Demand-side platforms (DSPs) have moved from “nice-to-have” to “non-negotiable” in mobile user acquisition (UA). In 2025, programmatic now powers nearly 9-in-10 display dollars, mobile budgets are rebounding, AI-driven bidding is table stakes, and privacy shifts such as SKAN 4 and Android’s Privacy Sandbox are redrawing the measurement playbook. Below is a fresh take on Business of Apps’ DSP primer — updated with this year’s numbers, real-world case studies and an action checklist for marketers at every level.
1. DSPs in 2025: Back to Basics, Only Bigger
A mobile DSP automates real-time bidding, creative delivery and optimisation across thousands of ad exchanges. Transparency — once a wish list item — is now core to vendor selection, with marketers demanding log-level cost and placement data to weed out hidden fees and fraud.
2. Market Snapshot
- Programmatic dominance: Worldwide, programmatic will account for 87% of all digital display spend in 2025, confirming its place as the default buying method.
- Mobile budget bounce-back: After a rocky 2023, app-install budgets grew 18% YoY in 2024 and are on pace to exceed that in 2025, according to AppsFlyer’s latest Performance Index.
- Overall ad spend health: Even under worst-case tariffs, US mobile ad spend is still forecast to rise nearly 5 % this year — proof the channel’s resilience.
- Investor confidence: AppLovin’s 2024 rally to a $100 billion valuation underscores how capital markets view high-performing mobile DSP tech.
3. Five Trends Redefining DSP-Led UA
3.1 AI-Powered Event Bidding
Modern DSPs predict post-install value — registrations, purchases, LTV — and bid accordingly, abandoning CPI as the sole goal. Aarki calls this “retention-first acquisition,” and reports sharper ROAS once campaigns switch to event optimisation.
3.2 Privacy-First Measurement
- SKAN 4 uptake: Adoption reached 33 % of iOS campaigns by Q1 2024 and continues to climb as Meta, TikTok and others enable the framework.
- Android’s Privacy Sandbox: Audigent and AdRoll proved Protected Audience API retargeting inside the Sandbox this year, showing cookie-free tactics can still convert.
3.3 Supply-Path Optimisation & Transparency
Marketers now shortlist DSPs that expose auction fees, block invalid traffic and offer granular reporting — an evolution first flagged by Business of Apps and now industry standard.
3.4 Vertical & OEM-Centric DSPs
Niche solutions such as Digital Turbine’s Appreciate and Samsung DSP integrate directly with device makers to unlock on-device placements and richer first-party data.
3.5 Surging Inventory Types
IAB forecasts double-digit growth for CTV, retail media and social video, and most leading DSPs have built connectors to tap that incremental reach without leaving the UA dashboard.
4. Choosing the Right DSP: 2025 Checklist
| Must-Have | Why It Matters | Quick Test |
| Transparent cost model | Eliminates hidden tech fees and ensures clean ROAS math | Ask for log-level cost reports during trial |
| Event-level optimisation | Moves bids from installs to revenue-driving actions | Verify support for SKAN 4 coarse & fine values |
| Privacy compliance | Future-proofs measurement amid ATT & Sandbox roll-outs | Request documentation on ID Provenance and PAAPI readiness |
| Creative automation | Speeds testing of formats across display, video, CTV | Demo dynamic creative templates |
| Cross-platform reach | Consolidates iOS, Android, Web & OEM buys | Check partner/exchange list for gaps |
Guidance echoes Adjust’s recommendation that a “great mobile DSP should be data-driven, performance-oriented and fully transparent.”
5. Action Recommendations for UA Teams
- Run a 30-day bake-off between two DSPs, judging on day-7 ROAS, fraud rate and reporting depth.
- Feed post-install events early — at least 1 k conversions per geo — to let AI models exit learning faster.
- Layer contextual signals (device make, app category, time of day) to offset signal loss from IDFA depreciation.
- Prepare for Sandbox GA by integrating the Protected Audience and Attribution Reporting APIs in test mode now.
- Keep creatives fresh: Rotate every 7 days to curb ad fatigue and preserve click-through rates.
6. Key Takeaway
Mobile DSPs have matured into end-to-end growth engines — combining AI, privacy-safe attribution and multi-format reach. Brands that master event-based bidding and transparent supply paths today will outpace competitors still optimising for installs tomorrow.
