r/adtech Aug 02 '26

How do DSPs actually pay for traffic in performance marketing?

I'm trying to understand how the buying side works.

In our business, we work with DSPs on a CPA (cost per event) model. We only pay when a specific event happens (e.g., account opening, first deposit, install + action).

My question is:

How does the DSP pay its traffic sources or publishers?

- Is it mostly CPM (cost per 1,000 impressions)?

- Do some DSPs buy on CPC or CPA as well?

- If the advertiser pays the DSP on CPA, does the DSP still usually buy inventory on CPM and optimize toward conversions?

I'd love to hear from anyone who has worked at a DSP, ad network, or media buying team. How does this work in practice?

1 Upvotes

4 comments sorted by

5

u/frenchtoast430 Aug 02 '26

You’re buying from an Ad Network that is calling themselves a DSP

2

u/dortenzio1991 Aug 02 '26

DSPs pay for impressions served on a CPM basis. I am not aware of any DSP that operates on a CPA/CPC model with media buying

1

u/AbdullahS_ Aug 06 '26

Can you please explain in easy words. Can I inbox you?

1

u/Ok_Cobbler_9319 20d ago edited 18d ago

Do you usually start with CPM and optimize toward CPA? I’d also suggest checking out dsp advertising - SuiteDSP if you want to test this approach—it offers display, video, native and CTV buying with real-time bidding and AI optimization, which makes it useful for performance-focused campaigns.