First display ads brought to digital advertising even more that one can imagine. People who wanted to monetize their website sold the inventory they had to those who wanted to promote their goods and services. The only problem was that some room could remain unused. That is the moment when display ad network was born.
What is an ad network?
Simply stated, it is an agent between Publishers (those, who post ads) and Advertisers (those, who have ads to promote their company or service).
Why do we need ad networks and how do they work?
Their main function is to help first parties to sell and second – to buy, accordingly. The participants of the business do not need anymore to contact each other directly and to resolve all arising issues.
Ad networks often deal with so-called remnant inventory of Publishers. It means that some space remained unsold and it would be offered for lower prices than usually. Marketing tycoons are unlikely to get interested in it, however it may be ok for not big companies.
Premium inventory can be also easily offered by ad network, as it has bought it from Publishers beforehand and now is resold at higher prices. Small businesses would like to buy better places, as perfect location may attract more clients and lead to conversions. But its cost can be too unaffordable, that only holding groups can put money on the table for it.
When the business of ad networks just started all publishers sold all their inventory to one network. But now we have more websites and bigger amount of networks, so that some Publishers have decided to sell premium inventory to one network and all the rest – to another, why not?