What is a Demand-Side Platform?
Last Updated: March 17, 2020
A demand-side platform (DSP) is a system used by advertisers to purchase advertisement inventory placements from multiple sources all on one platform. The placements are where the ads will be displayed across many websites and mobile apps. The platform uses auction software to automatically bid on these inventories for the advertisers, which makes the process much simpler for media buyers purchasing digital ad space. Some of the largest platforms like Facebook, Instagram, and LinkedIn are available to purchase ad space on through a demand–side platform.
A DSP opens the ability for advertisers and media buyers to target specific audiences to increase conversion. A media buyer can set targets to focus their advertisements on. If someone is searching for clothing, the advertiser can choose to display ads across various platforms to that user.
Demand-side platforms are what advertisers use to buy ad inventories when participating in real time bidding auctions.
They can target audiences based on location, demographics, which keywords they’re using, and what kind of device they’re using among many more. Demand-side platforms also provide insights and data for how each ad campaign is doing across many different websites on the DSP.