Forrester Research report highlights enduring relevance of DSPs in digital ad world

Advertisers are grappling with challenges in the digital advertising realm, largely stemming from shifts in data privacy regulations and the rise of walled garden platforms. Despite these hurdles, they continue to rely on multiple demand-side platforms (DSPs) as a means to centralize their advertising efforts.

Forrester Research recently published a report titled "The Forrester Wave: Omnichannel Demand-Side Platforms, Q3 2023," shedding light on the enduring relevance of DSPs in the world of digital advertising. The report underscores the factors that advertisers should consider when choosing a DSP and highlights the leading platforms in this landscape.

According to data from Forrester's Q1 2023 B2C Marketing CMO Pulse Survey, a significant 78% of US B2C marketing leaders indicated that their teams use two or more DSPs to access both open and closed advertising ecosystems. In response, DSP vendors are proactively investing in solutions designed to address signal loss, harness the power of AI for more autonomous advertising, and tap into the potential of connected TV (CTV) and retail data for comprehensive funnel impact and closed-loop measurement.

To thrive in the environment, DSP customers should consider the following when choosing a provider. They should look for DSPs that offer unique consumer intent signals through proprietary data sources and partnerships. Given data deprecation issues, advertisers should seek DSP vendors with flexible identity solutions that can resolve consumer identities across devices and channels effectively. Advertisers should choose DSPs that cater to both basic and advanced users. Effective vendors automate tasks, provide user-friendly interfaces, and leverage AI to enhance decision-making while maintaining transparency and control.

The report maps out different platforms and the categories they come under when it comes to their performance as DSPs. It has named 12 providers who matter the most in the environment and analyzed them. The three leading demand-side platform (DSP) providers according to the assessment are Trade Desk, Amazon Ads and Google.

The Trade Desk’s platform is known for usability and investments in connected TV (CTV) and identity solutions. It offers a user-friendly platform but with steep and inflexible pricing. Amazon Ads has evolved to offer a full-funnel advertising solution with high-yielding inventory and AI-driven decision-making. It offers unique insights into retail and viewership behaviours. Google also offers an AI-powered, user-friendly DSP with strong proprietary signals and focuses on media planning, buying, and optimization.

“We’re delighted to be acknowledged in this report from Forrester,” said Girish Prabhu, Director, Amazon Ads India. “We are committed to continually improving our advertising solutions based on the feedback we receive from our customers. We remain focused on helping brands achieve their goals by reaching audiences wherever they spend time.”

Tejinder Gill, General Manager, The Trade Desk - "Being recognized as a leader in The Forrester Wave for Omnichannel Demand-Side Platforms, with the highest score in Strategy, we believe underscores our unwavering dedication to help our clients achieve their business objectives. We will continue to pioneer innovation that promotes trust and transparency in service of advertisers and for all stakeholders across the digital advertising ecosystem."

In addition to these top performers, other notable mentions in the report include Microsoft Advertising and Yahoo in the "Strong Performer" category, while "Contenders" include Criteo and Adobe.

In the ever-evolving landscape of advertising and digital marketing, demand-side platforms present a growing opportunity. By carefully selecting DSP providers that address challenges and offer recommended solutions, advertisers can optimize their advertising efforts in a complex digital advertising ecosystem.