What are the challenges for Demand Side Platforms (DSP) during the pandemic?

The DSP is the key to programmatic buying.
It makes the purchase of inventory possible by connecting to the ad exchanges and allows the optimization of campaigns in real time.
By providing clarity into impressions and conversions, DSPs help advertisers spend their ad budgets more effectively.
DSPs are typically managed by in-house marketing teams, media agencies, or trading desks that specialize in real-time adv.
During the pandemic, DSPs are facing different challenges:
– CPMs are falling
– Increased costs in processing bid requests (due to online traffic spikes and header bidding)
– Bid duplication
The problem is that ad exchanges conduct concurrent auctions for the same impression.
Auction duplication drives up operating costs for AdTech providers and introduces complexity for buyers.
But it makes publishers more money as more bid requests for the same imp mean greater odds of securing a high price from a DSP.
The buy-side took a stand:
MediaMath suppressed bid duplication across the SSPs it works with.
The Trade Desk asked to SSPs to stop sending duplicated requests to take part in the same auction.
These initiatives aim to create a more efficient supply paths, but it’s clear the need for more custom and flexible marketplaces.
Other sources: see in the LinkedIn comments.
Previously posted by Luca Brighenti via LinkedIn. 

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