Understanding Ad Servers: Types, Functions, and Features

An ad server is like the brain behind online ads—it helps deliver the right ad to the right person at the right time. This crucial technology platform not only facilitates the delivery of ads but also optimizes ad placements and performance. Curious to know which types are the most effective—hosted or self-hosted?

What is an Ad Server?

An ad server can be defined as a technology platform that allows Advertisers to serve ads across online media channels owned by Publishers. Essentially, the ad server helps Publishers create ad zones within their content, further enabling them to sell these ad zones to Advertisers who bid on them. Ad Networks can also utilize ad servers as intermediaries, monetizing a network of Publisher and Advertiser clients.

Key Features of Ad Serving Platforms

For Publishers

Variety of ad formats to accommodate different ad needs. Optimization to prioritize and show ads with the highest CPM first, ensuring advertisers with the highest potential ROI. Advanced statistics to track ad zone performance, monitor metrics, and analyze advertiser success. Programmatic features to integrate Real-Time Bidding (RTB) supply from third-party partners.

For Advertisers

Comprehensive targeting options that include geographic location, device, language, context, browser type, operating system, website, keyword, IP range, mobile carrier, frequency capping, day-parting, and retargeting. Bidding optimization to fine-tune budget spend. Conversion tracking to measure user clicks and actions, assessing campaign performance. Granular statistics to evaluate the quality of traffic sources and campaign data. API access to enrich reports with their own data.

For Ad Networks

White-labelling options to use the ad server as their own platform, allowing them to brand the ad server with their own logo and colors. Custom permissions to create accounts for Advertisers and Publishers, and adjust available features according to their needs. A self-service platform for clients to manually create and adjust campaigns/ad zones. Management of publishers and advertisers invoices and payments. Real-time statistics to evaluate all network data. A complete API to manage all the ad server's features and fetch statistics data. Full set of programmatic features to connect RTB supply and demand based on industry standards like OpenRTB or Prebid.

Automation Features

Ad servers also offer automation tools, such as bidding optimization tools, ad variations optimizations, and landing page optimizations. These automation tools function like smart assistants, optimizing and A/B testing different sales funnels throughout their campaigns, ultimately saving time for Advertisers.

Understanding the Types of Ad Servers

There are mainly two types of ad servers: hosted and self-hosted.

Hosted Ad Servers

Hosted ad servers are managed and hosted by a third-party provider. They come with a predefined set of features and lack customization options. However, this model is more cost-effective, as the hosting service provider takes care of maintenance and updates.

Self-Hosted Ad Servers

Self-hosted ad servers, on the other hand, are installed and hosted on the company's own infrastructure. This provides more control over the configuration and integration with existing systems. However, this also means that the company must manage updates, maintenance, and security.

Which Type is Right for You? The choice between a hosted and self-hosted ad server depends on your specific requirements, budget, and technical expertise. A hosted ad server may be more suitable for small- to medium-sized businesses with limited resources, while a self-hosted ad server may be a better fit for larger enterprises that require more control and customization.

To gain a deeper understanding of the different types of ad servers and their features, you can explore our comprehensive articles on the subject.