Understanding Ad optimization space revolves around differentiating DFP, Ad Exchange and AdSense.
Most of the questions asked are as follows:
- What’s the difference between AdSense and AdX?
- What’s the most effective way to use Google Ad Exchange?
- Should I give 100% of my ad inventory to Google?
- What is dynamic allocation and how does it work?
- Other ad partners have told me Google has an unfair advantage, is that true?
- Is Google ripping me off?
Having answers to these questions will help you through maximizing your ad inventory value. Based on Google Google AdX ads and the rest of ad networks present on the web, these questions will be made into simpler points in this post.
Google’s ad setup is in the forefront of the online ad space because of their consecutive growth but they do have a list of weaknesses that must be addressed like its anti auto-refresh policy.
It is normal to be confused by the technical ad terms, but if you are still unable to differentiate the digital ad terms, here is a clear summary.
What’s the difference between AdSense and AdX?
Publishers have concluded that AdSense inventory has a number of issues. Some reasons include unattractive text ads, standard banners and low ad payments, which entirely affect the website’s visual appeal.
Today, we see a different version of AdSense. Though there are still text ads, there are options available from text to visual for the ad creative. Its main benefit is the 100% fill rates if it is ran without pricing floors. This can be used in any geo for an increased number of audiences to fill.
Using DSP as your ad server can also benefit automatic AdSense competition adjacent to the managed demand deals when creating new ad units. AdSense works by competing against 3rd parties. So when you are using other ad networks, it adds incremental value when it finds the ad paying you more than your set rate.
It is good news but there is also a downside. Unless you are managing and well aware of the suitable setup on the price floors you are setting up within DFP everyday or as often as possible, you are likely to encounter a situation that enables AdSense to undercut a demand partner that can pay you a higher rate for your inventory.
Google is able to present it clearly to publishers but the DFP can offer an opt-out or override automated AdSense competition.
It is best to consider AdSense in the low level that offers flexibility with ad serving and sizes, superior managed demand partner, and 100% fill rates and unlimited inventory. Benefits include reliable and fast payment, and working with a credible source than a small-time shop that may have inaccurate payment.
On the other hand, Google’s Ad Exchange (AdX) has a completely different setup. It is a programmatic advertising market that blends with DFP and gathers buyers and sellers. AdX invites publishers to setup similar to open auctions for their ad inventory and set the price they wish. Apart from that, they also have the luxury to choose whether their inventory will be sold as anonymous or branded and who cannot or can bid on the said inventory.
Having your ad on AdX doesn’t mean it was bought by Google. However, it is possible for Google to purchase inventory on AdX. Technically, a demand partner pays for a spot to purchase inventory. Google’s Ad Echange is a platform that allows buying and selling, and Google has a place in it (Invite Media, AdWords), but it only takes a small space among the thousands of buyers that are also bidding.
Ad Exchange should not be used as a 100% fill partner unlike AdSense. AdX works to compete strongly against the performance prices set by other ad partners. These rates must be set higher than the established prices across your ad partners or managed demand stack to increase your ad inventory value and create both auction pressure.
One only needs to understand the difference between AdX and other ad partners, and ad exchanges. AdX can serve as a stand-alone marketplace but can most effectively work as an integrated part of DFP.
Envero Media is a Google ADX partner and can supply publishers with site specific tags if their domain qualifies. For publishers that already have 3 Adsense tags displaying (Adsense Max), up to two Google ADX ads can be placed making it 5 ads total thereby increasing revenue and performance.