What is ad inventory?

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Ad Inventory

What is ad inventory?

Ad inventory refers to the total amount of space or number of ad units a publisher has available to sell to advertisers. This space can be physical, as with billboards and newspaper ads, or digital, encompassing banner ads, video ads, native ads, and more.

How does ad inventory work?

As the “real estate” where advertisements can be seen by potential customers, ad inventory is typically measured in terms of available ad slots on a website, app, or other digital platforms. Publishers manage this space through ad servers and supply-side platforms (SSPs) to fill these slots with relevant ads from advertisers.

Types of ad inventory:

Advertisers can choose from a variety of types of ad inventory, depending on their budget and performance goals. Factors like audience size, engagement, demographics, and targeting options help to determine the value of different placements.

  • Premium: High-quality spaces with specific targeting options, often sold directly to advertisers at a premium price.
  • Remnant: Unsold ad space available at a discounted rate.
  • Guaranteed: Ad space purchased in advance with specific impressions or clicks guaranteed.
  • Programmatic: Ad space purchased and sold automatically through real-time bidding platforms

How to measure ad inventory:

Key performance indicators for ad inventory include fill rate (percentage of ad inventory filled with ads), impressions (number of times an ad is served), and revenue generated from the sold inventory.

Why is ad inventory important to marketers?

Ad inventory is crucial for marketers as it determines the availability and variety of advertising options. Effective management of ad inventory helps maximize revenue, optimize ad placement, and ensure the right audience is targeted.

Who needs to know what ad inventory is:

  • Publisher
  • Operations manager
  • Digital marketer
  • Media buyer
  • Ad sale manager
  • Advertising executive

Use ad inventory in a sentence:

“The publisher increased their website’s ad inventory by adding new banner positions, leading to a 20% rise in advertising revenue.”