Mastering DSP Targeting: A Beginner's Guide to Effective Audience Strategies

You’re scrolling through your favorite website when an ad for trendy sneakers pops up on your screen. You glance through but don’t click it. A couple of days later, the same ad shows up on a different site — but this time, it’s offering you 15% off. Now you’re getting interested. That’s DSP targeting in action, and it’s more powerful than you might think.

If you’re new to targeting strategies on DSP, you’re in the right place. We’re about to break down the essentials. From understanding the sales funnel to knowing when to retarget or block certain audiences, keep reading this article.

Understanding the sales funnel

In the digital reality, every ad campaign is an opportunity for a business to connect with the right audience at the right time. But without a well-thought-out strategy, even the most compelling ad can fall flat. If you’re new to targeting on DSP, it’s time to dive into the essentials. To make the most of your campaigns, you should have a clear grasp of the sales funnel and targeting techniques.

Picture your audience as travelers moving through a tunnel. At the start, they barely know your brand exists. By the end, they’re ready to buy. Every stage of this sales funnel needs a different targeting strategy:

• Awareness: Here, you’re getting on the radar. Your goal is to get noticed without being pushy. Contextual targeting is your friend here. Placing ads alongside content that’s relevant to what you’re selling is a great tactic.
• Consideration: Now, users are intrigued but not ready to commit. This is where behavioral targeting comes in. By analyzing their browsing habits — the sites they visit, the products they hover over — you can serve ads that align with their interests, increasing the likelihood of engagement. On SmartyAds DSP, you can slice and dice audience data to reach users who’ve been searching for products like yours.
• Conversion: Your potential customer is on the brink of making a purchase. Retargeting techniques become critical here. Remind them of your offer or that abandoned cart. Flash a limited-time offer. Nudge them over the finish line.

The key takeaway? Each stage of the funnel requires a distinct approach. Misaligning your targeting strategy can mean wasted impressions and missed opportunities.

Game-changing targeting strategies on DSP

DSP targeting can be overwhelming. We get you. But if you are aware of these five strategies, you’re well on your way:

Behavioral targeting

Ever felt like ads are reading your mind? They’re not. That’s behavioral targeting. It analyzes user behavior across the web, from shopping habits to browsing patterns, and purchase intent. It enables algorithms to predict what users want next and deliver relevant ads. 

You can tap into the data to reach users who’ve been window-shopping on your website. Maybe they visited your website but didn’t add anything to the cart. Hit them with a “Still looking for the perfect [your product]?”

In-market targeting

Timing is everything. In-market targeting zeroes in on users actively searching for products or services similar to yours. Those people are ready to buy. Platforms like SmartyAds connect high-intent buyers with your brand as the perfect solution at the right moment.

Contextual targeting

Picture this: You’re selling vegan protein bars. Would you rather advertise on a random website or next to an article about plant-based diets? That’s contextual targeting — placing your ads in contextually relevant environments. 

This approach not only increases relevance but also enhances user experience. Notably, global spending on contextual advertising is projected to more than double by 2030, reaching approximately $562.1 billion.

On SmartyAds DSP, you can align your ads with specific topics, categories, or keywords. Instead of shouting into the void, you’re joining a conversation that’s already happening.

Demographic & lifestyle targeting

Not every product is for everyone. Demographic targeting filters out your audience by age, gender, income, or even lifestyle choices to focus on people who actually fit your target profile. The more precise your targeting, the less you waste on people who’ll never buy.

The SmartyAds DSP allows advertisers to layer multiple demographic and lifestyle criteria, creating a laser-focused approach to audience segmentation.

Retargeting techniques

If someone visited your site but didn’t convert, should you let them go? Not so fast. Retargeting keeps your brand top-of-mind for users who’ve shown interest but haven’t yet committed. 

But there’s a fine line between effective retargeting and ad fatigue. Overdo it, and your audience may tune out, or even worse, develop negative associations with your brand. The solution? Implement frequency caps, optimize creative, and vary the messaging.

Retargeting vs. blocking: how to make the call

Knowing when to retarget and when to block is a skill that can make or break your campaign.

