What’s the Difference Between Using a DSP and an Agency Trading Desk?

What’s the Difference Between Using a DSP and an Agency Trading Desk?

By: Cortland J. Fondon

An Agency Trading Desk (ATD) is a massive media buyer and re-seller, which functions as an independent working unit within a large media buying concern. A Demand-Side Platform (DSP) is technology used to manage and optimize ad campaigns. ATDs work in combination with DSPs. Marketing specialists make use of programmatic advertising obtained through ATDs and optimize results using DSPs, especially when there is the need for re-targeting when an ad campaign is missing the mark.

Agency Trading Desk

An Agency Trading Desk (ATD) helps to manage programmatic media acquired through a bidding system, which intends to seek a certain audience. ATDs are set up to benefit a particular advertising agency and their clients. They allow purchases of media in real-time instead of needing to buy the media in advance of need.

ATDs apply the auction model of search engine advertising to display media and trade this media in a real-time system similar to a stock exchange. An ATD helps advertisers buy media to get the specific audience they are seeking on a large-scale.

Demand-Side Platform

A Demand-Side Platform (DSP) is an online system, which permits buyers of Internet-based advertising inventory to trade, manage, and bid in real-time for the cost of display ads. Using a DSP system allows analysis of performance metrics, such as cost-per-click (CPC) or cost-per-action (CPA).

A DSP offers significant ad inventory to enable both lateral and vertical target marketing. Real-time bidding on ads combined with the ability to track results allows optimization of advertising campaigns. The metrics, captured in sophisticated ways, are increasing. This allows advertisers to obtain information about ad frequency, place ads in many rich media formats, and includes video tracking in some cases.

DSPs are unique because they incorporate many of the facets previously offered by advertising networks, such as wide access to inventory, plus vertical and lateral targeting. They offer the ability to serve ads, place real-time bids on ads, track the ads, and optimize the advertising campaign. These functions exist in one interface, which creates the unique opportunity for advertisers to truly control and maximize the impact of ads. The sophistication and the level of detail tracked by DSPs is increasing, including frequency information, impacts across multiple forms of rich media ads, and some video metrics. Many third parties are integrating with DSPs for efficiency. Advertising organizations are using DSPs because of the better tracking capabilities.

 

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