Role of Ad Networks in Traffic Arbitrage

Ad networks are like playgrounds where different companies can go to find people to play with. In online traffic arbitrage, ad networks play a big role in helping companies make money by sending people to their websites. For example, let’s say there is a company that sells toys online. They can use ad networks to reach more people who might be interested in buying their toys. The ad network will show ads for the toy company on different websites, and when people click on the ads and visit the toy company’s website, the toy company pays the ad network a little bit of money. This is called pay-per-click (PPC) affiliate marketing. Another way ad networks help companies make money is by paying them for every person they send to their website who completes a specific action, like signing up for a newsletter or making a purchase. This is called pay-per-lead (PPL) affiliate marketing. Some ad networks even offer a combination of both PPC and PPL options, as well as pay-per-sale (PPS) options where companies only pay the ad network when someone makes a purchase. A verifiable fact is that according to Statista, global digital ad spending is projected to reach over $517 billion in 2023, showing the importance of ad networks in online advertising.