What is ad inventory (advertising inventory)

Ad inventory as an effective means of making more money from your website

Publishers are constantly looking for ways of earning more money with their websites of other platforms. Advertising inventory is a powerful tool, which you can effectively use to increase your profit and attract people to your resource. In the article, we will observe the term and everything connected with ad space, which you can benefit from.

Ad inventory definition

Advertising space is a full amount of space available for the placement of advertising materials on a publisher’s website or other platforms. The whole advert inventory is a property of a publisher. The latest has a right to sell it to various advertisers and earn on a commission from such a placement.

There are various kinds of advertising inventory, which can be used for the placement of different ad formats. Using such a term, modern marketers usually mean online advertising space. Thus, advert inventory may refer to the ad space for mobile, display, video, text or any other possible types of adverts.

In general, the process of monetization of ad inventory is simple. Advertisers send their ads to be located on the publisher’s website, while the publishers receive certain fees for views, leads, clicks or other actions (they depend on a preferable pricing model).

The essentials for ad inventory trading

In order to better understand the meaning of ad inventory and learn how to use it to increase the revenue, it is necessary to know other terms connected with it. Here are several important things it is vital to know for the effective application of advertising space:

  • – Impressions/views. The number of impressions for a certain webpage denotes the number of views the webpage has. One impression means one visitor watching one ad. Remember that the more views a website or other platform has, the more income a publisher can make on a commission from the advert placement.
  • – A pricing model. There are lots of ways of calculation of the cost of advert space. Depending on the popularity of a certain website and ad format, it is possible to make calculations based on the clicks, leads generation, thousand impressions, etc.
  • – Fill rate. It shows how much demand a publisher can satisfy with the advert inventory. This rate demonstrates what amount of space is rented and what amount is empty. It is good if you have a high fill rate because it means that you are able to satisfy the advertisers’ demand.
  • – The value of an advert. With the help of the following formula, you can find out the value: the impressions/views of a webpage on a definite site multiplied by the average number of ads located on the webpages. Do not forget that there are certain factors, which have an impact on value. For instance, it concerns the exact location of the advert materials on the website. The places with better visibility will always be preferable for advertisers. Thus, they will have greater value.

How to sell advert inventory?

There are many different ways to sell the advertising space. Two approaches are primarily used by modern marketers for ad inventory trading:

  • – traditional or direct method (it means that the advertising space is sold after the direct communication of advertisers and publishers. They meet and negotiate on prices and other terms of a deal. The whole process demands human involvement because everything is fulfilled manually)
  • – programmatic method (such an approach presupposes full or partial automatization, thus, reducing human involvement. There might be programmatic direct, which requires negotiations, and real-time bidding, which is fully automated because trading is fulfilled via online auctions organized on open or private ad exchanges).

Programmatic method of ad buying becomes more and more popular because it allows reducing time and money spent by marketers.

Deep understanding of the ad inventory value, its definition, and key principles & methods of advert space selling can bring you additional profit with no additional effort.

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