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Understanding Demand-Side Platforms (DSPs): what they are, how they work, and why they matter

illumin

This is where Demand-Side Platforms (DSPs) come into play. DSPs have become an integral tool in programmatic advertising, allowing marketers to buy digital ad inventory in real-time through automated bidding. What is a Demand-Side Platform (DSP)? Let’s break it down.

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Understanding Demand-Side Platforms (DSPs): what they are, how they work, and why they matter

illumin

This is where Demand-Side Platforms (DSPs) come into play. DSPs have become an integral tool in programmatic advertising, allowing marketers to buy digital ad inventory in real-time through automated bidding. What is a Demand-Side Platform (DSP)? Let’s break it down.

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B2B Programmatic Advertising: Complete Guide for 2025

MNTN

Here are the critical components of that automated process: Demand-Side Platform (DSP) A Demand-Side Platform (DSP) helps advertisers purchase digital ad inventory. In other words, its an automated buying platform that buys ad space through an ad exchange for a predetermined price.

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Programmatic Advertising 101: Setting Campaign Goals and KPIs

Basis

Advertisers have enjoyed the benefits of programmatic media since 2007, when demand side platforms were first introduced. Cost-per-thousand (CPM) or click-through-rate (CTR) are best suited to measure this. Video completion rate (VCR) or audio completion rate (ACR) are best suited to measure this.

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Programmatic Advertising: What Is It and How Does It Work?

MNTN

Demand-Side Platform (DSP) A Demand-Side Platform (DSP) is an automated buying platform where advertisers can purchase digital ad inventory. Demand-side platforms can be used to purchase inventory across digital, mobile, and Connected TV. hovering, expanding).

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Key Programmatic Advertising Metrics & Reporting

Smart-Hub

Calculating the conversion rate provides overall engagement insights and helps identify the most effective ads that resonate with the audience. CTR Another metric crucial for digital advertising measurement is CTR, which stands for a click-through rate. In general, the lower this rate is, the better.

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Programmatic 101: Aligning Campaign Objectives with KPIs and Targeting  

Basis

The emergence of demand side platforms (DSPs) in 2007 triggered a renewed focus on buying audiences, rather than websites. Recommended KPIs include: Cost-per-acquisition (CPA) Number of conversions Return on ad spend (ROAS), and Cost-per-verified walk-in. Suddenly, brands could follow consumers across websites.