A demand-side platform (DSP) is a type of software that allows advertisers to buy advertising with the help of automation. It is an automated ad buying platform where advertisers and agencies can purchase digital ad inventory from multiple ad sources. Examples of ad inventory include banner ads on websites, mobile ads on apps and the mobile web, and in-stream video. DSPs are integrated into multiple ad exchanges, which allow advertisers to buy high-quality traffic at scale with minimal friction.

The main benefit of using a DSP is that it makes ad buying faster, cheaper, and more efficient. DSPs allow advertisers to quickly set up campaigns and manage them with ease, which saves time and energy that can be spent on other valuable areas, such as user base segmentation, to improve performance long-term. Campaign performance can be managed in real-time, which means that advertisers can easily adjust campaigns from DSPs without causing disruption. Additionally, the automated element of DSPs means that advertisers can easily scale their efforts on mobile.

DSPs use real-time bidding (RTB) to streamline and automate the negotiation process between media buyers and sellers. The whole process of analyzing the ad impression offered and bidding on that impression taking into account budget, value, and target is performed in milliseconds while the user is loading the page. Another key advantage is the consolidation of supply in one single platform. Using a DSP allows advertisers to reach a wide range of publishers from one single provider, a more diverse and global ad inventory than they can do on their own.

In summary, a DSP is an automated ad buying platform that allows advertisers and agencies to purchase digital ad inventory from multiple ad sources. DSPs are integrated into multiple ad exchanges, which allow advertisers to buy high-quality traffic at scale with minimal friction. DSPs use real-time bidding (RTB) to streamline and automate the negotiation process between media buyers and sellers. The main benefit of using a DSP is that it makes ad buying faster, cheaper, and more efficient.