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A demand-side platform (DSP) is a concept that combines various software for advertisers (or advertising agencies) to automate the process of buying and selling ad ...
The supply side platform sends that offer to an ad exchange. The ad exchange puts the offer out for bid to demand-side platforms. Demand side platforms act on behalf of ad agencies, who sell ads which advertise brands. Demand side platforms thus have ads ready to display, and are searching for users to view them.
Market capitalization of platform companies by region, based on 2015 United Nations data. North America, particularly the United States, remains the global leader in platform companies by market capitalization. A 2016 survey found that 63 US-based platform companies were valued over $1 billion, with 44 located in the San Francisco Bay Area.
On September 21, 2016, The Trade Desk became a public company with an $18 offering price. The company's opening day was reported as a "vote of confidence for the demand-side platform, whose S1 filing revealed healthy financials: Triple digit revenue growth and profitability — rare in a sector that is seeing much of its growth chomped away by the duopoly Google and Facebook."
Behind this development are market forces that encompass (1) important economies of scale on the supply side; (2) strong direct and indirect network effects on the demand-side; (3) data-driven competitive advantage; (4) high rate of innovation; and (5) development of conglomerates that structure entire ecosystems. [40]
Many of the larger web publishers of the world use a supply-side platform to automate and optimize the selling of their online media space. [2] A supply-side platform interfaces on the publisher side to advertising networks and exchanges, which in turn interface to demand-side platforms (DSP) on the advertiser side. [3] [4]
Clues about the long term results of network effects on the global economy are revealed in new research into Online Diversity. While the diversity of sources is in decline, there is a countervailing force of continually increasing functionality with new services, products and applications — such as music streaming services (Spotify), file sharing programs (Dropbox) and messaging platforms ...
It is a piece of JavaScript code that manages the header bidding auction [38] by calling out to various demand partners and SSPs (Supply-Side Platforms). Demand Partner Integration: The wrapper integrates with multiple demand partners to solicit bids for the publisher’s ad inventory. Each demand partner responds with a bid for the inventory. [39]