Voluum DSP Glossary Advertiser

Advertiser definition

An advertiser is an entity that wants to make its ads visible to the public.

What Are Advertisers?

Advertisers can be individual people or entire agencies interested in paying for the ability to show their ads to a targeted audience. Advertisers don’t have to necessarily be product owners that want to put a message about their products out. They could also be hired by product owners or paid by them for results (conversions).

Advertisers are not solely interested in just putting their ads on the web. Their main goal is to target the right segment of users that have higher chances of making a conversion. These people, collectively called an audience, are defined by certain criteria, such as the device type they use, their country of residence, language, age and other factors.

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The difference between publishers and advertisers

Publishers and advertisers are two parts of the equation. They are like a shopkeeper and customer: one has merchandise to sell and the other wants to purchase some of it.

Publishers have ad inventory, ie ad impressions delivered on a specific web page. An advertiser is interested in buying this inventory to drive their goal: increase their ad’s visibility, get purchases or app installs, or whatever else. 

Publishers and advertisers are the soul of the digital marketing market. They use various platforms and tools to meet, negotiate transactions, manage their inventory, but without them and without the visitors, there is no market.

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How Do Advertisers Purchase Traffic?

Advertisers are free to use a number of platforms to connect with publishers directly or via intermediaries. These platforms include DSPs, ad servers or ad networks. Depending on the platform type, advertisers have to look manually for publishers or opt in for a more automated or managed service and simply provide their audience criteria.

How Do Advertisers Measure Their Success?

The simplest metric of the efficiency of their work is cost per action (CPA). This action can be any user-generated event that is deemed valuable by an offer owner, so app install, newsletter signup or purchase. Because of that, the CPA metric is a more general term that may include more specific, action-oriented metrics, such as cost per install (CPI) or cost per sale (CPS).

If CPA is higher than the average payout then they are making money.

The other metric worth mentioning is return on ad spend (ROAS), more generally called return on investment (ROI). This compares money spent on purchasing traffic vs money earned in the form of a percentage indicator. If ROAS is above zero percent, then the advertiser is making money.

How do Advertisers Manage Their Ads?

Advertisers can use ad networks to manage their ads and the whole ad space purchasing process. Platforms such as DSP offer even more managed services, with automatic systems designing and purchasing the best content for them.

For a less-managed service, advertisers can use ad servers to deliver their ads to publishers’ ad servers for a negotiated price.