What is the primary purpose of a Daisy chain in digital advertising?

A daisy chain in digital advertising primarily serves to sequence the serving of ads based on various criteria, such as cost-per-thousand impressions (CPM) rates. This approach allows advertisers to create a hierarchy of ads, where certain ads are prioritized over others depending on their negotiated rates. When an impression becomes available, the system will attempt to serve the ad with the best CPM rate first, creating an efficient and economically driven method of ad delivery.

This not only maximizes revenue for publishers by ensuring that higher-paying ads are shown first, but it also provides a structured way to manage multiple ad inventories effectively. It facilitates a cascading effect where if the highest CPM ad isn't available, the system can move down the chain to the next option. This is essential for optimizing the revenue potential of ad inventory in a competitive market.

Other options, while related to advertising processes, do not specifically denote the primary function of a daisy chain in the same manner. For instance, connecting buyers directly with publishers encompasses broader aspects of the digital marketplace without focusing on sequencing ad impressions based on CPM rates. Similarly, optimizing ad delivery based on performance refers to other methodologies that assess engagement and user interaction rather than a simple pricing order. Finally, ranking ad partners by negotiated rates relates