
• KPI optimization – campaigns are easily adapted to leads, deposits, installations, and ROI.
• Quick testing of new creatives and combinations.

For experienced arbitrageurs, a DSP platform is a logical step after working with classic advertising networks because it covers all key processes. If you are interested in what is DSP in advertising, then you too have found your growth points.

What Is the Difference Between a DSP and an Ad Network

DSP and ad networks solve the same problem – ad placements, but they do it differently, and their differences are fundamental.

1. Reach. Ad networks are limited to their partner sites. DSP gives access to dozens of ad networks and exchanges (Ad Exchanges) simultaneously.
2. Pricing. Networks often have fixed prices or simple auctions. DSPs use a complex RTB mechanism, where the price for each impression can be unique.
3. Technology. DSP advertising platforms usually offer more advanced retargeting and data management tools.

Demand-Side Platform gives access to a wider advertising inventory, control over bids, targeting, and budget distribution between sources. An advertising network offers buying and selling traffic from a limited set of sites. Settings and control of sources are usually simplified here, and scalability depends on the network itself.

An advertising network is an intermediary that collects inventory from a specific pool of sites and resells it. In other words, it is a ready-made solution, while a DSP is a programmatic buys tool for those who need managed services at a deeper level.

Demand-Side Platform vs Supply-Side Platform – Which One to Choose

If you understand what is DSP platform, you are unlikely to have this question. In fact, you don’t need to choose between a demand-side platform vs supply side platform, as they perform opposite tasks. And in the programmatic advertising ecosystem, they represent the interests of different parties to the transaction.

• Demand Side Platform software for affiliates and media buyers. We have already explained what are DSPs in advertising: the platform helps to profitably buy the desired audience on multiple platforms at once, optimizing costs.
• Supply Side Platform is a tool for site owners (publishers). It helps them connect their advertising inventory to ad exchanges, automate the sale of impressions, and increase ad revenue. The main goal is to sell advertising space at the highest possible price.

Interaction between them takes place through an ad exchange during an auction:

1. The SSP puts a lot (an impression to a specific user) up for auction and sets a minimum price.
2. The DSP analyzes the lot and, if it matches the campaign parameters, places a bid.
3. The SSP selects the winning bid and sends a signal to the user’s browser to display the creative.

In other words, you only need a Demand-Side Platform to purchase traffic. An SSP is only relevant if you own a website or app and want to monetize its content through advertising networks. Now you know what is demand side platform and can automate your ad buying and scale your ad campaigns without losing control. Despite the advanced technology of DSP, the success of your campaign still depends on the quality of your creatives, the relevance of your offer, and how well you understand your audience. If you are looking for advanced technologies that can strengthen your connections and strategies, especially when working with different geographies and traffic formats, try LosPollos smart links.