What is Mobile DSP and Why Do You Need It for Your Programmatic Advertising?

If you work in the marketing industry, you’ve probably heard about mobile demand-side platforms or DSPs. However, if you don’t have a deep understanding of how this tool works and why you may need it for advertising, keep reading the article!

A DSP is used by marketing agencies and brands to manage ad and data exchange accounts as well as different supply-side platforms through one interface. This software is a great solution to quickly buy mobile and tablet impressions at auctions. You can do it in real time through private marketplaces or direct deals. Purchasing mobile advertising space becomes much easier for media buyers since they can make bids in bulk at lower prices. But this is not the only benefit of a DSP! Check the list of demand-side platform advantages and features below.

Advantages of advertising with a DSP

In-app tracking dsp mobile app

Since apps collect first-party data, they provide advertisers with lots of important parameters, such as user gender, age and geo-location. This data helps marketing experts identify right user segments and find the best-performing audience  Eventually, ads reach potential customers faster and drive better results.

Precise targeting

In contrast to a web environment that may become entirely anonymous in the near future, mobile IDs are really helpful in tracking user performance in the long run. Device IDs provide marketers with more accurate information on user engagement. Specialists can see the exact number of ad clicks and views in the app. This is extremely beneficial for advertising campaigns. Thanks to accurate targeting, your conversions can significantly grow with a DSP.

Engagement boost

As an advertising expert, you must realize that apps allow for highly engaging  and less disturbing ad formats. Users are less likely to be irritated by advertising because it appears during the pauses in their activity. Since they don’t come across boring banners, they may have a good and long-lasting impression from your creatives. Moreover, they may even like your ad if it provides some in-app bonuses for viewing.

High CTRs

The statistics gathered by popular brands shows that in-app ads drive higher CTRs than web ads. The Marketing Dive reported that the average CTR for apps is 0.58%, while for web it equals only 0.23%. The difference is dramatic, isn’t it? Additionally, Appssavvy reported that a DSP mobile app performs nearly 11 times better than traditional banners. As you see, this type of advertising is simply more effective.

No ad blocking

Unfortunately, in-browser blockers disrupt the effectiveness of web advertisement.  Since the majority of people use blocking software, most Internet users are unreachable for your campaigns.  But luckily, in-app environment doesn’t  enable doing this. Hence, you can benefit from accessing various segments, including previously untapped groups.

Higher revenues

Since recently, there has been a dramatic switch from browsers to mobile apps. The eMarketer states that most people spend 90% of their time on smartphone apps, while the rest is taken by web. So no matter what business you have, you should take into account this behavioral change and make appropriate decisions. Consider the example of Facebook that increased its revenues from zero to over 40% of total earnings with the help of mobile apps.

Choosing a decent DSP

To pick the right demand-side platform, you should have a close look at the features listed below.

Software architecture

A good DSP must work well with different apps, browsers, operating systems and devices. As you might understand, huge amounts of data from numerous sources require a very powerful DSP technology. Therefore, you have to make sure that the platform you are going to use is capable of accommodating massive amounts of data and executing a big number of operations at the same time.  A DSP technology must be advanced enough to reflect actual information in real time.

Targeting algorithms

As mentioned above, reaching the right market segments with your ads is crucial for success. Because of that, you should opt for a DSP that has the following targeting capabilities: geolocation, mobile device type, OS, user behavior, context and demographics. If all of these categories are offered by your vendor, then it can be a great choice.

Ad formats

To ensure high engagement rates, you should test different types of ads. Your DSP must support a wide range of ad formats, including videos, rich media and dynamic apps. By analyzing what works best for your potential customers, you can increase your business revenues. Also, make sure that creatives you are using allow for interaction, such as  swiping, touching and expanding.

Safety

Before purchasing a DSP, ask a vendor about the security measures they take. To avoid troubles, your DSP  brand must be safe. That means that the software must have in-built multi-layered anti-fraud system. There also must be mechanisms that detect fake clicks and track the number of real user impressions.

Performance reports

Successful advertising campaign is impossible with tracking its performance. Reports can provide you with a better understanding of how to get more customers from your ads. So you should opt for a DSP that provides frequent reports on your statistics. Having an updated information gives you knowledge about different aspects of your advertising campaign so you can optimize it and maximize your ROI.

Final thoughts

The main value of DSPs is that they allow advertisers to make multiple bids in real time and manage lots of ads from a wide range of publishers almost effortlessly. It ensures great transparency and makes ad tracking and optimization much easier. Hopefully, this article helped you better understand what a demand-side platform is and whether you need it for your marketing campaign.