Ad Exchange

An ad exchange is a platform that allows advertisers to buy and sell advertising inventory in real-time. Ad exchanges provide a marketplace where advertisers can bid on available ad space and publishers can sell their ad inventory to the highest bidder. They connect advertisers on a DSP with publishers on a SSP. Check below image to understand Programmatic Advertising Ecosystem.

Ad exchanges use real-time bidding (RTB) technology to facilitate the buying and selling of ad space. When a user visits a website, the ad exchange sends a request to multiple advertisers, who then bid on the available ad space. The ad exchange selects the winning bid and serves the ad to the user.

Ad exchanges can be used to buy and sell a variety of ad formats, including display ads, video ads, and mobile ads. They can also be used to target specific audiences based on factors such as demographics, interests, and location.

Ad exchanges can be a useful tool for advertisers and publishers looking to efficiently buy and sell ad space, as they allow for real-time bidding and optimization of ad campaigns. However, they can also contribute to ad fraud if not properly monitored.