What’s private ad exchanges
Advert exchanges are a modern way to buy and sell advertising inventory. They are third-party platforms, which are created for the effective cooperation of advertisers and publishers. Marketers are aimed at making the process more reliable and transparent for both sides. That’s why there are different types of ad exchanges available today.
What is an advertising exchange?
An advert exchange is an automated platform, which provides users with the opportunity to bid on the offers of the ad inventory in real time. Online auctions are organized here for such a purpose. The whole system is based on automation because RTB is a part of a programmatic approach. The latest becomes more and more popular among marketers as it offers plenty of benefits making the risks of errors, money losses, and fraud minimal.
Along with an ad exchange, other participants are also required for the realization of such a trading process:
- demand-side platform (it is used by advertisers to access advert exchange and manage their requirements and adverts)
- supply-side platform (it is used by publishers to access advert exchange and manage their advert space, pricing options, etc.).
Advert exchanges also have access to multiple ad networks providing users with a wider number of inventory offers.
Consider how any advertising exchange works:
- Through the application of SSP, a publisher makes advert space available on the AE (publishers are to give data concerning their ad space including location, URL, niche, kinds of audience, etc.)
- An advert exchange collects the information about the visitors of publishers’ websites (when a user visits a page/opens an app, an impression appears on the auction)
- An AE sends a bid request to a demand-side platform to consider the conditions
- DSP platform is to decide whether the conditions are appropriate to an advertiser
- If a deal is acceptable, a demand-side platform sends the maximum bid to an AE
- An ad exchange considers a bid and chooses marketers meeting the requirements
- An AE gathers all the information and chooses the highest bidder automatically
- The advertising of the winner is displayed on a publisher’s resource.
Types of ad exchanges
The most common types of advertising exchanges include the following:
- open marketplaces
- private ad exchanges.
Open exchanges are resources, which are available to any advertiser and publisher. They do not have certain requirements, so you can easily join them.
Private advert exchanges are considered to be more reliable because of the strict requirements. Not everyone can become a member of such a marketplace. Here you can find premium publishers offering high-quality ad inventory. Such publishers usually can offer wider information about their visitors compared to smaller publishers on open ad exchanges. Besides, private advert exchanges can guarantee:
- brand name security
- better prices
- more information about the visitors
- higher effectiveness of the advert placement.
What are the key issues for opening a private ad exchange?
If a publisher wants to launch a private advert exchange, it is vital to think about the following:
- How to attract advertisers to join and buy your inventory?
- How to provide unique data about visitors?
- How to sell their inventory at higher prices?
- Build up a clear strategy of the application of an ad exchange.
- The requirements of a private ad exchange for advertisers.
- Estimate the impact of adverts on direct sales.
It is also advisable to speak to a few vendors, probably, watch their presentations. They are specialists in the marketing field and might give you useful information.
Not just big corporations (such as Nike) can enjoy the advantages of private advert exchanges. They are also beneficial for smaller publishers because such an approach gradually becomes a leading method of business doing. Thus, it might be used for executing direct deals. Besides, private ad exchanges are a nice chance to make faster deals, get reliable partners, and happier clients with low investments.