First-Party and Third-Party Ad Servers: A Complete Guide

by | Nov 7, 2024 | Ad Network | 0 comments

When searching for the best ad service for your needs, you’ll come across various terms. Most notably, you’ll encounter “First-Party” and “Third-Party” ad servers.

First-Party Ad Servers: Publisher-Side

A first-party ad server, also known as a publisher ad server, allows publishers to manage and serve ads directly on their websites or platforms.

What is a First-Party Ad Server?

A First-Party Ad Server is an ad-serving system that puts digital advertisements in front of viewers on the websites of publishers and apps. The ad server code and its functionality either run on a server owned by the publishing company (self-hosted ad server) or by a third-party ad technology vendor (hosted ad server), handling thousands of ads every minute.

There are various first-party advertising servers designed to meet publishers’ specific requirements. Below are a few examples:

  • Open-source Ad Server
  • Servers for Display Ads
  • Servers for video ads
  • Mobile Ad servers
  • Native Ad Servers
  • Rich media ad servers

Each type of first-party advertising server has benefits and drawbacks, but it’s crucial to remember that the majority of them offer a variety of the features listed in the previous list.

First-Party  Ad Servers
First-Party Ad Servers

What First-Party Ad Servers Do and How They Work

Publisher-side ad servers occupy an ad space between the publishing site or app and the back-end tools of ad technology, sourcing demand for ads and conducting programmatic auctions. Publishers choose where to place ads across their platforms and content, automatically serving ads each time users start sessions on their sites or apps.

An auction between various demand sources fulfills the ad request, and the winning bid is sent to an ad server. The ad server secures the appropriate ad creatives and delivers them in the advertising slot on the publisher or application’s website. This entire process takes less than a second and can happen hundreds of times per minute.

Third-Party Ad Servers: for Agents and Advertisers

Third-party advertising servers are servers that agencies and advertisers use. This is what you should learn:

What is a Third-Party Advertising Server?

A Third-Party Ad Server that advertisers or media companies use to host ad creatives and control their campaigns. When first-party ad servers need to gather ad creatives for the winning programmatic bid, they connect with third-party ad servers to ensure the creative is delivered securely.

These servers are often packed with features like ad reporting and campaign management tools. Commonly called advertiser-side servers, they are used by advertising agencies and other third parties involved in ad serving. It acts as a barrier between publishers and buyers.

What Third-Party Ad Servers Do

Ad servers from third parties are somewhat distinct from primary advertising servers. The most advanced ad servers can fulfill both roles. The primary purpose of third-party ad servers differs from that of first-party servers.

Advertisers put an ad tag on their site or application to communicate to specific advertisers. If a user starts an account, the tag requests an ad through the first-party server. The first-party server gathers user information and passes it to the third-party ad server. After that, the third-party ad service uses the input information to determine the appropriate ad based on buyer preferences and specific requirements for the ad campaign. It then forwards it to the publisher’s side server.

First-party servers completely put advertisements in front of users’ eyes. The two kinds of servers collaborate to carry out digital advertising but perform completely different roles within the larger goal.

Third-Party Ad Servers
Third-Party Ad Servers

Are you looking for a First-Party Advertising Server?

If you’re a professional publisher looking for a first-party ad server, you could find a perfect fit with Performoo’s internet-based advertising revenue amplification system. Part innovative ad technology and part professional-driven management, Performoo’s solutions include ad management and optimization for publishers such as yours.

Also, if you’re in search of a first-party service, we’d love to meet with you. We’d like to demonstrate the ways we’ve grown advertising revenue for publishers like us countless times over the past 15 years. Are you interested in learning more? Contact us as soon as possible.