Ad exchange

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A visualization of the real-time bidding system in online display advertising. Display advertising and programmatic advertising diagram - Diaz Ruiz 2025.jpg
A visualization of the real-time bidding system in online display advertising.

An ad exchange, in online advertising, is a technology platform that facilitates the buying and selling of media advertising inventory from multiple ad networks. [2] Prices for the inventory are determined through real-time bidding (RTB). The technology-driven method replaces the custom of negotiating prices on media inventory, a field beyond ad networks as defined by the Interactive Advertising Bureau (IAB), [3] and by advertising trade publications. Ad tech companies operate ad exchanges as online marketplaces that digitally connect demand-side (DSP) ad buyers to supply-side (SSP) publishers. [4]

Contents

History

Before exchanges, publishers sold leftover ad space through advertising networks. These networks aggregated inventory from many sites, but didn't offer real-time bidding. In the early 2000s, Brian O'Kelley created the first ad exchange at Right Media, known as the Right Media Exchange, which officially launched in 2005. [5] Right Media's ad exchange built algorithms for predicting, budgeting, and pacing, which enabled real-time bidding (RTB). Yahoo acquired Right Media in 2007, [6] for $680 million, then shuttered the programmatic advertising DSP in 2014. [7]

Around the same time, Jason Knapp and Fabrizio Blanco were also working on the concept of RTB at Strategic Data Corp. [8] Knapp filed a patent on their RTB technology in 2006. [9] In 2007, Google acquired DoubleClick and its ad exchange, AdX (now Google Ad Manager). [10]

Demand-side platforms were designed to help advertisers bid for digital ad space in real-time across multiple exchanges. Supply-side platforms allow publishers to manage inventory before adding it to exchanges. [11] During the mid 2020s, DSPs increasingly shifted from programmatic advertising to agentic commerce. [12]

Ad exchanges

Major ad exchanges include:

See also

References

  1. ↑ Diaz Ruiz, Carlos (2025-03-14). "The AdTech Ecosystem and Programmatic Advertising". Market-Oriented Disinformation Research: Digital Advertising, Disinformation and Fake News on Social Media (1 ed.). London: Routledge. p. 134. doi:10.4324/9781003506676. ISBN   978-1-003-50667-6.
  2. ↑ "How an ad is served with real-time bidding". Archived from the original on 2021-12-21 – via YouTube.
  3. ↑ "IAB". IAB - Empowering the Marketing and Media Industries to Thrive in the Digital Economy. Retrieved 2018-07-20.
  4. ↑ editorial. "The Evolution of SSPs & DSPs: Are We Headed for a Converged Future? - ExchangeWire.com" . Retrieved 2026-02-28.
  5. ↑ "Right Media Exchange: Leading Platform Talks Ad Trading, Liquidity, Global Reach And Brand Safety - ExchangeWire.com". www.exchangewire.com. Retrieved 2025-11-21.
  6. ↑ Cross-Kovoor, Tim (2018-06-07). "Who Invented What in Ad Tech? – Part One". VideoWeek. Retrieved 2026-03-01.
  7. ↑ Schiff, Allison (2015-01-09). "Yahoo Finally Pulls The Plug On Right Media Exchange". AdExchanger. Retrieved 2026-03-01.
  8. ↑ Cross-Kovoor, Tim (2018-06-07). "Who Invented What in Ad Tech? – Part One". VideoWeek. Retrieved 2025-11-21.
  9. ↑ US20080162329A1,Knapp, Jason J. A.&Blanco, Fabrizio,"Auction For Each Individual Ad Impression",issued 2008-07-03
  10. ↑ O'Reilly, Lara. "This leaked 2007 DoubleClick pitch deck is set to play a central role in Google's blockbuster adtech antitrust trial". Business Insider. Retrieved 2026-02-28.
  11. ↑ "FAQ on programmatic advertising: Keeping up with automated ad buying". EMARKETER. 2026-01-26. Retrieved 2026-03-01.
  12. ↑ "Top DSPs In 2026: Programmatic Trends & How To Stay Ahead | Adtelligent". 2026-02-05. Retrieved 2026-03-01.
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