Now, consider is a world where we can think of buying/ selling something online. So, you are the seller, the place where you are selling your product is a network, and the buyers who are actually interested in buying your product. Same is the case is with Online Advertising, let’s walk through the basic terminologies.
Publisher – The Seller! An affiliate (**basically any website) opens up some space on his website for advertisements. These spaces are actually known as Ad Slots, where we the ads can be placed.
Ad slots can be of different sizes which can accommodate different size advertisement banner that’s best fit for that Ad slot.
Impression – When any Advertiser Ad is displayed on a particular Ad Slot, it is counted as one single Impression.
Inventory – The number of impressions served over a period of time on a particular Ad slot constitutes to be the Inventory for the particular Ad Slot.
Ad Network – An Ad network comprises of one or more Publishers or Affiliates. One more Ad networks also tie with up each other so that they can effectively utilize the inventory.
** The Advertising Value Chain
Advertiser – The buyer! An Advertiser is interested in buying the Ad inventory to display his ads. Advertiser(s) are focused on getting on more ROI, so they choose the Ad inventory depending on the various factors like the Audience demo group on that particular network, the number of impressions a particular publisher or Ad network can provide, the placement of the Ad slot on the affiliates, the number of unique visitors of that particular Affiliate or Network.
Agency – The Agency acts as a mediator between Publishers and the Advertisers. An Advertiser may want to approach a particular Agency to advertise or promote his product. In a similar way, the Publisher has contacts with the Agency, and they expose their inventory at various levels to the Agency and the yield results of the inventory. Based on the Advertiser spend and requirement, the Agency will makes a deal with the Publisher, so that the Publisher Ad inventory is available to display the Advertiser ads. Advertisers will place their demands in terms of the KPIs they are looking out from a particular advertisement campaign, and on the other hand Publishers will supply the required inventory that would deliver the contracted impression goals and the expected client KPIs. Agency would be evaluating the performance based on the campaign reports. The Agency also ensures that the correct expectations are set with the Advertiser and the Publishers.
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