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An internet advertising network or ad network is an industry that specializes in connecting advertisers to websites hosting ad placements. The main function of ad networks is to aggregate ad spaces from publishers to generate demand. The term “ad network” is deemed “media-neutral”. Meaning, ad networks can be aggregated in either print or television ads. However, the effect of aggregation is mostly seen in the online advertising platform. The difference between ad networks and traditional media is that the former uses servers to deliver ads to people while the latter relies on alternatives (e.g. TV, radio and newspapers). Ad networks are divided into two main types – “First-tier” and “Second-tier” networks. First-tier networks have a substantial number of their own publishers and advertisers. Second-tier networks meanwhile have few publishers and advertisers, but their source of income are generated from syndicating ads to their affiliates. Other Types of Ad Networks 1. Blind Networks: They offer satisfactory pricing to marketers in exchange for controlling the extent of their ads. Some blind networks offer pricing via a “site opt-out” method. This is done by giving marketers the option to lower their pricing by putting in bulk online ads. 2. Vertical Networks: They represent the online publications, carrying a transparency between online advertisers and marketers on how the ads will run. Vertical networks usually promote high quality web traffic directed to marketers. They offer “Run-Of-Site” advertising across certain channels. 3. Targeted Networks: They are sometimes referred to as “2.0 ad networks” or “Next generation networks” and focuses on targeting specific marketers and small industries with ad servers. Targeted networks also specialize in using consumer-based data to enhance the quality of their online ads. The Impact of Ad Networks In a report by the Collective Media, 80% of Ad agencies in the US are depending on internet media to increase their shares. By 2012, nearly 45% of ad networks will increase their annual spending. However, the report states that a positive shifting of a traditional ad agency to advertising network may result to overspending of online media shares. Furthermore, experts suggest that ad networks must: • Adapt a range of ROI metrics, “rich media” and other alternatives to boost internet usage in placing advertisements.
• Allot future budgets for online advertisements
• Utilize CPMs on publishers and web portals.
• Increase the number of target websites (e.g. from 20,000 to 30,000) in delivering ads. The Ad Network in the 20th Century Ad networks continue to increase its marketing shares. In 2007, about 30 of the world’s largest companies earned $3 billion from online advertisements. This clearly represents 15% of the total ad display market shares which is likely to grow by 25% in 2014. The rapid growth of shares in 2007 has pushed many ad networks to hire “new players”. An internet advertiser can purchase a run of networking packages from ad networks. On the other hand, ad networks will serve as a “centralized ad server” in responding to web pages where the ad was placed. Michael Hunter is an Account Manager with Ad Network, Universal Adworks. No Matter If You're Looking to Monetize Your Blog or Website With High Paying Ads, Or You're an Advertiser Looking to Increase Your ROI, They Have Something Just For You. Sign Up Now. http://universaladworks.com/
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