Pros and cons of selling advertising directly to advertisers
Selling advertising directly to advertisers is a way for businesses to monetize their traffic and reach their target audiences. It allows businesses to control the types of ads that are shown on their website or platform, and it can be a good way to generate revenue. However, there are both pros and cons to consider when deciding whether to sell advertising directly to advertisers.
One of the main benefits of selling advertising directly to advertisers is that it allows publishers to have more control over the types and placements of ads that are shown on their website or platform. This can be especially important for website owners who want to maintain a high level of quality, relevancy and brand image. You understand that in order to maintain and grow your traffic, you need your audience to enjoy the content on your site and not be annoyed by the ads, especially irrelevant or low-quality ads. Knowing your advertisers and their ads is how you ensure your desirable ad quality level is met. With your own ad server
, you can control each individual ad and placement. You can apply suitable ad targeting so that your audience finds value in the chosen ad instead of getting disrupted by it.
Higher revenue potential
By selling advertising directly to advertisers, publishers can earn higher revenues compared to using an ad network or other third-party platform. This is because publishers can set their own rates, negotiate deals directly with advertisers, get to keep 100% of the revenue rather than relying on a middleman who will take a cut of the ad revenue. The commission paid to the ad networks and ad exchanges are quite significant. It could be 50%, or even higher, of the potential ad revenue that you can earn if you were to sell ads directly. When you know your traffic, audience and content, you will be able to build a strong media kit that is attractive to potential advertisers.
Selling ads directly to advertisers uniquely allows publishers to offer customized campaigns and advertising packages that are tailored to the needs and goals of specific advertisers. This can be especially helpful for publishers that want to offer more personalized or targeted advertising options to their clients.
Advertisers will not be able to get the same level of customer service when they go with an ad network or ad exchange because those business models are entirely different. The networks and exchanges are all about high volume and anything that deviates from their standard offerings is going to be very difficult to arrange. On the other hand, when you sell ads directly, you can pretty much offer anything you want. The business relationship you have with the advertiser is very important and it is something you have to build, develop and maintain over time. However, once that relationship is established, it is very strong and long lasting, which means the advertiser will likely continue to renew campaigns as long as you provide a good ROI and good service. The more you work with your advertisers, the more you understand their specific needs and that will help you cater your ad serving
offerings to their preferences. That also means they will be more likely to stay as your clients in the future.
Part 2 - Limited time, resources, reach and scale