What is the difference between an agency, ad network and ad exchange? - Quora
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Ad and exchange
Furthermore, these values are calculated in real-time. The price for an advertising space is determined within milliseconds, whereby the stakeholders give a minimum and maximum price on the one hand and Algorithms are used for the calculation on the other. These algorithms link providers with purchasers and determine the auction price through technical queries. [3]
Under certain conditions, the algorithms also contain targeting strategies. This allows for different approaches that have a direct impact on the possible bidding strategies. As a result, different bidding strategies can emerge depending on the definition of the target group and availability of as much data as possible about the target group. One choice:
Pre-targeting: This involves coming up with different criteria for the preselection of the real-time bidding. Parts of the advertising inventory, mobile devices, countries, and languages can hereby be included or left out. Audience targeting: Different attributes, such as socio-demographic data or the search intentions of users, are used to adapt the advertisement to the target group.
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Ad Network vs. Ad Exchange (Explained) - YouTube