By ad exchange, we understand an automated programmatic marketplace that contributes to the buying and selling of online advertising inventory in real-time through an auction-based system. It is a platform where advertisers’ and publishers’ needs are connected efficiently and transparently. Ad exchanges revolutionized the ad-buying process by introducing programmatic advertising, which relies on automated technology and algorithms to streamline the buying and selling of ads.

The ad exchange is essential for RTB technology. It gets bids from advertisers and matches ads with publishers’ inventory. If conditions match, the deal happens. Publishers use supply-side platforms to connect and control inventory, while advertisers use demand-side platforms to set costs and upload ad creatives.

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