Why Launch a DSP?

By Yair Yaskerovitch, VP Media, Zoomd Technologies Ltd.

After tremendous expansion through the mid-2010s, the marketing technology industry has been consolidating over the last few years.

According to research from the since consolidated Sizmek in 2018, 64% of the 522 marketing decision-makers questioned said that they will prioritize a reduction of marketing technology vendors, with 62% citing ecosystem complexity as a drive for this rationale.

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Indeed, there has been a lot of consolidation in marketing technology over the last few years.

Despite the trend of consolidation in mar-tech, we recently launched a Demand-Side Platform because we feel that the changes that have occurred over the last few years warrant a return of some of the technology solutions that have been eliminated by consolidation.

1. Automation:

The reason that marketers work with a DSP is because it enables them to manage their ad buys across platforms in real-time using automation. DSPs were one of the technologies that were consolidated over the last few years but until recently, DPSs didn’t have nearly as many automated tasks in their product offering. Therefore, it’s the advancement of automation in marketing technology that is making DSPs more valuable and necessary today than they were even three years ago.

2. Better campaign management:

For marketers, DSPs provide solutions that enable them to more efficiently and effectively manage their campaigns across a broad range of traffic sources/publishers with greater ease. They also enable saving time by addressing the bid placement and management and make it easier to increase ad spend on better performing campaigns while reducing spend on under-performing ones.

3. Greater transparency:

I know that ‘transparency’ is an overused term in digital marketing, but enabling marketers to see the traffic source where every one of their ads runs provides transparency in a digital ad world with too much fraud and malware. This sense of transparency has been missing over the last few years as the industry over-consolidated.

4. Increase media reach and audience: 

Another value that marketers gain from working with a DSP is that they enable increasing reach to more publishers/apps in their efforts to reach more users. Through a DSP, marketers can build their audiences using their first-party data which facilitates managing the stricter data legislation like GDPR and CCPA governing data acquisition.

5. Create a mobile marketing stack:

With the rollout of new marketing technologies over the last decade, marketers put together and integrated best-in-class solutions to create their marketing stack. By integrating a range of leading technologies, from email marketing and video to social media management and analytics, marketers were able to benefit from the best solutions for the range of marketing technologies integrated to work together to address the challenges they face.

With mobile gaining an increasingly larger share of most marketer’s budgets, it’s time for marketers to create mobile marketing stacks, and a DSP is a needed addition to such a technology stack.

6. Due to the martech consolidation, there’s actually a need for DSPs today:

With several DSPs victims of consolidation, including AppNexus, dataxu, Rocket Fuel, and Sizmek, there is demand for an independent DSP in mobile marketing today to enable marketers to more efficiently manage their advertising campaigns.

7. Marketers are more data and technology-proficient:

All of the aforementioned reasons are relevant because, as marketers in-house more digital marketing functionality, they’ve become more knowledgeable in the intricacies of digital campaign management. This means that internal media teams can now take advantage of technology solutions like DSPs today which very few marketers could a few years ago.

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As marketers face new challenges in 2021 including the end of IDFA on iOS as well as more privacy-driven legislation around the world, they will derive even greater value from technologies that can simplify their work while adding real business value. When assessing our customers’ pains and how best they could be addressed, it became clear that DSP technology was once again needed in today’s digital advertising ecosystem.