A demand-side platform (DSP) is a software platform that enables advertisers to buy ad inventory from various ad exchanges and supply-side platforms (SSPs) in real-time bidding (RTB) auctions. DSPs allow advertisers to bid on specific audiences and placements and to set up, manage, and optimize ad campaigns across multiple ad exchanges and SSPs. DSPs also provide various tools and features to help advertisers target and personalize their ad campaigns, such as data management platforms (DMPs) for collecting and organizing data on audiences and algorithms for automated decision-making and optimization. Advertisers and agencies use DSPs to reach specific audiences across various digital channels, including display, video, mobile, and social media.
DSPs use machine learning algorithms to connect advertisers with available ad inventory from various ad exchanges and SSPs. When a publisher makes ad inventory available for purchase, the SSP sends the inventory to ad exchanges, where it can be accessed by DSPs. The DSP then uses data and algorithms to determine which ads to bid on and how much to bid on, based on the specific targeting criteria and objectives set by the advertiser.
Once a DSP has won an auction, the ad is served to the targeted audience on the publisher's website or app. The DSP tracks the ad's performance and provides analytics and reporting to the advertiser on the campaign's results.