Demand-side platforms provide services for brand advertisers or ad agencies, acting as an automated online advertising purchasing system known as DSP (Demand-Side Platform). DSPs enable advertisers or ad agencies to programmatically select targeted traffic and purchase ad spaces, control budgets, and optimize advertising strategies in real-time. As an integral part of digital marketing and programmatic advertising, DSP platforms offer advertisers an efficient and intelligent way to deploy ads.
Classification of Chinese DSP Platforms and Corresponding Suppliers
Analysis of Entrants
Ad agencies or ad networks transitioning into DSPs: With a wealth of advertiser resources, these companies can directly integrate into the DSP landscape. Their entry can involve building a technical team to develop a DSP, purchasing a DSP technology solution for private deployment, or acquiring a DSP company outright, with representatives such as HaoYe and others.
Ad Exchange or SSP companies expanding into DSPs
These companies, with significant traffic resources, aim to connect directly with advertiser resources. Leveraging existing technical capabilities, they typically develop a DSP in-house, with representatives including Baidu, Alibaba, Tencent, Youku, and more.
Pure-tech companies entering DSPs
Originating from a technical background, these companies have entered the programmatic advertising field rapidly, using their technological edge. Representatives include YOYI Technology and others.
Large-budget advertisers building their DSPs
With ample advertising budgets, these advertisers seek to efficiently utilize their proprietary data to enhance campaign performance and gain transparency over traffic. Their approach can range from developing a technical team for DSP creation to purchasing technology solutions for private DSP deployment. The YOYI Plus team offers a DMP+DSP model, providing large-budget advertisers with a solution for the efficient use of first-party data and transparent execution of programmatic advertising.
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DSP Types in China
Based on the resources connected and the target of service, DSPs can be further classified into Pure Web DSPs, Mobile DSPs, Cross-screen DSPs, and DSP+.
Pure Web DSPs
Focus on web traffic and services for web-oriented clients, evolving towards cross-screen DSP capabilities.
Mobile DSPs
Concentrate on mobile traffic and advertisers targeting mobile users.
Cross-screen DSPs
A hybrid of PC and mobile DSPs, offering inventory across multiple screens, including computers, smartphones, tablets, etc. YOYI Plus is a leading cross-screen DSP in China with Mobile, PC, OTT, and CTV inventories in hand.
DSP+
Encompasses various specializations such as DSP+advertiser types (e.g., performance DSPs, brand DSPs), DSP+vertical industries (e.g., financial DSPs, e-commerce DSPs), DSP+resource types (e.g., video DSPs). However, performance DSPs now generally serve brand clients as well, making pure performance DSPs rare.
Depending on the background of the DSP owner, such as owning proprietary media or being an advertiser themselves, DSPs can be categorized as follows.
Third-Party Independent DSPs
DSP platforms that bid on traffic from various Ad Exchanges/SSPs. Notable examples include YOYI TECH, FancyDigital, WiseMedia, Domob, etc..
Large Media Proprietary DSPs
Private DSPs are built by large media companies with their traffic. Examples include Tencent DSP, Sina DSP, Youku DSP, Toutiao DSP, etc. These DSPs have competitive advantages due to their unique traffic resources but may face challenges when advertisers seek cross-media frequency control for multi-media campaigns.
Advertiser Proprietary DSPs
Large advertisers, due to the privacy of their business data, cannot apply it to third-party DSP platforms. To activate this data, some advertisers opt to build their DSPs, using their technology and business data for ad deployment, achieving self-operation. Examples include Ctrip DSP, NetEase DSP, etc.
DSPs with Unique DMP Data
Companies like UnionPay with POS transaction data, and Opsmart Technology, with data from large offline traffic scenarios, use DSPs for monetization. These companies are relatively neutral in ad traffic and create value for advertisers through unique data, which is their core driving force.
Trading Desk (TD)
A Trading Desk, similar to a DSP, provides an integrated technical solution for managing multiple DSP platforms. Advertisers can manage campaigns across various DSPs through a TD, including budget allocation, strategy adjustment, and performance reporting. TDs typically serve brand advertisers who often advertise across multiple DSP suppliers, involving overall budgeting, frequency control, and unified campaign management.
TDs can be categorized into Agency Trading Desks (ATDs), Independent Trading Desks (ITDs), and Brand Trading Desks (BTDs).
Agency Trading Desks (ATDs)
Trading desks within 4A agencies serving multiple brand advertisers, such as Xaxis, Accuen, AOD, and Changrong.
Independent Trading Desks (ITDs)
Similar to ATDs they serve multiple ad agencies or direct clients, like YOYI OneDesk, Chinapex, and Fuge.
Brand Trading Desks (BTDs)
Trading desks are built in-house by advertisers or with technology providers for internal use, such as the Yili Trading Desk.
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Selection and Evaluation Criteria for Chinese DSP Suppliers
Before advertising deployment, it’s crucial to select and evaluate DSP suppliers effectively. A good supplier can make advertising efforts much more effective, while a poor choice can lead to inefficiencies and potential fraud.
Key considerations when choosing a DSP include traffic, performance, product, service, and pricing. Traffic refers to media resources, performance is tied to technical capabilities, data strength, and algorithmic prowess. The product backend focuses on the ad deployment and management interface. Service is related to the company’s background and service capabilities, while pricing models determine the cost-effectiveness of the DSP. Advertisers can assign different weights to these factors, score them, and ultimately select a DSP with strong comprehensive capabilities as a partner.
- Media Resources: The advantages of DSP media resources, including featured media, ad types, and volume.
- Technical Capabilities: Including DSP functional modules and hardware equipment. Functional modules assess precise targeting capabilities and technical highlights; hardware equipment refers to data center and server resources, verifying the DSP’s authenticity.
- Data Strength: Measures whether the DSP has sufficient data to support precise ad deployment, either from its data or third-party DMP data.
- Algorithmic Capabilities: Examines whether the DSP has an algorithmic optimization model to automatically adjust and optimize ads, reducing manual workload while ensuring campaign effectiveness.
- Product Backend: Evaluates the completeness, maturity, stability, and usability of the DSP’s ad deployment backend.
- Company Background: Provides an overview of the DSP company to assess reliability, including company introduction, team members, awards, patents, and the ability to serve major clients.
- Service Capabilities: Assesses the professionalism (including data analysis, reporting, and emergency service capabilities) and stability of the DSP execution team.
- Pricing Models: Media pricing, service fees, and pricing transparency are also critical for advertiser evaluation.
YOYI Plus, as a leading DSP in China, has cross-screen delivery capabilities for various traffic terminals including PC, mobile, OTT, and CTV, covering over 80% of media traffic in China. With robust audience data and tagging capabilities, it helps brands acquire precise public domain advertising traffic more efficiently, enhancing brand exposure and ad interaction effects.
Source of featured image: Photo by Priscilla Du Preez 🇨🇦 on Unsplash