How ad networks work: A guide for publishers and advertisers

Ad networks connect publishers with unsold inventory to advertisers looking to buy it at scale. They emerged in the mid-90s as brokers for remnant ad space and have since evolved into more strategic platforms; some now bundling premium inventory, others blurring into SSPs and programmatic direct. This guide breaks down how ad networks work, how they differ from ad servers and SSPs, the value they bring to both sides of the transaction, and where the model is headed next.

What is an ad network?

An advertising network is a technology platform that serves as a broker between a group of publishers and a group of advertisers. Ad networks were one of the first pieces of advertising technology that appeared in the mid ’90s when online advertising first began. By definition, an ad network connects advertisers with publishers, helping them buy available ad space (aka inventory) across multiple sites.

While you would expect the term “ad network” to include all sorts of media (printed media, television, radio), it is used exclusively to refer to digital advertising.

Ad networks traditionally collect unsold ad inventory from multiple publishers and offer this pool of impressions to advertisers at a much lower price than a publisher’s direct sales. This kind of inventory is often referred to as non-premium, or remnant. The same model has since been extended across digital media: display, video, mobile, and connected TV.

Today, however, some networks take a more strategic approach and lean towards offering their advertisers more exclusive deals at premium prices. They cherry-pick and pre-buy inventory from a number of top-tier publishers, and then resell it at premium prices. While this arrangement may be more expensive for the advertisers, it ensures premium placement of their ads.

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What is the difference between an ad network and an ad server?

Because ad networks and ad servers were introduced to the industry at roughly the same time, and due to the complex nature of the online advertising ecosystem and sheer number of advertising-technology platforms, it can be difficult to tell them apart.

An ad server is a piece of advertising technology used by ad networks, publishers, advertisers, and ad agencies to manage, run, and report on their advertising campaigns, including the storage and rotation of ad creatives.

There are two types of ad servers: first-party ad servers (a publisher’s ad server) and third-party ad servers (an advertiser’s ad server).

First-party ad servers allow publishers to manage inventory (ad space) on their websites, display ads sold via direct deals with advertisers, sell remnant (unsold) inventory to ad networks and supply-side platforms (SSPs), and report on ad performance.

Third-party ad servers are designed to help advertisers store their ads, measure campaign performance across several publishers, and verify metrics against reports from publishers, such as impressions and clicks.

An ad network is also a piece of advertising technology, but instead of being used to manage ad campaigns and store creatives, it is used to transact media buys between advertisers and publishers.

An SSP (supply-side platform) is the technology alternative to an ad network, offering similar functionality, but with access to a different kind of inventory and delivery (purchase) method.

How does an ad network work?

Ad networks take all of the available inventory from a publisher and sell it to advertisers as packaged impressions, streamlining the buying and selling of media across hundreds of sites at once.

Here’s how an ad network works:

• An ad network aggregates a large number of publishers to provide the required amount of inventory to the advertisers on an auction basis.
• The advertiser can set up the campaigns directly using an ad network’s campaign-management panel, or set up pixels from a third-party ad server for verification purposes and consolidated reporting when running the campaign across multiple ad networks and in direct deals with publishers.
• The advertiser sets up the campaign parameters (such as targeting, budget, frequency caps, etc.), and the publisher installs the ad-network ad tags on their site by inserting these tags directly into the page or by using a first-party ad server.
• When the ad is published, the advertiser can rotate multiple banners on the website using the ad network’s campaign-management panel without having to contact the publisher.

In the early days of online advertising, when there were fewer sites and advertisers, most publishers would only use one ad network to sell remnant inventory. However, as the number of publisher sites increased, they soon found that they weren’t able to sell all of their inventory on one ad network and experienced low fill rates.

In an attempt to increase fill rates, publishers started using multiple ad networks, some of them offering premium inventory, and others offering remnant inventory.

Who can benefit from an ad network?

 Building a custom ad network will benefit companies that have access to both supply and demand. For example, an advertising agency that has many brands and their clients and partnerships with multiple publishers can benefit from building their own ad network as it will allow them to avoid using third-party ad networks, meaning they can save money on commissions and fees as well as have more control over the features and product roadmap.

Also, existing AdTech vendors can expand their client offering by building an ad network.

In addition, publishers and media companies can build an ad network to facilitate the ad buying and selling process across their properties, e.g. websites, apps and streaming services.

How do ad networks benefit advertisers and publishers?

Publishers

The most obvious among the benefits of ad networks for publishers is the opportunity to sell inventory that wasn’t moved via direct deals, although it does not save the publisher from “wasting” impressions, i.e., not being able to achieve high fill and sell all their ad inventory.

Advertisers

While ad networks are mainly responsible for helping publishers sell remnant inventory, they also allow advertisers to unlock several benefits:

1. Scale. An advertiser can buy more inventory from many publishers through an intermediary and centralize the reporting for the campaign.

