Ad Networkadvertising network
How does it work and what is an advertising network?
The first time they moved on-line, they soon realized they needed a way to earn money, so they considered the primary income generating tool they had used in printed advertisements, and wanted to reproduce it in the on-line environment.... In order to achieve this, a publisher could resell part of its ad serving through face-to-face selling by identifying an advertiser willing to place their ad on the publisher's website, but there was a need for a trading space that would allow them to resell their remaining stock due to a certain filling level associated with the transaction (some stocks could remain unsold).
This is where the ad network came in. Which is an ad network? A network of advertisements is a technological plattform that acts as an intermediary between a group of editors and a group of editors. Networking was one of the first forms of publicity that emerged in the mid-1990s when on-line publicity began.
It was they who were in charge of the same things they are today - they helped marketers buy available ad spaces (alias inventory) from various editors. Although one would expect an " ad network " to cover all types of mediums (print medias, TV, radio), it is used solely for on-line advertisement. Affiliate networking sites gather traditional unsellable content from a number of different vendors and provide this reservoir of content at a much lower cost to the advertiser than a publisher's own brand.
Often this type of stock is termed non-premium or overstock. Today, however, some network operators take a more strategical stance and tend to offer their marketers more exclusivity at higher rates. You select and buy the stock from a number of top sellers and then sell it at top retail rates.
Whilst this scheme may be more costly for the advertiser, it guarantees the prime placing of their advertisements. Where is the distinction between an ad network and an ad server? This is because adzworks and AdServers were launched at about the same times in the sector and are hard to distinguish due to the complexity of the on-line ad eco-system and the variety of ad technical platform.
In one of our earlier articles, we described what an ad serving site is and how it works, but here's a brief summary: An ad serving site is an ad serving technique used by ad serving companies, networkers, vendors, and ad serving companies to administer, execute, and communicate their ad serving activities. Premier class ad serving allows a publisher to track stock (ad space) on their website, view advertisements selling through ad directories with sellers, view remaining (unsold) stocks of ad network and SSP ( "supply side") assets, and track ad delivery.
Third parties ad server are built to help marketers save their advertisements, track across multiple publisher across multiple channels, and review key performance indicators using publisher reporting such as page views and hits. A network of advertisements is also an ad serving technique, but instead of being used to administer ad promotions and shop creative, it is used to handle purchases of items between advertiser and publisher.
A SSP ( Supply-Side Platform) is the technological equivalent to an advertising network that offers similar functionalities but provides a different type of stock management and shipping methodology. What does an advertising network do? Advertising network take all available content from one publishers and distribute it as packed images to marketers.
This is how an advertising network works: A network of advertising companies aggregate a large number of sellers to give sellers the necessary amount of stock on an ad hoc fashion. Operators can deploy directly from the ad network's ad sales promotion panels or deploy pixel from an external ad serving system for verified and aggregated reports when operating the ad across several ad sales channels and in face-to-face stores with publisher.
Once the ad is posted, the affiliate can create more than one banner on the site using the ad network's Kampagnenmanagementpanel without having to call the affiliate company. During the early stages of on-line marketing, when there were fewer websites and fewer marketers, most sellers would only use a single network of ads to resell residuals.
As the number of publishing websites grew, however, they soon realised that they were unable to resell their entire holdings on an advertising network and were suffering from low utilisation levels. Increasing utilization, advertisers began using several ad serving platforms, some of which offered premier inventories and other remainders.
What does Ad Networks do for advertisers and publisher? However, the most evident advantage for publishing houses is the possibility to resell stocks that were not resold through contracts, although this does not prevent the publishing house from "wasting" the impression - i.e. not being able to reach a high filling rate and selling the entire advertising stock.
Whilst advertising networking is primarily designed to support publisher sales of residual stock, it also offers many advantages to advertisers: A single recruiter can buy more stock from many publisher through one agent and centralise reports for the entire marketing campaigns. Here are some of the most important kinds of advertising networks: Premier advertising networks:
Provide the stock of well-known publishing houses. Advertising vertical networks: Subject related networking - e.g. Busines Ad Network, Tech Ad Network, Automotive Ad Network, Mode Ad Network, etc. Specialised or stock-based advertising network (e.g. mobile, web, mobile, video, natives): Concentrates on a certain kind of stock. Performances and affiliate advertising networks: Advertisers buy a "package" of CPM-based images on conventional advertising network.
How can advertising be targeted using advertising network? Advertising networking offers several different directing and decision-making capabilities that work similarly to ad server, but there are some small caveats. It is a set of rules that help advertiser to design advertisements so that they can choose stock items or targets. Where is the distinction between an SSP and an advertising network?
At the most general levels, the SSP and advertising network have the same goal, but differ in areas such as client, asset, technology, target, and optimisation capabilities. Physical inventory: Advertising backbones are usually approached by big brands and provide a gateway to select and premier contentishers. On the other side, an SSP offers Real-Time bidding (RTB) and purchasing inventories, which are generally regarded as remnants (i.e. lower quality).
Tech: Given that an SSP only allows the distribution of advertisements, the SSP/DSP ('Demand Side Platform') can be seen as a complement to ad networking. Within ad serving systems, purchasers must make manual changes to campaigns to address and optimise audiences. Strategic planning tools (SSPs) use program driven techniques to optimise on publisher commission. Continued competitive bidding for shares exists between supply-side publishing plattforms and ad serving systems that compete for publishing and ad revenues.
We are currently experiencing a "two become one" situation as a marketer is looking for a one-in-all approach - networking is beginning to provide different functionality from an SSP. On the other hand, to appeal to premier writers, an SSP implements certain functions of advertising network. It allows the advertiser to buy directly what makes them similar to advertising network by connecting the supplier side with the consumer side.
As a rule, this includes the development towards programmatic directness (more on programatic directness see below). As an example, advertising network is gradually exceeding premier stock when adding program-controlled motors that optimise purchased RTB provision. In addition, they also combine their own waste material supplies with select dry bulk products (DSPs) in order to raise the capacity utilization of their publishing portfolios.
Programatic is a new, alternate approach to ad networking that reduces the complexity and cost of selling ad displays. Automation of the campaign ad buy automation processes. This is a Non-Real Times and Non-Auction (RTB) methodology where guarantee ad imprints are purchased in anticipation from selected premier websites.
Programmatically straightforward, in simple terms, is a tecnology that provides the capabilities of an advertising network with a special self-service panels for publisher and advertiser. It imitates buying directly from publishing houses where the impact can be taken into account individually (i.e. the advertiser can decide whether they only want certain rankings on a website).
In addition to default targetting, which is available in virtually every ad server/ad network, programmatic direct often depends on third-party information. As with a home based store, it allows a more accurate and differentiated way to buy fixtures and fittings. Purchasing processes use the advantages of the program. Employees can contract stock contracts with advertising companies on commission from the publishing house.
It allows the marketer to better monitor the pricing level of their advertisements, better manage stock and secure prime rankings. Programatic Directory allows both sides to prevent brokers in the shape of real-time bidding. What's more, it allows both sides to prevent brokers in the shape of real-time bidding. 1. Distributors can give advertiser stock rights through a self-service site such as AdSlot, where they can place orders directly and even rebuild their advertisements from the ground up.
There is a mediative contribution for those who want to go deeper, in which the difference between RTB, privat emarketplace and programming is discussed.