A guide for how to start your own Ad Network is needed

Hi dears

I am working to open a new ad network (PPC) and it will be the first ad network in my country
I choose one of the best php script available on the internet.

But i want to study more about How To Manage New Online Ad Network?!!
For e.g: pricing, ...etc

Any suggestion for pdf book or entrepreneur video tutorial for these field will be highly appreciated.

 

Hi Sarak,

Thanks for reply
Yes, i work before in Offline Advertising Agency, but in technical division.
Also i have a good relationship with a large number of publisher and business owner because i work in web hosting industry for about 4 years.

 

well, first of all, you had to have a big budget on your paypal/other payment processor before you start

 

Let me give you the best advice anyone on here will give you, if you have to ask how to do it, then you are going to fail. Point blank, period. So what you should do, is get a job in the business. Get a job on the business side of things, on the client services side of things. It takes years to develop enough experience to go into business for your self.

Imagine this, if you have to ask for help, or how to do it, then how would your clients feel in trusting you? Why would they trust you to pay them? The chances of you coming across an issue and not knowing what to do and doing the wrong thing, is high. Which is why, a lot of small networks pop up and disappear.

 

To add to what @wrekoniz3 has said, if you plan on using an off the shelf script bear in mind that code is available to anyone to see and the chances are hackers and script kiddies will easily exploit it if your site manages to gain any traction.
If you can't afford to have a bespoke system created (which will cost thousands of $'s)...forget it, it's doomed to failure.

 

Couldn't agree more.
It is like asking for a tutorial on how to build a nuclear power plant... explosion imminent.

Not only seems like the OP can't solve problems like pricing(which is not really a problem), but there are tens of real problems - fraud traffic, technical difficulties(databases which which need lots of writes, lots of reads, lots of redundancy and scalability), deposits from stolen credit cards etc. No solutions for these problems can be "googled". You either solve them yourself or fail.

 

Hi dears,

Thanks all for your reply
I want to told you that i have a good knowledge regard Online Advertising,
Just what i want to do it perfectly like the giant networks...

The good news that i am alone in this field in my home country, even Google ads not work?!!
So it will be a golden chance for me to succeed, and 90% of advertiser payment will be offline via bank transfer and ATM payment (special payment via ATM will be implemented)...

Also, in our team we have one ethical hacker who give security alert many times to large websites like: Facebook, Google, and Avira antivirus...etc
and he receive credit from theme

 

Absolutely, the true fact is most ad network start ups actually fail due to bad technology choices. All of the top guys like AppNexus, OpenX, etc require minimums which would blow the air out of a start up's lungs. That said the actual partially established technologies or technologies which cater to/accept small businesses and low volume, low minimums... well they lack fundamental design needed in the industry today, such as work flow logistics, security, and the biggest of all is they are more problem prone. Some even with big names, such as AOL, cater to impress the start up networks with their name, and lock you into a horrible contract (knowing you need it) because they are AOL and knowing that a start up who doesn't know better will weep at the chance to use them.

The point of my remarks above, even if the sheep think they know where they are running, at the end of the day they will be running in the direction the wolves lead them. Especially when starting with out a serious budget...

Another point - it takes a level of reputation to get in with anyone, sorry, i mean it takes a reputation for them to even respond to your email or call you back. You know how many calls these people get from people in india with wannabe networks consisting of 25,000 impressions per day? They just laugh.

Explosion Imminent. LOL Good way to put it.

There are even fundamental questions which need to be answered. First off, you are coming into a saturated industry which is EXTREMELY COMPETITIVE. What are you going to offer that thousands of other people can't? Even established companies have difficulties answering this question.

Then, how are you going to out of pocket expansion? Do you think that you just get more publishers and advertisers and it works out? Nooooooooo it doesn't. Most networks, companies, exchanges, and SSP's are paying NET 45 and up to NET 120 for the super premium ad agencies. Going under the assumption of not having much reputation in the industry to be able to secure lines of credit with a technology company. Your ad serving bill even if you get a horrible technology for startups which is not free, will be most likely prepaid. So you will have to do something called floating. Which is carrying your business expenses on reserve, and paying publishers on reserved funds, several months before actually receiving money to cover those costs. You could go out and get advertisers, but they wont trust you enough to prepay you, or if they do, they will want an out clause with a refund option, so even if you get their money, you can't spend it.

