Lifting the "Red hijab": unlocking the true meaning of the DSP veil

Reprint: http://www.ipinyou.com.cn/UI/technicalnews/201203/dsp_0.html

Now, you have to ask what the hottest topics are in China's online advertising field. Someone will tell you that DSP definitely belongs to one of the hotspots. DSP in China, the upsurge seems to be growing, many domestic advertising companies have claimed to have advanced DSP, the entire Internet advertising field is also competing to talk about DSP,DSP has become China's network advertising industry the most heated words. But what exactly is a DSP. What is the real meaning of DSP?

At the beginning of 2012, as China's most effective digital advertising platform, the quality of friends to formally launch their own DSP, became China's first real sense of DSP. According to the quality of the interactive CTO Dr. Shen Xuahua, China's DSP has just started, in strict accordance with the DSP two core characteristics of the company, is very little, the whole domestic network display advertising in the field of DSP understanding is far from reaching the extent of popularity.

In fact, the DSP is demand-side platform abbreviation, namely the demand side platform. This concept originated from the developed network advertising in Europe and the United States, is accompanied by the rapid development of the Internet and advertising industry, the emerging Network advertising field. In the Internet advertising industry, DSP is a system, is also an online advertising platform. It serves advertisers, helps advertisers in the Internet or mobile internet advertising, DSP can make advertisers more simple and convenient to follow the unified bidding and feedback method, on the online ads located in a number of advertising trading platform, real-time purchase of high-quality advertising inventory at a reasonable price.

In the DSP system or platform, the most direct correlation with it is ad Exchange. Ad Exchange, an advertising trading platform, is a market for real-time bidding for each display, mainly including advertising exchange and advertising exchange, which helps ad networks, agencies, and third-party technology providers to purchase advertising resources for many Internet sites through real-time bidding.

Unlike traditional ad networks (AD network), DSP does not buy ad bits from network media, nor does it use CPD (Cost Per Day) to get ad bits, but from AD exchange To gain exposure to an ad through a real-time auction, the DSP uses the ad-trading platform to buy each exposure separately, using CPM (cost per impression) to get the ad bit. DSP allows advertisers to manage one or more ad Exchange accounts through a single interface, and even a DSP can help advertisers manage ad Exchange accounts and provide a full range of services.

A truly meaningful DSP must have two core features, one with powerful RTB (real-time Bidding) infrastructure and capabilities, and the second with advanced user-oriented (audience targeting) technology.

Firstly, DSP has a very high demand for its data operation technology and speed. From ordinary users in the browser address bar to enter the site's URL, to the user to see the content and ads on the page within a short hundreds of milliseconds, there will be several network round trip (Round) exchange of information. Even between AD exchange and DSP, there will be 2 to 3 delivery of information. Because ad exchange first sends a bid (bidding) request to the DSP, it informs the DSP about the properties of the exposure, such as the size of the item, the URL and category that the ad bit appears, and the user's cookie ID, etc., after the DSP has received the bid request, You must also decide whether to bid for this exposure within dozens of milliseconds, if you decide what price to bid, and then send the response of the bid back to ad Exchange. If ad exchange determines that the DSP has won the bid, The advertiser's ads represented by the DSP are quickly delivered to the user's browser in a very short period of time.

The whole process is technically a big challenge for both ad exchange and DSP, and if it's a bit slower, ad exchange will assume that the DSP timed out rather than accept the bid response from the DSP, and that its service to advertisers will not be possible. Therefore, having a powerful RTB (real-time Bidding) infrastructure and capabilities is a core feature that DSP must have.

Secondly, the data-based user orientation (audience targeting) technology is another important core feature of DSP. With the rapid development of Internet advertising, the idea of advertisers buying ads has changed a lot, and it is changing from mass media purchase to the purchase of each independent audience. Because in essence, advertisers are not ultimately buying the media, but want to communicate with their potential customers through the media. For example, the advertisers of the Mini car want their ads to be presented to potential typical buyers of urban white-collar women, while Ford F150 truck advertisers want to be able to advertise to farmers or small and medium-sized businesses, and advertisers will increasingly choose their target audiences for advertising.

The DSP, which serves The Advertiser or The advertiser agent, needs to determine the bidding strategy based on the data about the exposure and the exposure opportunity each time the ad exchange passes over. This data includes information about the site, page, and audience attributes that are more critical to this exposure. The audience's demographic attributes can be derived from the DSP's own demographic analysis, or from the demographic analysis that ad exchange passed over the audience. The analysis of crowd orientation directly determines whether the DSP bids and what price. DSP in the whole process, through the use of their own crowd-oriented technology to analyze, the results of the analysis will directly affect The advertiser's advertising effectiveness. We have always been committed to promoting disruptive innovation in China's Internet advertising industry, through data and technology to help advertisers more effectively directly follow the crowd to advertise. Product friends to launch the first real sense of the domestic DSP, once again for the Internet advertising RTB market early formation made a significant contribution to innovation.