A demand-side platform (DSP) is a platform that empowers companies to buy advertising inventory and manage it by using one interface. It helps control multiple ads in real-time, monitor, and improve their performance.

To properly reach the target audience and get the desired result, companies try to optimize advertising processes. Now the ad buying and selling have become even easier with the help of DSP. In this article, we’ll unveil how a demand-side platform operates, find out the difference between a DSP and a supply-side platform (SSP), and see several examples.

How Does a Demand-Side Platform Work?

If you apply demand-side platforms, you don’t need to pass through some additional independent networks since these platforms operate without their help. For example, in case you leverage Facebook Ads Manager, you can directly buy impressions on Instagram or Facebook.

DSPs allow media buyers to purchase display, audio, and video ads, analyze and manage them on various networks by using a single platform. First of all, platforms provide buyers of ads with information about purchasing advertising from a publisher.

The systems don't imply buying ads directly from publishers or owning them. Companies should be aware of the fact that DSPs connect with SSPs via ad exchange to decide on the details of an impression. DSP has to bid higher for the impression if it’s a marketing manager who has already visited a company’s website.

Now let’s make the difference between DSPs and SSPs clear.

What is the Difference Between a Demand-Side Platform and a Supply-Side Platform?

The key difference between a DSP and an SSP is that they network with the different parts of the programmatic ecosystem. The first service is leveraged by companies, agencies, and publishers to manage the purchasing process of ads. Using a DSP enables companies to reach different publishers from a single platform. The second platform is used to optimize the selling process of ad space. With an SSP, ad sellers can reach a bigger number of buyers through different ad exchanges.

Now let’s jump into several examples.

Examples of Demand-Side Platforms

  • Amazon Advertising Platform
  • Choozle
  • Facebook Ads Manager

If agencies, publishers, and brands manage campaigns through different networks, DSPs help control everything by using a single dashboard. This is one of the reasons many brands turned to the following platforms for help.

Amazon Advertising Platform

As an advertiser, you would probably like to reach new audiences and obtain more customers. With Amazon DSP, you have a great chance to buy advertising at scale on Amazon and other websites to reach people worldwide.

Amazon DSP

Amazon DSP website and its solutions

Choozle

With Choozle, you as a marketer don’t need to worry about campaigns at scale because you can run them smoothly. Businesses can easily optimize their digital advertising with the help of the service. Access targeting tools to optimize digital advertising and evaluate its performance in Choozle.

Choozle

The view of the Choozle website and the services it offers

Facebook Ads Manager

Open Facebook for business to explore Facebook Ads manager, a typical example of a DSP. It allows companies and individuals to run ads on Facebook, Instagram, and Messenger. The service empowers advertisers to monitor the performance of their marketing campaigns and figure out the improvements to be made.

Facebook Ads Manager

Facebook for Business website

To put it simply, DSPs allow businesses to simplify the process of negotiations between buyers and sellers of ads. As a result, advertisers can choose and purchase advertising inventory on a single platform. The service also empowers companies to monitor the results of each campaign by providing companies with reports and analytics.

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