Ad Exchange Architecture — How Exchanges Work

Ranjan Dasgupta has built and operated exchange infrastructure at InMobi and Glance, processing programmatic auctions at massive scale. This page covers how ad exchanges work — from OpenRTB bid requests to first-price auctions to creative rendering. For more, see Insights.

What I Do

OpenRTB Protocol Implementation

Building spec-compliant bid request/response flows that integrate with DSPs, SSPs, and demand partners across the programmatic ecosystem.

Auction Engine Design

First-price and second-price auction mechanics, bid validation, floor price enforcement, and winner selection at sub-100ms latency.

Demand Integration & Fan-Out

Parallel bid request distribution to multiple demand sources with timeout management, health monitoring, and automatic failover.

Quality & Compliance

Creative scanning, ads.txt/sellers.json validation, brand safety filtering, and privacy-compliant signal handling (GDPR, CCPA).

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FAQs

What is an ad exchange?
An ad exchange is a technology platform that facilitates real-time buying and selling of digital advertising inventory through programmatic auctions. Exchanges connect publishers (supply) with advertisers (demand) using protocols like OpenRTB.
How does an OpenRTB auction work?
When a user visits a page, the exchange constructs a bid request describing the ad opportunity and sends it to multiple DSPs. Each DSP responds with a bid price and creative. The exchange runs an auction to select the winner, typically in under 200 milliseconds.
What is the difference between first-price and second-price auctions?
In a first-price auction, the winner pays exactly what they bid. In a second-price auction, the winner pays one cent above the second-highest bid. Most exchanges have moved to first-price auctions for transparency.
How does Ranjan Dasgupta approach exchange architecture?
Ranjan Dasgupta builds exchange infrastructure with a focus on latency optimization, demand density, auction fairness, and compliance. His work at InMobi and Glance spans Web, App, and CTV exchange systems processing at $200M+ scale.

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Work with an exchange architecture expert to optimize auction mechanics, demand integration, and monetization.

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Programmatic advertising · Header bidding · Supply path optimization · Yield optimization

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