What is Mobile DSP and Why You Need It for Your Programmatic Advertising? What is Mobile DSP and Why You Need It for Your Programmatic Advertising?

What is Mobile DSP and Why You Need It for Your Programmatic Advertising?

August 16, 2018  |  8 min read  |  by Epom

When programmatic advertising is moving towards full automation and transparency, demand-side platforms are living in their glory days. A year after Epom released a programmatic self-serve DSP, we decided to take a closer look into mobile DSP once again and explain why DSP-based advertising should be in your 2019 marketing strategy.

Looking back at 2009, programmatic advertising was a starburst, and only a few companies could afford it. In 2018 almost $47 billion in US digital ad spending is expected to be flowed into programmatic. The eMarketer estimates that by 2020, programmatic advertising will account for 86.2% of the digital display, which will speed up the evolution of digital marketing.

Programmatic technology stands for automated media buying based on real-time bidding. Even though demand-side platforms have already caught on, we noticed that media buyers aren't always aware of all the outstanding opportunities these platforms provide.

Today we'll talk you through programmatic DSP advertising and show how its essential features may turn your media buying into a solid revenue driver.

Demand-Side Platform: What's Inside?

Demand-side platform or DSP is a staple of programmatic advertising. It's a place where media buyers and ad agencies come to buy web and in-app traffic at reasonable bids. DSP facilitates an RTB-based technology that enables highly-targeted online advertising in real time.

Fortunately for advertisers, demand side platforms cut off the manual work and automatize the whole process of digital advertising. Given that, bidding and performance optimizations stay under the platforms control no matter how many ad campaigns you have active in your account.

Audience targeting is another feature that makes programmatic platforms more interesting for media buyers. Most DSPs use data coming from Data Management Platforms. While running their ad campaigns on DSP, advertisers hit their audiences more accurately and reduce the number of irrelevant impressions.

Along with behavioral and demographic audience targeting, programmatic DSP offers a bunch of basic targeting options:

Basic targeting options of mobile DSP for programmatic advertising

What is a Mobile DSP?

Mobile DSPs are platforms that shifted their focus specifically toward mobile advertising . It sounds quite reasonable given the fact that users on average spend 3-5 hours on their smartphones daily.

Mobile DSPs unpack access to mobile advertising spots on both mobile websites and mobile apps. The technology also ensures that your creatives look properly on all mobile screens. Considering the amount of time that users spend with mobile phones in their hand, mobile DSPs increase advertiser's chances to reach customers with a need to see ad, just at the right moment.

However, usually, DSPs carry out cross-device advertising, including both desktop and mobile ads.

Why Should Media Buyers Use DSPs?

Since their burst into the industry in 2009, DSPs have evolved tremendously. Today advertisers will more and more often opt for advertising with programmatic DSPs instead of ad networks and here are the reasons why:

1. Cost-savvy advertising

While most ad networks continue charging users with high CPM rates, demand platforms enable buying relevant impressions with bids that advertisers can afford. Even if the advertiser hasn't won the first impression with the offered rate, he might still compete for the second or the third one. With RTB-technology in the core, DSPs unlock more opportunities for media buyers to receive the traffic and not to overpay for it.

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2. Access to hundreds of traffic sources in one interface

Programmatic demand-side platforms sell inventory coming from a wide array of SSPs. The latter, in turn, carry out direct connections with ad exchanges, sites and mobile apps all over the world. As a result, after signing up for only one DSP you receive uncontested access to quality traffic sources all across the globe.

3. Deep audience targeting

DSPs enhance their functionality with users data to help media buyers target specific audiences and hit potential customers with highly personalized messages. Not all ad networks provide advertisers with this crucial feature, and some of them ask for extra fees for this service.

4. Instant stats featured in the dashboard

Once you start advertising with DSPs you'll be surprised with how quickly your performance results may arrive to your account. No more analytics delays & wasted budgets!

5. Transparent media buying

The recent IAB initiative announced the war against the industries shady players. The good thing is that most DSPs are on the bright side in this struggle. The DSP tracks publishers who send traffic to ad campaigns and then features them in the advertiser's dashboard.

How Does Mobile DSP Work?

In addition to being a robust technology, mobile DSP is a gateway to multiple mobile traffic sources. Programmatic DSPs are connected to ad exchanges which, in turn, bridge them with SSPs, websites, and mobile apps. While standing between DSPs and various types of inventory, ad exchanges make everything work as a balanced system.

When the advertiser kickstarts a new ad campaign, the DSP gets ready to receive ad requests for this ad campaign from ad exchanges or SSPs. SSPs send ad requests to the ad exchange (or to DSPs directly) by offering to buy ad impression on a specific on-site or in-app spot. After receiving the ad request, ad exchange sends a signal to various DSPs that it has an ad impression with a particular targeting to sell. Ready to buy this specific impression DSPs start bidding, and finally the advertiser with the relevant targeting and the highest bid wins the impression.

Even though the process seems very complicated, it lasts no longer than a few seconds in real life.

How mobile DSP for programmatic advertising works

Full-Serviced and Self-Serve DSPs

While searching for the DSP for your online advertising, you may stumble upon both full-services and self-serve demand side platforms. What's the difference?

After signing up for a full-service DSP, you'll be forwarded to the manager or a team who will help you with settings, optimization or any other related questions. It's a good option for those who don't have much time for dealing with online advertising and need to focus on something else.

On the other hand, a full-service DSP has many pitfalls. For example, your manager may be unavailable at the time when you urgently need to change the creatives or stop your ad campaigns.

That's why top mobile DSPs provide advertisers with 100% self-serve accounts. Self-serve programmatic DSPs enable flexible and transparent media buying with 24/7 access to your account. With the Epom self-serve DSP, advertisers will start getting first impressions after only 7-10 minutes after the sign up. Self-serve platforms leave no place for delays or manual work. When it comes to payouts, the platform warns users whose budget is getting close to zero so that they can quickly recharge their accounts (with a bank card) and keep running ad campaigns.

To sum up, DSP is a tool ensuring successful and simple management of targeted traffic flows coming to your ads from all over the world. DSPs have everything that media buyers need for expanding their online advertising to new markets and audiences. Keep that in mind when setting up your 2019 marketing strategy or looking for additional traffic sources for your brand promotion.

Create your own DSP account here and start buying traffic programmatically within minutes.

Read our guide on how to choose the right DSP for your business before searching the one for boosting your online advertising.

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