AdParlor Academy Paid Digital Glossary

Plain language explainers to help you keep up with the evolving digital landscape.

Demand-Side Platform (DSP)

A Demand-Side Platform (DSP) is a technology platform that allows advertisers to purchase digital advertising inventory in an automated and efficient manner. DSPs enable advertisers to manage and optimize their ad campaigns across multiple ad exchanges and networks from a single interface, leveraging real-time bidding (RTB) to target specific audiences with precision.

DSPs are essential for streamlining the ad-buying process and improving campaign efficiency. They provide access to a wide range of ad inventory and audience data, allowing advertisers to optimize their ad spend and achieve better targeting. By automating the ad buying process and utilizing data-driven insights, DSPs help advertisers maximize their return on investment (ROI) and enhance overall campaign performance.

Example
A global travel brand uses a DSP to run a programmatic advertising campaign promoting vacation packages. By using the DSP, they can bid on ad space across various websites and apps in real time, targeting users based on their travel interests and behavior. This approach ensures that the ads reach potential customers who are most likely to be interested in booking a vacation.

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