Ad Network or Ad Exchange - what is right for your business?
Before choosing between an ad network and an ad exchange, it is important to know these differences. Ad Networks buy ad slots from websites and apps, which the advertisers then buy. This simple and straightforward process works for those who want a ready and easy-to-use service. Ad exchanges are like any other exchange where buyers (advertisers) and sellers (website owners) get together to buy and sell the ad slots. When advertisers use ad exchange, they can decide where they want to display their ads, while being aware of the cost.
This article will discuss how ad networks are different from ad exchanges.
Ad Networks versus Ad Exchanges - understanding the differences between these two.
Role
Ad networks are an intermediary or a go-between between the advertiser and the owner who wants to sell ad spaces on the website.
Ad exchanges are described as exchanges, where advertisers can buy an ad display spot from the website owners. These exchanges are used by advertisers and website owners to buy and sell ad spots directly without any middleman. It is an online process that brings transparency about the rates and allows both parties to have control over the deals.
Function
Ad networks function like shops where advertisers can buy time slots from different websites and apps. Ad networks enable this by putting different slots together and offering the same to the advertisers at a fixed rate. Advertisers can't choose where they want to display the ads or the type of audience. This is a very convenient way of posting ads, but the method is less transparent, and overall, the advertisers have less control.
Ad exchanges function in a different way. These exchanges sell ad spaces in real time, where advertisers can try and buy specific time slots and the advertiser bidding the highest is sold the slot. Ad exchanges give information about where the ad would be shown and the price for displaying the ads. They give advertisers control over where the ad will be displayed. However, the method itself is a little complex and needs technical understanding.
Simplicity
Advertisers buy ad display slots from ad networks for fixed rates. It is an easy deal for advertisers, with the only drawback being that they don't know where the ads will be shown. This is completely handled by the ad networks. Advertisers get a fixed price and basic options for targeting their audience. This is a good choice for those advertisers who want a straightforward experience.
Advertisers can bid for the ad display slots on the ad exchange as and when they become available for sale. This is done in real time. The process is called real-time bidding (RTB) and can be difficult as it requires some understanding of placing and managing bids. Ad exchanges are more transparent and give more control to advertisers, but they also require a more technical understanding of their work. Rates for ad display slots depend on the timing and can vary as per demand in that time slot.
Transparency
Ad networks may not seem completely transparent when it comes to buying ad timings or slots. Advertisers can buy ad spaces for different websites and applications, but they don't have control over where the ads will be shown. This can be looked at as a negative part of ad networks since advertisers are not in control and cannot ensure that the ads are placed where they offer maximum benefit and viewership,
Advertisers using ad exchanges know where their ads will be displayed. This means that the advertisers are aware of where and when the ads will appear, which can be used to make decisions that can offer them better benefits. Transparency over where the ad can be displayed lets advertisers position their brand better. This offers a big advantage to advertisers, except that they must be more involved with the entire process to make the best decisions.
Pricing
Ad networks sell time slots at fixed rates and use different pricing methods. A fixed price is charged by the advertisers based on user clicks or per thousand ads that are shown.
Ad prices are based on real-time bidding (RTB) and can change depending on the demand for the slot. Advertisers can bid for these spaces as per their availability and the highest bidder is allotted the space. This is a dynamic model, and rates fluctuate and depend on the slots' demand and competition. The process is more efficient and can reduce costs, but a good understanding of how the process works is needed.
Final Words
Like any other choice, choosing the platform that makes selling and buying ads easier depends on the user’s requirements and resources. A manageable and easy way that includes cost understanding makes the ad network the right choice. Since ad networks buy and sell ad slots at fixed prices, it's easier for advertisers to budget the costs. Ad exchanges offer better control and transparency over costs and where the ads appear. The choice between these two platforms is based on whether one wants predictable costs without control over ad displays or wants control over ad screening. An ad exchange platform development firm can make it easier for users to choose based on their requirements.