Glossary

Ad Inventory

Product Nomenclature
Ad inventory refers to the total amount of advertising space available for sale on a website, app, or digital platform. Publishers offer this space to advertisers through direct sales or programmatic advertising platforms. What You Should Know Every digital platform with ads, from social media to blogs, has a finite amount of space to display ads. Ad inventory can include banner ads, sponsored posts, and video pre-rolls. Platforms categorize inventory based on factors such as audience demographics, page placement, and ad format. Inventory is typically sold through:
  • Direct Sales: Deals between advertisers and publishers.
  • Programmatic Auctions: Real-time bidding (RTB) through ad exchanges and demand-side platforms (DSPs).
How It Works Publishers define available inventory and set prices, either per impression (CPM) or per click (CPC). When users visit a website, the ad server fills available inventory with ads purchased through direct sales or programmatic auctions. For example, a food blog may offer inventory for banner ads and sponsored recipe videos. Advertisers bid for these spaces, and the highest bidder’s ad appears when readers visit the site. Advantages
  • Expands Ad Reach: Provides advertisers with access to diverse audiences across multiple platforms.
  • Flexible Pricing Models: Offers options like CPM or CPC to suit different campaign goals.
  • Optimizes Revenue for Publishers: Helps publishers monetize their content effectively.
Applications and Use Cases A travel agency purchases ad inventory on popular travel blogs and YouTube travel channels to promote vacation packages. A sports apparel brand buys inventory on ESPN’s mobile app to reach fans during live game streams.