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How do publishers benefit from ad networks?

There are three monetization pillars that publishers benefit from: affiliate marketing and subscriptions, but most importantly, ad revenue. Once ad revenue is prioritized, making the right decision regarding ad networks is essential.  In 2019 the global digital advertising market was valued at $319 billion, and it has been forecasted 2027 to hit $1,089 billion. Therefore this growth of web advertising provides publishers with substantial monetization opportunities. A vital element depends on the ad networks they choose to be in a capitalizing position.

In this article, we’re going to explain the following: 

  • What an ad network is and how it works.
  • Why ad networks are important.
  • How do publishers benefit from ad networks?
  • The different types of ad networks.

It shouldn’t be surprising that Google has some competitors within the ever-transitional ad tech industry. It might take some trial and error to fathom which ad network (or a combination of them) will generate the highest revenue. But once publishers can figure that out, they can focus on effectively monetizing their sites. 

What An Ad Network Is And How It Works

An ad network is like a mediator that introduces the right advertiser to suitable publisher sites. Ad networks provide an alternative to programmatic advertising, which currently dominates the digital media landscape. 

An ad network compiles advertiser's ads in a primary hub that records and tracks all active campaigns. Publishers can establish revenue generated by the ads.

How Does It Work?

Ultimately ad networks benefit advertisers by reaching their target audience and publishers to generate revenue from unsold inventory.

  1. Pooling Inventory

Unsold inventory is collected by an ad network from numerous publishers and stored in a central hub. 

Popular networks only work with high-quality sites to ensure quality ad inventory. However, less selective networks work with many publishers with lower quality or less traffic. 

A publisher will then include a network’s snippet of code or tag to the HTML code of their website.

  1. Advertisers Campaign Details

The ad network offers ad buyers a campaign management panel where they create a campaign, or an advertiser's campaign can be managed by the network instead. 

Whichever the advertiser prefers, the network still requires information such as budget, ad display preferences (text, image, or video), and target audience.

  1. The Right Inventory For Advertisers

Once the requirement matches the advertiser’s campaign and the publisher's data, the ad network’s server sends them the ad details. 

  1. Ad Performance Tracking

The tracking pixel in the ad network tracks ad performance placed on the advertiser's conversion page. 

Ad networks profit by increasing the publisher’s inventory or by taking a cut of ad revenue. They, in return, are paid as per the number of conversions, impressions, or ad clicks.

Why Ad Networks Are Important

Ad networks play the role of commercial negotiators between advertisers and publishers. They form part of an essential monetization component in the advertising world.

Time-Saving

Publishers obtain leads by using an ad network instead of sourcing advertisers. It simplifies orders for advertisers by working with a network. Instead of signing separate orders with different publishers, they can work with an ad network with many publishers on their books.

Segregate Inventory

Ad networks collect and segregate inventory from various publishers and segment it according to demographics. Advertisers can reach their target audience more accurately instead of randomly placing ads. 

Measurement

Can measure campaign performance with network reporting tools regarding impressions and reach. Advertisers can improve their campaigns without tracking each publisher’s effectiveness separately to compare results.

Specialization

Specialized ad networks can offer them a specific niche to receive ad placements to benefit their website audience and content. Advertisers will benefit from their ads being placed on suitable content sites making conversions easier.

How Do Publishers Benefit From Ad Networks?

  1. Targeting

With access to substantial data, ad networks can use target ads efficiently, which ensures higher conversion rates and CRTs (click-through rates) generating higher revenue.

  1. Higher ROI

Ad networks can set higher prices than publishers can secure for unsold inventory. The reason is that they can provide advertisers with bulk impressions submitted to them through CPM (cost-per-thousand).

  1. Monetization

Ad networks can provide monetization solutions for various ad formats, like native ads, video ads, and display ads allowing publishers to generate revenue.

The Different Types of Ad Networks

Choosing the right ad network ensures site traffic volume and quality. Here are networks for publishers to generate ad revenue.

  • Premium Ad Networks solely work with established companies and brands to deliver high-quality traffic at a premium.
  • Vertical Ad Networks focus on topic-specific niches and industries such as tourism, healthcare, and fashion.
  • Specialized Ad Networks are also known as inventory-specific networks, which focus on particular types of devices or ads. 
  • Affiliate Ad Networks or performance ad network is used for affiliate programs or influencer marketing. A publisher only gets paid for their ad conversions by providing performance-based advertising.

How To Choose The Best Ad Network

When deciding which ad network is a suitable fit, a few essential factors publishers need to consider:

  • CPC (Cost per click)
  • CPM (Cost per mille), or cost per 1,000 impressions
  • CPV (Cost per view)
  • CPA (Cost per action)
  • CPI (Cost per install)

Except for the business models offered by ad networks, also consider these factors:

  • Ad types
  • Targeting
  • Ease of use
  • Verticals offered
  • Payment options

Final Thoughts

When publishers focus on growing their revenue, working with a monetizing partner that suits their advertising needs is essential. Ultimately it comes down to what ad networks will provide the highest revenue. At rev·amp, we aim to help publishers drive more revenue, and as publishers ourselves, we know the struggle of trying to monetize your website effectively.

Ferran is the Director of Catalog & Traffic at Softonic.
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