The Critical Role of DSP Technology in Today’s Digital Marketing Ecosystem

    The Critical Role of DSP Technology in Today’s Digital Marketing Ecosystem

    With marketers facing new challenges in 2021 including more privacy-driven legislation around the world, they can gain greater value from innovations that can simplify their work while generating real business value. It is now clearer than ever that DSP technology is needed in today’s digital marketing ecosystem.

    Following a period of rapid growth in the mid-2010s, the marketing technology industry has been consolidating in recent years. According to research conducted by the now-merged Sizmek in 2018, 64 percent of the 522 marketing decision-makers surveyed said that reducing the number of marketing technology vendors would be a top priority, with 62 percent stating ecosystem complexity is the motivator.

    Over the past few years, there has been a lot of consolidation in marketing technology. Despite the trend of mar-tech consolidation, industry experts recommend launching a Demand-Side Platform (DSP) because recent developments warrant the return of some of the technology solutions that have been replaced by consolidation.


    Marketers use a DSP as it allows them to automate their ad buys through channels in real time. DSPs were one of the innovations that consolidated in recent years, but they did not have quite so many automated tasks in their product offering until recently. As a result, DSPs are more useful and important today than they were a few years ago, thanks to advancements in marketing technology automation.

    Also Read: E-Commerce Fraud Case Losses Will Surpass $20 Billion in 2021

    Campaign management

    DSPs provide marketers with solutions that allow them to manage their campaigns more effectively and successfully across a wide variety of traffic sources/publishers. They also save time by addressing bid placement and management, as well as making it easier to increase ad spend on high-performing campaigns while reducing spend on low-performing campaigns.

    Increased transparency

    Even though “transparency” is overused in the digital marketing environment, allowing marketers to see the traffic source where each of their advertisements is displayed offers transparency in a world where there is too much fraud and malware. As the industry has over-consolidated in recent years, this sense of transparency has been lacking.

    Audience and media reach

    Another benefit of working with a DSP for marketers is that it expands their access to more publishers/apps in their attempts to reach more customers. Marketers can use their first-party data to create audiences through a DSP, making it easier to comply with data acquisition regulations such as GDPR and CCPA.

    Also Read: How Brands Are Embracing Personalization to beat the Pandemic Era

    Mobile marketing stack

    Marketers have put together and incorporated best-in-class solutions to build their marketing stack as emerging marketing tools have become available over the last decade. However, as mobile marketing budgets continue to grow, it’s time for marketers to build mobile marketing stacks, and a DSP is an essential component of such a technology stack.

    All of the above factors are important, especially as marketers in-house have become more familiar with the intricacies of digital campaign management, they’ve become more knowledgeable about it. This means that internal media teams can now leverage technology tools such as DSPs that only a few marketers could do a few years ago.

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