Ad Networks: A Quick Guide
When you need a traffic source to get leads for your business, Ad Networks are an option you should consider.
Also, when it comes to the monetization of mobile apps and websites, Ad Networks are one of the most popular options.
In this article, you will learn about what Ad Networks are, how they work and some tips on how to choose the right one; either to advertise your business or monetize your website.
So without further ado, let’s jump right in!
What Is An Ad Network?
An Ad Network is a company that helps connect advertisers with websites that are willing to display their advertisements.
Ad Networks can be quite useful for small business owners who don’t have the time or manpower to find individual websites to advertise on.
In the world of Digital Marketing, Ad Networks play a big role.
Ad Networks offer a variety of services, including ad placement, targeting, and optimization.
They can be a great option for advertisers looking to reach a large audience online.
Ad Networks, on the other hand, help Publishers(bloggers) monetize their websites by displaying advertisements on the pages they publish.
This is done through a process called “Ad Serving”. When someone visits a website via a browser like Google Chrome, Safari, Firefox etc., he/she sees various types of advertising such as banner ads, video ads, text-based ads etc. These ads are usually displayed within a content and are efficiently managed via Ad Networks.
How Do Ad Networks Work?
Ad Networks make it easy for web publishers to monetize their website or app content.
Ad networks act as a middleman between the Advertiser and the Publisher. Advertisers can use Ad networks to target specific audiences and Publishers can use Ad Networks to fill unused inventory. Ad networks use cookies to track users so that they can show them relevant ads.
Depending on the model chosen by the Ad Network company, an Ad Network might cater to Publishers only, Advertisers only or both Publishers and Advertisers.
How Do Ad Networks Make Money?
There are a few different ways Ad Networks make money. The most common way is through a Cost Per Mille (one thousand impressions), or CPM, model. This is where an Advertiser pays a set price for every 1,000 impressions their ad receives.
Ad Networks can also make money through a Cost Per Click, or CPC model. This is where an advertiser pays for each time someone clicks on their ad.
Another way Ad Networks make money is through the Cost Per Action (CPA) model. This is where the network gets a percentage of the sale when someone clicks on an ad and then buys something.
Benefits Of Using Ad Networks
For Advertisers
- You get more exposure in terms of traffic and clicks as you get to leverage on the pool of traffic from different sites. This can help you improve your ranking on search engines like Google, Yahoo!, Bing etc., which ultimately increases the number of visitors to your site.
- Advertisers get to save time in looking for Publishers with the right target audience who are willing to Publish their ads.
- It makes it very easy for Advertisers to publish their ads on lots of Publisher websites even with a little budget; as opposed tot meeting Publishers one by one and negotiating their different fees with them.
- Advertisers can also control all aspects of their ad campaigns such as budget allocation, bidding strategy, targeting audience, geographic location, keywords used for advertisement, your landing page and much more.
For Publishers
- You get to easily monetize your site’s traffic and focus on creating content for your audience.
- No need to go looking for Advertisers to advertise on your site, as the Ad Network handles that for you.
Limitations Of Using Ad Networks
For Publishers
- The quality of ads that are displayed are not guaranteed by any means. As a result, it’s possible that some or most of these ads may be irrelevant to your site visitors or audience.
- In addition, publishers don’t have full control over their own inventory. They must follow the rules set forth by the Ad Network. The publisher is responsible for ensuring that they comply with the Ad Network’s policies and guidelines, before they can be allowed access to their sites’ inventory.
For Advertisers
- There is no guarantee that you will get traffic from an ad on another website. This could mean that your ad isn’t shown at all if other websites decide not to display them.
- It also doesn’t give you complete visibility into who visits your site after clicking through your ads. In order to track this data, advertisers need a third-party tracking service like Google Analytics or other analytics tools.
Ad Network Pricing Models
Earlier on in this post, we talked about the ways Ad Networks make money through some pricing models. Now, we will go in-depth and cover all of the different pricing models currently used by Ad Networks.
There are different pricing models used in Digital Marketing in general which include CPM, CPC, CPI, CPA, etc.
However, there are some models that are frequently used by Ad Networks and each of these pricing models produce different outcomes for both Publishers and Advertisers.
Understanding these different price models and knowing which to deploy per time is critical to helping you achieve your overall advertising goal.
Cost Per Click / Pay Per Click
This pricing model is used interchangeably, depending on who is talking about it per time.
For Publishers, they will refer to it as Pay Per Click while Advertisers refer to it as Cost Per Click.
However, the baseline functionality of CPC/PPC is the same.
How Does CPC/PPC Pricing Model Work?
The CPC pricing model is a popular way to charge for online advertising. It’s simple – you only pay when someone clicks on your ad. This makes it a good choice for businesses that want to measure their return on investment (ROI).
With the CPC pricing model, the network sets a price per click and then Advertisers pay that amount each time someone clicks on their ad. Ad Networks can set different prices for different keywords, depending on how competitive they are.
Cost Per Mille (CPM)
Cost Per Mille(or CPM) is one of the most popular ad pricing types. In its simplest form, CPM is calculated by dividing the cost of an advertising campaign by the number of impressions it generates. This metric is used to measure how much it costs to reach 1,000 people with an ad.
CPM can be used to compare different types of online ads, as well as traditional and online media. It’s also a common way to measure the effectiveness of an ad campaign.
For example, if an Advertiser spends $1 per day and reaches 1,000 people, their CPM would be $1 per 1,000 impressions or $0.001.
Cost Per Action (CPA)
CPA, or Cost Per Acquisition, is a metric used in Online Advertising to track the cost of acquiring new customers or when a specific action has been taken.
This figure is calculated by dividing the total advertising expenses by the number of new customers acquired. CPA is used as a benchmark to measure the effectiveness of an advertising campaign and to compare different campaigns.
Types Of Ad Formats
Banner Ads
When most people think of online advertising, they think of banner ads. Banner Ads are a type of advertising format that appears as a large graphic on a web page. They are typically rectangular, and can be animated or static. Banner Ads are often used to promote products or services, or to generate leads for businesses.
Banner Ads are effective because they are eye-catching and can be personalized to target specific audiences. They can also be targeted by location, so that only people in certain geographic areas will see them.
Additionally, banner ads can be customized to target certain types of users, such as those who have recently visited a particular website.
Native Ads
Native Ads are a form of advertising that is designed to match the form and function of the platform on which it appears.
For example, a Native Ad on a social media platform might look like a post from one of your friends, while a Native Ad on a news website might look like an article from that website.
Native Ads are often used to promote content like videos, articles, or products. They can also be used to promote brands or businesses.
Native ads are different from traditional forms of advertising, such as TV commercials or print ads, because they are less intrusive and more relevant to the users who see them.
Native ads can be effective for businesses because they allow them to target specific audiences based on the interests and demographics of those audiences.
Summary
In conclusion, Ad Networks are a great way for Publishers to monetize their website or mobile app.
For Advertisers, Ad Networks provide an efficient and effective way to sell ad spaces and deliver ads to users.
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However, it is important to research different Ad Networks to find the one that best suits your needs.
If you want an Ad Network that is bridging the gap between Advertisers and Publishers, feel free to give the NG Adverts Ad Network a try.
