In the Before Times, ad networks were a crucial part of the ad tech ecosystem. These days? Not so much.
Truthfully, ad networks are outdated. And few of them still exist as they did in the early days of the dot com boom. Most modern ad networks, if they operate at all, operate as a small component of a larger piece of technology.
The ad networks of a decade ago are more or less obsolete. So it makes sense why many publishers might not understand what they are or how they function as a part of the ad tech landscape.
But before you start feeling sorry for them, wait to hear the whole story.
In this guide, we’ll explore the history and modern applications of ad networks. Keep reading to learn everything you need to know!
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Let’s begin with the basics. Ad networks existed in the early days of the digital advertising industry. The term describes a business model in which a company purchases unsold ad inventory from publishers at a flat rate or pre-determined revenue share. The advertising network then takes that inventory and packages it for sale to advertisers.
If you’re thinking that ad networks sound an awful lot like middlemen, we’d be inclined to agree with you.
A big reason why they’ve faded into the margins of the industry is because other industry players just didn’t trust them.
A key difference between ad networks and more popular options like header bidding and ad exchanges is that publishers and advertisers aren’t able to see the amount at which the inventory is being marked up, making them a major black box for both the demand and supply sides.
Ad networks traditionally (because, keep in mind, they don’t really exist anymore) functioned by purchasing inventory at the lowest price possible and reselling it at the highest price possible. In the current advertising ecosystem, that just doesn’t fly. Advertisers and publishers want more transparency.
More transparency = better prices for both sides.
Why work with a middleman if you don’t have to?
For this reason, ad networks have developed something of a reputation in the industry. Think of them like the sleazy businessmen of ad tech. It’s not that their tactics are illegal, they’re just… morally grey.
Let’s clarify something, though. While ad networks are considered shady by some, they still provided advertisers with benefits of scale while helping publishers increase their fill rates.
Because of the large volume of ad impressions these networks managed, ad networks were able to offer advanced segmentation options that allowed advertisers to reach their target audience.
So yes, the inventory was marked up, but the network offered a premium package. A trade-off that the industry accepted until recent years.
The demand for transparency and better prices is why the current digital advertising ecosystem is driven mostly by programmatic trade. Most modern ad networks are offered by platforms as a bonus or feature that adds value to a larger tech solution.
In the confusing mess that is ad tech, there are a lot of terms to digest.
Ad servers and ad networks are different, but share some commonalities, so it makes sense that many publishers get them mixed up.
Let’s set the record straight —
Ad servers allow publishers to put their ads on websites, apps, and other channels or environments. The code works as a part of a publisher's physical setup — when visitors land on a webpage or app, an ad server will answer a request by finding the right ad and delivering it to the visitor.
Additionally, there are ad servers or ad management solutions specifically built for advertisers. These ad servers are typically more focused on ad delivery and tracking versus making a decision regarding which advertisement to serve.
On the other hand, you have ad networks, which have become increasingly obsolete. All publishers, however, must use an ad server of some kind, otherwise, they will not be able to host ads on their site.
To sum —
No ad network, no problem.
No ad server, no ads.
Another essential ad tech component commonly mistaken for an ad network is the ad exchange.
These two are also similar. Similar enough that it’s difficult to explain the differences. But don’t worry, we’ll manage.
An ad exchange is a platform in which publishers and advertisers can engage in trade (vs. an ad network, which is more like a vendor that facilitates that trade.)
The difference between the two can be summed up with an analogy: ad exchanges are like farmers' markets — where buyers and sellers can engage in direct trade, without the middleman.
Ad networks, on the other hand, are the middleman. They’re the brands that buy a farmer’s cheese wholesale. They then package and market that cheese to sell it at an increased price.
Ad networks and ad exchanges vary in three main ways —
As mentioned, there are very few standalone ad networks operating in the digital advertising industry today due to the growing popularity of programmatic advertising methods.
So, if selecting the best ad network is not really much of an option these days, you may be asking yourself: Is there something similar that can suit my advertising needs?
To that, we say: sort of. There is an endless sea of ad tech solutions that include varying tools and capabilities, many of which bear resemblances to ad networks of the past, but all of which have adapted to meet the current needs of publishers and advertisers. These options provide increased transparency and more opportunities for revenue growth.
Keep reading to explore some of the best advertising solutions across the ad tech industry, all of which include the primary features and functions of a traditional ad network but offer publishers a much larger, turnkey product that supports multiple areas of their business while also simplifying their ad tech stacks.
Here are some of the best —
If video is the future of digital advertising, then the future is here.
Video ad solutions support the ad ecosystem by facilitating the trade of video ad impressions.
Here are some of the best —
To this point, we’ve noted several of the best ad solutions and tools available, which include some of those core ad network features that we introduced earlier in this article.
Now, we’d like to provide a few more complete monetization solutions, which leave significantly less work to you, the publisher, while we, the tech provider, handle the brunt of your advertising workload.
Some of the top ad monetization partners include —
Keep reading to learn more about the top ad monetization platforms.
While we’re on the topic of app ad networks (AKA the few remaining legacy ad network services still in existence), let's talk mobile ad networks. Think: mediation platforms and app SDKs like Chartboost, Vungle, and Liftoff.
Mobile advertising networks work in much the same way as the website ad networks that played a major part in the ecosystem only a few years ago. They are integrated platforms where developers and mobile publishers can sell ad inventory.
