Posts Tagged ‘exchange’

What is the difference between ad networks and ad exchanges?

Wednesday, August 19th, 2009

Many people in the media industry have frequently asked the difference between ad networks and ad exchanges.

An ad network also known as advertising network is an organization that connects publisher websites that would like to display advertisements with advertisers who would like to deliver advertisements. Generally ad networks deliver their inventory through the use of a centralized ad server. The advertising network displays advertisements from an ad server, which responds to a website once a page is called. Large ad networks consist of media companies, technology corporations, and search engines.

Ad exchanges are platforms for buying and selling online inventory commonly known to many as ad impressions. Ad exchanges are extremely useful to buyers and sellers because it enables advertisers, agencies and publishers to buy and sell their ad impressions. MyAdMarket is an ad exchange that consists of more than 10 active ad networks. Some features of the MyAdMarket ad exchange are the wide variety of ad formats to choose from, an auction-like based bidding system for advertisers, click fraud detection and prevention technology, various detailed reporting tools, daily unique IP cap, ROI tracking, contextual targeting, geographical targeting, automated email and payment system.

eCPM and Campaign Auto-Optimization

Wednesday, April 15th, 2009

One highly beneficial tool available to you on MyAdMarket’s ad serving exchange is the campaign Auto-Optimization feature. The system determines traffic quality automatically through eCPM optimization, for example, if an advertiser selects the “auto optimization” feature for their campaign, the system will distinguish the relationship between a site’s traffic and a campaign’s settings. If the site delivers high quality traffic (e.g. high click rates with unique IP addresses based on the campaigns needs, such as contextual/geo-target settings, it will attempt to send more of the same type of traffic.

eCPM, or effective-CPM, works by dividing the amount spent on the campaign with the amount of impressions it has received. Altogether, this auto-optimization tool will fully automate what used to be a manual process of optimizing your online ads. The process includes reallocation of traffic to ensure premium campaign performance and ROI.

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The Role of an Ad Exchange

Monday, March 9th, 2009

Advertising Age talks about a very good analogy relating to the role of an ad exchange. The article states:

“An ad exchange’s best analogy is Wall Street, where buyers and sellers use different brokerage firms (in this case, ad networks) but all trade in a central market (in this case, the ad exchange). Of course, some publishers and advertisers are trading in the exchange directly. Like the stock market’s shares, impressions are priced, bought and sold based on supply and demand… It makes it easier to access inventory that might be otherwise impossible for an advertiser to access, like user-generated content or niche sites that don’t have a relationship with an ad network. And it regulates pricing [because] the value of inventory is based on demand for that inventory.”

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Ad exchanges will continue to play a vital role to networks in providing a medium to buy and sell distressed inventory. An auction based bidding system will greatly enhance the exchange activity because buyers have total control over what they pay.