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Advertising Exchange: Ad Exchanges Open Up Your Ad Inventory To Real-Time Bidding - Best Ad Exchanges Reviewed

When ad networks alone are not enough to sell all of your ad inventory, ad exchanges step in to help you maximize the money you make. Put simply, ad exchanges work on the same idea as stock markets. They allow buyers to bid on your inventory, and the demand for your inventory determines the price at which you can sell it.


Photo credit: Travel Aficionado edited by Andre Deutmeyer

Making a living as an independent web publisher means that you have to do one thing very well: monetizing your content. Google AdSense is where most publishers start because it is easy to set up. But how do you do ensure that you are getting top dollar for your ad inventory?

Joining a vertical ad network to sell your inventory is a good idea. But the problem with ad networks is that even if they are good, you will have a hard time selling 100% of your ad inventory all the time, and there is no easy way to know if you are getting the most you can out of your available ad inventory.

Ad networks play an important role in bringing you and similar web publishers together with online advertisers. But because ad networks are typically disconnected from the rest of the market (i.e. any given network only works with a small percentage of the available advertisers and publishers, rather than the whole market), they can limit profitability because they offer limited supply and demand. For publishers who link or daisy chain ad networks together, manually prioritizing ad inventory to networks can be a hassle. And there is no way to guarantee that your set up is making you the most money.

This is where the ad exchange steps in. In the exchange, all market players - advertisers, publishers, and networks - are interconnected on a common platform. If your ad spot can't be sold at a premium price set by you, it is auctioned off in the exchange. You set the minimum bid price and then simple supply and demand economics take over. All advertisers have access to and compete for your ad spots in real-time. The advertiser with the highest bid purchases any given ad spot and the process begins anew as your ad inventory opens up.

Currently, ad exchanges seem to be relegated to the remnant ad market (the leftover ad inventory spaces available on your site). But the real potential for online ad exchanges lies in not just maximizing the return on your remnant ad inventory, but in opening up your entire ad inventory to real-time bidding.

If you have ever considered using an ad exchange... or even if you have never considered using an ad exchange and you have no idea where to start and what to look for, then there is no better place to start than here.

In this article I have brought together some of the largest ad exchanges - AdBrite, ContextWeb's ADSDAQ, Yahoo's RightMedia Exchange, and Google's DoubleClick Advertising Exchange - with some of the newest entrants into the ad exchange space - TRAFFIQ and Turn - for a comparison of their unique traits and characteristics.

If you are looking for ways to improve the monetization of your existing site and are caressing the idea of opening up your ad inventory placement opportunities to real-time bidding then you may find some useful information in this guide..

Here all the details:

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Andre Deutmeyer -- January 5
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