What is an ad exchange and their types
We have just learned how advertising networks functions and which one will be the most profitable for a certain type of business, but the situation has become different again. The progress doesn’t come alone and we have a new trendy approach - buying ads at online ad exchanges.
What is the difference between old and new strategies?
First of all, we should remember how traditional ad networks work. Publishers offer mainly remnant inventory they have and the network sells it to Advertisers for a certain commission.
Great advantage here is that both parties have access to international resources without spending time for negotiations and regulations.
Cons of the idea is that the Publishers may see their websites filled with not so relevant ad content, like clinics, means of slimming and so on. Besides, the networks takes some commission for its services. The deal could be much more beneficial if the participants could contact directly.
Digital ad exchange platforms is some kind of a remedy here. They are used to simplify buy-sell process. The Publishers offer the impressions they have, and Advertisers participate in biddings, generally, they are real-time biddings, where they state how much they are ready to spend for this or that impression.
Key difference here is in attention to each unique user. With the help of cookies some anonymous information, without exact identification, like age, location, device type and other details that help Advertisers to decide whether they are interested in the offer and how much they are ready to pay for it.
Private and open ad exchanges
In fact, any type of ad can be bought at the platform: it can be videos, text banners, display ads and so on. Accordingly, there can be video, text ad exchanges and etc.
The detail is that small companies can only dream their ads being posted on Forbes website or Daily Telegraph. It may cost megabucks in a result and the outcome is too difficult to predict, whether it was worth it.
It would be logically, to offer premium impressions to those who are ready to accept high prices. thus, private ad exchanges were created. They are characterised by strict regulations, there are high requirements from Publishers’ side to the list of admitted Advertisers.
Open ad exchanges represent a common case we have described. All the processes are quite transparent, but previous exchange is considered being of higher quality.
What is the reason of online ad exchanges popularity?
Advertisers, especially when comes to small businesses, can exactly plan their budgets for advertising. Besides, their ads are shown to the audience that suits most of all.
Newbies in publishing also win by the same reason that the accent is about a particular user and not the whole traffic of the website at all. Furthermore, an element of luck is also included. Sometimes, impressions even at open exchanges can be sold at the rates that ad network will never offer.