Demand Side Platforms and Programmatic Advertising For Business Explained

In today’s competitive environment, every business is looking to expand its digital campaign reach and gain access to diverse audiences across websites, apps, games, and streaming services. To turn these goals into a reality, they are turning to programmatic advertising, an automated method of purchasing media advertising.

It allows you to place ads on a large number of websites where only the advertiser’s target audience is paid for displays. In this context, a white-label DSP platform plays an important role and allows advertisers and agencies to buy inventory on various platforms such as CTV, mobile apps, games, websites, podcasts, etc. The latest data suggests that the DSP market size is expected to expand to USD 133.39 billion by 2031. 

Depending on the user, the demand-side platform can serve different purposes and objectives. For example, internal business teams use DSPs to launch programmatic campaigns and advertise their products and services.

The demand-side platform allows them to track their customer base, segment them into remarketing groups based on behaviour and LTV, and get advanced user interaction statistics. While advertising agencies use DSPs to buy impressions for their clients.

For a commission, they help them develop an advertising strategy, select the most effective audiences and targeting parameters, and solve any problems related to campaign performance. As agencies need to provide their clients with regular cost and performance metrics, DSPs serve as a perfect solution.

Lots of companies see the development of their programmatic platform as a logical step in expanding their advertising and marketing capabilities. After all, it gives complete control over the processes, from inventory selection to campaign analysis and optimisation. Advertisers can manage advertising on a variety of platforms using a single interface, track statistics, analyse data to optimise targeting, and participate in ad-buying auctions. DSPs in particular have simplified the process of concluding deals.

This means when buying traffic, the customer does not need to analyse websites on their own, discuss the terms and cost of clicks in negotiations, and sign contracts. 

The advertiser can flexibly optimise campaigns, narrow or expand the target audience, manage the purchase, and promptly control the process. What’s more, they can purchase displays from different websites and owners at the same time, which ultimately saves time and money.

However, companies that want to take advantage of programmatic advertising often face market entry complexities, including high infrastructure development and support costs. It also involves a deep understanding of various advertising technologies, protocols, and industry standards.

Alongside that, you need to keep up with the latest trends and regulations, which can lead to significant delays, increased costs, and potential technical challenges.

Building a DSP from scratch requires building a skilled team of engineers, data scientists, and product managers, which is a challenging task, especially in a competitive market with a talent shortage. Finally, maintaining and updating a custom-built DSP can be resource-intensive, requiring ongoing investment in infrastructure, security, and compliance. All these challenges make launching their programmatic platform difficult for many businesses. 

 

How Are White-Label DSPs Changing The Rules of The Game?

 

White-label solutions provide companies with out-of-the-box platforms that can be easily branded to suit their needs and goals. It serves as a pre-built, customisable digital advertising platform that businesses can purchase and rebrand as their own. It also provides the core technology and infrastructure to buy and sell digital advertising inventory. This opens up access to advanced advertising technologies without investing in in-house product development and infrastructure from scratch.

One of the primary advantages of a white-label DSP platform is the potential for significant cost savings. Businesses can cut expenses and improve their overall ROI by eliminating the need for multiple DSPs.

Additionally, WL DSPs often have lower commission fees compared to traditional ones. Beyond cost savings, white-label solutions empower companies to scale their advertising operations efficiently. Providing a centralised platform and expert support allows them to launch and manage campaigns across various channels quickly. Furthermore, such platforms offer increased transparency.

By providing detailed insights into campaign performance, they let businesses make data-driven decisions and optimise their strategies. Opting for a white-label DSP solution, enterprises can centralise their media-buying operations and enhance control over their advertising efforts. White-label DSPs offer the flexibility to create exclusive marketplaces by connecting DSP and SSP partners. A self-serve white-label DSP allows for the integration of custom SSPs via API, ensuring seamless collaboration with existing partners.

Speaking of the monetisation model for a white-label DSP platform, you can choose between a self-service platform, a managed service, or a combination of both. If you decide to pick up a managed service, you need to have a dedicated team capable of operating advertising campaigns on behalf of clients.

This requires skilled personnel in campaign optimisation, data analysis, and account management. On the other hand, the self-serve model is particularly beneficial for platform owners with limited internal resources or smaller teams, as it encourages clients to manage their campaigns independently. While a lean approach is possible with self-serve options, owners can outsource key roles like ad operations and account management to third-party specialists without needing a large in-house workforce.

Today, white-label solutions allow companies to enter the market with minimal costs and quickly launch their programmatic products. This eliminates the need for third-party service fees, resulting in substantial savings of up to 50%. Right after the setup, flexibility, scalability, and instant use make a white-label DSP platform the optimal solution for companies seeking to offer their clients advanced advertising technologies.