Ad server, ad network, Programmatic ad server, ad exchange, DSP, first-party ad server, publisher ad server: are all these advertising terms the same? What do they mean exactly?
And what are some examples of ad servers?
Today, learn what an ad server is, how it works, and discover some examples of popular ad servers across the world of marketing. Ready to learn with Ted Jordan?
Ad server definition
An ad server is a sophisticated system that acts as a centralised platform for ad management. An ad server stores ad creatives, decides which ones are best suited to be displayed on a website, or an app, for every request. This AdTech platform lets advertisers, ad agencies and publishers manage and distribute ads across various ad serving platforms (DSPs, SSPs…), within the Programmatic world.
An ad server decides, in real time, the best ad to load and display, for a specific audience, a device, a website, a device ID, an ad placement, a campaign budget, a location, etc. It’s also recommended to deliver ads through an ad server (third-party server) when using impression tags with creatives. More about third-party servers later…
With an ad server, agencies and advertisers can deliver on publisher’s websites, partners’ sites and third-party exchanges in a seamless way.
The performance of an ad server is measured by metrics such as fees, eCPM, CPC, fill rate, discrepancies between third-party ad servers and first-party ad servers (more on this later). The pricing to use an ad server may be based on a flat fee, a percentage of total ad spend, or on special CPM fees.
Be aware of price differences between ad servers: sometimes, it’s cheaper to use an external brand server, versus a popular one from a big advertising company.
How does ad serving work?
Ad serving works this way:
- A user opens a webpage or an app.
- An ad request is sent to a publisher’s ad server.
- The publisher’s ad server analyses the data it received with the request (language, device ID, device type, URL, country, user’s age…) and requests an ad from the advertiser’s ad server.
- The advertiser’s ad server sends the most relevant ad to serve.
- The publisher’s ad server receives the information and shows the ad to the user.
This is how ad serving works when there are no other ad serving platforms involved, such as DSPs, SSPs or ad exchanges.
This process happens really quick thanks to current Programmatic ad serving and media buying tools. Users don’t realise this when they visit a URL or open a mobile app.
Ad serving works mainly with RTB pricing, a Real-Time Bidding system. With RTB, it only takes the time for a page or an app to load to decide which ads will suit best each request. It depends on many criteria, such as user, time of the day, day of the week, language, ad placement, frequency capping, etc.
Examples of ad servers
Here are some examples of ad servers:
- OpenX
- Google Ad Manager (also known as GAM; owns DoubleClick ad manager)
- SpringServe (now part of Magnite)
- Sizmek
- AppNexus
- Mediasmart
- Amazon Ad Server
- Adform (which is also one of the best DSPs available on the market)
- Equativ
- Kevel
First-party ad server vs third-party ad server
Before we explain to you what’s the difference between a first-party server and a third-party server, here are some important points to take into account:
- Some ad servers are now able to act as both a first-party ad server and a third-party ad server.
- Some ad servers are also able to act as DSPs or SSPs.
- It’s common to find some discrepancies between first-party ad servers and third-party ad servers. Publishers, advertisers and ad agencies don’t always track metrics the same way; click or impression numbers may vary between parties, for example. Depending on ad formats, inventory or tracking features, a certain degree of discrepancy between these ad serving platforms is considered normal.
Now, it’s time for you to understand what’s the difference between a first-party ad server and a third-party one.
First-party ad server, also called “publisher ad server”
A first-party ad server is mainly used by publishers; that’s why it’s also called a publisher ad server.
A publisher ad server offers ad placements on publishers’ websites or apps, for direct campaigns or programmatic ones. This type of ad server creates ad tags and matches ad placements with specific ads.
A first-party ad server decides where its ad inventory is available, and who can access it. This is possible through machine learning and analysis of precise data, such as language, location, targeting, demographic data, when available, etc.
So, what about third-party ad servers then?
Third-party ad servers are for advertisers
A third-party ad server is mainly used by advertisers and marketing agencies to deliver their ads across several publishers’ inventory at the same time. Advertisers can upload their ad creatives once, for them to be served across various ad servers or publishers’ websites or apps, for example.
A third-party ad server is also called an advertiser’s ad server.
An advertiser ad server is useful to manage campaigns, ads, targeting, tracking criteria, reporting, analytics, optimisation and much more. It can control frequency capping, how much budget is spent on each ad, each ad group, each campaign… and even each ad placement. Advertisers can also perform A/B testing with the help of third-party ad servers.
When an advertiser ad server is connected to a DSP, these features may be available directly on the ad serving platform.
Confused about the difference between ad server, ad network, DSP and ad exchange? Continue to read; we’ll explain what these terms mean, with simple words.
What is a white label ad server?
A white label ad server, or white-label ad server, is an ad server made by a third-party provider, but that has the name and logo of a specific company. The ad server is not developed in-house.
Some companies use white label servers to save money and time when they want to offer this AdTech platform.
Frequently Asked Questions about ad servers
An ad server helps advertisers and publishers display the best suitable ads for a specific audience, device, country, etc.
An ad exchange is a marketplace where advertisers can buy ad placements from multiple ad networks and where publishers can sell their inventory, mostly through RTB pricing model.
An ad network is the intermediary between an SSP (publisher side) and a DSP (advertiser side). It collects ad inventory, analyses and categorises it, then sells it. An ad network is like a broker between a publisher and an advertiser (or an agency). It helps publishers sell their ad placements.
Ad networks are managed by companies or groups of publishers that combine websites and apps.
An ad server is a technological platform that helps with selling, delivering and tracking ads between third parties (advertisers) and first parties (publishers).
A DSP is an ad serving platform where advertisers can buy ads programmatically across different ad servers. It automates the buying system.
An ad server needs a DSP to connect to the Programmatic network, and to participate in RTB auctions. An ad server without a connection to a DSP or an SSP, serves private direct deals: publishers and advertisers negotiate ad placements in a direct relationship, in a private marketplace.
Some ad networks own their own DSP, which can make things confusing for Programmatic beginners.
To learn more about DSPs, join a quick Programmatic Course.
White labelling means that a company will sell a product under its name but the product is manufactured by a third party. The product appears as it’s been produced by a company while it’s not.
For example, some companies use white label ad servers in marketing.
Some of the most popular ad servers on the market are: OpenX, Magnite (with SpringServe), Google Ad Manager (GAM), AppNexus, Sizmek, Kevel, Amazon Ad Server, AdButler.
The main types of ad servers are first-party ad servers and third-party ad servers, or, in other words, publisher ad servers and advertiser ad servers.
But you can also find ad servers per ad formats: video ad servers, audio ad servers, native ad servers, etc.
For example, Magnite owns SpringServe, an independent ad server built for CTV, OTT and video ads.
To learn more about DSP, SSP, ad exchange, ad marketing or Programmatic, join our Programmatic Online Course. This accessible online training is self-paced, available from all devices, and gives you a Programmatic Certificate upon completion.
Certificates are great tools to highlight in your CV or on your LinkedIn profile to increase your chance of promotion.
