Ad exchange

An ad exchange is a digital marketplace that facilitates the buying and selling of media advertising inventory from multiple ad networks. The inventory sold is typically in the form of banner ads, videos, or mobile ads, and the transactions are primarily conducted through real-time bidding (RTB). Ad exchanges allow advertisers to access a large pool of inventory across a range of websites, rather than having to negotiate buy rates with individual publishers. This enables advertisers to target audiences more precisely and efficiently, often using automated tools to optimize their ad spend. On the other side of the transaction, publishers use ad exchanges to sell their excess inventory to a broader market, which can lead to higher fill rates and increased revenue. The process is highly data-driven, with both buyers and sellers leveraging data to make informed decisions about ad placements and pricing. The ad exchange ecosystem includes various stakeholders such as advertisers, publishers, ad networks, and technology providers, all working together to streamline the digital advertising process.

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