• Time savings. An advertiser sets up the campaign once and does not need to sign insertion orders for each publisher separately.

• Campaign reach and measurement. The reach of the campaign will be measured, and frequency capping will be applied to the whole campaign.

Key features of an ad network

 Traffic and audience detection and campaign matching: Identifying the traffic source and audiences and matching them with relevant ad campaigns.

Advanced reporting: Displaying various metrics relating to the performance of the ad campaigns and audiences.

Header bidding adapter: Providing publishers with a header bidding (e.g. Prebid) adapter to access more demand.

Varied ad formats: Offering advertisers different ad formats, e.g., display, native and video ads.

User interface: Providing both publishers and advertisers with an easy-to-use user interface (UI) that allows them to create ad campaigns, set up and manage user accounts, and view reports.

The different types of ad networks

Below are some of the main types of ad networks:

• Premium ad networks. Offer inventory from popular, brand-safe publishers at higher CPMs.
• Vertical ad networks. Topic-specific networks, e.g., finance, technology, automotive, parenting, B2B tech.
• Specialized or inventory-specific ad networks. Focus on a single format or environment, such as mobile ad inventory, in-app, video ad placements, native, or audio. Mobile ad networks in particular have become a category of their own, serving the vast pool of inventory inside mobile apps.
• CTV and connected TV networks. Now the fastest-growing programmatic channel, aggregating ad-supported streaming inventory across smart TVs and OTT apps.
• Retail media networks. Operated by retailers like Amazon, Walmart, and Target, these platforms give advertisers access to first-party purchase data and placements close to the point of sale.
• Performance and affiliate ad networks. Typically priced on revenue share, CPC, or CPA.

With traditional ad networks, advertisers still buy packaged impressions on a CPM basis, but most modern networks layer AI-driven bidding and curated supply paths on top. Google’s display network remains one of the most recognizable examples, but the field now spans dozens of platforms covering every major format. Picking the right ad network depends as much on the available ad formats as on audience fit and pricing model.

Common targeting parameters now include:

• Geolocation
• Contextual signals and keywords
• First-party and seller-defined audiences
• Device, browser, and OS
• Daypart and frequency
• Deterministic IDs (e.g., UID2, LiveRamp RampID)

The evolution of ad networks

The boundary between ad networks, SSPs, and DSPs has effectively collapsed, and the ad exchange sits in the middle as the connective layer routing impressions across the stack. Each platform now absorbs features of the others, and marketers increasingly demand a single, unified buying surface rather than a patchwork of intermediaries.

Ad networks have added programmatic advertising engines on top of their traditional packaged-impression model, thus optimizing RTB supply and plugging into multiple DSPs to lift fill rates. SSPs, in turn, court premium publishers with direct-deal workflows, curated marketplaces, and managed-service layers that look a lot like networks ever did. The result is a hybrid stack where the platform label matters less than the supply path it controls.

Three forces are accelerating this consolidation in 2026. First, AI-driven bidding and budget allocation have moved from optional to default. A shift visible in how ad spend is now allocated across automated channels. Second, the deprecation of third-party cookies has put first-party data, deterministic IDs, and contextual targeting at the center of the offering. Third, curation has emerged as the dominant response to programmatic waste, and with digital ad spend projected to exceed $1 trillion globally, advertisers can’t afford inefficiencies in the supply path.

Programmatic direct sits at the heart of this shift: automated, non-RTB buying of guaranteed inventory from selected publishers, combined with the targeting precision of programmatic.

Programmatic direct

Programmatic direct is now one of the default ways premium inventory changes hands, an automated, non-auction method where advertisers buy guaranteed impressions in advance from a curated set of publishers, with all the targeting muscle of programmatic and none of the unpredictability of open RTB.

The mechanics are straightforward. Instead of competing for impressions in a real-time auction, advertisers lock in volume, price, and ad placements up front. The transaction is automated, but the deal terms are negotiated, often by the publisher’s sales team, and the inventory is reserved.

For publishers, the appeal is in control. You can oversee who buys, at what price, and where the ads land. For advertisers, it’s transparency: guaranteed placements on known sites, with measurable outcomes and no mystery supply paths.

Those are the reasons why programmatic direct has a spot alongside private marketplaces and curated deals in most buying strategies today.

Should you build or rent an ad network?

What does it mean to rent an ad network?

Renting an AdTech or MarTech platform involves signing a contract with a vendor and paying a recurring fee to use the platform, typically on a monthly basis. This is the most preferred method as it enables businesses to immediately start utilizing the platform without the need to build it from scratch.

However, there are many benefits of building an ad network, and for some companies, it’s the only option.

The advantages of renting an ad network

Immediate start: In most cases, you can start using the ad network within hours of creating an account.

Lower initial costs: Many AdTech platforms take a percentage of the media spend as their fee, eliminating the need for any upfront costs. However, some white-label solutions or larger AdTech vendors may impose a monthly fee in addition to media spend.

