Media Buying 101: When To Use An Ad Server
I was recently asked by a student in Internet University, “when do I need to use an ad server?” Before I answered I thought long about my history media buying and pondered when I made the decision to use one. For those of you unfamiliar with technology, an ad server is basically a piece of software that allows you to upload your creatives and destination URLs for the purpose of optimization and tracking. You have the option of installing the software on your own web server or using a third party solution.
The majority of people in the affiliate marketing industry utilize the third party solutions. First (and most important), many advertising networks and websites have a certain ‘list’ of ad servers that they’re willing to accept. If the server you’re using isn’t on their list, then you can’t use it on that source. The third party solutions also handle the server hardware setup and provide redundant backups (to secure speed and uptime). Installing your own ad server and managing it on your web server can be tedious especially if you’re not experienced at server administration.
So when is the time to begin using an ad server? Third party solutions are fairly expensive and some even require a long-term contract. So what’s wrong with just giving your ad network/website a few creatives, your destination URLs, and letting them run? I for one, like to know the EXACT amount of impressions/clicks I’m getting. I also want to make sure that if I paid for United States traffic, I’m getting US traffic. By allowing an ad network or a website to run your ad without a server, you’re putting a lot of faith in that webmaster. What’s going to stop them from billing you from a few ‘extra’ impressions? With an ad server you are constantly informed which creative is garnering impressions and converting.
Speaking of creatives, when you give the traffic source your creatives to test, how do you eliminate the ones that aren’t working? Chances are you have to contact your rep and let them know to pause the un-performing ad. This is all good unless your rep is out of the office or at lunch while you’re spending hard earned money on a creative that you KNOW is tanking.
I decided to look at some of my own data before I started using an ad server just to see if there were some things I missed. The results were stunning. While I monitored creative CTRs by the day I never looked at them on a ‘monthly’ basis. When I ran a ‘monthly’ report I realized that if I would have paused two of the ads during the duration of this one campaign, I would have made an additional $30,000 net profit that month (give the conversion rate stayed the same). That’s seriously money we missed out on!
I could continue to go on and on about the benefits of having an ad server, but after my $30K figure I’m sure you get the picture. For those of you that can’t afford an ad server, I suggest working with the self-serve advertising networks before moving to a media buy. Get things profitable, learn the ropes, and then move into the ‘big leagues’ with your own ad server. Several months ago John posted a review on the Zedo Ad Server Review which you may want to check out again at this link.
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