Have you ever noticed that the ads you see on YouTube sometimes feature local businesses (Socket included)? Did you know that most of your YouTube ads are tailored specifically to you?
Ad space online is sold differently than it is for, say, television or newspaper space. In fact, many of those ad spaces are auctioned off per user, per view. You might not realize that, before you watch your 3 minute video clip, there’s an incredibly fast bidding war happening in the microseconds before the winning advertisement plays.
Here’s a quick breakdown of how that bidding system works...