Ad Servers

William Chen

What is an Ad Server?

Ad servers are the systems that automate the request, bidding, and serving of those ads as well as the reporting on the performance of the campaigns executed. Within the ad server realm, there are 2 types: first and third party ad servers.

Because the goals of publishers and advertisers are so different, the first and third party ad servers were created to support each one of their unique needs. Whereas publishers required an ad server that could maximize and optimize yield for their given amount of traffic, advertisers/agencies require an ad server that conduct effective buys for the advertising dollars spent. Although there are some inherent similarities, there are some key differences between first and third party ad servers.

First-Party Ad Servers Third-Party Ad Servers
Used by a publisher’s ad ops department to manage an advertiser’s campaigns on the publisher’s own website. Used by advertisers and agencies to store and manage ad codes, and to deliver, track, and interpret the results of ad campaigns shown on publishers’ websites.
Simplifies the process of managing ads and allows publishers to directly sell ad slots to advertisers. Verifies certain metrics (e.g. impressions and clicks) from campaign data provided by publishers.
Decides which creative assets (from an ad network or third-party ad server) should be displayed in an ad slot based on audience targeting data if no direct campaigns are being run. Optimizes creative by testing various ads used in a campaign. (Targeting and ad tags are still loaded by first-party ad servers.)

 

 

How Does a First Party Ad Server Work?

How Does a Third Party Ad Server Work?

Features of Ad Servers

  • Ad creative upload: Supports all standard creative sizes and formats, such as text, image, video, animation, audio, games, interactive, native, rich media, in-app, mobile and others.
  • Campaign scheduling: Determines the dates by which the campaign has to run.
  • Automatic optimization: Chooses the best performing ads and serves more of those.
  • Delivery speed: Determines how often impressions are delivered (evenly or as fast as possible). Location-based targeting: Targets by country, state, province, metro area, city, zip code, language.
  • Technical targeting: Delivers ads to the web, mobile, tablet or TV screens and offers various operating system and cross-device targeting.
  • Time targeting: Schedules ads to a specific time of the day when users are most active. Socio-demographic targeting: Focuses on age, language, gender, nationality, income, employment status, etc.
  • Behavioral targeting: Targets consumers by their online behavior, search history and interests.
  • Retargeting: Analyzes consumer engagement with the brand in the past and displays the ad to draw more attention and trigger more interaction such as clicking, subscribing and purchasing.
  • SEO: Allows bidding on keywords and ensures ads appear on search engine results pages.
  • Creative sequencing: Allows setting a specific order for ads to appear, usually under the same creative concept.
  • Frequency capping: Controls how many times the ad is shown to the same user and limits it to the number of impressions per hour, day or a specified period.
  • Ad tracking: Monitors whether the creative content is generating desired results and the proper traffic of ads happens and guarantees the advertising content is shown in front of intended audiences in the correct time and place.
  • Reporting: Offers real-time, dashboard, notification alert, custom reports and provides granular reports on clicks, impressions, costs, ROI and eCPI.

Notable First Party Ad Servers

  • Google Ad Manager (Previously Google DFP)
  • OpenX
  • Broadstreet

Notable Third Party Ad Servers

  • DoubleClick Campaign Manager (Display and Video 360)
  • Sizmek

Sources

Money has no grey areas. You either make it or you lose it.
— Kevin O’Leary

architecture-bridge-buildings-1168940

Published by William Chen