What is dsp ? Demand-Side Platforms

A DSP, or Demand-Side Platform, is a type of software used for the programmatic acquisition of online ad inventory through thousands of sites, apps, and exchanges, and the use of automated decisioning at the impression level.

Rather than working with individual publishers and negotiating ad buys, a DSP connects with a variety of ad supply sources and makes a decision in real-time regarding whether or not to bid for the ad opportunity and what the ad creative should be, based on the desired ad targeting and performance objectives.

How a DSP Works

So, let's talk a little more about the inner workings of a DSP and what happens when a potential ad opportunity is presented:

• A user opens a page or launches an application.
• A publisher's ad stack, through a supplier such as a Supply Side Platform, sends the ad opportunity through the ad exchange.
• The ad exchange sends a bid request to all the DSPs and other ad buyers, including the type of device, location, ad placement, and other contextual details, as well as user signals and possibly user ID for audience matching if allowed.
• Each DSP makes a decision regarding the ad opportunity and whether or not to bid on the ad space, and the ad exchange holds the auction and the winning ad is rendered.
• And the whole process happens in tens of milliseconds, meaning the user doesn’t even notice the ad is changing or the ad is delivered, and the user experience is uninterrupted.

What You Use a DSP For

A DSP is the actual means through which a performance or brand ad campaign is executed. The actual functions of a DSP can vary but often include:

• Programmatic ad buying for display, video, native, mobile, CTV, and possibly audio and DOOH ad units
• Targeting by geography, device, OS/Browser, contextual signals, and, if available, audience segments.
• Budget and bid management, including pacing, bid strategies, and bid modifiers.
• Real-time optimization based on conversion data, viewability, engagement, post-click, and post-view outcomes.
• Measurement and attribution with pixels, SDKs, server-to-server events, and analytics/MMP integrations.
• Frequency management to limit ad impressions to avoid waste.
• Brand safety and suitability, including blocklists, allowlists, and inventory quality filters.

Why DSPs matter

DSPs matter because they allow advertisers to reach fragmented, auction-based inventory efficiently. DSPs make inventory buying efficient, data-driven, scalable, and optimizable. A DSP, therefore, is how advertisers convert their marketing objectives (CPA, ROAS, reach, viewability) into automated decisions.

• DSP vs. SSP: The Clean Line Between the Two
• DSP - Demand-Side Platform. Used by advertisers to buy impressions.
• SSP - Supply-Side Platform. Used by publishers to sell impressions.
• Mental model: DSP optimizes spend, SSP optimizes revenue.

Is TrafficStars a DSP?

TrafficStars is primarily an ad network with programmatic features. While ad networks can, at times, offer features similar to a DSP, the key difference between the two lies in their ability to access a wide array of inventory, including exchanges, which typically use SSPs. A true DSP, therefore, is one with integrations to many SSPs, giving it access to a wide array of inventory. While this question remains subjective, it is safe to say that TrafficStars is primarily an ad network with programmatic features.