Saylor URL: http://www.saylor.org/books Saylor.org
Figure 3.4
Contextual advertising can be humorous.
Advertising Exchanges
Advertising networks are also creating advertising exchanges, where publishers can place unsold
inventory for bidding. The inventory is sold to the highest bidding advertiser. Giving advertisers far more
control, this type of advertising mimics a pay-per-click (PPC) model of paid search bidding (generalized
second price auction)—but bids are for audience profiles and space rather than for keywords. It allows
publishers to fill unsold inventory at the highest available price and can give smaller advertisers access to
this inventory.
KEY TAKEAWAYS
- Ad servers and ad networks provide trafficking, tracking, and reporting solutions to both
advertisers and publishers. They allow advertisers to target display advertisements based on
parameters, which include the following:
o User profile (location, operating system, browser, and connection type)
o Behavior
o Frequency and sequencing