This guide will describe the difference between an Ad-serving and an Ad server, the various types of servers, how advertising works, and the aspects of ad servers.
If you work in ad tech, you know the online advertising world is complex. It comprises supply-side platforms (SSPs), demand-side platforms (DSPs), and advertising marketplaces. Despite all this complexity, the objective is to show attractive online ads within seconds! The ad server does everything behind the scenes.
Ad servers optimize, manage, and distribute ads across websites and apps. Ad networks, publishers, and agencies use ad servers, and advertisers rely on them to track ad performance.
The ad server keeps the creatives for ads, chooses which ads to display in real-time in the available advertising space, gathers user information, and then analyzes the ad’s performance.
Ad serving is a cycle that utilizes software to display advertisements on many websites. The system displays online ads to users whenever they visit a site, use an app for mobile, or interact with digital media.
The infrastructure and technology control the display, rotation, and tracking of advertisements across different digital platforms.
Ad-serving technology guarantees that ads with the appropriate content are displayed to the correct viewers based on demographics, behavior, and targets set by advertisers.
Ad serving costs arise from operating ads and may include the following fees:
These costs arise from choosing the advertisement on a site or app platform. It is the core function of optimizing and delivering advertisements on the internet.
Costs associated with using third-party services to monitor the effectiveness of ads.
Costs incurred from choosing the advertisement to display on a mobile, website, or other digital platform.
Costs for the distribution and monitoring of adverts from the advertising company.
These are additional charges for advanced ad formats like video, dynamic display, and audio creatives. They are added to the essential ad-serving cost.
Ad servers come in many varieties, each catering to specific needs in the advertising industry. The two primary kinds of ad servers are first-party and third-party. There are also various subtypes, such as mobile ad servers, display ad servers, and local ad servers.
Ad servers play several crucial functions in the online advertising industry:
The operation of an Ad Server requires several steps to ensure the successful distribution of online ads.
To begin, look at how ads serve functions on the publisher’s side (1st party)
When a user connects to the site or application:
When a user visits an app or website with an ad tag, the ad server alerts the user to the available advertising opportunity.
The application or website requests the advertisement server, which initiates serving ads. This request contains details about the user’s identity, the nature of the page, and any targeting criteria set for the advertiser.
The ad server evaluates the parameters for targeting that the advertiser has defined, including locations, demographics, and the user’s behavior. It analyzes these variables to determine the most appropriate advertising message to display.
According to the assessment, the ad server picks the most appropriate ad from the advertiser’s catalog. The system makes this selection in real time, ensuring the ad corresponds to the user’s profile and campaign goals.
The user’s browser or application displays the creative ad through visual content, including videos, images, or interactive elements.
The ad server records user interactions through the advertisement, such as impressions, clicks, and conversions. This information is essential for monitoring the campaign’s performance.
Ad servers frequently rotate various creatives in a campaign to evaluate performance and improve for more significant outcomes. Continuous adjustments can be implemented to the targeting variables or other creative components to increase the effectiveness of the entire campaign.
Ad servers create precise reports and data, giving insight into the success of an ad campaign. Publishers and advertisers use the data to evaluate the key metrics and make educated decisions about future campaigns.
Ad servers assist in managing advertising budgets by regulating ad delivery speed. This helps ensure your budget gets used according to the pre-set parameters equally, quickly either back-loaded or front-loaded during the campaign time frame.
Ad serving is the backbone of online advertising, enabling precise targeting, efficient delivery, and effective measurement of campaigns. Mastering ad serving technology empowers businesses to maximize their reach, optimize ad performance, and achieve their marketing goals in a highly competitive digital landscape.
Continue your learning journey with these related insights
In 2024, the Connected Television (CTV) scene has become more significant than ever and offer marketers an array of platform choices. This article focuses on the best CTV platforms and services and explains their distinctive characteristics and advertising capabilities. If you’re seeking to improve the impact or increase the effectiveness of your advertising, this guide […]
Join thousands of advertisers who trust Performoo to optimize their campaigns and maximize revenue.
In the world of digital advertising, video ads are becoming a crucial part of reaching audiences. The VAST ad tag is one of the most important tools for delivering these ads. VAST tags, or Video Ad Serving Template, sets the standard for how ad servers communicate with video players. Advertisers and publishers rely on a […]
An ad server plays a crucial role in digital advertising by streamlining the process of delivering ads to users. It ensures that the right ads are displayed to the targeted audience based on targeting criteria, such as demographics or browsing behavior. Beyond delivery, ad servers track ad performance, measure engagement, and provide detailed analytics for […]