Beyond the Basics:
Expert Insights on Making a Demand-Side Platform (DSP) Work in the Programmatic Landscape
Table of Contents
At IndieAd, we had the chance to sit down with Fabian Zimmermann – who was, at the time of this conversation, Group Account Director DACH/Nordics at DQ&A (Incubeta), with extensive experience in programmatic marketing – for an in-depth conversation on the topic demand-side platform (DSP) and their role in digital advertising. Originally presented in our podcast, this article dives into DSPs and programmatic strategies, reflecting on insights from our conversation with Fabian. Here, we’ll explore the evolving complexity of DSPs, how companies can use them effectively, and why DSPs are a core component of today’s digital marketing ecosystem.
DSPs as a Commodity: Is Ease of Access Simplifying DSPs?
The programmatic space is filled with various DSPs, each offering different strengths. But are they truly interchangeable? “From a technology perspective, DSPs may seem like a commodity,” Fabian pointed out, “but the complexity of effective usage is anything but.” While more platforms have emerged, each DSP has unique features and a learning curve, making expertise critical for effective deployment.
In Fabian’s view, many new DSPs hit the market promising simple, cost-effective solutions, yet some fall short on quality and transparency. It’s tempting for companies to choose a DSP based on price or ease of access. Still, Fabian emphasized that “cheaper options might only add value on paper, not in actual quality.”
The Need for Skill and Expertise in the Demand-Side Platform Space
Choosing a demand-side platform is one thing; navigating its complexity is another. “Yes, programmatic can seem like a shortcut to buying impressions,” said Adrian from IndieAd, “but the results only come when you pair that technology with the right knowledge and service.”
Fabian elaborated on this, highlighting the role of agencies in making DSPs work. He emphasized the importance of choosing a DSP that provides flexibility for growth, especially when the advertiser is new to programmatic. “Co-piloting campaigns and providing managed services,” Fabian shared, “ensures that in-house teams can learn while achieving performance goals.”
A DSP is like Doctor Who’s TARDIS, navigating through time and space (the programmatic landscape) to place ads exactly where and when they’ll be most effective, adjusting instantly based on real-time data.
Service Models: A Flexible Future for DSPs?
For DSPs to deliver real value, service models must evolve. Traditionally, DSPs require commitments to ad spend before onboarding. Fabian suggested moving toward a hybrid model: “If DSPs allowed for flexible payment and gradual scaling, small and mid-sized advertisers could truly tap into the benefits without a heavy commitment.”
DSP service structures are becoming more adaptable as more companies offer both media buying and consultative services to simplify client onboarding. This balance, where agencies handle the initial complexities, also positions clients for long-term success as they take on more DSP management internally.
Building a Strategy for DSP Success: Know What You Want to Achieve
The key to avoiding common pitfalls in DSP use is having clear, measurable goals before diving in. Fabian stressed the importance of aligning DSP campaigns with the overall business strategy. “Preparation is key. Anyone can run a DSP campaign, but the results depend on understanding the complexities involved,” Fabian stated.
From Adrian’s perspective, part of successful DSP use means choosing the right KPIs and media goals and budgeting accordingly. “A successful DSP strategy isn’t just about impressions,” he shared. “It’s about targeting, transparency, and measuring what matters to your business.”
Takeaways for Demand Side Platform Success
Using a demand-side platform effectively comes down to thoughtful planning and ongoing expertise. Fabian’s top tips for companies considering DSP include:
- Research the Platform’s Reputation:
Not all DSPs offer the same inventory quality or transparency. Test the reporting and review how each DSP handles placement details. - Invest in Skill Building:
DSP expertise is key. Consider co-piloting campaigns with an experienced agency until in-house knowledge is sufficient. - Start Small with a Defined Scope:
Avoid diving into DSPs without understanding what results you expect and how they will impact your business. - Optimize for the Right KPIs:
Define KPIs before launching your DSP campaign to focus on value-driven outcomes.
As Fabian summarized, “Choosing a DSP is just the start. Getting the expertise, flexibility, and strategy in place is what brings results.”
Conclusion
Navigating the DSP space successfully requires a blend of the right technology, skill, and service. Demand-side platforms bring scale and efficiency to programmatic advertising, but only with clear goals and the right expertise. By working with agencies and choosing the right DSP, advertisers can leverage programmatic to drive meaningful business outcomes.
>> PERSONAL COMMENT OF INDIEAD'S CEO <<
"Choosing the right DSP (or multiple DSPs) also depends on the type of business you’re in. In addition to all that has been mentioned above, you should always look for a unique value that a specific DSP offers over others:
- Does it offer unique data? (like Amazon DSP, i.e.)- Does it offer a unique inventory? (Netflix video inventory, anyone?)
If yes, that might be a reason to onboard another DSP. Just double-check that your current DSP doesn’t already have the same data or inventory.
And lastly, take everything that the DSPs team says with a pinch of salt. They’re trying to win a client, but you have marketing & business goals you need to reach. Own the DSP, not the other way around."
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