Ad Network vs Ad Exchange  or the

Advertising Network vs Advertisement Exchange

If you're learning about online marketing or you are already working in the field then at some point you're gonna encounter ad networks and ad exchanges and in this blog I will give you guys a complete breakdown of what are the key differences between the two.
Ad Network vs Ad Exchange

I also want to give you guys a high-level view how advertisers and publishers are using these marketing technologies to transact billions of impressions daily welcome back to Tech Bazzar. where we simplify marketing so that you can grow your digital influence and your business my name is Rakesh Barik . you know  a lot about digital marketing with a specific focus on social media advertising. I want to give you a little more context to connect the dots specifically for those who have some expertise advertising on social media social channels but maybe aren't too familiar with the rest of the digital landscape Facebook Instagram Google YouTube. 

tell me what do all of these platforms have in common now they are all digital platforms that advertisers use to reach their audiences but social media networks fundamentally works differently than search and display networks like YouTube and Google for example on Facebook when I'm buying ads there are all being shown to users who are actively on the Facebook platform whether it's the website or within the app but for ad networks and ad exchanges.

I am buying advertisements from the internet I'm buying from millions of different websites suppliers who are basically publishers so on social media the ads are within the platform with ad networks and exchanges you're buying ads outside of a platform and it could be you know almost anywhere on the so let's jump into it an ad network an ad network is fundamentally a place where an advertiser hopefully you in this situation basically can go and get inventory from suppliers now when I say suppliers you might also hear the term publisher now a publisher could be a website for example like MTV com or it could be the Wall Street Journal or it could be wired magazine these are basically suppliers because they're giving us inventory space on their website where advertisers can show ads and a key distinction here is that an ad network aggregates inventory.

 so they get a bunch of different websites and they give it to the advertiser and they basically let the advertiser advertise on all those websites to reach their audiences and this is typically more of a company where the key difference is in an ad exchange you the advertiser you're going to the exchange now the exchange allows you to go directly to the different web sites to the different suppliers and the good thing about this is now you have transparency because with an ad network you're essentially paying the network a markup so they might for example might have paid ten thousand dollars to get these impressions these ads and they might sell it to you for thirteen thousand dollars you don't actually know from an ad network what those markups are as opposed to an ad exchange.

 you can actually go and see how much you're paying directly from each supplier so you have more transparency also you have the ability to better optimize your ads and pick and choose what websites you're getting the best impacts from you're getting the best marketing efficiency when trying to reach your audiences and another fundamental difference here is that again an ad network is gonna aggregate all the inventory but in exchange is a technology it's a platform that you're using to buy in this online marketplace so that's one very important distinction that you want to understand so not to crystallize this and bring it home for you guys an example of an ad network is Google ads so AdWords which is you know one of the most prominent products from Google has the ability for you to buy from their display network and also from their search Network.

Now this is basically considered a DSP which is a demand-side platform because you are logging into Google AdWords you're setting up a campaign and you're demanding inventory from these different suppliers again the key distinction here is that you're buying from a select amount of websites in this case it's about two million websites that are part of Google AdWords of their Display Network this inventory is coming is being transacted through what's called a supply-side platform and Google happens to have one as well which is called Adsense and  if you've ever been to another website and you see those ads like on a blog that show up on the right-hand side of the screen they come in different shapes and sizes that is essentially the Adsense technology.

Ad Network vs Ad Exchange

That if you're again a blogger you can embed this into your website allowing you to sell inventory space through this technology where someone could go into Adwords and say hey I'm demanding I'm trying to buy some ads and you say hey I have some ad space and it so happens that your audience is here something key to understand is that when you're buying from you know an ad network there is some limitations in terms of your scalability yes there are over you know two million websites that Google AdWords partners with but if you wanted to go beyond that that is where an ad exchange it's very very powerful because it's an online marketplace and you're buying from the entire Internet so there's a lot of our variety there so an example of an ad exchange that is very very popular it's one of the biggest ones with 57% of the market share it's double click and again there are technology platform so as an advertiser I would go into double-click and then out directly buy from the different web sites that I wanted to buy from so similar to AdWords. 

They're a demand-side platform because they're demanding inventory from the suppliers and you can go directly to the suppliers with double-click so if you wanted to go to New York Times comm or The Wall Street Journal you can buy specifically from those publishers those media or you can go to you know an ad network and demand inventory from them as well again the benefit here is that you have variety what's interesting is that Google you know actually bought double-click in 2017 so double-click is a technology platform that launched around believe in 1996 and in 2017 Google acquired them for about 3.1 billion dollars so it's safe to say that they're really dominating the space especially considering that Google search just in the United States give you an example ninety percent of the searches it approximately happened on some Google related platform whether it's you know .

which is the second largest search engine or Google Maps for example so they have a very powerful presence in this field so there you have it the main difference between an ad network and an ad exchange from network you do have some limitations. but if you're new to online marketing this is a great place to start it's very self-serve it's a lot easier to do things if you're a more sophisticated advertiser and you have the larger budget then you might want to consider the ad exchange either way you know you're gonna pay for these things whether it's paying an ad network a markup or having to you know use the technology and pay for the technology platform more or less on average you can expect to pay anywhere between you know six to like twelve percent of your advertising spend for the technology partner when you're buying inventory online so again if you're new to the world of digital advertising you know you might want to start with ad networks that make things very easy if you're more sophisticated and you're looking to scale with big budgets hundreds of thousands millions in digital investment then that's where you want to consider an ad exchange and it's very common for an advertiser to have multiple demand-side platforms like double-click there's other ones as well like the rubicon project is one kriti is one that's pretty popular for video.