What is ad inventory & How do You calculate ad inventory?

What is ad inventory?

Advertising Inventory is the total space available for advertising with the publisher at any time. The term is commonly used in the context of online advertising but also applies to print and other traditional media. Online, the publisher is usually the website owner, but also the app developer.

Publishers often sell the list directly to advertisers, especially for high-value placements such as website home pages. Direct selling is for guaranteed placement. Other inventory can be sold through the Advertising Network, which connects the inventory from multiple publishers and repackages the sale to advertisers. The list can be divided by site or audience population, purchase options, and other variables to add value.

How do You calculate ad inventory?

Inventory is increasingly being sold through advertising exchange and intermediary markets, which makes it possible for advertisers to auction off inventory in real-time as it is made available to the publisher. Entities involved in the real-time bidding (RTB) system for programmatic advertising includes ad exchanges. Learn about conversion tracking.

Page impressions

Online advertising inventory is often calculated based on the number of page impressions - defined as the effect of viewing the user ad. The more page impressions a site has, the more money a publisher can demand its advertising space, as advertisers gain more audience access.

Advertising Value

Although there are many complex variables in calculating ad value, the potential value of your ad inventory is multiplied by the number of pages provided on your site and the average number of ads on your website pages. Advertising space is another variable that affects the value of personalized advertising on your site. Banner ads at the top of the page or the prominent position “above the fold” - that is, visible without scrolling - dictate premium web real estate and hence the highest rents.

Fill rate

The fill rate is a metric that shows how much demand you can meet from your current ad inventory. It shows how much your ad space is rented and how much vacant it is. The higher your fill rate, the better; A high fill rate means that you are meeting the advertisers’ demand for advertising space and that you are making money. also, learn about classified ads.

Revenue model

Advertising inventory cost is calculated in many ways. The publisher may charge the advertiser based on the number of ads generated by the site, such as readers who fill out the form with contact information; Based on the price per thousand impressions or page views; Or a price per click. In the Revenue model method, the publisher receives payment only when a reader clicks on the ad.

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