By Bill Mickey

By now you’re well aware of programmatic advertising and its effect on the market place. Publishers have also been setting up private exchanges that utilize many of the same elements of an open programmatic exchange, but allow them to offer one-to-one ad opportunities in a more exclusive setting. Here’s what a private exchange looks like and what’s involved in setting one up.

Private ad exchanges are still sold programmatically, but publishers have more control over pricing and who’s doing the buying. Brand marketers also know more about what they’re getting and that the inventory they’re buying is premium quality and appearing in a safe and trusted context.

“A private exchange is the ability to transact a digital spend in a one-to-one relationship with an advertiser,” says Mike Hannon, chief revenue officer at Purch. “You’re still doing it programmatically, but setting up a specific opportunity—size, audience and the part of the site. It’s a defined piece of inventory that you are negotiating with the agency or advertiser.”

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