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What is an Ad Exchange?

Today we will talk about advertising exchanges, what for network exchanges are created, how to use them and why they are profitable.

What is this - an ad exchange?

So, an advertising exchange is a special platform (website) that brings together those who want to place their ads in a particular social network and those who offer their communities and accounts to place advertisements. Each exchange specializes in certain social networks.

How does it work?

The two main functions of any ad exchange are to create a broad user base and provide the most comfortable conditions for transactions.

There is no need to search for the necessary sites on your own, negotiate conditions with the owners for several hours and, most importantly, monitor the fulfillment of these conditions. Everything goes automatically. You just need to score the necessary criteria in the search on the chosen ad exchange, select the required options, press the "make a deal" button and wait for the first results. Money is withdrawn from your account only after all the conditions of the transaction are fulfilled.

You are unlikely to be able to adequately assess ad results if you did everything by yourself. It can be dangerous for the budget. At an ad exchange all statistics on views and the link followings are provided after each deal.

Advertising Exchange Commission

Because of the fact that any advertising exchange is a mediator, it takes a certain percentage of transactions. If you are studying a website of some network exchange, be sure to look for information about the commission because the budget of your advertising campaign will ultimately depend on it.

There is always a commission, since any exchange exists and develops precisely on a part of money that it gets from your advertising campaigns. If you have not found any mention of the commission, then the management of the exchange considered it unnecessary to notify you, which indicates some dishonesty of such a site. Use terms of the exchange must be directly and clearly listed on the site. I found out that on some services the commission reaches 50% of the starting price. I think these feints are disrespectful to the users. Everything must be honest and clear! If you decide to make a deal with a network exchange then you must be notified more than once that there is a commission.

What is the benefit of using an ad exchange?

For advertisers:

  • Possibility to master a new channel for customers’ attraction;
  • Enormous time savings;
  • Full analytics of your advertising campaign, possibility of budget planning;
  • Guarantee of cash security.

For owners of ad exchange companies:

  • A simple way to monetize the community;
  • The ability to get loyal customers;
  • Guaranteed payment;
  • No fees for cash withdrawal. You get all that have earned.

Let's sum up

Advertising exchange is a necessary tool in the arsenal of any advertiser and site owner. I recommend you to test one of these networks and make sure of their efficiency.

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