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How does ad exchange company work?

Changes are just breaking into digital marketing and we can hear more and more that companies apply to ad exchanges for advertising campaigns. It is high time to see what it means and how it can be used.

What it is all about?

When online advertising was just starting its business on the Internet Advertisers used to buy impressions at the ad networks. The business was quite expensive, included human factor and, thus, was sometimes not very accurate and could include frauds.

Technical progress has offered new way of processes running. Now key participants come to one place where they can handle buy-sell procedure that is called online ad exchange. Impressions are bought and sold in auction-mode manner. In some sense it is like Christies’ for marketing environment.

Interesting fact: advertising in its initial steps has started with Google AdSense, but the company has decided not to miss the opportunity in the neighbour sphere and they have one of the largest ad exchanges - DoubleClick AdX.

The same as amount we have various types of ads, in the same manner there can be video, text, apps or any other ad exchanges. Some of them specialize in a particular type of ads, while there are a lot of those that offer multiple choice for its participants.

Difference between open and private exchanges

An example with an upperclass society will suit here most of all.

In the context of private ad exchanges, the Publishers are to choose whom to sell their inventory, its price and amount. Generally it covers big meaningful companies who want to promote their products. Some Advertisers can be added or removed from such exchange at the Publishers’ request.

In case not all the inventory was sold, it goes to an open ad exchange where the prices and advertisers are chosen under general conditions.

Future of ad exchanges and networks

New variants for ad campaigns holding is gaining traction. Advertisers appreciate it as they can clearly see for whom each impression was bought, thus advertising is becoming personalized as much as possible.

Publishers, in their turn, can earn some money and, in some cases, can sell their inventory sometimes at really high rates.

Those who are afraid of making the business in a new style will have to do it sooner or later as networks and ad exchanges adopt some key feature from each other and big amalgamation is expected to be very soon.

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