How does an Ad Exchange works?

An Ad Exchange is a platform that acts as a marketplace for buying and selling digital ad inventory.

It links publishers with ad space on their site or apps with advertisers looking to reach a certain audience.

An advertiser can use an ad exchange to buy ad space from a publisher in to begin an ad campaign.

An ad campaign is created by the advertiser, who also defines the audience's demographics, location, interests, and behaviour.

The ad exchange collects data from multiple sources, including cookies, pixels, and user registration data, to match the advertiser's targeting criteria with the available ad inventory on the publisher's site.

The ad that displays on the publisher's website is chosen through an auction held by the ad exchange.

The highest bidder in an auction of advertisers for the available ad inventory wins. On the publisher's website, the winning advertiser's ad is then shown.

The advertiser receives the data from the ad exchange on the way the ad performed, such as the number of impressions, clicks, and conversions.

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