What is DSP advertising? How to effectively place DSP advertisements?

Competition on the Internet is becoming increasingly fierce. In order to acquire more accurate users, many companies have to rely on powerful platforms to deliver advertisements. However, DSP platform delivery is highly dependent on the accumulation of data. More data needs to be collected to support creative optimization and achieve optimal delivery.

1. What is DSP advertising ?

What is DSP advertising? Only by understanding what it is can you achieve advertising effectiveness. I have been in the advertising industry for 7 years. Today I will give you a detailed introduction to DSP advertising.

Demand-Side Platform, demand-side platform. In the Internet advertising industry, DSP is a system and also an online advertising platform. It serves advertisers, helping them to place advertisements on the Internet or mobile Internet.

DSP platforms bring together various advertising trading platforms such as ad networks, supply-side platforms, and even publishers’ inventories. Through the DSP advertising platform, the purchasing steps can be simplified and consumption requests can be directly promoted.

2. DSP Advertising Display Principle

DSP advertising can deliver product advertisements directly to potential customers, or target customers, thereby increasing product exposure and conversion rates. In addition, DSP ads will recommend relevant products to you based on your historical purchase records.

In other words, the DSP advertising principle is based on the inertia of customer purchasing behavior. People's purchasing behavior, like habits, has great inertia. If DSP advertising is not delivered accurately, it can easily result in high costs and low conversion rates.

In addition, some DSP ads are charged based on the number of clicks or views, which means that non-target customers may click but not be interested in buying after clicking, but the money will still be deducted. Over time, this has brought heavy burdens and high ineffective costs to merchants.

Therefore, relevant skills are indispensable for the delivery of DSP advertising. It must be based on data analysis and accurate customer distribution to improve promotion efficiency.

3. DSP Advertising Skills

With the development of audience targeting technology, DSP advertising is becoming more and more popular. Therefore, you need to master the following delivery techniques:

1. Plan multiple promotion points and test the effects

When it comes to advertising, it is difficult to guarantee that it will be successful every time. Therefore, if you want to reduce the risk, you need to plan a lot of promotion ideas in the early stage, such as giving different promotional materials and creativity to a product according to different needs. Each group can promote and test the advertising effect separately, and then combine data analysis to choose the best delivery route.

2. Find target users and deliver targeted content

DSP advertising can achieve precise and targeted delivery. Therefore, you can start testing by placing the same ad creative among a wide range of people, and then use the user feedback to segment the wide range of people into several non-overlapping groups, and then conduct quick tests.

For example, we target 100 people with beauty products. However, everyone's makeup needs are different. Therefore, we can make detailed classifications based on their feedback, such as oily, dry, mixed, etc., and then carry out targeted creative design and delivery to ensure a high accuracy rate of delivery.

3. Focus on optimizing landing pages to increase download conversion rates

The landing page is an influencing factor that attracts users to visit and click. Therefore, in DSP advertising delivery techniques, how to acquire enough effective users at the lowest cost and improve user retention rate.

Therefore, while reducing CPC costs, we also need to find ways to focus on optimizing the details of the landing page, especially the connection between the landing page and promotional materials. Information such as titles, descriptions, and detail pages must be worked on to increase click-through rates and download and activation conversion rates.

3. Pricing Method

Pricing methods: CPM, CPC, CPA, etc. are currently the more mainstream billing methods.

CPM - Pay per thousand impressions. Mainstream billing method.

CPC – Pay per click on your ad. It is easy to generate false clicks and deceive advertisers.

CPA - Pay per user action. It is more commonly used by game and e-commerce advertisers.

Take the promotion process of a mobile game APP as an example. M is advertising exposure, C is user clicks on ads, and A is user activation of the game.

4. Are you suitable for DSP?

The biggest function of DSP is to accurately deliver advertisements to certain types of Internet users .

Compared with those advertising forms with extremely low conversion costs, the single conversion cost of DSP advertising is slightly higher . However, the value of a single user is significantly higher than other forms of advertising.

Advertisers should reasonably anticipate their short-term return on investment based on the conversion value of their business. If you are sure that the conversion value is high and you can afford the relatively high conversion cost, you can try to start DSP.

Under this premise, we can identify the two types of companies that are most suitable for DSP:

The first category is products with a smaller audience , such as 2B products or other niche products. They require a promotion method such as DSP that can take into account both precise positioning and traffic. In comparison, search ads have a precise audience but low traffic, and ad network display ads have inaccurate positioning.

The second category is projects with high conversion value for individual users , such as education, games or tourism, whose high profits can offset the higher unit conversion cost of DSP.

