What is an Ad Exchange?

A definition of Ad Exchange would be the online meeting point where offer and demand converge to carry out the purchase and sale of advertising space. It makes it easier for the media and advertisers to agree on the commercial process, thus achieving an optimal result for all parties.

The Ad Exchange is the main engine of the auction in real time, since it brings together the advertising spaces provided by the SSP and DSP platforms. The former are responsible for bringing together the bidders of spaces and preparing the bid sent to the platforms, while the DSPs are responsible for making the agreement on behalf of the advertising brands.

How does the Ad Exchange work?

The Ad Exchange in digital advertising is considered the central axis on which Real Time Bidding works. This is the real-time bidding tool where the conditions of the agreements are decided by the sellers and advertisers. The media have to choose the type of content accepted according to the advertising company and set the prices, while the advertisers, for their part, select the audience they want to reach and the price they are willing to pay.

In this type of operations, the Ad Exchange administers and manages the conditions of the two parties to achieve the best possible agreement for both. For the service provided you will receive a commission. In this way, the negotiations and the purchase are carried out in an easier way.

In Spain, this technique has more and more prominence, mainly due to the push of different foreign companies. Some examples of Ad Exchange can be Google Double Click, Adbrite or Adnetik.

The Ad Exchange model is intended to provide simple solutions to a mercado increasingly complex, where stakeholders and business models are also constantly evolving.

Leave a Comment