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An Explainer On AppNexus And Ad Tech

The Wall Street Journal's Mike Shields attempts to explain what AppNexus does and the overall function of ad tech, for that matter. Since AppNexus is poised for an IPO, it's a bit of education that's useful for Wall Street types and investors. The Journalprojects that the company could be valued as high as $2 billion if the IPO goes through next year. The report states that AppNexus' business offers a supply-side platform or in ad tech jargon a SSP which consists of software tools that help online publishers "manage ad space and make more money." AppNexus also has a demand-side platform or a DSP which enables agencies and others to purchase ads across a multitude of websites, or make purchases "at scale." The report goes on to say that AppNexus sells ad inventory in an automated or programmatic fashion to identify the best price at any given moment". And lest there be any confusion, AppNexus is not an ad network, the report emphasizes.

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