In the traditional approach of digital advertising, the ad buyers and sellers had to invest a lot of their time, efforts and money for locating the right resources to buy and sell the ad inventory. While the advertisers had to look out for appropriate ad space and locate its publisher, a publisher would have to find out an appropriate advertiser whose ads are most relevant to their ad space. Moreover, there could arise situations where publisher cannot find advertisers to sell out their inventory completely. In order to make this online ad space buying and selling process easier, publishers and advertisers often looked out for support of the third parties like advertising agencies, which in turn took away a sizeable proportion of revenue made from these ads. Hence, in order to tackle this problem of conventional digital advertising approach, ad exchange development was done.

So, what is Ad Exchange and how does it work?

Ad exchange is an open marketplace where the display ads and ad space can be bought and sold easily through the web by a real time auctioning process. It’s a platform where the publishers can place their unsold ad inventory and advertisers can bid to purchase this inventory through a user-friendly interface. The ad exchange will be open to the ad agencies, advertisers, publishers and ad networks and costs are basically controlled through a well-defined online bidding process.

Ad Exchange is like a pool of impressions in which the publishers place their ad impressions into the pool and buyers buy these impressions as per their requirements with the help of DSPs or demand side platforms. Depending on the factors like the previous behavior of the user an ad is being served to, time of day, device type, ad position and more, the ad inventory is purchased through a real time bidding process.

How can Advertisers benefit from these Ad Exchanges?

Through exchange, an advertiser will be able to purchase ad inventory across multiple sites at one time instead of having to deal with different sites and their publishers exclusively. It’s more effective and hence, also time saving process of ad space buying for the advertisers as they can easily locate appropriate publisher for their requirements in the least possible time.

Unlike ad networks the buyers will have better control over their ads as of where to show their ads, when to show etc. They will be able to use various strategies for user targeting like behavioral targeting, ad retargeting, geographic targeting, inventory targeting, dayparting, device and cross platform ad targeting so as to better appeal to their target audience for better business. They will be able to see exactly at what price the ad impressions are being sold for and hence, can get ad space at reasonable rates.

Invaluable Benefits to the Publishers

Compared to traditional mechanism of digital advertising, ad exchanges will give publishers easy access to the advertisers. Here a publisher will be able to sell their ad inventory to a number of advertisers through a single platform and hence, their ad inventory will never remain unsold. Publishers will be able to get more revenue through their ad inventory as they can sell it out to the highest payers. As their inventory is exposed to a large pool of advertisers, there is probability for the inventory value to increase significantly in case if more advertisers show interest in buying the ads of the specific publishers. Publishers can restrict to whom and whom not to sell their inventory and hence, can protect their brand from undesired advertisements. Moreover with floor pricing, the possibility of ad revenue growth for publishers increases without risk to their overall CPM.Hence, ad exchange can be of great value to both publishers as well as the advertisers thereby giving them an easy, cost effective and efficient way to place and locate the display ad space.

Hence, ad exchange can be of great value to both publishers as well as the advertisers thereby giving them an easy, cost effective and efficient way to place and locate the display ad space.

For those looking for ad exchange development specifically for their corporate needs can contact Total Toolbar. Total tool-bar is an expert toolbar development company offering ad exchange platform to serve the digital advertising needs of the firms belonging to different sectors.