A digital Organization

A digital Organization
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Advertising exchange platforms are such a boon.

Google Ad Exchange, Yahoo's Right Media and Microsofts ex AdECN are all ad exchange platforms. These platforms are such a boon to both advertisers, publishers and ad networks. It makes money work harder. Let's look just how. 

What are ad exchanges ? Ad exchanges are an open marketplace where buyers and sellers meet to buy and sell ad inventory. These platforms might have different features and options, but this article does not compare the offerings in the market place, but provide a overview of what to expect.  The ad exchanges are mostly transparent and aggregate buyers and sellers. This aggregation opens up a large pool of inventory for advertiser; this ensures campaign goals are far better reached and good revenue stream for the publishers. 

Google acquired AdMeld to add that armour into their offerings providing buyers a bidding platform. This real time auction meant buyers could do more with their budget at real time, taking impression by impression. This made the circle of advertisers, publishers, agencies, networks and demand side platforms more relevant.

This also brings out the start of the era of consolidation. With digital advertising coming of age, consolidation had to start somewhere. The small to medium sized businesses that specialised in some niche space in the advertising value chain were to be consolidated by internet companies, technology companies or someone new?

So, how does an ad exchange actually help a publisher? A publisher benefits by using ad exchanges to fill out all the ads spaces that are not contracted by advertisers or ad agencies. This gives them more control as they can choose which kind of ads appear and which don't. Advertisers on the other hand, have more control on their ROI with a greater ad inventory at their access. Isn't a win-win situation?

If on one end there is consolidation, on other hand there is competition. Google, Yahoo, Pubmatic, Rubicon etc. all compete in the space with yield managers. The yield managers have similar role to that of exchanges but focus more on consolidated ad serving and are more focussed towards sellers. But the value of these platforms lies in it's auction, granular controls and wide reach.  Add value adding features to choose from; ranging from choosing which advertisers to work with , which technology of ads to serve ( like javascript, flash), prices, category, placements and so on. Looking at all these, don't you feel its a boon for the advertising world?
Nitin Keshav

Nitin Keshav

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