5. How to choose a suitable DSP platform?

1. Resources

The ideal DSP platform should have full traffic, full coverage, and full purchase.

A high-quality DSP should have access to resources including: portals, SNS, video, vertical, long tail, advertising trading platforms, and mobile.

The massive amount of media resources directly determines the coverage of advertisers’ advertising, while the quality of media resources is related to the brand safety and image of advertisers. So, what aspects can reflect DSP's resource docking capabilities?

What is the average daily PV/UV? What is the percentage of audience covered?

What are the resource channels for docking? For example, which advertising trading platforms, advertising networks, SSPs, etc.

Does it support multiple media resource purchasing methods? Rather than being limited to RTB.

In addition to the long-tail media commonly seen on advertising trading platforms, are there any high-quality, top-ranked media resources?

Is it possible to connect and optimize the configuration of multi-screen resources and various types of media resources? Including video resources, APPs on smart phones and IPADs, and certain website resources, etc.

2. Technology

When considering the algorithm technology strength of DSP, advertisers can start from the following two aspects.

(1) Comprehensive investigation:

Do you have independently developed DSP algorithms and technologies? Or are you just a user of other people’s technology?

In addition to directly serving advertisers, are you able to provide enterprise-level DSP services to agencies' ATDs?

What is the size of the technical team? Is the division of labor clear and can professional and strong technical support be provided?

(2) Targeted investigation:

Examine the performance of DSP in three core aspects: directional control, bidding, and optimization capabilities:

Directional control capability is an important manifestation of DSP's technical strength. Consider:

What targeting methods does this DSP support? (such as returning customer targeting, semantics, etc.);

What is the depth that each targeting method can achieve (taking consumer intention targeting as an example, it can be refined to dimensions such as brand, year, country, category, etc., and targeted targeting can be delivered)?

Can it support the expansion of similar groups of people? Is it possible to uniformly control the frequency of media resources from different channels?

Bidding ability is an important benchmark for testing the technical creativity of DSP suppliers. Consider:

Does DSP have its own independently developed bidding algorithm?

What tier supports QPS (Queries per second, used to measure bidding server performance)? Is the bidding process scientific?

Is it possible to estimate the effect before bidding? And real-time optimization during the bidding process?

Optimization capabilities have very high requirements for algorithms and technologies, and have a direct impact on delivery effects and ROI. Consider:

How many optimization dimensions does the platform have?

Does it support dynamic creative optimization (i.e., the same ad is rotated to match multiple points of interest to attract audiences to convert and purchase)?

Does it have the ability of machine self-learning optimization or does it require manual operation?

Is it possible to optimize in real time during the delivery process?

3. Data

"Data" is another important measurement standard for DSP. Only "live" data can be truly used by advertisers.

However, those DSPs that lack resources and customers have few projects and can only accumulate breakpoint data instead of creating value in a circular manner. The depth of data mining determines the extent to which the DSP can perform its functions.

Horizontal:

Media data: can control a large amount of data 24/7 all year round;

Client data: can accumulate first-party data all year round;

Delivery data: can collect massive amounts of data from all walks of life and across all positions 24/7;

Multi-screen data: It can unify and aggregate multi-screen data to fully control consumers’ digital lives.

Vertical:

In terms of breadth, high-quality DSPs should collect massive amounts of data across channels, platforms, and positions, thereby achieving trillions of core data volumes;

In terms of depth, the granularity of data analysis should be fine, and the population should be differentiated to achieve nano-level differentiated audiences.

4. Experience

Successful advertising depends not only on the support of the DSP platform, but also on whether it has professional and efficient supporting services as support. for example:

Is there a professional execution and support team (such as creative, customer service, etc.)?

Do you have a clear understanding of the advertiser’s brand and marketing goals and can provide professional advertising suggestions?

Do you have a clear understanding of the entire industry chain and are you able to provide comprehensive end-to-end services (from media to advertising)?

Experience and market influence. Rich industry and project experience are the accumulation of DSP's excellent quality. Market influence to a certain extent reflects the market position and reputation of DSP suppliers.

Do you have prior experience in the DSP field?

Do you have experience in advertising in different industries and multiple projects?

Does it have a good industry reputation and influence?

In addition to the above-mentioned resources, technologies, data, and experience, when choosing a DSP platform, advertisers need to evaluate practical aspects such as similar cases that the platform has served, the number of customers in related industries, and solutions for the industry in which they are located.

Final Thoughts

This article mainly analyzes the relevant content of DSP advertising from the aspects of DSP concepts, types, platform working principles, and considerations for selecting DSP platforms. I hope everyone can have a comprehensive understanding of DSP advertising resources.

To place DSP ads , please contact Qinggua Media official