The disadvantages of renting an ad network

• No control over the features and product roadmap. When renting an ad network, you have little or no control over current or future features, which means you can’t build new features that your clients are requesting or that will improve your business. 
• No ownership of the tech or data. For most businesses, such as agencies and brands, owning technology and data is not necessary. However, AdTech and MarTech companies often have no choice but to own tech and data. Publishers, media companies, telecommunications companies, and medium to large-sized agencies can also benefit from owning the data technology as it provides them with complete control over its integration with other systems, can increase the value of their company, and stops their data being used by other companies.
• Fees and commissions. The decision to build your own ad network depends on a number of factors, such as the type of business you operate, your media spending or ad revenue, and your long-term financial goals. Although there is a cost involved in building and maintaining the platform, it can lead to cost savings over time, particularly for companies that have a high media spend or earn substantial ad revenue.

What does it mean to build an ad network?

Building a custom ad network means undertaking a software development project where you design and build the platform and features, set up the integrations, and design the UX/UI (i.e. the user interface).

The time it takes to design, build and launch an ad network platform depends on a number of factors, such as the budget and timeframes, feature set, and technical complexities. 

Some development projects may last from 4 to 6 months, while more complex ones can last 18 months or more. 

Essentially, the more developers working on the project, the less time it will take to build the minimum viable product (MVP).

The advantages of building an ad network

• Data ownership. Having ownership over the data can make it easier for you and your clients to comply with data protection and privacy regulations, such as the General Data Protection Regulation (GDPR). Additionally, it allows you to use first-party data for ad targeting, measurement and reporting and eliminates the possibility of your competitors utilizing your data.
• Control over the product roadmap and features. By being able to build the features you want, you can develop unique features that set you apart from competitors and allow you to increase your business. This not only means that you’ll get the features you need, but also the platform will be built to align with your business objectives, strategy, and vision.
• Reduction of fees and commissions. Charging a markup ranging from 10% to 30% is quite common for many AdTech providers, which can result in significant expenses if you spend a lot on media. You can decrease these costs by building your own ad network, which can potentially save you millions of dollars annually.

The disadvantages of building an ad network

• Time commitment. Developing and launching the first working version (i.e. the MVP) may take up to 6 months, but the development time depends on the technical requirements and features you’d like to have. 
• Technical maintenance. Monitoring and providing technical support to the newly built ad network is something companies that build their own ad networks should keep in mind.

The results of custom development for an advertising agency

An increase in daily requests

After redesigning the infrastructure setup, the ad network scaled from handling around 2 million daily requests to about 3 million daily requests. 

However, due to continual infrastructure improvements made by our team, the advertising agency’s ad network can now handle about 100 million requests per day, or around 4.1 million per hour.

Stable infrastructure

In the beginning, AWS was maintained by an external company. Not long after starting our partnership, we took over all technical responsibilities, redesigned the infrastructure setup, and added new services.

This allowed us to make changes to the infrastructure to improve its stability and performance.

Infrastructure redesign

Redesigning the infrastructure allowed us to create a microservices architecture and to achieve the following:

Remove all single points of failure and deliver high availability. If one service stops working, then it won’t affect the rest of the system.

Build all the services in a scalable way (i.e., horizontal scaling). When the ad network receives an increase in traffic, new instances are added to handle the additional workload.

FAQ

Can Avenga help build or integrate AdTech infrastructure?

Yes, we deliver end-to-end AdTech engineering, from custom ad network and SSP development to programmatic integrations, data infrastructure, and AI-driven optimization layers.

What is an ad network?

An ad network is a technology platform that aggregates inventory from multiple publishers to connect advertisers with supply, acting as the broker between demand and digital ad inventory.

What are the different types of ad networks?

The main categories are premium, vertical, inventory-specific (mobile, video, native, CTV), retail media, and performance or affiliate networks.

What is the difference between an ad network and an ad server?

An ad server stores creatives and manages campaign delivery and reporting, while an ad network handles the actual transaction of media between advertisers and publishers.

What’s the difference between an ad network and an SSP?

An ad network packages and resells inventory, while an SSP gives publishers direct, automated access to multiple demand sources through real-time auctions.

Final thoughts

The ad network today looks very different from its mid-90s ancestors. The line between networks, SSPs, and DSPs has all but dissolved within the modern digital advertising landscape. Curated supply paths are replacing volume-first buying. AI handles bid optimization in real time. First-party data and deterministic IDs have moved from contingency plan to default infrastructure. For publishers and advertisers, choosing the right ad network (or stack of them) is less about reach alone and more about how curated deals, first-party signals, and AI-driven buying combine into a coherent strategy. One where transparency and measurable outcomes outweigh a pure scale.

Connect with Avenga’s specialists to assess your current AdTech setup and map out what comes next.