Browse Definitions :
Definition

ad exchange

Contributor(s): Ivy Wigmore

An ad exchange is a software-based automated marketplace that allows publishers to sell their ad inventory and advertisers to bid on and purchase the inventory in real time. The system accesses preestablished criteria to enable transactions and ad placement through real-time bidding (RTB) and programmatic advertising.

When a site user navigates to a web page with available ad space, the page’s code sends a request to the ad exchange. In turn, the ad exchange requests bids for the associated impression from demand-side platforms (DSP) and passes along the publisher’s IP address or other identifier for consideration.

The DSP uses algorithms to find suitable matches between advertisers and publishers. Once a publisher has been selected, the DSP sends a bid for the impression, including an amount and the advertiser data. The ad exchange selects the highest bid from all DSPs that submitted bids, and the winning ad is placed. All of those processes are conducted within the time it takes for the user's requested page to load.

Ad exchanges include AppNexus, Google’s DoubleClick, Microsoft Media Network and OpenX.

This was last updated in February 2017

Continue Reading About ad exchange

SearchCompliance

SearchSecurity

  • cyber attack

    A cyber attack is any attempt to gain unauthorized access to a computer, computing system or computer network with the intent to ...

  • backdoor (computing)

    A backdoor is a means to access a computer system or encrypted data that bypasses the system's customary security mechanisms.

  • post-quantum cryptography

    Post-quantum cryptography, also called quantum encryption, is the development of cryptographic systems for classical computers ...

SearchHealthIT

SearchDisasterRecovery

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

SearchStorage

  • cloud SLA (cloud service-level agreement)

    A cloud SLA (cloud service-level agreement) is an agreement between a cloud service provider and a customer that ensures a ...

  • NOR flash memory

    NOR flash memory is one of two types of non-volatile storage technologies.

  • RAM (Random Access Memory)

    RAM (Random Access Memory) is the hardware in a computing device where the operating system (OS), application programs and data ...

Close