Is Facebook a DSP?

Whether or not Facebook is a DSP, is a high sort question by advertisers. And yes, Facebook’s Ads manager can be termed as a Demand Side Platform. 

What is a DSP?

A demand-side platform is a system that’s designed to buy ad spaces and apps from multiple websites. The effectiveness of a DSP is determined by the number of advertising opportunities it can avail to the buyer. 
With that said, the advertising opportunities don’t include Facebook. The reason being Mark opted to design his platform, eliminating a technical middleman, which is kind of brilliant. 

Ads Manager by Facebook

Facebook’s Ad Manager is a DSP that sells its inventory besides Instagram inventory. It has targeting options and other features of the mobile DSP. 
The only difference is that Facebook sells its inventory based on formats only available to its platform.

Does advertising on facebook produce a positive ROI?

You can make huge gains by advertising on Facebook. A well-crafted ad presented to the right audience can generate vast sales. 
The greatest strength of Facebook is that it’s able to target a very particular audience, as it’s a social network.
Think about it. How much can we learn about you if we visited your Facebook? Your location, interests, occupation, business. It’s a lot.
Therefore, Facebook can provide thousands of different targeting variables based on this incredible information. 
This makes it an excellent DSP when it comes to targeting factor, compared to mobile DSPs.

Simple Ads – Native Appearance

The Facebook Ads format is straightforward. You can either display your ads on the sidebar or your audience’s news feeds.
Facebook is a type of programmatic (mobile) advertising. Additionally, Facebook ads, especially the ones in the news feeds, are examples of native advertising. This is true because the ads appear alongside shares, likes, and organic posts of family and friends. 
To top that, since Facebook’s primary goal is being a social network, it creates the best mobile advertising. It creates a balance between being non-intrusive and effective for advertisers.

How much time do people spend on facebook & other inventories

Although different studies give different results, the average person spends 22 minutes on Facebook out of the 118 minutes spent online. 81% of this time is spent on a mobile device with only 19% on a desktop [1].
This shows that although Facebook is bigger than any publisher, with YouTube following closely, but many people access other web owners more than Facebook.
The point is, Facebook is crucial in our daily activities and can be useful if used for advertisements with its quality DSP.  
It’s worth stating that Facebook’s CPMs are slightly higher than other publishers. 
With that said, although it shouldn’t be viewed as the only way to reach the target audience, it shouldn’t be ignored.
 
More Information on DSPs?
The marketing industry is expanding by the day, and keeping up requires attentiveness and, most importantly, a reliable source of information to cancel out any confusion.
There’s still so much learning on mobile advertising, DSPs, programmatic advertising, and much more.
Get all that juicy info from our blog today!
Related:
What is Amazon DSP?
What is Doubleclick Manager (DMN) called now?
 
References 

  1. https://www.digitalinformationworld.com/2019/01/how-much-time-do-people-spend-social-media-infographic.html

 

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