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Audience Powered DSPs FTW

4 MINUTE READ | June 2, 2016

Audience Powered DSPs FTW

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Madelyn Fraser

Madelyn Fraser has written this article. More details coming soon.

I know you all have been on pins and needles since my last blog post, thinking, “When is she going to write about the audience based DSPs?! She promised!” Well Ladies and Gents, the time is now!

Efficiency. That is the word that comes to mind when I think of programmatic buying. I know, I know, programmatic is almost a taboo word now; but, let’s be real, it’s probably one of the best things marketers have come up with since… well, ever (in my opinion). Those smart cookies who stepped up to the plate first and came out with their proprietary algorithms to get advertisers the best bang for their buck started this whole efficiency phenomenon. The rest of the marketing gang latched on tightly and the rises of DSP partners began.

Now, there are so many DSP partners out there and it’s hard to decide which one you should team up with. I spend about 85-90% of my time in different DSPs, so I am here to tell you what you should be looking for when it comes to a DSP relationships. While work flow is clutch, it’s the data and algorithms behind these machines that really set them apart.

You may remember a while back that Atlas (Facebook’s Ad Server) announced that it was going to create its own DSP which would allow advertisers to target Facebook specific audiences – and the marketing world went silent. This was going to be the biggest game changer in our industry. Sadly, Atlas couldn’t get the data and algorithm part down pat and ended pulling the plug on this project, stating that there were just too many bots and fraudulent inventory out there. Well, Atlas, the interwebs are most definitely filled with weird and shady stuff, but so many other DSPs have figured out ways around this, why can’t y’all? You would have dominated the DSP space with the ability to target such specific audiences where we KNOW people will engage. SMH.

Just because Atlas couldn’t pull this off, doesn’t mean that others aren’t trying to do the same thing. Amazon and eBay are two prime examples of companies that have built DSPs that allow advertisers to target based off of their consumers’ demographics and buying behaviors. Now, you’re probably thinking, “I currently have a MSA signed with XYZ DSP, and can target really niche audiences based off of 3rd party data from providers like BlueKai, Exelate and DataLogix. Why do I need to go through another round of legal shenanigans to sign an additional DSP?” Simple answer: 1st party data! 3rd party data is slowly becoming a thing of the past and advertisers prefer to get their data straight from the source. Think of this like a game of telephone. In telephone, you start off with one sentence, but then that sentence goes through so many different people that the true meaning of the sentence gets lost in translation. Advertisers are being much more selective with how they spend their dollars, because (dun dun dunnnnn!) efficiency is key and those 3rd parties aren’t as reliable as getting your data from the source.

With all of the creepy data marketers and advertisers have collected over the years, we know exactly who we should be targeting with our ads to drive the most success for our campaigns. That said, we are going to be stingy with how we spend our money because we expect our DSPs to be the most efficient machines possible.

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Side note: We aren’t being stingy with our money just to be know-it-alls, we have seen the rise of ad blocking and heard consumer’s cries over how intrusive advertising is; which is why we want to do something about that. With more tailored and targeted ads, we hope to make your advertising experience something that you look forward to because it relates to your daily life. Okay – I’m off my soap box now!