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Understanding online ad exchanges


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This is a brief overview of how online ad exchanges work and specifically a deep dive into Double Click Ad Exchange / Suite

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Understanding online ad exchanges

  1. 1.  Online, auction-driven marketplace where ad impressions are sold and bought in real time  Most often used to sell display, video and mobile ad inventory  AdX takes a flat, unchanging share of each impression payment.This is different than an arbitrage, buy low sell high model  Who buys from ad exchanges?  Anyone can buy from an ad exchange provided the ad exchange allows it  Advertisers and agencies typically use DSPs or their own bidding technologies  Ad networks and other entities also buy ads from exchanges.
  2. 2.  Open Auction  Ad exchange match buyers targeting a publisher's inventory and seeks the highest bid  Auction closing price = Greater of the second highest net bid and reserve price ($4,$3, $2; winning bid is $4 and he will pay $3)  Private Auctions  A publisher holds an auction with only a select set of advertisers  Preferred Deals  Bypass auctions completely  Specific Publisher-Advertiser contracts (Premium inventory)
  3. 3. Inventory Management Monetize ad inventory on sites that a publisher don’t own or operate Other website owners authorize you to show ads Clubbing of inventory Provide access for smaller publishers to ADX
  4. 4.  How will you actually show the ad and track for reporting ?  Tags  URLs  DFP: Ad units (if applicable)  DFP: Placements (if applicable)  Key/values (if applicable)  Example – Show the ad of US specific advertisers in my 300 X 250 ad slot  What’s the criteria that will show an ad on your ad slot ? – target criteria
  5. 5. Ad slot dimensions
  6. 6.  “Rules” helps in configuring the inventory  Selection of segments per advertiser/buyer  Control pricing, blocking and other configurations (such as backup ads and ad types)  Types of Rules  Blocking  Opt-In  Ad style and back up ads  Channels  Open auction
  7. 7.  Allow and block ads at the account level in an Everyone blocking rule  Allow and block ads at the rule level for specific segments of inventory  Category based (general v/s specific v/s sensitive)  Advertiser URLs (to block competitor ads)  Cookie pool based (re-targeting, re-marketing)
  8. 8.  By default certain categories are blocked  Restricted categories (Adult, Gambling)  Ad types / technologies (Admantx, AdLedge – Vendor specific)
  9. 9.  Transparent (Branded)  Advertiser can see all details about the publisher (page, URL etc.)  Highest priced inventory  Semi – transparent  Provide domain level information  Anonymous  No information provided  Lowest bid inventory
  10. 10. Source : Doubleclick
  11. 11. Query based reporting Source : Doubleclick
  12. 12. Source : Doubleclick
  13. 13.  Who buys in an Ad Exchange  Ad Networks  Agency Trading Desks  Demand Side Platforms (DSP)  Why buy in an Ad Exchange  Audience buying  Targeted criteria  Reach and optimal CPMs  Multiple formats / devices  How to buy in an Ad Exchange  Directly in the interface  API access  Real Time Bidding
  14. 14. Account Campaign 1 Ad Group 1 Creative 1 Creative 2 Ad Group 2 Campaign 2 Ad Group 1 Creative 1 Creative 2 Creative 3 Targeting Tactic 1 Targeting Tactic 2 Targeting Tactic 4
  15. 15. VS