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What Is an Ad Network and How Does It Work

Internet marketing is a very wide area and if you are already familiar with such players as a Publisher and an Advertiser, you definitely need to study one more notion – advertising, or ad, network.

If you remember Publisher is ready to offer his space on the website to post Advertiser’s material. Certainly, they can contact each other directly, but the effect will be not so high. The process can be complicated by such things as finding time for research to find suitable partners, communication and terms discussion, and so on. Besides, if Advertiser felt his campaign should be changed immediately, it will take time that sometimes is very bad news.

What Is an Ad Network and How Does It Work

What Is an Ad Network and How Does It Work

To tell the truth, such a way of advertising is not bad at all, it can bring really good results in combination with the other approach.

What is an online advertising network and why we need it?

To be more effective and cover the audiences globally, Advertisers and Publishers generally apply to an intermediary that takes all the buzz – that is what we call advertising networks. They help both parties meet and assist one in getting money for renting inventory, while the other one finds numerous places for advertising goods and services.

Advantages of advertising networks

First, the most obvious benefit is time-saving.

Besides, it is a normal situation for Advertisers not to know all suitable businesses for promoting goods, especially if we talk about countries abroad. Networks do, it’s their business in fact.

All the data. collected by networks, is deeply studied and segmented. It is necessary because the ads on the website are not posted randomly. It may look a bit messy on the whole, but there is a certain logic. Each Publisher, when entering any network, is to give information about his website: for which location this website is relevant, amount of traffic (including visitors’ age, gender, type of the most frequently used devices, OS, type of a browser and so on). According to such information, the network decides for which Advertisers such a website will be the perfect match.

For example, you sell modern shoes for young ladies at the age of 21-33. At the same time, such a group can be also interested in family, as there are a lot of girls who can have children at this period of life. Both of you can be posted on one and the same website. Such a cocktail is a bit strange for a user, but backstage, everything is very clear.

Traps and pitfalls

Everybody understands that free cheese exists in the mousetrap only. Ad networks always take some commission for their services. This fee is always included in the prices and incomes. If it sounds a bit unfair, you should understand, that using particular services, tools, and communication with a personal manager or support team also requires some payment for maintenance and improvements.

As we have discussed in our example, Advertisers may see that their ads located with some other irrelevant (for them) ads. If all of them are different, the visitor may get lost in the variety and decide to skip them all. So, the ads are not personalized and showed to the audience that is more likely to respond to such content.

Advertising networks offer their reporting systems to track the progress and the process as a whole. But one must be very careful about it, as a big amount of data, human factors, and simple dishonesty cannot save anyone from fraud activities from the networks themselves or other participants with sticky fingers.

Are there any ways out of this situation when the process is cheaper and more transparent? Certainly, there is! A programmatic ecosystem with a real-time bidding approach will lower the cost and make the process simpler and more honest. But it is one more notion we will discuss further.

Write to us, if you have any questions about ad networks!


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