So what happens if you go from 10,000,000 impressions to 500,000,000 in a 1 month period? You are paying those ad serving fees, and you are paying those publishers before you get paid for it. Even if you are getting paid and making money on the 10,000,000 impressions in this industry when networks grow too fast it creates cash flow issues. Good luck figuring that out and figuring out how to establish the relationships, and figuring out how to get those relationships to work smoothly enough for your business to be stable. Not paying your publishers isnt an option in this industry cause the min 1 publisher doesn't get paid (who isn't sending you fake traffic, which we will go under the assumption you haven't learned how to determine fraud yet) they are all over the internet making it harder for you to get more business.

I havent even touched on learning and understanding more fundamental factors such as learning RTB mechanics like learn bids, cadence, yield optimization mechanics like hard floors, soft floors, or how to create network wide bid floors using demand mediation. The reason I haven't touched on it, is you will probably start using other networks who will be paying you a revshare, and you have no way to control the revshare, and you have no way to even control how much you are making other than trying your best to distribute your traffic to the networks which are looking for those geo's. But if you can sign up, and get a revshare contract with a company, so can someone else. So it goes back to what exactly can you offer than thousands of other companies can't.

This industry is a constant fight and battle, against people who want money at all costs - be it publishers who are ignorant, or be it advertisers who don't listen, or be it technology companies trying to get you locked in on a sucker deal.

Best advice, dont do it. You are better off with a peaceful job making french fries.

 

Unless your ethical hacker is going to sit and review every impression every second, every min, every hour, of every day - then he is useless. Ad security and fraud prevention is a little different than making sure your Facebook doesn't get hacked. To say the least.

 

Really appreciate your patience

The adserver that i use contain multilevel fraud detection, repetitive clicks, bot clicks and also Proxy clicks trackings.

 

This is first mistake you are doing, relaying on a adserver to detect poor quality traffic for you. if you want to be successful in your business then first thing is learn it with your experience not by relying on a peace of software.

 

Absolutely. You have to know how to do these things your self. You have to know how the software works and how to prevent fraud before you even get it, by knowing how the numbers work, and knowing how to verify traffic and audience authenticity with out a tool thats provided by a horrible ad server.

I said horrible ad server on purpose. See those who know the things that are needed to be known, generally know the sales pitches of all the wanna-be networks which popup and disappear. See all of what you just said as far as what your ad server contains, is the same selling point as MyAdsMarket/Yesup/Clicksor's Ad Serving Technology... which is nothing short of horrible. If you plan on running a serious network on it, you are even more likely to fail by using it.

 

I can provide you full working solution and teach the system if you are interested. You can send pm.

 

To all, do not be fooled by such, this person might have made it work, but if it was as easy as having a full working solution and knowing that solution/system everyone would be doing it and be successful at it. Truth is, there is far more to it than any man can teach, the only way to learn is experience. Gaining the experience while running it will end up in failure for yourself and failure to pay bills and publishers. Best experience gained, is working for a network and learning through the school of hard knocks with out having liabilities which you would probably default on when you make a mistake running the show.

 

I already provide working solution to 3 ad networks. So I am good at it and the success is proved.

 

Name them.

Having a working technology does not "solve" the answers to every possible problem many of which can be "explosion imminent" (as one put it above) if not either already experienced or handled properly.

 

Hi wrekoniz3, if you decide to have your own ad network one day, you can contact me too
We not only provide the technology, the ads also comes through the system as well. The only thing the network owner needs to do is to find publishers. It is integrated with all major ad exchanges, not just one.

 

You still haven't named your 3 networks which proves success.

If I wanted to run a network don't you think I would work directly with an established technology?

Also, if it were as easy as finding publishers in an incredibly saturated and competitive market, don't you think everyone would be doing it, and be successful at it?

Its not. and just to note, that ignorance is the same level of ignorance which costs the industry and publishers millions (if not hundreds of millions) of dollars per year.

But as I said, it might work for you, but it does not mean it will work for others.