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How do Ad Networks work? (7)

10-14-2014 01:09 PM #1 pk63606 (Member)
How do Ad Networks work?

Hey guys, i'd like to understand the inner workings of an ad network.

I'm using Decisive and Airpush currently and i'm trying to understand the function of these companies and how they make money. If you can point me to a thread that explains it would be great.

I'm just starting out with AM (5 mobile campaigns) and feel that I need to understand it before I can continue.

Thanks!

10-14-2014 01:20 PM #2 qureyoon (AMC Alumnus)

Quote Originally Posted by pk63606 View Post
Hey guys, i'd like to understand the inner workings of an ad network.
I seem to remember there is brief explanation in STM ebook.

Currently on mobile and Tapatalk. So searching is a bitch.

Will try to find when I get my hands on my laptop.

But I think you can just search here.

Use the search function.

Searching / finding out things/info is a skill that you need to start learning and be good at in IM

10-14-2014 03:24 PM #3 zeno (Administrator)

Fundamentally, they pay less per impression than you do - so profit from your purchase of advertising.

Sources like Decisive plug into various exchanges and bid on your behalf. If a bid of $0.005178 wins, they might charge you $0.0053.

Other sources have their own network where apps/sites can use their SDK to serve ads. The app/site publisher gets paid per impression, and get paid slightly less than advertisers pay for the ads > the difference is profit for the ad network.

At the most fundamental level it's just arbitrage where the middleman takes a cut.

10-15-2014 02:34 AM #4 qureyoon (AMC Alumnus)

Quote Originally Posted by zeno View Post
At the most fundamental level it's just arbitrage where the middleman takes a cut.
zeno pretty much sums it up

And here's the wiki http://en.wikipedia.org/wiki/Affiliate_network for your reference

10-15-2014 06:33 AM #5 andyvon (AMC Alumnus)

One possible benefit that you can get when going through an ad network vs doing a direct buy is that you might have more targeting features.

Example: ad network A buys all the inventory from site B without any targeting, customers get access to this inventory through ad network A and can target by country, carrier, handset etc., paying a premium rate.

10-15-2014 09:07 AM #6 bbrock32 (Administrator)

^ That plus it's cheaper to test.

On a direct buy most of the times you won't be able to just test a quick $50 worth of traffic.
You will have to commit to a bigger buy and many times buy all geos.

On an ad network you can micro target and spend as much or little you want.

10-18-2014 02:52 PM #7 cmdeal (Veteran Member)

Quote Originally Posted by qureyoon View Post
zeno pretty much sums it up

And here's the wiki http://en.wikipedia.org/wiki/Affiliate_network for your reference
An ad network and an affiliate network are two completely different things.

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