The DSP model echoes this convergence for the digital media buyer and consumer.
With a demand-side platform, the ability to address the user depends on the use of data (often cookies) such that a user will be delivered a message across multiple channels of inventory. For example, the media buyer can deliver multiple display ads on CNN, TripAdvisor and MySpace – and it can all be shown to the same consumer.
Today, display advertising is the "early adopter" for the DSP model for many reasons including oversupply of publisher ad inventory (it’s cheap!), standardization of display ad units (it’s simple!) , the huge media dollars at stake (it’s worth it!) and innovative technology (it’s not so simple!) being built to harness a unique opportunity to message consumers.
Also, as user intent is understood through data, users can be matched to those who “look alike” bringing scale to valuable audience segments that advertisers can address. Scalable, addressable media - a marketer’s Holy Grail!
So, while the media channel converges across devices, ads converge across audience and the audience converges content.
What’s it all about? DSPs are at the leading edge of a convergence sh*tstorm.
By John Ebbert