These companies provide ad exchanges, but they also have sales teams that sell their own units. Mobile ad networks have the incentive to sell custom units to advertisers for installs, then acquire those users at the lowest CPM rates possible.
Don’t get it twisted, though. They are still something of a middleman, filling a space between supply-side and demand-side platforms. Since much of mobile app monetization is still waterfall-based, ad networks have held strong within that system.
The biggest thing to avoid when browsing mobile ad networks for your app is options that don’t prioritize brand safety.
This was a common problem for the ad networks of old: publishers sold their inventory to a third party and had little-to-no control over whom the network sold those units to. This would often result in reputational harm or damaged user experience when users were subjected to inappropriate ads.
Some mobile ad networks that we trust —
We hear this question a lot so here’s the gist: all of the above mobile app monetization solutions and mobile ad networks are compatible with Android. Finding the ideal solution will require a deep understanding of the nature of your business and your users.
We might be biased, but Playwire is great at doing just that.
While we’ve already touched on Google’s Display Network, more commonly known as Google AdSense, there are a few additional details that can be helpful to note.
In addition to its ad network capabilities, the company has an ad exchange to round out its turnkey digital advertising platform.
While AdSense is technically a type of ad network, there are some key differences between Google’s ad network and a traditional ad network. Buyers pay and sellers get paid per click. This brings more transparency to the trading process.
Of course, there are similarities, too. The main ones are advanced targeting options and strategic campaign capabilities that help your advertisers reach highly-specific groups of new and existing customers.
Google includes programmatic tech in its ad network model to increase efficiency. Automated targeting improves ad campaign performance and automated bidding and creatives enhance the ad viewing experience for your visitors.
Some of the options and features included in Google’s ad network —
In short: Google is the leading name in advertising for a reason. Their solutions are easy to set up, manage, and optimize, and their support is expansive. But if you’re struggling to manage your ad tech stack as you scale your business, it might be best to work with a complete revenue partner like Playwire.
Feel free to visit our Complete Ad Network Resource Center, or dive deeper into any of these related articles:
This is a pretty advanced topic, so we won't be diving too deep into it here, but we'd be remiss if we didn't at least mention it.
Programmatic advertising is the traditional ad buying and selling process — digitized and fully automated. Instead of using people to buy and sell online ads, programmatic advertising uses software to do so in real-time, all the time. In this instance, advertisers bid on available ad supply through a stock exchange-style interface.
There are many kinds of programmatic buying, from preferred deals to private marketplaces to open exchanges. Different types of programmatic buying provide a range of options that, on one end, come close to traditional insertion order (IO), or direct buying experience, and on the other end are completely automated.
Often, incorporating some level of direct demand, where advertisers are searching for very specific types of websites or digital properties on which to display ads, can create significant increases in overall revenue generated.
Revenue Impact: Direct sales can drive 12x higher CPMs than traditional programmatic advertising. Publishers working with Playwire have seen 26x higher CPMs for directly sold inventory.
Getting access to direct demand is something that is not available through DIY tools, and is a more advanced ad monetization strategy typically executed through a monetization partner.
Different types or sizes of publishers will have different ways in which they balance the revenue coming in from both programmatic and direct-sold ads. Typically larger publishers will have a blend of both types, whereas smaller publishers just starting out may focus solely on programmatic ads.
If this sounds like a lot to think about, that's because it is. Depending upon your resources, and the amount of time you have to dedicate to managing all of this, you may want a monetization partner.
Traffic Growth: If you're consistently seeing 500K+ monthly sessions, you're likely leaving money on the table without professional optimization.
Time Investment: Ad monetization optimization requires constant attention. If you're spending more than 10-15 hours per week on ad management, it might be time to outsource.
Revenue Plateaus: If your revenue hasn't grown proportionally with your traffic, or if you're seeing declining RPMs, professional help can often identify optimization opportunities.
Technical Complexity: Implementing header bidding, managing multiple demand sources, and optimizing yield requires specialized expertise.
You should be able to get an idea of the ROI they can provide just by talking to them (and oftentimes a monetization partner will more than pay for themselves). Leading ad monetization platforms guarantee revenue increases of at least 30% compared to basic solutions, with many clients seeing much higher improvements.
Case Study Results:
So if this is sounding overwhelming, then by all means investigate working with one!
Revenue depends on several factors including traffic volume, audience quality, and optimization strategy. As a general benchmark:
CPM (Cost Per Mille) is what advertisers pay per 1,000 impressions. RPM (Revenue Per Mille) is what you earn per 1,000 pageviews. RPM is typically lower than CPM due to ad network revenue shares and fill rates.
With basic optimization, you can see improvements within 30-60 days. More advanced strategies like header bidding implementation may take 2-3 months to show full results. Professional monetization partners often deliver immediate results, with ongoing optimization driving continued growth.
Yes, using multiple demand sources through header bidding or mediation typically increases competition and CPMs. However, this requires technical expertise to implement properly.
The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy, and they have a wealth of resources to help you get started building your ad monetization strategy.
Google's Publisher Solutions allow you to explore Google's complete suite of products designed to help you get the most from your content.
Feel free to visit our Complete Ad Monetization Resource Center, or dive deeper into any of these related articles:
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