What Is An Ad Server And Ad-Serving Function?

by | Aug 28, 2024 | Ad Server | 0 comments

Ad tech goes beyond a simple exchange between advertisers and publishers. The online advertising market is complex and consists of many companies, such as supply-side networks (SSPs), demand-side platforms (DSPs), and advertising marketplaces. The objective is to show online advertisements efficiently within less than an hour. Ad Server is one of the most important in advertisement.

What Is An Ad Server?

Ad servers are online solutions that manage, place, and deliver advertisements on websites, applications, and social networks. These servers, often referred to as ad-tracking or platforms for managing campaigns, can store advertisements and make them available when users visit a web page or application. Modern ad servers also offer complete ad management that allows users to define delivery parameters, monitor and target campaigns, and collect data.

What Does Ad Serving Do?

Advertising is the practice of serving ads across various apps, websites, and social media sites using technology for ad serving. This involves choosing the most relevant ads based on complicated algorithms and guidelines established by publishers and advertisers, like the criteria for targeting, ad formats, and ad priority, as well as the frequency of viewing, placement, and earning possibilities. Ad servers also track the performance of ads, generate reports, and handle billing.

The Classification of Ad Servers

Publishers (First-Party Ad Servers): These are employed by publishers (owners of apps or websites) to manage inventory, control ad placement, improve advertising delivery, and offer data.

Advertisers (Third-Party Ad Servers): These are employed by advertisers to render and optimize their ad creatives across campaigns, without having to interact directly with publishers.

Advertising Agencies: They run DSPs for advertisers.

Ad Networks: They aid publishers in promoting and selling their ad space

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Ad Servers are also Classified According to Management and Location

Self-Hosted Ad Server: Self-hosted server for ads managed by the owner. They offer customization but with a lot of maintenance.

Managed Ad Servers: Managed Ad Servers Hosting is provided by a third party that requires no technical skills and is usually available via subscription.

Local and Remote Ad Servers

We can handle an ad server either on-site or remotely. If you have a local ad server, you can access it directly. If you don’t, you can use the services of a third-party company that provides remote server access. Local servers are usually owned by the publishers while the remote ad servers are managed separately and can be used by any number of publishers. This setup allows all ads to be broadcast from one source, making it easier for advertisers to track their ad placements across the internet.

Are SSP’s and DSP’s Different Types of Ad Servers?

In ad tech, the terms “demand-side platform” (DSP) and “supply-side platform” (SSP) are often associated with “Ad Server.” However, DSPs, SSPs, and ad servers are distinct from one another.

However, DSPs and SSPs are usually engaged in the communication process between the first and third parties’ servers. It is therefore prudent to look at a DSP as an interface that enables one to control an ad campaign across different ad servers. Supply-side platforms can also be thought of as similar to publishers’ interfaces and their inventory of ads.

The Functions of Ad Servers

Publisher Ad Servers (First-Party): Enhance the ad inventory, manage the ad’s interactions, and collect performance information.

Advertiser Ad Servers (Third-Party): Store and manage ads, track metrics, evaluate campaign performance, and adjust campaigns.

The Way Ad Serving Works

First-Party ad servers:

  • Use user data to process.
  • Select an active campaign and create a creative ad.
  • The ad content is delivered to the user’s browser for displaying the advertisement.

Advertisers from third-party:

  • Calls from advertising first-party servers.
  • Transfer your creatives to the publisher’s site.

With DSP’s as well as SSP’s

  • The ad server relays details of the user directly to SSP.
  • The SSP passes out a bid solicitation to DSPs.
  • DSPs organize internal auctions and then submit proposals to SSP.
  • The SSP collects and selects which bid is correct and then delivers the ad to the user.
Ad server
Ad server

Selecting Ad Server 

Managed/ Self-hosted: Select according to your technical knowledge and the resources.

Efficiency: Search for speedy and precise ad delivery with the most minor disruptions.

Scalability: Make sure the server can cope with the growth and changes.

Variation and quality: Choose a site that provides a range of high-quality advertising formats.

Strategies for Compensation: Select a web server with a transparent pricing structure.

Continuous support: Ensure the server can provide excellent technical and customer support.

When you understand these concepts, you will be able to make educated decisions about using ad servers to improve your internet advertising.

How can Performoo help?

Performoo Premium Ad Server helps the publishers and advertisers to monetize and distribute multi-format videos in web, mobile & CTV/OTT effortlessly. With support from the next-gen features, Ad Player under Performoo is a tool designed to facilitate the management of inventories, demand channel, and ad delivery.