Clarifying the differences between networks & exchanges [webinar question]

Did you get a chance to attend our  webinar on programmatic media buying?  During the live event, we received a number questions about the players in the digital advertising ecosystem. We want to make sure you have a handle on this complex topic, so we're planning to answer each of these questions for you right here.

Here's a question we received from an attendee.

Can you please clarify the difference again between exchanges and networks?

The difference between an ad network and an ad exchange is that ad networks aggregate ad inventory from publishers and resell it to advertisers, making them a key player in the transaction. Ad networks get their revenue from the margin between the price they pay for ad space and the price they get for selling it. An ad exchange is a marketplace where publishers and advertisers can find and make advertising deals, similar to a stock exchange. But there are agnostic in that they don’t specifically serve the buy side or sell side. Exchanges collect flat fees from the buyer and seller, but do not play a role in the actual transaction.

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