Resources

How DSPs Work (and Why They Matter)

A clear, technical overview of Demand-Side Platforms and their role in New Zealand media buying.

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Why This Matters

Programmatic is dominant

DSPs now power most digital transactions and centralise buying, optimisation, and reporting.

Competitive advantage

Understanding DSP mechanics sharpens targeting, budgeting, and performance reads in NZ.

Transparency challenge

Know how auctions and fees work to avoid overpaying or misreading results.

What Is a DSP?

A demand-side platform is software that buys media programmatically, evaluates each impression in milliseconds, and automates bidding, targeting, and frequency control with full-funnel reporting.

DSPs vs Direct Buying

Method

RTB + algorithmic decisions vs manual IOs with fixed rates.

Access

Thousands of sites via SSPs/exchanges vs one publisher at a time.

Optimisation

Automated, real-time vs human-driven adjustments.

Transparency

Granular logs and fee visibility vs limited insight.

How a DSP Fits in the Ad Tech Stack

  • DMP/CDP supply audiences; SSPs supply inventory; ad server delivers creative; verification tools measure quality.
  • The DSP orchestrates bidding, pacing, and frequency to hit objectives across channels.

Major DSPs in NZ

The Trade Desk

Open-web scale, data integrations, transparent auctions.

DV360

Deep Google stack access incl. YouTube; strong for video.

Adform

Built-in DMP/Studio; privacy-forward, cookieless tools.

Others

Teads (outstream), Yahoo DSP (CTV), Quantcast (modelling).

What You Can Buy via a DSP

Display & Native

Standard banners and in-feed/native placements.

Video & CTV

Instream/outstream and connected TV.

Audio

Streaming music, podcasts, digital radio.

DOOH & In-App

Digital out-of-home screens and mobile apps.

Targeting Capabilities

  • Audience segments (interest/intent/demo) + retargeting & CRM lists.
  • Contextual categories + geographic (postcode/lat-long/geofencing).
  • Lookalike modelling via DMP/CDP; layered with dayparting & caps.

Inventory Access & Quality

Premium NZ publishers

NZME, Stuff, TVNZ, MediaWorks via PMPs or PG.

Global exchanges

Index, Magnite, PubMatic for scale with controls.

PMP / PG

Invite-only or guaranteed with fixed CPM and better transparency.

RTB in Plain English

  1. User loads a page → a bid request with context/user/device is sent.
  2. DSPs evaluate and bid in an auction that completes in ~100–200ms.
  3. Highest valid bid wins; ad is served and tracked for viewability, engagement, and conversions.

DSP Optimisation Features

  • Budget pacing & bid strategies (by device, time, placement).
  • Frequency caps and creative rotation to avoid fatigue.
  • Conversion tracking (pixel or server-side) with attribution windows/MTA.
  • Automated A/B tests and dynamic CPM adjustments from performance signals.

Reporting & Transparency

Key metrics

Impressions, clicks, viewability, conversions in real time.

Supply path visibility

Domain/app paths, auction dynamics, and fee breakdowns.

Attention

Time-in-view/scroll/interaction signals, not just “viewed”.

Attribution

Cross-device journeys, incrementality, and lift reads.

Creative in a DSP World

  • Supports static, video, HTML5, and DCO; assets can swap dynamically by audience/weather/context.
  • Ad server integrations enable sequencing, cross-device caps, and element-level analytics.

Compliance, Fraud & Brand Safety

  • Verification (e.g., DV/MOAT/IAS) for viewability and brand safety; pre-bid and post-bid controls.
  • Fraud detection filters bots; exclusion lists define safe domains/apps.
  • NZ Privacy Act 2020 compliance and consent frameworks respected.

Strengths of DSPs

Cross-channel flexibility

Display, video, CTV, audio, DOOH in one place.

Unified planning

One dashboard for pacing, targeting, and reporting.

Deep targeting

First/third-party data with precise controls.

Real-time changes

Shift bids, budgets, and creative instantly.

Limitations & Watchouts

  • Complexity: steep learning curve; poor setup wastes spend.
  • Inputs matter: weak creative or data limits results.
  • Fees: DSP 10–20% typical; full tech stack can reach 40–60% of spend.
  • Metrics: viewability ≠ effectiveness — track attention and outcomes.

DSPs in NZ — Local Considerations

Publisher ties

Leverage PMPs/PG with NZME, Stuff, TVNZ, MediaWorks for quality and context.

DOOH & Geo

Programmatic DOOH via QMS, JCDecaux, oOh!; plan for NZ’s urban layouts.

Regulation & culture

NZ Privacy Act 2020; culturally aware audience design, including Māori considerations.

Platform mix

Often DV360 + TTD for reach; check local support & trading desk fees.

How KBR Supports DSP Strategy

Platform selection & onboarding

Right DSP mix, contracts, and implementation planning.

Trading & optimisation

Hands-on setup, daily tuning, and best-practice bidding/targeting.

Taxonomy & reporting

Clean naming, dashboards, training, and cross-market approaches.

Want a Smarter DSP Setup?

We’ll audit your stack, craft a PMP/PG plan, and tune bids, frequency, and creative for NZ performance.