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Tuesday, January 24, 2012

How do ad exchanges integrate and apply targeting data from a data provider/data exchange? - Quora

How do ad exchanges integrate and apply targeting data from a data provider/data exchange? - Quora:

In many cases the ad exchanges rely upon the buying parties' bidders (e.g. DSPs like, Invite Media, and a host of others) to have an integration with the data sources. In these cases, the ad exchange will send its unique user ID to the bidding party as part of the bid request. The bidder will receive the bid request with the user ID and will decide whether to bid - somewhere on the bidder's end it has done a data match of its own ID with the ad exchange's ID and of its own ID with the data provider's ID or data depending on the implementation method. But basically the bidder has a common reference point between what it knows about a single user and what the data provider knows. That is the basis for the real-time bidding decision.

Some ad exchanges and platforms have themselves started to integrate with the data sources so that they can provide the data information along with the inventory details in the real-time bid request. In this case, the bid request might also include some of this data e.g. context category, user demographics, etc.

It's currently still early in terms of how this will play out from a cost and margin perspective for the various players in the space.

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