1. Advertising
    y u no do it?

    Advertising (learn more)

    Advertise virtually anything here, with CPM banner ads, CPM email ads and CPC contextual links. You can target relevant areas of the site and show ads based on geographical location of the user if you wish.

    Starts at just $1 per CPM or $0.10 per CPC.

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

Discussion in 'Pay Per Click Advertising' started by design_king, Oct 23, 2014.

  1. #1
    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.
    SEMrush
     
    design_king, Oct 23, 2014 IP
    SEMrush
  2. sarahk

    sarahk iTamer Staff

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    #2
    Do you have any background in offline advertising?
    It's a massive undertaking especially since you are trying to have a national niche. Do you have well known backers to give your publishers and advertisers confidence in your ability to run this business?
     
    sarahk, Oct 23, 2014 IP
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  3. design_king

    design_king Member

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    #3
    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.
     
    design_king, Oct 23, 2014 IP
  4. charice.preston

    charice.preston Active Member

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    #4
    well, first of all, you had to have a big budget on your paypal/other payment processor before you start
     
    charice.preston, Oct 23, 2014 IP
  5. wrekoniz3

    wrekoniz3 Well-Known Member

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    #5
    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.
     
    wrekoniz3, Oct 23, 2014 IP
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  6. malky66

    malky66 Acclaimed Member

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    #6
    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.
     
    malky66, Oct 24, 2014 IP
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  7. tomksoft

    tomksoft Well-Known Member

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    #7
    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.
     
    tomksoft, Oct 24, 2014 IP
  8. design_king

    design_king Member

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    #8
    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 :)
     
    design_king, Oct 24, 2014 IP
  9. wrekoniz3

    wrekoniz3 Well-Known Member

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    #9
    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.
     
    wrekoniz3, Oct 24, 2014 IP
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  10. wrekoniz3

    wrekoniz3 Well-Known Member

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    #10
    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.
     
    wrekoniz3, Oct 24, 2014 IP
  11. design_king

    design_king Member

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    #11
    Really appreciate your patience

    The adserver that i use contain multilevel fraud detection, repetitive clicks, bot clicks and also Proxy clicks trackings.
     
    design_king, Oct 24, 2014 IP
  12. aassociatehit

    aassociatehit Well-Known Member

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    #12
    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.

     
    aassociatehit, Oct 24, 2014 IP
  13. wrekoniz3

    wrekoniz3 Well-Known Member

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    #13
    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.
     
    wrekoniz3, Oct 24, 2014 IP
  14. turquality

    turquality Greenhorn

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    #14
    I can provide you full working solution and teach the system if you are interested. You can send pm.
     
    turquality, Oct 26, 2014 IP
  15. wrekoniz3

    wrekoniz3 Well-Known Member

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    #15
    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.
     
    wrekoniz3, Oct 26, 2014 IP
  16. turquality

    turquality Greenhorn

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    #16
    I already provide working solution to 3 ad networks. So I am good at it and the success is proved.
     
    turquality, Oct 26, 2014 IP
  17. wrekoniz3

    wrekoniz3 Well-Known Member

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    #17
    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.
     
    wrekoniz3, Oct 26, 2014 IP
  18. turquality

    turquality Greenhorn

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    #18
    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.
     
    turquality, Oct 26, 2014 IP
  19. wrekoniz3

    wrekoniz3 Well-Known Member

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    #19
    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.
     
    wrekoniz3, Oct 26, 2014 IP
  20. sarahk

    sarahk iTamer Staff

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    #20
    It's a long time since I was actively in the business of serving up ads and configuring the servers but back then we used self hosted openx which was excellent at doing what it was meant to do... show ads, apply rules, count impressions and hits.

    What it was also excellent at was getting thrown off shared servers. I spent hours reviewing the alternatives but all came up short.

    If you truly want to compete at a national level you're going to need your own server(s) and they're going to have to be very fast.

    @turquality - I'd be interested in knowing who your customers are - why not give them a plug?
     
    sarahk, Oct 26, 2014 IP