The digital advertising industry has developed into a multiform ecosystem where automation, data, and real-time decision-making are at the heart of how advertisers can successfully run campaigns. Demand-side platforms (DSPs) are at the core of the complex underlying technology that enables advertisers to acquire and manage ad inventory across multiple channels and to optimize these purchases in real time. As programmatic advertising continues to proliferate, many ad tech companies and agencies are using DSP white label solutions to quickly enter the market without building an entirely new technology stack.
Organizations do not need to design and develop an entirely original DSP solution because they can use an existing white-label platform for their clients. Today, agencies are implementing white-label DSP solution technology for their media buying operations to have more control and improve their purchasing processes in the competitive world of DSPs and programmatic platforms while being more flexible than ever before.
You can see that knowing the fundamentals of how a white label DSP works and how it works tells you why this technology is becoming more important to advertisers and marketers as part of their overall programmatic strategy. In conversations throughout the industry on the different elements of programmatic infrastructure, companies like Gamoshi are often used as an example of how a white-label DSP can allow an agency to create custom advertising solutions based on established technology platforms.
The Expanding Role of DSP Technology in Digital Advertising
A cornerstone of programmatic advertising is demand-side platforms. These platforms automate the process of how advertisers purchase ad placements across digital environments. DSPs enable advertisers to analyze hundreds of thousands of potential impressions in a matter of milliseconds and bid on those that are most relevant to their campaign goals, from display banner placements to connected TV.
The programmatic advertising ecosystem has experienced immense growth over the past decade. In its infancy, DSPs focused predominantly on display advertising. However, today’s DSPs support multiple types of advertising formats (mobile, video, connected TV, etc.) within a single platform.
Because of this rapidly evolving landscape, agencies continually evaluate which tools are among the best in the market. In many cases, agencies will select the best-performing, most capable & transparent DSPs to source advertising for their clients.
Building a proprietary DSP requires a substantial amount of engineering resources, including significant investment in infrastructure, ongoing development, and maintenance. Many agencies and ad-tech startups that are seeking to get into programmatic have begun to adopt the white-label DSP model as a way to jump-start their ability to create their own programmatic offering.
Why Agencies Are Exploring White-Label DSP Models
Advertising agencies recognize that having control of the back-end technology associated with media buying is an asset. Agencies can create custom programmatic buying environments rather than relying on 3rd-party programmatic platforms.
A DSP white-label solution enables companies to run their own DSP interface using a 3rd-party provider’s existing backend infrastructure. A DSP white label solution normally comes with access to bidder algorithms, integration to exchanges, and reporting solutions.
The following are examples of attributes that make this model attractive:
- Brand Identity: The agency can provide an agency-branded solution.
- Customization: The dashboard, features, and integration can be designed to serve a specific client.
- Time to Market: Time from initial programmatic concept creation to execution is reduced significantly vs. the time needed to implement an internal programmatic solution.
- Operational Flexibility: Agencies can test different inventory sources and campaign strategies.
The combination of these benefits has led to an increasing interest in DSP white label solutions by organizations that are looking to expand their business beyond traditional media buying.
The Technology Behind a White-Label DSP
Modern white label DSPs are built on sophisticated infrastructures that can process real-time bids for multiple exchanges. Each ad impression is evaluated using an algorithm that looks at the following: the targeting parameters for the particular impression, how well the last time this type of ad was placed performed, and how much money is allocated to that type of ad.
This occurs within a fraction of a second when a user loads a web page or application; the ad exchange sends a request to all potential bidders for that particular impression. The DSP reviews the impression to ensure it meets the campaign objectives and makes a determination on what the bid will be.
Several technical components make this process work:
- Real-time bid engines that complete auction requests in real time
- Data management integrations that allow agencies to segment audiences based on their needs and target them accordingly
- Analytics and reporting dashboards that help agencies optimize their campaigns
- Access to inventory, even when purchasing for display, mobile devices, video, or CTV, across all of these channels.
Using these technical components allows agencies to utilize the same technology framework as the majority of the leading DSP platforms in the industry.
Market Trends Shaping Programmatic Infrastructure
The programmatic advertising ecosystem continues to undergo rapid evolution. Factors such as evolving privacy regulations, changes in browser technologies, and the emergence of new advertising channels have had an impact on all aspects of how programmatic platforms function.
In particular, there is a trend towards increased demand for transparency associated with programmatic purchasing. Advertisers want greater visibility into the exact location of their spend and how their inventory is qualified (i.e., the impressions).
Connected TV and digital video advertising will continue to grow, resulting in the need for enhanced infrastructure capabilities due to the demand for higher volumes of data and more complex targeting criteria.
Within this evolving environment, the DSP white-label model provides agencies with the opportunity to be flexible in their approach to their work. By taking advantage of already established technology frameworks, organizations can focus their efforts on strategy development and client relationships while continuing to innovate in the overall programmatic advertising ecosystem.
Practical Considerations Before Adopting a White-Label DSP
Organizations must evaluate many aspects when determining if a white label DSP solution meets their overall advertising strategy.
There are several important areas to consider:
Integration
A DSP should also integrate with other data solutions and with other data management platforms, analytics platforms, and attribution platforms that have already been integrated by the agency.
Inventory Access
The number of available ad exchanges and publishers is an important metric for the scalability and reach of the delivery of an agency’s campaigns.
Data Transparency
Agencies desire to know how their impressions have been optimized and purchased, as well as detailed reporting of each agency’s campaigns.
Security and Compliance
A DSP should comply with privacy legislation and have established its own security measures.
Taking these factors into account will assist you in determining if a white label DSP will assist agencies in meeting their operational goals.
The Future of Programmatic Platforms
The future of programmatic media buying is likely to be defined largely by advances in machine learning, the growing importance of privacy-oriented technologies, and cross-channel measurement tools. According to many industry insiders, demand-side platforms (DSPs) will continue to play a significant role in the way digital media is purchased and optimized.
The question is really about which DSP is the best choice for creating and optimizing digital media advertising and how agencies will place themselves in a much larger context than just being one of the advertisers using DSPs. Some agencies will likely continue using established DSPs, while others may use DSP white-label services to build customized platforms.
As advertising technology becomes more sophisticated and more people begin to utilize it, those businesses that possess knowledge of both the strategy and technology behind the programmatic ecosystem will be better positioned to remain viable in an evolving digital advertising market. Gamoshi, for instance, is routinely mentioned in discussions about programmatic infrastructure and white-label DSP technology within this context.
Conclusion
The programmatic ad industry requires a significant amount of infrastructure that functions quietly in the background. The use of demand-side platforms allows advertisers to purchase digital ads more easily than they would otherwise due to a fragmented landscape of publishers and exchanges. In the past few years, a white label solution for DSPs has developed as an additional alternative for agencies looking for greater control over their ability to execute programmatic campaigns.
Companies can utilize their existing technology architecture to create customized versions of a DSP without having to build a new infrastructure from scratch. As digital advertising continues to progress, the combination of strategic insight with flexible technologies will likely determine both the future of programmatic and how the development of the next generation of white-label DSP solutions will occur.
