Ad Networks

The main task of an ad network is to sell advertising spaces for certain advertising forms. If publishers have unused advertising spaces in their media, they can use an ad network to offer them to advertisers. Ad networks are utilized for various types of advertising – for example, there are ones dedicated to print or even TV advertising. In practice though, they are usually referred to in the context of online media. Here, common advertising spaces include:

• Websites
• Blogs
• Emails
• Social media channels
• Adware
• RSS feeds
• Apps (e.g. instant messengers)

If a publisher and advertiser form a collaboration, the ads are delivered to users via an ad server.

Types of ad networks

Ad networks can generally be split into three different kinds based on how the advertising content is distributed:

#1 Vertical network

In a vertical network, advertisers are given full transparency in terms of exactly where their ads will be placed and can therefore control them themselves. A lot of big brands use vertical networks, thus benefiting from high-quality traffic.

#2 Blind network

Lower costs but not as much control: blind networks are cheaper than vertical networks, but they lack transparency for advertisers, who have to “blindly” trust the network and have no way of controlling in which media or on which advertising spaces their ads will be placed. Consequently, blind networks may not be as effective as vertical networks.

#3 Targeted network

This kind of advertising network predominantly focuses on selecting advertising spaces based on behavior and the context, thereby ensuring that the content reaches the right target group. This form of targeting is also possible via social networks, such as LinkedIn.

Pricing models of ad networks

Advertisers can choose from a range of pricing models depending on their individual requirements:

• CPM (cost per mille) is the easiest option for ad placements. With this model, the advertiser pays the publisher a sum as soon as a certain number of people (usually 1,000) have viewed the ad. An ad has been considered “viewed” when it has been displayed to the user – it doesn’t matter whether the user subsequently clicks on it or not.
• CPC (cost per click): In this case, advertisers pay a previously agreed-on sum to the publisher each time a user clicks on their ad.
• CPL (cost per lead): As part of this model, the advertiser pays the publisher for every lead generated by the ad, for example if a product is sold due to it.

Significance of ad networks from an SEO standpoint

Ad networks play a big role when it comes to search engine optimization. Google Ads, formerly Google AdWords, is one of the most well-known advertising networks. When advertisers buy advertising space via this platform, website owners earn money for publishing the ads via the Google AdSense advertising program.

Since ad networks are part and parcel of search engine advertising (SEA), they also indirectly influence a website’s ranking in search engines. For example, if a website owner plasters its pages with ads, that can have a negative impact on its ranking because the content no longer offers added value to users.