DSP? SSP? How are they different from ad networks?
I think I kind of get it, but…
"To be honest, I don't really know the details."
I'm sure there are quite a few people like that.
So, in this article, we’ll start by looking at the history of internet advertising and then move on to DSPs...
We'll explain everything in detail, including points to keep in mind when actually putting it into practice.
Please feel free to use this as a reference.
The History of DSPs
Back when online advertising was just getting started, in order to display ads,
Is the advertiser a media outlet?Those who purchase ad space directlyIt was a ceremony.
However, in this display ad,
From the advertiser's perspective, there were issues with the effort required to get ads published and with managing them.
Therefore, we will centrally manage ad slots across multiple media outletsAd Networkhas been released.
After that, consolidate the ad networksAd Exchangewas born
It has evolved to allow for more effective management by both advertisers and media outlets.
If you'd like to learn more about ad networks, please check out the article below.
Furthermore, the solution created to manage the growing number of ad networks and ad exchanges wasDSPwill be.
As I mentioned at the beginning,A DSP is a platform for advertisers, while an SSP is a platform for publishers.That's it.
By connecting these two, advertisers can effortlessly run ads on multiple sites
It is now possible to serve ads, and media outlets can also sell ads easily.
Since such a DSP manages the delivery of ads to multiple ad networks, ad exchanges, and SSPs,
You can effectively deliver ads to your target audience.
How DSPs Work
The process by which ads are displayed on a DSP is as follows.
① A user views a website that contains ad slots (an impression is generated)
② The media platform sends an ad request to the SSP, stating, “We have users like this (audience information: gender, age group, interests, browsing history, etc.), and we’d like to display an ad.”
③ The SSP selects matching ads from each DSP and conducts an auction.
④ Select and award the contract to the DSP that submitted the highest bid
⑤ Run ads through the DSP you won the bid on
As mentioned above
Place a bid every time an ad impression is generated, and
The method of displaying ads from the advertiser who bid the highest amount is called
It's called "RTB (Real-Time Bidding)."
Since this series of transactions takes place in less than 0.1 seconds,
The number of transactions conducted in a single day is enormous.
Therefore, if the data processing for the bid is slow,
We were unable to win the bid, so we cannot serve the ads.
To ensure you get an ad slot,
Ability to process tasks quickly...is what is expected of SSPs and DSPs.
Bidding Methods and Billing Methods
From here on, I’ll explain the DSP’s billing model.
There are two types of billing methods for DSP advertising, so be sure to select the one that best suits your campaign objectives.
CPC Billing
First, there's CPC billing.
The ad says, “Every time it is clicked" will incur a fee.
Ad impressions
The cost remains the same no matter how many times it's clicked; you're only charged for the ad when someone actually clicks on it.
CPM Billing
The second is CPM billing.
「Every 1,000 impressions」A billing method where you pay advertising feeswill be.
In other words, billing occurs when the number of impressions reaches 1,000.
Compared to CPC billing, this model offers the advantage that the higher the CTR, the lower the cost per click, and it is widely used in DSP advertising and social media advertising.
If you'd like to learn more about CPM billing, please read the article below.
Benefits for Advertisers
An Approach to "People"
The greatest strength of DSP is,The ability to narrow down the users to whom content is delivered based on specific informationThat's it.
Traditional display ads were placed in specific "ad slots."
However, in the case of DSPs, the goal is not to place ads in “ad slots,” but rather
The goal is to target specific users who have a high level of interest in the ads being placed...is stated.
Information used to identify specific users includes:
In addition to demographic information such as age, gender, and region,
Online behavior (such as search history and categories of websites visited)That's all.
Therefore,Targeting users who show a high level of interest in the company's products and services and serving them adsis possible.
You can deliver ads using lookalike audience targeting
Some DSP ads target users who have previously converted (e.g., made a purchase or requested information) and
Targeting users who exhibit similar behaviorYou can also do that.
By using this,Improving the cost-effectiveness of advertisingis possible.
Reduce the burden of ad management
By using a DSP, tasks that used to be performed manuallyAdjustments to bid prices and ad delivery, among other things,
With a DSP, optimization is semi-automaticThey'll do it for you.
Also,Optimize Creatives as WellBy doing this in an instant,
Since we can always deliver the best creative content to users,
It can reduce the burden on advertisers.
With that burden lifted, you can devote your time and energy to creative work and other tasks.
Introduction to Major DSPs
From here on, I’d like to introduce a few DSPs.
The best DSP for you will depend on the products and services you offer, so be sure to compare your options carefully.
① Sonnet Media Networks Co., Ltd.: logicad
[Features] Its key strength is its high flexibility, and it is characterized by the absence of initial fees, ongoing costs, and a minimum ad spend requirement.
② Logly, Inc.: loglyDSP
[Features] This DSP utilizes our proprietary "Intent Targeting" technology to deliver ads that align with users' intentions.
③ FreakOut, Inc.: FreakOut
[Features] It holds a significant market share in Japan and generates 150 billion page views per month. It excels at maximizing the performance of brand initiatives that are difficult to evaluate.
④ MicroAd, Inc.: MicroAd BLADE
[Features] It offers four key benefits: a wide range of available ad slots, highly accurate targeting logic, optimization through automatic adjustments, and compatibility with all devices.
⑤Criteo
[Features] We partner with major media outlets, including Yahoo! JAPAN, as well as the Google Display Network, giving us one of the largest ad reach scales in Japan. We are also a DSP capable of delivering immediate results through retargeting.
Points to Note During Operation
There are three points to keep in mind during operation.
① Clarify the objective
When getting started with a DSP, you need to reaffirm your advertising objectives and select a DSP service that is appropriate for those objectives.
Is it for branding, or is it to make a purchase?
Define your objectives clearly, and choose a DSP that meets those objectives.
② Regularly Monitoring the Effectiveness of Advertising
Earlier, I mentioned that optimization is performed semi-automatically in Merit, but
Sometimes the optimization feature doesn't work properly.
Therefore, regular evaluation of effectiveness and continuous improvement are essential.
③ Overlapping Targets
It’s easy to assume that using multiple DSPs will allow you to reach a larger audience, but there’s also a risk that your own ads will end up bidding against each other.
If that happens, it could result in unnecessary costs.
To avoid that, be sure to carefully check the targeting criteria in advance.
Even if basic factors such as gender and age are the same, factors such as “weather, region, annual income, occupation, and medical condition”
The specific targeting criteria vary by DSP service.
Summary
In this post, I’ve introduced DSP.
What did you think?
Based on data, DSPs semi-automatically deliver ads tailored to the target audience.
It's a handy tool for sharing content.
We highly recommend implementing this feature, as it will help more users become aware of your products and enable you to achieve results more efficiently.
However, when implementing a DSP, be sure to carefully evaluate which one is best suited for your company’s products and services.
Also, if you have any questions or concerns regarding the operation of the service, it’s a good idea to consult an agency or service provider with specialized knowledge.
Our company also manages advertising campaigns using DSPs.
If you have any questions,
Please feel free to contact us using the contact form below.
