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An ad network is essentially a digital marketplace where publishers list their available ad spaces, and advertisers can bid to display their ads. The primary function of an ad network is to simplify the advertising process, allowing businesses to focus on strategy and content rather than the complexities of ad placement.
Components of an Ad Network
Key players in an ad network include advertisers (who want their ads shown), publishers (who provide space for the ads), and the ad inventory itself (the digital space where ads will be displayed). Additionally, the network often includes tools for tracking, reporting, and optimizing ad performance.Types of Ad Networks
- CPM (Cost Per Thousand Impressions): Advertisers pay based on the number of impressions their ads receive.
- CPC (Cost Per Click): Advertisers only pay when someone clicks on their ad.
- CPA (Cost Per Acquisition): Payment occurs when a user takes a specific action, such as making a purchase.
- Programmatic Ad Networks: Automated, real-time ad buying using AI and machine learning.