What is DSP marketing? How DSP works
When delving deeper into marketing, many people often confuse the concepts of Demand Side Platform (DSP) marketing and ad networks. Both are systems that allow users to advertise across different platforms. In this article, let’s explore what Demand Side Platform (DSP) marketing is, how it differs from ad networks, and some related information about DSP.
1. What is DSP Marketing?
1.1 Definition of DSP Marketing
DSP marketing is known as a platform that enables advertisers to purchase ads automatically through a single management interface. These ads are bought via an auction system, and the DSP acts as a representative (contractor) responsible for placing appropriate bids and handling all tasks on behalf of the advertiser, aiming to optimize the collaboration process between parties.
In addition to allowing advertisers to bid on familiar platforms, DSPs also give them access to bid on other open advertising platforms. This is one of the main reasons why many choose DSP marketing for their promotional campaigns.
In general, most users who turn to DSP marketing are agencies, advertisers, companies, or businesses seeking to secure prime display positions on SERPs.
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1.2 Popular DSP Marketing Platforms in Vietnam
Currently in Vietnam, when it comes to DSPs, many people immediately think of well-known platforms such as: OpenX, Microsoft (MSN), Facebook Exchange (FBX), Google Display Network…
On a global scale, some other prominent DSP platforms include: Vizury, Sociomantic, and Microad.
2. How DSP Works
To help you better understand DSP marketing, here’s how the system operates:
Step 1: Create a Campaign
When an advertiser wants to use DSP marketing, the first step is to create a campaign that includes essential details such as campaign name, budget, maximum bid amount, target audience profile, etc.
Once the new campaign is fully set up, it is submitted to the DSP system, where it is quickly processed.
Step 2: Check Participation Eligibility
DSP marketing works based on the principle that if there is an available ad slot, the DSP will scan and analyze submitted campaigns, including yours. The analysis results determine whether the advertiser has a high or low chance of winning the bid.
Considering additional conditions and factors, the DSP system will then decide whether your campaign qualifies to participate in the auction. This entire process happens quickly and almost instantly.
Step 3: Participate in the Bidding
Once you’ve passed the eligibility check, you will be allowed to join the ad bidding process. Before bidding, all necessary campaign information is submitted to the system as a basis for the auction.
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Step 4: Receive Results
As previously mentioned, DSP marketing opens up bidding opportunities based on available ad space. If your ad meets the requirements and offers the most suitable bid, it will be displayed in the available slot.
3. Distinguishing Between DSP and Ad Network
Both DSP marketing and ad networks are platforms that connect advertisers with publishers. However, in practice, DSP marketing and ad networks are two distinct concepts, as outlined below:
| DSP Marketing | Ad Network |
|---|---|
| Scope | Advertisers can bid for display on most platforms, including open platforms. |
| Cost | Costs are not fixed and depend on the outcome of the auction. |
By using DSP marketing, advertisers have more opportunities to choose where their ads appear, including platforms that belong to ad networks. In addition, DSP marketing offers many advanced features that help optimize costs and improve campaign performance.
4. Additional Information You Should Know About DSP Marketing
4.1 Variety of Ad Formats
To maximize effectiveness across advertising platforms, DSPs often focus on specific display formats—for example, on tablets, laptops, desktops, or mobile devices. Therefore, you should choose the appropriate display format for each advertising channel.
4.2 Queries Per Second
Queries per second reflect how many times a campaign has been submitted by the DSP to bid. This also partially indicates the campaign’s quality and potential. Additionally, the campaign’s scale significantly impacts the ad’s win rate.
4.3 Ad Pricing
As previously mentioned, scale is a key factor in determining bid success and ad pricing. DSP marketing costs are usually fixed, but in some cases, the DSP may charge based on revenue. Therefore, it’s essential to clarify the terms before partnering with a DSP.
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4.4 Transparency
DSP marketing’s bidding results are highly transparent. During the campaign creation process, you should provide complete information—from costs to content (target audience, location)—to help optimize your advertising budget and achieve more effective media results.
In conclusion, DSP marketing is a system that helps advertisers optimize cost, quality, and display position. We wish you great success in creating impactful campaigns for your business.
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