All you need to know about Ad Networks is here! For more information, be sure to check out the Evolution of Ad Networks to learn why they are the direct equivalent to influencer marketplaces utilized in the Digital Talent industry.
What is an Ad Network?
Ad Network:
An Ad Network is an online arbitrage platform that aggregates publishers’ inventory, segments it by geographical location, age, and gender, among other things, and sells slices of it to advertisers and agencies. It’s kind of controlled marketplace between buyers (advertisers) and sellers (publishers). Ad Networks work as brokers for both sellers and buyers. In an ad network, an advertiser can buy space on a single site or on multiple sites across the entire network.
Example: Google’s AdSense, Yahoo Publisher Network, AOL’s – Advertising
TL;DR
1. An online arbitrage platform which aggregates publishers’ inventory, segments it by geographical location, age, gender, etc., and sells slices of it to advertisers/agencies.
2. A controlled marketplace between buyers (advertiser), sellers (publisher) and Ad Networks. (like an influencer marketplace)
Why They’re so dope:
These platforms met the growing inventory needs of advertisers and publishers. They used innovative mechanisms to offload unsold inventory and to bring efficiency and transparency.
- Publishers - Sell inventory to multiple advertisers and other networks. Sell unsold inventory and deliver creative across websites.
- Advertisers - Gain access to inventory across a range of publishers, enabling them to reach mass audiences and maintain efficiency in coordinating ad campaigns across sites.
What Types of Inventory do they sell?
Ad Networks sell non-premium, remnant inventory (i.e., inventory that hasn’t been sold by a sales team).
How do they Target?
Ad Networks follow bulk buying and selling procedures, and predominantly use contextual targeting.
How are Ad Networks Priced?
Negotiation is based on the media inventory
Issues with Ad Networks
Publishers
- Increased time & effort to sell and deliver.
- Less transparent
- inability to optimize inventory for best advertisers.
Advertisers
- Increased time & effort to buy and track ads.
- Limited view on
quality of inventory and its performance.
Sources:
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