Retargeting: If a user added items to their cart but didn’t complete the purchase, that’s a hot lead. 

A well-timed retargeting campaign can help them to complete the purchase. Send them a reminder ad, but make it worth their while. Offer a discount. Highlight limited stock. Creating dynamic retargeting ads will show the exact product they abandoned.

Blocking: But what if they’ve seen your ad five times and haven’t clicked once?  Why waste impressions on an uninterested audience? Blocking: Time to block them and focus on the high-intent users.

On SmartyAds, you can exclude non-converting users or focus on high-intent audiences. It enables optimizing your spend and improving ROI while adjusting your strategy on the fly.

Best practices for optimizing your DSP targeting methodology

Regular performance analysis: 

Don’t set it and forget it. Consistently analyze campaign performance to identify what’s working and what’s not. SmartyAds provides deep insights that show which targeting methods drive the best results.

A/B testing:

Not sure which targeting strategy will resonate? Test it. Compare contextual targeting vs. behavioral targeting, or retargeting vs. in-market targeting.  Run two similar ads with different CTAs. The goal? Learn what resonates before you blow your budget. 

Budget optimization:

Instead of spreading your budget thin, concentrate on top-performing segments. The SmartyAds DSP dashboard makes it easy to adjust budget allocations based on real-time performance data

Adjusting targeting on SmartyAds DSP: smarter campaigns, better results

The SmartyAds DSP is packed with powerful tools that let you get super specific with your targeting. Here’s how you can make it work for you:

Retargeting options

Imagine a user who visited your website, spent time browsing through several products. Maybe they even added something to their cart but didn’t check out. 

On SmartyAds DSP, you can re-engage that user in a way that feels personalized and relevant. You’re not just tossing out generic ads. You’re serving them dynamic retargeting ads that feature the exact products they viewed, potentially with a special offer or discount to nudge them closer to conversion. 

Retargeting on SmartyAds DSP can also be fine-tuned based on advanced insights.

Moreover, frequency capping will not let them be bombarded with repetitive ads, which can cause irritation. Additionally, our platform leverages DMP integration, enabling diverse targeting capabilities to reach specific audience segments effectively. Learn more about our collaboration with LiveRamp here.

Whitelisting and blacklisting

This is where you take control over where your ads appear. With SmartyAds DSP, you can create a whitelist that specifies trusted publishers or even individual websites that align with your brand image.

On the flip side, blacklisting is your safety net. You can exclude sites that have previously delivered poor performance or that simply don’t align with your brand’s ethos. You can even apply category-based filtering, keeping your ads away from controversial or sensitive content that could damage your reputation.

Contextual targeting

It is underrated but seriously powerful. Instead of just chasing user data, it’s about matching your ads with the content people are already into. 

With SmartyAds DSP, you can place your ads next to content that aligns with your message — like workout tips for fitness gear or travel guides for luggage brands. It’s not interrupting; it’s joining the conversation.

Dayparting

Why burn budget running ads at 3 a.m. when your audience is asleep? Dayparting on SmartyAds DSP lets you schedule ads to hit when your audience is actually paying attention. 

Target lunch hours for food deals, evenings for streaming — and adjust for different time zones to stay relevant everywhere. It’s not just about reaching people.It’s more about reaching them when it matters most. 
 Incorporating these advanced features can dramatically elevate the performance of your DSP campaigns, ensuring that every dollar spent moves you closer to your marketing objectives.

Final thoughts

DSP targeting isn’t just about throwing ads out there and hoping they stick. It’s more like playing chess — every move needs to be intentional, calculated, and part of a bigger plan. You can have the flashiest ads and the biggest budget, but if you’re not hitting the right people at the right time, you’re just burning money.

That’s why mastering targeting is everything. It’s not a one-and-done deal — it’s a constant cycle of testing, tweaking, and refining. Align your strategy with the sales funnel, choose the right methods, and make the most of the tools on SmartyAds DSP. Do it right, and you’re not just running ads — you’re driving real results.

Want to get more from your ad spend? 

Register on SmartyAds DSP and start building smarter, more targeted campaigns that convert.