Ad Networks vs Ad Exchanges
To generate ad revenues from their web properties, publishers (website owners) have the choice between wide varieties of Ad Networks since the 90s. Recently, Ad exchanges are becoming the emerging channel for publisher to sell their inventory while constantly increasing revenues.
First, what’s an Ad Network?
Ad networks appeared to solve a problem for advertisers wanting to reach a large audience like they use to do on traditional media: TV, newspaper etc…
Since the internet audience is fragmented on different websites, Ad networks start managing Ad spots on multiple websites and offered this audience to large brands. It’s a win-win situation for both, giving the ability to advertisers to reach large internet audiences and publishers to ability to sell more inventories.
The majority of Ad networks work like the following:
1. Forecast the inventory available to sell on their publishers properties
2. Make deals with advertisers to sell the inventory
3. Deliver the sold inventory
Examples of Ad networks:
• Google Adsense
• Yahoo publisher network
• AOL Advertising
• 24/7 Real media
Ok then what about Ad exchanges?
Ad exchanges are an auction marketplace where each impression (banner /creative impression) is auctioned in “real time” between multiple advertisers. They provide advertisers with a high level of Data about the visitor and the web page the Ad spot is auctioned, enabling the advertiser to modify/manage his strategy in real time.
Instead of selling the whole inventory of a website in advanced, by forecasting the needs and ending up with un-sold or oversold inventories, Real time ad exchanges optimize the operations for both, publishers and advertisers while maximizing the profits and revenues.
When advertisers bid for an impression, they usually base it on 3 levels:
- • The visitor: Behavioral and demographic of the user
- • The Ad spot context: the subject of the web page
- • The creative: the size of the ad, rich media etc..
The auction process is done in milliseconds.
Examples of Ad networks:
• Double Click
• OpenX Market
• Yahoo Right Media
Definitely, Ad Exchanges are a new opportunity for publishers to achieve higher revenues per CPM.
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