Ad exchange

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An ad exchange is a technology platform that facilitate the bidded buying and selling of online media advertising inventory from multiple ad networks. The approach is technology-driven as opposed to the historical approach of negotiating price on media inventory. This represents a field beyond ad networks as defined by the Interactive Advertising Bureau (IAB),[1] and by advertising trade publications such as Advertising Age.[2]

The major ad exchanges include:

  • AdECN,[3] which is owned and was purchased by Microsoft in August, 2007 (Microsoft officially switched from AdECN to AppNexus for its real-time bidding needs- three years after it acquired it) This change finally retired the AdECN platform.
  • Right Media,[4] which is owned and was purchased by Yahoo! in April 2007;
  • DoubleClick Ad Exchange, which is owned by DoubleClick,[5] a Google subsidiary purchased in May 2007;

Second generation ad exchanges include OpenX and AppNexus.

Ad exchanges can be useful to both buyers (advertisers and agencies) and sellers (online publishers) because of the efficiencies they provide.[citation needed]

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