What is Open Exchange?
Open Ad Exchange (or open marketplace) is an ad buying and selling space that gives buyers access to their inventory. This acts as a powerful tool for advertisers and publishers.
Open exchange is a common type of programmatic advertising and works through real time bidding. In an open marketplace, inventory prices are determined during the auction – live. Any publishers or advertisers can participate in the open auction. Competing advertisers and publishers bid against one another for the media they desire and the highest bidder wins the ad impressions.
With open ad exchange, advertisers and marketers can target sites with a high amount of target through programmatic technology. Programmatic technology utilizes open exchange inventory to find and target users. This is great for conversion and can give advertisers a brand new way to connect with their audiences. Open exchange also gives advertisers a greater chance of landing conversions.
The open exchange marketplace gives advertisers access to a new audience. With the transparency provided by open exchange, advertisers can learn the behavior of their audience and develop new opportunities to spread brand awareness.
Publishers can also benefit from the inventory insights with open ad exchange. Publishers can see who is interested in their inventory and how much they’re willing to pay.
What is the Function of Open Ad Exchange in Programmatic Advertising?
In programmatic advertising, open ad exchange is essentially the base of it all. Open exchange creates value and acts as a powerful tool for reach, discovery and attribution.
Programmatic advertising acts as a tool for negotiation between buyer and seller. Open exchange assists in this process. Open exchange allows for discovery, transparency, and negotiation in the programmatic realm.
Open Exchange vs. Private Marketplace
Private auction is slightly similar to open exchange, though participation is limited to advertisers only. Oftentimes, only a select group of advertisers. In a private marketplace, priority in bidding is given to a select group of advertisers before hitting the open marketplace. Essentially it’s a private auction.