What is a DSP? A Full Breakdown of Demand-Side Platforms for Marketers

As a marketer, I’m no stranger to ad managers like Google Ads and Meta Ads. However, I was interested to learn that there’s a third option for ad buying: demand-side platforms (DSP).

What is a DSP, you ask? These tools are essentially an automated way to purchase and manage your online ads.

If you’re like me and are curious about what a DSP is and how it can benefit your paid ad strategy, I want to cover how these platforms work, why you should use one, and the best platforms available.

Table of Contents

• What is a DSP?
• Benefits of Using a DSP
• 7 DSP Advertising Tools

With a DSP, you can purchase mobile ads on apps, banner ads on search engines, and video ads on Facebook, Instagram, Google, and even more platforms. Instead of using both Google Ads and Facebook Ads, for instance, you can purchase those ads in one place on a DSP.

The purpose of this is to make ad buying faster, cheaper, and more efficient. Now, let's dive into how DSP platforms work and why you should use them.

How do DSPs work?

DSPs work by using programmatic advertising, which is the buying and selling of ads in real time through an automated system. With real-time bidding, ad placements are auctioned off in milliseconds.

When you get started with DSP advertising, you'll need to begin strategizing how much you want to spend. Think about what an effective cost per click and cost per action might be. This will help you set up your online ads so the platform knows how much to spend in any given auction.

The best DSP platforms will allow you to include multiple rich media ads, including video, images, and animation.

What is DSP advertising?

DSP advertising is the automated process of bidding on and buying ads through a programmatic advertising platform.

According to a study published by Statista, the US was the largest programmatic advertising market worldwide, spending an estimated $264.66 billion in 2024. Marketers are increasingly using DSPs as a way of purchasing, managing, and tracking online advertising.

Benefits of Using a DSP

To understand why marketers choose to use a DSP for their paid advertising strategy over other platforms, I spoke to Sean Edwards, the Director of Programmatic and E-Commerce Media at Exverus Media.

Seamless Ad Buying Experience

One of the main reasons for using a DSP is that it makes your digital ad experience easier and more cost-effective. You can control, track, and maximize all your digital ads in one place. This means you can manage an entire ad campaign across sites on one dashboard. For example, you can show someone an ad on Google, then show them ads on Facebook, and then across other sites they visit — all in one campaign.

“The DSP we use most often is The Trade Desk because it allows us to activate and measure media campaigns on many different channels from a single platform,” says Edwards. “This saves us and our clients time and money, while clarifying previously hard-to-see patterns in the complex customer journey.”

Access to Premium inventory

DSPs often have access to a wide range of ad inventory, including premium placements on popular websites and apps, according to Edwards. This means you can advertise on many networks, including all the major publishers. With an increased number of networks, you'll have a more global reach.

“This access allows advertisers to reach target audiences across a variety of channels with added visibility, control, and opportunity to optimize towards the most successful tactics and placements,” he says.

More Control Over the Ad Experience

Using a DSP also provides marketers with more control over the ad experience compared to traditional platforms. This is especially important when it comes to brand safety.

“Programmatic platforms offer tools to ensure ads are displayed in brand-safe environments pre- and post-bid,” says Edwards. “These parameters can help protect a brand’s reputation by avoiding ad placement on inappropriate sites or within unsuitable content. High-quality media placements yield stronger results.”

Precision Targeting

Programmatic advertising allows you to target specific audiences based on various criteria such as demographics, interests, and behavior, says Edwards.

“This precision targeting allows advertisers to reach the right people, at the right time, with the highest likelihood to complete the desired outcome, whether that’s purchase, video view, download, or subscription,” he says.

Additionally, DSPs often partner with third-party data providers, giving you better tracking and reporting capabilities than a single network usually provides. And in the planning process, the targeting options are more personalized, meaning you can get better conversion rates.

Now that you know more about DSP advertising and how it works, let's discuss the platforms that can help you do it.

When choosing a DSP to work with, I like to look at how many ad exchanges the DSP has access to because that affects how many people you can reach. I also like to consider cost, training (full-service or self-service), support, and ease of use. Here are some of the best DSP advertising tools to choose from:

1. Basis Technologies

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Best for: Large or enterprise-level companies

Basis Technologies is an omnichannel DSP built to generate better outcomes for your ad campaigns. In my opinion, one of the best features is that it uses AI machine learning to automatically analyze data from numerous campaign parameters to optimize your ads.

