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Private exchanges are controlled environments, typically run by major publishers or a group of them, with ads sold through carefully selected agencies or advertisers using trading desks and/or demand side platforms. They are used by publishers to more carefully control who can buy their inventory, and at what price. Instead of releasing its inventory into an “open” exchange and letting anyone buy them, a publisher may prefer to offer its inventory (particularly its more premium or exclusive inventory) to a pre-selected set of advertisers, or an agency it has a close relationship with. It might also wish to cut off access to networks and other third parties that could sell those ad impressions on.

How widely used are they?

The adoption of private exchanges by publishers has steadily grown over the last twelve months but their uptake is expected to increase significantly over the coming years with more and more publishers encouraged to take the financial risk of developing its own private exchange (either for itself or in conjunction with other publishers) and moving its inventory away from open exchanges. Yahoo, AOL, Microsoft and other media owners are launching their own private exchanges and selling directly to advertisers and agencies which connects supply with demand.

Some publishers, as a point of principle, are reluctant to put their inventory on open and public exchanges. They fear a race to the bottom in CPMs, as they compete against the sheer volume of impressions thrown off by the range of digital media spaces, which would undervalue their prime content. The use of private exchanges is therefore an attractive alternative to such publishers.

Agencies are also signalling a move towards private exchanges, GroupM recently pulled its clients from open ad exchanges citing that they did not want to compete in a “fictitious marketplace”. To continue reading please click the link below;



John Wilpers, editor of the FIPP Innovation in Magazine Media annual reports, presents innovative ways to detect and prevent digital ad fraud.

John presented the ins and outs of digital advertising fraud in his article: “You’re infected, and probably don’t even know it“. These are his take on the types of ad fraud out there.

1.     Impression (CPM) Ad Fraud

Impression ad fraud has several parts:

  • Hidden ad impressions
  • Fake sites
  • Video ad fraud
  • Paid traffic fraud
  • Ad re-targeting fraud

 HIDDEN AD IMPRESSIONS: Hidden ad impressions (also called ad stuffing or ad stacking) come from fraudsters either placing teeny one-pixel-by-one-pixel windows throughout a web page and serving ads into those virtually invisible ad spaces, or stacking layers of ads one on top of the other in the same space but only the top ad is visible. Some pages observed in a study by the Association of National Advertisers (ANA) and digital security firm WhiteOps found 85 ads on a single page where few if any ads were actually visible. Video ads can also be stuffed into 1×1 spaces or continuously looped in stacks so no user ever sees it.

The result is a huge ad inventory (tens of millions a day) on ad exchanges, all of which can be sold but few or none of which are never seen. For example, an AdAge investigation found two examples of massive fraud: One fraudulent site ( offered 19 million impressions per day on one exchange while another fraudulent site ( offered 30 million ad impressions per day on another exchange.

FAKE SITES: Fraudsters create fake sites containing only ad slots and either no content or generic content often repeated from one fake page to the next. None of these sites draws huge traffic (to avoid creating suspicion) but networks of fake sites sold on programmatic ad exchanges can generate millions in revenues taken together.  To learn more about the different types of ad fraud, please click the below link;


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