Top 10 FAQs about DSPs and In-App Traffic

In today’s digital age, apps are integral to our daily lives. From food delivery and travel services to shopping and games, almost every service has a mobile version. As the mobile ecosystem evolves, in-app advertising is gaining momentum, becoming increasingly attractive for brands. In-app promotion now has the tools to analyze efficiency, verify traffic, and develop engaging ad formats. Given our constant use of smartphones, having a presence in this communication channel is essential for brands.

In this article, we’ve gathered the most frequently asked questions from advertisers about in-app traffic, programmatic buying, and DSP operations, providing clear and concise answers. Let’s get started!

1. Why are CPA pricing models not the best choice for beginning user acquisition through DSPs?

Some advertisers prefer CPA models to secure marketing budgets, but in-app traffic attribution differs from mobile social media traffic attribution. For in-app marketing, using a CPM pricing model is wise because ad exchange bids are influenced by multiple parameters such as creative formats, number of advertisers, verticals, time, target audience, etc.

Long-term, eCPM-based media buying often results in lower eCPI, eCPA, and higher ROAS. Testing various ad creatives, audience segments, exchanges, and apps through eCPM buying keeps campaigns dynamic and scalable. Conversely, aiming for a low CPI might miss high LTV sources and audiences. Setting a fixed CPI can limit premium placements and audience segments, leading to higher CPI and budget wastage, even with high-quality traffic.

Reaching your target CPA is a gradual process, requiring data to train the platform and predictive algorithms to target your audience at scale.

2. Why is in-app CPI higher than social media?

Social media can target specific audiences, but scaling becomes difficult as audiences deplete. Initial CPIs may be low but are unsustainable long-term. In-app advertising offers broader reach and scalability with a growing number of apps.

DSP algorithms need significant impressions and actions to deliver results at scale. Cheaper installs don’t guarantee good performance; users often delete unused apps. A well-trained predictive algorithm can target relevant users and refine models based on results.

3. Do we really have to use a mobile measurement tracker?

Yes, a reliable mobile measurement partner (MMP) is essential for tracking ad campaign performance. MMPs correctly attribute ad traffic and identify which sales funnel stages need focus, helping advertisers understand which apps, exchanges, and creatives work best. This data informs other advertising activities and helps make informed decisions.

4. Why focus on post-view attribution in in-app campaigns?

Post-view attribution is crucial, especially with the rise of video ads. Users often watch video ads without immediate action, making post-view attribution vital for understanding campaign performance. Banner ads also benefit as users might download apps hours or days after viewing. Post-view attribution helps in emerging markets where users might delay downloads until they have better internet access.

Setting up post-view attribution within 24 hours offers a deeper understanding of user interactions without needing immediate actions like clicks or installs.

5. What about in-app fraud?

In-app fraud is less of a concern now due to reliable ecosystem participants. We integrate with main MMPs and their fraud protection tools (e.g., AppsFlyer, Adjust) and third-party tools (e.g., MOAT, DoubleVerify). Our in-house fraud detection tool ensures quality checks across all actions.

6. Why buy traffic through DSPs if we have direct access to ad exchanges?

DSPs extend your team’s capabilities, allowing you to test multiple sources simultaneously. This frees up time to focus on retention and other down-funnel events. DSPs offer opportunities to test and consolidate efforts with certain exchanges.

7. What budget should I allocate for testing in-app promotion?

Marketing budgets for in-app promotion vary based on factors like target country, app type, and other nuances. Media buying teams recommend starting budgets tailored to each app and advertiser feedback.

8. What GEOs are available for targeting?

In-app advertising targets smartphone users globally. You can target broad regions or specific areas like states, cities, or zip codes. Specific locations can also be excluded based on performance.

9. Why shouldn’t you change in-app ad creatives too often?

Frequent creative changes can negatively impact algorithms by limiting statistically significant data for proper training. Running creatives for a week or two helps identify the best apps and categories without missing optimal solutions.

10. What is the difference between DSPs and ad networks?

DSPs provide access to multiple ad networks in one place, unlike ad networks, which require individual integrations. DSPs facilitate automated media buying with predictive algorithms, leading to higher quality users and more traffic.

Conclusion

As mobile apps become more popular, their close contact with target audiences leads many brands to favor in-app traffic. The advantages for advertisers are clear:

- Broad reach through millions of popular apps
- Ads shown to highly interested users via programmatic buying
- Multiple ad formats increasing ad memorability and incentivizing actions

In-app inventory isn’t a quick fix; achieving goals requires patience, time, and investment in training DSPs and algorithms. Approach this as a long-term investment for future success.

We hope this article helps brands better understand the nuances of in-app advertising.