From a guide online I got this definition for Real Time Bidding: "A system where publishers set the minimum CPM they will accept for an impression, and then advertisers bid on each individual impression as it comes up, by setting their own criteria and budget with the RTB platform." So, if I have this right in this example: I have a great website, I will accept being paid a minimum of 5 cents per time there’s an impression, and then people selling stuff will bid/compete on how much they’re willing to pay me to put their ads on my website. The ones that win go onto my website. So far so good? The next definition is Demand Side Platform: "A Demand Side Platform (or DSP) is a type of RTB Ad Network in which Ad Agencies input how much they want to pay for an ad campaign, and then publishers come and bid to get the business." Bit confused here. So, ad agencies say how much they want to pay for particular ad campaigns--for Joe Soap’s great Soap they will pay publishers X dollars per click or impression. In what way do publishers bid? Do they bid in terms of the least amount they're willing to accept? So, I'm willing to accept 2 dollars per impression so I bid for that, but another publisher who has equally good traffic is willing to accept 1 dollar per impression so they bid for that, and the ad agency, using an ad server, goes with the 1 dollar bid?
A demand-side platform (DSP) is a piece of the technology STACK that fits into the larger PROGRAMMATIC real-time bidding (RTB) ecosystem. Specifically, A DSP enables marketeers, agencies and ad networks to buy display impressions across multiple ad exchanges (Double Click, Rig Media, ADSDAQ, etc). DSPs have sophisticated targeting and optimization algorithms ("decisioning engines") that help advertisers and agencies get the most value for each individual impression. Basically, these decisioning engines do number crunching to establish the value of an incoming impression then place a bid accordingly. This is all done in milliseconds. OVER RTB exchanges… Here is a great article that helped me learn the big picture http://marketingland.com/beyond-adwords-an-intro-to-demand-side-platforms-44139
Just to mess up your mind a bit more, you need to read and understand Supply Side Platform (SSP) as well. Technically this is a simple economical equation, there is demand and there is supply in online ads. One platform sees what suppliers (advertisers) have to offer and their preferences, and then demand side platforms check and target the audience through advertising platforms (publishers/you) and match them up. This happens in real time, hence the name real time bidding and only takes split of seconds to decide and show the advertisement. Read well before you opt in for one of the platforms. I read this https://econsultancy.com/reports/ds...rs&utm_source=staff&utm_campaign=monica-savut before as a guide for deman side platform buyers. This can help you understand better. And believe me you HAVE to read it, don't think watching some youtube videos or some short answers here could help. You gotta read alot to understand the underlying technology and process. Good luck