Ad networks organize the sale of web-based ads and find high-traffic sites—or targeted sites—on which to place the banner ads or hyper links. They are a leading online advertising method today.

In some ways, they are just like traditional advertising agencies in that they find the best places to place ads. However, unlike traditional agencies, they are not seeking advertising space on television, radio, or in print; instead, they are seeking out websites that attract the target demographic of their clients.

The advertising network serves advertisements from its ad server, which responds to a site once a page is called. A snippet of code is called from the ad server that represents the advertising banner. You make money by getting a percentage of advertising dollars that you retain during each campaign.

You can launch an online network that pushes ads to general websites, thereby reaching a mass audience, or you can design a nicheoriented network—also known as a vertical network—that targets ads from specific types of merchants or advertisers to specific websites. You also can start even more sophisticated networks that offer geo-targeted ads or ads based on behavioral targeting. These types of networks are a bit more sophisticated—and a bit more expensive—to start. For $5,000, it’s probably best to start with a mass-marketed ad network.

Before launching this business, it is important to have a deep knowledge of online advertising techniques. Also, if you want to offer banner ad design services, knowledge of graphic design would be beneficial, so you do not have to outsource the ad design.

To market this type of business, why not develop a comprehensive affiliate/associate program? This would not only increase awareness of your ad network, it would also send referral business to your site. You should also get links from online directories, use search engine optimization and search engine marketing techniques, participate in newsgroups and discussion forums related to online advertising or the industry you are targeting, or even launch your own online advertising campaign on sites frequented by your target market.

SKILLS NEEDED

Without a doubt, to be successful in this business, you must have knowledge of online advertising techniques. What’s more, if you decide to offer banner ad and design services, knowledge of graphic design would be a plus. Of course, it’s important to have excellent written communication skills as well as superior customer service and marketing skills.

THINGS TO CONSIDER

The software you choose for this business will make or break it—so choose wisely. Be prepared to deal with things such as excess capacity ad space by using such strategies as last-minute volume discounts. Always ask to get paid up front for an advertising campaign. Also, understand that you can launch an online network that pushes ads to general websites, a nicheoriented network, or an even more sophisticated network that offers geo-targeted ads or ads to specific web pages based on behavioral targeting. These types of networks are more complex and they are expensive to start up. To stay within a limited budget, it’s probably best to start with the mass-marketed ad network.

WEB RESOURCES

Advertising.com (advertising.com), operator of the largest display advertising network in the U.S.

Burst Media (burstmedia.com), an online media and technology company and online advertising network

Outside Hub (outsidehub.com), a leading online ad network for the outdoor enthusiast market

Travel Ad Network (traveladnetwork.com), a vertical internet ad network that sells ads on top-tier travel websites