When we talk about programmatic, there is a set of issues that are difficult for understanding both for publishers and advertisers. The worst thing here is that the terms often remain nit revealed that leads to misunderstanding, wrong implementation or ignoring of important practices at all.
Smartmedia wants to stop it and bring some light to the dark. For today, we are going to discuss such entity as ad exchanges, what they are about and why we need them.
First of all, let’s have a look at some historic reference. According to Digiday, the amount of displays was nearly 70 billion. The expenses for the advertising at that moment were something like $50 milliards. It can be terrifying and impressive what are the digits for it now, after several years passing.
As you can see, advertisers all over the world take it all seriously. So, the guide we have prepared for you will be a great help to succeed and understand it all in details.
What is ad exchange about?
The most convenient way is to understand it as a technological platform where publishers come to sell their inventory and advertisers, logically, buy it. There are different type of resources that can be represented there: video, mobile and display ads as well as any others in demand.
Publishers are interested in the approach as there are thousands of auction they can participate in and, thus, earn more money from their websites.
Advertisers, in their turn, feel it easier to cover the audience in a big way and implement different targeting options to make their campaigns even stronger and more effective.
DSP or Ad Exchange: do they mean the same or not?
It is a common mistake to mix these notions and understand them as just the same thing. However, the thing is a bit tricky here. Both parties cannot exist without each other and complement one another.
Ad Exchange is a part of programmatic platform that takes stock of ads from several advertising networks and make them available due to API RTB.
Full use of Ad Exchange platform for any of the participant is possible when they have something to have control of bids. Normally, it is an application or specially designed software that can interact with RTB Exchange interface and helps the advertisers to estimate the displays in real time mode.
Use of DSP helps our players to automate advertising buy-sell process in terms of several exchanges. Peculiarity here is that all the details like inventory cost, volume, place of location and all that stuff remain open and transparent.
Types of Ad Exchanges
There are two variant available:
- – Open – they can be considered with a huge market, where billions of publishers and advertisers are represented. Main problem of this “bazaar” is lack of security and fraud. You certainly know them, for example, Google Ad Exchange is one of the representatives;
- – Private – it can be called as more improved version. Only exclusive publishers are registered there, and they decide themselves what type of advertisers can be invited or excluded.
What are the benefits?
- – Absence of intermediaries helps to regulate the costs: advertisers spend less (as they don’t have to pay commission to ad networks) and publishers earn more money (for the same reason, actually);
- – Automation makes it quicker than making coffee in the coffee machine;
- – Focus not on the traffic from the website, but to each particular visitor, that means that young playgrounds with less than 1 000 people per day can participate;
- – Accurate targeting helps to deliver ads to the people who are more likely to be interested in particular goods or services;
- – Advertising campaigns become affordable for companies with small budgets too.
Do you have any more questions? Write us to learn more and launch your further campaigns with programmatic approach.