ABC’s of Programmatic Part 1 – Demand Side Platforms

Programmatic advertising is the future of digital signage monetization. As AdStash is the first ad-supported digital signage system to utilize the programmatic ecosystem, we’re intimately familiar with how it works and how you can benefit from it.

This is the first of a three-part article series that will help you understand the ABC’s (well, more like DSP’s, SSP’s, and DMP’s) of how programmatic advertising can help your signs make more money:

Demand Side Platforms – The Dealmakers of Programmatic Advertising

How DSPs help you make more money

Demand Side Platforms (DSPs) are the “dealmakers” of programmatic advertising. They’re your link to the untapped additional revenue your signage network could be earning.

Here’s why (the short version):

  • They’re facilitators. A DSP is software that enables advertisers to buy advertising from DOOH operators, or “publishers.” (You.)
  • They make your job easier—replacing in-person negotiations, RFPs, and paper-based processes with real-time automated buying of available ad space. (Your digital signage inventory.)
  • They give insight. DSPs provide analytics akin to Google Search and Facebook Ads. (Imagine offering that to your clients?)

Now, the long version (with an example!):

A DSP is software that enables advertisers to buy advertising from DOOH operators, or “publishers.” As Digiday describes it, “programmatic ad buying typically refers to the use of software to purchase advertising, as opposed to the traditional process that involves RFPs, human negotiations, and manual insertion orders. It’s using technology & machines to buy ads, basically.”

One example of a DSP is Google DoubleClick. It’s used to buy impressions on websites for advertisers in real-time. The way it works is you simply log on, upload your ads, select who you want to target, where you want to target them, and how much you want to spend. (It’s actually that easy.)

DSPs usually buy advertising on a CPM (cost per thousand impressions; technically, “cost per mille”) basis. For example, if you spend $100 on a $10 CPM, then your ad should get 10,000 impressions.

Most DSPs operate on an RTB (real-time bidding) auction model. Wikipedia defines RTB as the process in which “advertising inventory is bought and sold on a per-impression basis, via programmatic instantaneous auction,” comparable to how one would buy and sell stock in the financial market. So, if you want to sell your inventory without having to talk to anyone, make sure DSPs have access to it by registering your inventory on Supply Side Platforms (which you can learn more about, here).

Do you want to learn more about how this all works? It won’t take more than 10-minutes to explain it—just book a chat with us here.

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