This guide explains the difference between an ad server and a typical server, the different server types, how ad serving operates, and the key functions of ad servers.
If you’re in the world of ad technology and you’re aware that the internet advertising market is a complex one. It includes supply-side platforms (SSPs) and demand-side platforms (DSPs), as well as ad marketplaces. Even with all this complexity, the goal remains to show attractive online advertisements within a fraction of a second! Ad servers are responsible for the entire work that happens behind the scenes.
What is an Ad Server?
Ad servers are an element of advertising technology that optimizes, manages, and disperses advertising over paid channels, such as websites and applications. Advertisers, publishers, and agencies use ad servers to manage and track ads.
The ad server stores the ad’s creatives, decides on the ads to display in real-time, to the available advertisements, gathers the data of users, and gives reports on the performance of ads.
What is Ad serving?
Ad serving technology process that makes use of software to display advertisements on many websites. They display online ads to visitors when they go to websites, download an app on their mobile device, or interact with online media.
This involves the technology and infrastructure that manages the display, rotation, and monitoring of advertisements across a variety of digital platforms.
Ad-serving technology displays ads with the right content to the target audience, based on demographics, behavior, and advertiser targeting criteria.
What Costs are Associated with the Insertion of Ads?
The cost of serving an ad is associated with the running of the ad. They may include:
Costs of Ad-Server:
The cost is based on an advertisement that is displayed on a site or app platform. This covers the primary function of optimizing and delivering ads on the internet.
Third-Party Tracking Costs:
Costs incurred by using third-party tools to track the performance of ads.
Costs of Servers to Publishers:
The cost of advertising is determined by the choice to display via a web-based, mobile, or other digital platform.
Advertiser Ad Server Fees:
Advertisers use ad servers to track performance and manage ad distribution costs.
Advance Ad Server Fees:
Advanced ad formats, like video, dynamic display, and audio creatives, come with additional fees, added to the standard ad-serving cost.
Types of Ad Servers
Ad servers come in many kinds that each cater to distinct demands within the digital advertisement marketplace. There are two primary kinds of ads servers: third-party and first-party ads servers. There are various kinds of subtypes, such as mobile ad servers, display ads servers, local ads servers, and more.
First-Party Ads Server (Publisher):
- Publishers use it to manage their ads and to make money from their advertising inventory.
- Publishers can sell ad slots directly to advertisers.
- Include features such as devices and location targeting, key-value targeting, location and device targeting, and the management of ads.
Third-party Ads Server (Advertiser):
- Advertisers and agencies use this method to deliver and optimize their advertising campaigns.
- Offer features like the tracking of impressions, viewability measurements, and bidding in real time.
What is the Function that Ad Servers Play?
Ad servers serve several critical functions in the advertising industry:
For Publishers:
- Ad servers handle ad inventory and offer ad space directly to advertisers.
- Ads for targeted audiences based on user characteristics, behavior, and other interests.
- I am controlling ad placements and frequency.
- Provide a report on the performance of your ads, including clicks, impressions, and conversions.
- The forecast inventory levels for future sales cycles.
For Advertisers:
- Keep track of and organize ads.
- Analyze and measure campaign performance.
- Create and control target parameters.
- Automate delivery and decision process.
- Review and improve ads in real-time.
How does an Ad Server operate?
The operation of an advertising server is a set of actions to ensure the successful transmission of ads online.
Then, it would help if you understood how ads service works on the side of the publisher (1st the party)
Users Access the Website or Application:
If a user goes to an app or website with an advertisement tag, the server gets notified that an advertisement opportunity is available.
Ad Servers Manage Ad Inventory And Sell Ad Spaces Directly to Advertisers
- The application or site requests an Ad server. This triggers the serving process for ads. The request contains:
- Information regarding the person using the site.
- Their location on the webpage.
- The targeting criteria that the advertiser has set.
Ad Server Evaluates Targeting Parameters:
The ad server analyzes specific targeting parameters that the advertiser specifies, such as the demographics of the audience, their location, and patterns of use. The server analyzes these variables to select the most pertinent advertising message to display.
Selection of Ads and the Decision-Making Process:
The server decides on the most appropriate ad from the advertisers’ inventory according to the analysis. The selection is done immediately and makes sure that the ads displayed are in alignment with the user’s profile as well as the objectives of the campaign.
Ad Creatives Delivered:
The creative ad reaches users’ browsers or mobile apps through visually rich content, including videos, images, or interactive elements.
The User’s Interaction is Tracked.
When an ad is requested, the ad server tracks user interactions like clicks, impressions, and conversions. This information is essential for monitoring the success of an ad campaign.
The Optimization of Ad Rotation:
Ad servers rotate different creatives in campaigns to track performance and optimize for better results. Continuous adjustments could be made to the targeting variables or other creative elements for greater effectiveness.
Analytics and Reporting
They generate detailed reports that help advertisers understand how well their ads are performing. Publishers and advertisers utilize this data to analyze the most critical metrics and make informed decision-making for future ads.
Budget Management
Ad servers help manage budgets by controlling how ads are delivered, ensuring the budget is spent as planned, either evenly or adjusted based on campaign timing.
How Ad Delivery Work For Third-Party Advertisers:
The User Initiates a Session:
A user starts their web browser and begins the session by visiting an individual website.
A Browser Inquiries About the Publisher’s Server.
The browser on the user’s computer requests the web page’s publisher server and asks for the content of the website.
The Publisher’s Server Delivers the Content For the Requested Page
The publisher’s server processes the request and then sends the page’s content to the user’s browser. The content is embedded with ad tags.
Ad Tags are Used to Request Ads Through a Third-Party Ad server
Add tags to the content of the website and send an inquiry to a third-party advertising server, signaling the possibility of advertising.
The Third-Party Ad server Picks an Appropriate Ad
Third-party ad servers process the ad request based on the advertiser’s campaign settings, preferences, and targeting criteria. Then, it selects the appropriate ad to show.
The Ad That Was Selected Is Sent to the Server Of the Publisher
The selected ad is then sent from the third-party ad server back to the publisher’s server, completing the ad-serving process.
The Publisher’s Server will Display the Chosen Ad to the User.
The website’s server is notified of the chosen ad on the page’s content. The entire webpage, including the ad that was selected, is delivered to the browser of the user and then displayed.
What Is An Ad-Serving And Ad-Tracking?
| Aspect | Ad Serving | Ad Tracking |
| Definition | The process of delivering digital ads to users. | Monitoring and recording user interactions with ads. |
| Primary Function | Manages the delivery and display of ads. | Records and analyzes user interactions with ads. |
| Tasks Involved | Selecting ads, delivering them to users, and ensuring timely | Counting ad impressions, tracking clicks, and monitoring conversions. |
| Timing | Primarily concerned with the ad display process. | Ongoing process focused on user interactions. |
| Tools Used | Ad servers to manage ad delivery. | Tracking tools and technologies for data collection. |
| Creative Optimization | Allows advertisers to change ads easily and independently. | Publishers control ad changes, advertisers rely on them. |
| Data Collection | Data on impressions, clicks, and ad delivery efficiency. | Data on interactions, click-through rates, and more. |
Wrapping It Up
Choosing the correct ad server is critical for both publishers and advertisers. Ad serving helps you efficiently deliver ads while keeping costs down.
Performoo offers a powerful solution with the latest programmatic monetization technologies at no extra cost. With Performoo’s ad-serving feature, you save money and reduce your deliver your ads to the right audience.