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What does advertising inventory mean

Advertising inventory is a term, which should be known to any publisher including the owners of popular resources or small websites. In the article, we will observe the notion of advert space and its influence on the publishers’ income.

What is an advert inventory?

Advertising inventory is a special term, which refers to the total amount of space on the publisher’s website, which can be used for the placement of advertising materials. Advert space is a property, which every publisher has. Advertisers can buy it in order to host their adverts and promote their products or services.


Advertising inventory refers to any kind of space available including the following:


  • mobile
  • applications
  • websites
  • video inventory, etc.


Ad space is usually connected with online advertising. However, in certain cases, it can also include the ad space in print media, TV, etc.


Speaking about advert inventory in online advertising, it is valued by means of impressions/views (in most cases). In other words, the prices greatly depend on the traffic of a definite website owned by the publisher.


The general amount of advert inventory is calculated by month.

The basic issues of advert inventory

When dealing with ad inventory, it is necessary to understand the essence of it. Let’s consider the most important terms, which are connected with its application, monetization, and trading:


  1. Page impressions. As we have already mentioned, it is connected with the traffic, which the website has, or the views/visits of the site by the Internet users. An impression means one visitor viewing one advert. If the number of impressions gets higher, advertisers can get access to a wider audience. As a result, publishers can ask higher commissions to pay for the advert placement.


  2. Advert value. To calculate the general value of a definite website, it is necessary to take a total number of impressions multiplied by the average number of adverts, which are placed on your site pages. However, there are also other factors, which can influence the advert space value. For instance, they might include:


    - the location of an advert (it influences the visibility of a definite advert, thus, affecting the number of views from the publisher’s site visitors)


    - ad format/type/style, etc.


  3. Fill rate. It is a special metric, which allows demonstrating the demand, which you can satisfy with the advert inventory available to advertisers. Thus, it shows which amount of the advert inventory has been rented out and which amount of the space is still empty. It’s better to have as high FR as possible because high FR means that you are able to satisfy the needs of advertisers. As a result, you can make much more money from placing the ads.


  4. Revenue model. It is possible to calculate the total cost of your advert inventory in different ways. There are several models, which are used by publishers to charge advertisers for the placement of the adverts:


    - a leads number from the advert, which is generated by the website (for instance, the number of visitors, who filled in a certain form and gave certain information about them)


    - a fixed price per one thousand impressions/views (every time a thousand views is reached, an advertiser pays a commission)


    - a fixed price per each click made by the visitor on an advertiser’s advert.


  5. Ad exchanges. It is vital to know about the ways to buy/sell advert inventory. With the growing popularity of programmatic advertising, advert exchanges become an integral part of a trading process. They allow making the process of buying fully automated. Using an SSP platform, publishers make their ad space available to advertisers. The latest can find the offers, which correspond to their requirements and make bids using a DSP platform. Thus, the whole process takes a few seconds, while it is possible to avoid errors and fraud. The RTB system used on AEs guarantees transparency and low investments while additionally saving your time.


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