Demand-side platform

[1] This platform provides digital advertising inventory with a dashboard, where the advertiser can manage their campaign by defining the target audience, bid amount, overall budgets, ad format, and other parameters, while getting feedback about ad impressions and audience behavior.

[2] Much like paid search, using DSPs allows users to optimize based on set key performance indicators such as effective cost per click (eCPC) and effective cost per action (eCPA).

DSPs track frequency information, several forms of rich media ads, and some video metrics.

In addition, DSPs use advanced price reduction algorithms, commonly known as bid shading, to help advertisers procure ad impressions for a lower CPM in the first-price auction.

DSPs are commonly used for retargeting, as it is able to see a large volume of inventory in order to recognize an ad call with a user that an advertiser is trying to reach.