With this DSP, you can target hyper-local audiences across devices and multiple touchpoints. You‘ll also get access to the industry’s leading exchanges, along with 25,000+ audience segments across over 30 different data providers.

Why I like it: Basis Technologies harnesses the power of machine learning to analyze data and automate processes. I also like how automated monitoring helps ensure brand reputation and safety.

2. Google Marketing Platform

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Best for: Small to large businesses or agencies

Google Marketing Platform is Google's unified advertising and analytics platform for smarter marketing and better results. This DSP has several products for both small businesses and enterprise companies, including Campaign Manager 360 and Display & Video 360 (formerly DoubleClick).

With this product, you can save time with cross-channel ad management to maximize insights and optimize media and creative performance across all your digital campaigns.

The flexibility is the standout feature of this DSP. You can use third-party features and integrations so you can choose the capabilities that best help you manage and measure your campaigns.

Why I like it: Google’s products are designed to work together, but also give the flexibility to use third-party features and server to server integrations.

3. Knorex

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Best for: Mid-sized to large advertising agencies

Knorex is a universal advertising platform that automates personalized marketing across channels, devices, and ad formats. You can market on Google Search, CTV/OTT, DOOH, and social media all in one place.

This DSP also uses AI to learn from past data to predict and adjust ad budgets dynamically in real-time to drive higher efficiency.

Why I like it: Knorex values security, offering a variety of brand privacy and security tools out of the box.

4. Jampp

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Best for: Companies looking for a mobile DSP solution, such as gaming or fintech apps

Jampp is a DSP that leverages unique contextual and behavioral signals to deliver customers and in-app purchases through programmatic advertising.

The key features of this platform are user acquisition, app retargeting, geolocated ads, dynamic ads, and predictive bidding. What I like most about Jampp is its focus on mobile-first ads.

Why I like it: Jampp’s app retargeting helps re-engage existing customers and uses their previous behavior to predict whether or not they will convert.

5. Smadex

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Best for: Companies needing a mobile-first DSP solution

Smadex is a mobile DSP engineered for growth. The platform uses a combination of its own programmatic advertising technology, machine learning, and first-party data.

With this platform, you can reach global audiences at scale and re-engage audiences with its retargeting capabilities.

Why I like it: Smadex values security just as much as helping your brand scale. The platform is a registered member of TAG (Trustworthy Accountability Group) in the US and holds an IAB (Internet Advertising Bureau) Gold Standard certification.

6. MediaMath

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Best for: Mid-sized to large agencies that want a custom solution

MediaMath is a customizable DSP that provides brands with a myriad of options for managing their campaigns. Opt to use their built-in creative tools to run ads on their server, or choose one of your own. You can even use APIs to run on top of your core foundation.

Why I like it: The customization is the platform’s greatest feature, in my opinion. MediaMath’s product is not a one-size-fits-all DSP. Brands can tailor their components to build an advertising solution that suits their needs.

7. Amazon DSP

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Best for: Ecommerce brands that want to advertise on Amazon (and Amazon-owned sites)

Amazon is one of the world's largest online retailers, so it’s no surprise that brands would want to tap into their advertising audience. Both advertisers who sell products on Amazon and those who don’t can use Amazon DSP.

They offer two options: self-service and managed service. With self-service, brands are in full control of their ad campaigns. Those who are new to programmatic advertising or need guidance are advised to use the managed option; however, that comes with a $35,000 minimum spend.

Why I like it: You don’t have to be an Amazon seller to use its DSP. Amazon DSP can greatly increase brand awareness for sellers on and off Amazon.

My Takeaways About DSPs

After researching DSPs and talking to the experts, my biggest takeaway is that they are the best way to manage all of your ad campaigns across channels in one place.

However, using DSPs is not a “set it and forget it” kind of solution. Marketers must still be involved in the bidding and targeting process to ensure they’re getting the most ROI out of the tool.

When you choose a DSP, make sure you understand how many inventory sources it accesses, which third-party data integrations it offers, and what targeting criteria are available. To successfully run programmatic ads on a DSP, you'll need to reach global audiences with personalized ads. While using a DSP simplifies paid ad management, it won’t replace customer research and having a clear idea of who your target audience is.

Editor's note: This post was originally published in February 2021 and has been updated for comprehensiveness.