Back in the day, to advertise your new product, you would have to put up a billboard, or pay for a full-page ad in a major magazine. Then, in 1993, the first internet ad was created. Now the internet is filled with countless “billboards” — everything from a small travel blog with an ardent following to CNN Money is ready and willing to accept your dollars to display your ads. At the same time, advertisers are awash with user information, thanks to the ubiquity of cookies and big data. However, that treasure trove of insights is just noise unless it can be organised, analysed, and used.
Marketers need specialised tools to make sense of it all. They require platforms that will help them get a grip on the massive amount of customer data available, so they can use that information to effectively advertise to the right audience for the right price.
These tools are known as data management platforms (DMPs), which organise huge amounts of information, and demand side platforms (DSPs), which analyse DMPs and use that information to bid on and place digital ads. DMPs and DSPs need each other to create a successful digital advertising ecosystem. That’s why it’s no surprise the latest innovation is DMP-DSP hybrid platforms.
Is a DMP-DSP hybrid the right call for your advertising department? Before you make that decision, you need to understand how DMPs and DSPs work. Then you can appreciate the unique benefits and drawbacks a DMP-DSP hybrid platform presents.