In modern marketing, the publisher’s advertising inventory plays an important role in launching effective campaigns. Understanding what advertising inventory includes and how to use it effectively helps marketers maximize the return on advertising campaigns. An important element of this process is the correct selection of ad placement ideas since the level of engagement of the target audience depends on it.
What Is a Publisher Advertising Inventory?
Ad inventory is the available space on websites and apps where advertisers can place ads to reach their target audience. Ad inventory is owned by publishers or web publishers. A publisher can be an individual, a company, a platform, an advertising agency, or a social network.
Types of Ad Inventory
There are two main types of ad inventory: guaranteed and residual.
- Guaranteed inventory. This is ad inventory that was sold to an advertiser in a direct transaction without an auction. The advertiser receives guaranteed placements for a certain period.
- Residual inventory. This inventory is available for sale at real-time auctions. Many advertisers, represented by a DSP, compete for ad placement. The cost of the inventory is determined by the publisher, represented by an SSP. Advertising networks (Ad Network) collect inventory from publishers and offer it to advertisers for sale. The sale of advertising inventory takes place on the advertising exchange (Ad Exchange) during RTB auctions.
Thus, guaranteed inventory is inventory that was sold directly, during negotiations with the advertiser. Residual inventory is inventory that is sold at online advertising auctions.
It is important to note that in the case of guaranteed advertising inventory, impressions are carried out until the placement period or advertising budget expires. In this case, the advertisement is seen by all users of the website, regardless of the targeting parameters.
In the case of residual inventory, ads are selected individually for each user based on their user profile. Such parameters as gender, age, income level, interests, and much more are taken into account. As a result, site visitors receive advertising that is relevant to them, and advertisers receive impressions of the interested target audience.
Methods of Selling Advertising Inventory
Advertising inventory can be sold in various ways:
- Programmatic Direct. The advertiser and the publisher enter into a direct deal, bypassing the auction. In this way, guaranteed advertising inventory is sold. The advantage of this purchasing model is that the advertiser knows exactly on which advertising inventory the ads will be placed, and the publisher in this case has more control over the placement of advertising inventory.
- Programmatic Guaranteed. This method allows advertisers to reserve advertising inventory at a fixed price. In this case, the advertiser receives a guarantee of placing ads on selected sites or applications.
- Preferred Deal. Publishers provide advertisers with the first right to purchase their advertising inventory. Typically, publishers put such inventory up for sale at a fixed price, and it can be purchased without an auction. If the inventory was not sold through a Preferred Deal, it becomes available for sale at an auction.
- Real-Time Bidding (RTB). The sale of advertising inventory occurs at an automated auction in real-time. SSP is traded on the publisher’s side, and DSP is on the advertiser’s side.
- Header Bidding. This type of auction is held before the main RTB auction, allowing publishers to receive bids from several sources at the same time. The Header Bidding model increases competition and helps maximize publishers’ revenue.
- Private Marketplace (PMP). This is a real-time bidding (RTB) online auction format in which advertisers who have access to bid on a specific publisher’s advertising inventory participate. Such bidding, as a rule, takes place on premium inventory, providing advertisers with exclusive access to high-quality advertising spaces. A distinctive feature of PMP is a high level of transparency: the advertiser knows exactly on which website he is buying placement space.
Factors Affecting the Cost of Advertising Inventory
You can estimate the cost of advertising inventory based on the following parameters:
1. Number of website visitors.
It’s simple: the more traffic a website has, the more expensive it is to place an ad. Advertisers are attracted by large coverage areas since popular resources have a higher chance of meeting potential customers.
2. Advertising formats.
The profitability of a website depends on where and how ads are placed. The publisher must know how to use a particular advertising format correctly. Advertising should be organically integrated into the content, and should not irritate users and make them want to leave the page.
3. Website audiences.
You can make money on thematic resources with a homogeneous audience even with low traffic. In this case, it is much easier to decide on advertisers, because the publisher knows exactly what is interesting to the site’s audience.
4. Traffic quality.
Advertisers strive to place ads in front of an adult and solvent audience. There should be no bots or cheating on the site, users should be active, and the metrics should be in order.
5. Content quality.
Useful, unique, and interesting content keeps the site visitor on the page longer. At the same time, the chances are higher that the user will view the ad, click on it, and perform the target action.
Advertising Inventory Formats
Here are the main advertising formats used on websites:
- Banners. Static or animated images of various sizes are placed in visible places on the site.
- Video advertising. Commercials that can be played before (Pre-Roll), during (Mid-Roll), or after viewing (Post-Roll) video content on the website.
- Text advertising. Advertisements containing only text information, including titles, descriptions, and links. This format is common in contextual advertising, search advertising, and social networks.
- Interactive advertising. The format allows users to interact with the advertisement, for example, through games or surveys.
- Native advertising. Advertising is integrated into the content of the website and presented as part of the original material. May include text, image, or video ads.
The choice of format depends on the type of media content, platform, and goals of the advertiser and publisher.
Wrapping It Up
The publisher’s advertising inventory is the basis for effective advertising campaigns, providing space for interaction with the audience. An important aspect of the successful use of this inventory is the competent selection of ideas for ad placement. An integrated approach to the selection of advertising placement ideas allows advertisers and publishers to create valuable points of contact between brands and their target audience. We recommend evaluating the offers of Teqblaze, a provider of advanced programmatic solutions that, combined with theoretical knowledge of digital advertising, will help you achieve success in marketing.