What is DSP advertising? What are the operating techniques for DSP delivery?

1. What is DSP advertising ?

DSP (demand-side platform) refers to the use of real-time bidding to purchase display ads. Advertisers can learn about the websites and regions visited by visitors based on the data provided by the advertising trading platform (i.e., DSP platform), so as to determine whether the price is reasonable and whether to bid for the ad space.

DSP advertising is mainly used for targeted advertising. It pushes targeted ads based on users’ browsing behavior, thereby conducting programmatic purchasing. It reduces advertising costs because when placing ads through the DSP platform, you only need to pay for the target audience.

It is precisely because the DSP platform can achieve precise audience-based delivery and continuous optimization through real-time monitoring through data integration and analysis, that it can provide advertisers with a simple, clear and easy-to-use cross-media, cross-platform and cross-terminal advertising delivery platform. It can be said that this is the real effect of advertising.

Advertisers with needs can realize their needs through the DSP platform. It is a one-stop advertising platform that integrates the entire network's own media traffic for the target audience. It is also a cross-media, cross-platform, and cross-terminal advertising platform that purchases, places advertisements, and generates reports through real-time data analysis.

2. What are the techniques for DSP advertising?

1. Before launching

Clarify marketing goals and product features, determine target user characteristics, and preliminarily determine delivery expectations.

The marketing goal must be clearly defined, whether it is to increase brand exposure, increase purchases, or meet cognitive/preference needs. However, the underlying marketing goals are all directed towards boosting sales.

Product characteristics, the industry the brand is in, the average customer spending, and product category are all important factors in determining the characteristics of a product. For example, cars (high unit price) and toothpaste (low unit price).

Once you have your marketing goals and product features, you can then decide on your target user characteristics.

After determining the characteristics of the target users and catering to the product launch time and demands, you can then preliminarily set delivery expectations: that is, when, on what platform, and in what manner, to deliver the advertisements.

During this process, the expected return on investment (ROI) will be accurately calculated. Set a minimum cost expectation and then get close to it through continuous optimization.

2. Launch phase

Budget allocation + integration optimization + testing!

At this stage, you can place your ads on one platform or on multiple platforms. In the beginning, if the budget allows, it is generally evenly distributed, that is, advertising is evenly placed on multiple platforms and in multiple categories. Then we will continue to test according to the changes in the delivery indicators. There is no doubt that the testing process is the optimization process. The factors that affect advertising indicators/expectations are probably the following:

Advertising materials: for example, frequency, ad position, key words, display style...

Targeted strategies: For example, gender, age, region, marital status/children status, industry, hobbies, income, active time period...

Coverage channels: For example, display advertising, search advertising, alliance/bidding/programmatic trading advertising...

During the launch phase, continuous testing should be carried out based on these variables.

Monitor data on these variables in real time, as often as possible. Based on a large amount of accumulation, summarize the pain points of data fluctuations. Discover data changes promptly and update them in a timely manner to minimize losses.

DSP delivery is not ideal, where exactly is the problem?

If my DSP delivery is not ideal, what is the reason for the error? In fact, any problem in any link of the delivery process may affect the delivery results.

But in general, it can be classified into the following aspects:

1. Delivery time: The delivery time is too short

Maybe you have been running for a short time and have not optimized it to a reasonable level. Because DSP delivery requires the accumulation of a certain population and cookie matching. The longer the time, the better the effect.

2. Targeted packages: The target population is biased

There may be a problem with your delivery positioning. Your choices of audience, interests, preferences, etc. deviate from the target audience of your website. You need a professional data analyst to tailor an effective delivery strategy for your business.

3. Code installation: No code installed or wrong code installed

Is there no installation code? Or using A but installing B's code? Code is a very important part of monitoring advertising effectiveness. If you ignore code installation out of laziness, I can only say that this is a very irresponsible DSP delivery behavior.

4. Advertising platform: There are so many DSP platforms, and you may not choose the right one

There are many DSP platforms nowadays. Some platforms don’t have much good traffic themselves, or are even full of fake traffic; or the main audience of the platform you choose is not consistent with your potential customer base.

5. Creative material: The creative form is not moving enough

Or maybe it’s for the simplest reason that your creative form isn’t compelling enough. This point may seem simple, but it is actually the most important and worthy of attention.

DSP is mainly purchased through "real-time bidding". Simply put, if you want Xiao Li to see your ad, and another advertiser happens to have also targeted Xiao Li in its advertising, then you both need to start “bidding”. If your price is 0.5 yuan, and another advertiser may bid 0.4 yuan, then your ad will be displayed, and the fee you need to pay is usually not 0.5 yuan, but a little higher than the second bid. For example, if it is 0.01 or 0.001 yuan higher, in this example, the actual price you need to pay for this display may be 0.041 or 0.41 yuan. (Different media, different CPC)

In this way, you can follow the click price and the time period in the DSP background and then learn how to control the virtual CPC. How to control costs!

Ads delivered by DSPs perform far better than regular display ads, but DSPs are definitely not the only channel you should be targeting. Advertisers must understand the characteristics of each advertising channel and the interactions between them, and make effective budget allocations in order to expand audience coverage, improve positioning accuracy, and maximize advertising effectiveness.

If you have invested in Pinyou in the past few years, you will find that the early results are much better than they are now, more than just a little. Why is it getting worse? The first reason is that users have changed. Some of the demands of the media users of the media where Pinyou advertising is frequently placed have been tapped out. As more people compete to share the DSP market pie, the advertising effect will gradually be discounted and the cost will also rise. In addition, it is necessary to pay attention to the technical algorithms of the DSP media platform. The algorithms of different platforms are different and need to be adapted to local conditions and cannot be generalized.

DSP Optimization Ideas

1. Crowd targeting strategy (invest in potential groups at a low price - invest in relevant groups with a reasonable budget - and grab accurate groups at a high price)

2. Visitor re-engagement strategy (this depends on the industry, users and product attributes. If it is a common product, you can launch it regularly. If it is in the automotive industry, then control it)

3. Regional targeting strategy (this can be done based on the data you have sorted out and the data analyzed by other platforms, such as: Baidu Index, Shangyi, Taobao Index)

4. Material optimization strategy (never use the same material everywhere, you need to reasonably build the background and set up materials according to the needs of different groups of people)

5. Frequency control strategy (this is up to you, I advise you to control the frequency below 4)

The above are some of my recent insights. I hope this will be helpful to business owners who are learning about DSP advertising and some delivery techniques.

Author: Chaishuseo

Source: Chaishuseo