What does the term Open Marketplace mean?
The term Open Marketplace describes the economic system of an “in fact free market”. In practice, such a “free” market is a theoretical model of thought. It stands for markets without barriers and even without taxes. A market in which anyone can participate for which there are no predefined rules.
Open market in the sense of IT, is related to programmatic advertising. This is a digital marketplace for the automated and individual trade with online advertising, mostly insertions on advertising spaces.
Purchase and delivery of advertising in the Open Marketplace
Trading on the Open Marketplace is automated real-time trading. The price is determined by supply and demand. As a rule, trading takes place using the bidding procedure (real-time bidding).
At the moment of the award of the contract, the bidder delivers the inventory. The term “inventory” does not stand for furnishings, but for:
- Advertising space
- Advertising material
- Advertising bookings
via websites and apps. The most prominent example of such advertising is provided by Google with its ad impressions.
Demarcation – private Marketplace
With the Open Marketplace, the website operator has no influence on which ad impressions his site displays. He may not exclude certain bidders or sectors. This is not always unproblematic.
- Contest insertions
- thematically unsuitable ads
The site operator may use a “Private Marketplace” to distinguish himself from unwanted insertions. The differentiation is made by private deals and private auctions.
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