An ad exchange is a technology platform that facilitates the buying and selling of media advertising inventory from multiple ad networks. It is a digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions. Ad exchanges are a key component of programmatic advertising, which uses an automated process to purchase digital ad inventory across the web, mobile, apps, video, and social media. Here are some key features of ad exchanges:
- Ad exchanges are technology-driven and use real-time bidding (RTB) to determine prices for advertising inventory.
- They are a virtual marketplace where publishers and advertisers connect to buy and sell digital ad space without the need for an intermediary.
- Ad exchanges connect to supply-side platforms (SSP) on the seller side and demand-side platforms (DSP) on the buyer side, along with multiple ad networks.
- They enable advertisers to purchase ad inventory across a wide range of websites and apps, and publishers to sell their ad inventory to a large number of potential buyers.
- Ad exchanges are often compared to the trading floor of a stock market, while ad networks are compared to stockbrokers.
Overall, ad exchanges are an efficient way of buying and selling ad inventory, and they play a key role in the programmatic advertising ecosystem.
