In the e-commerce competitive world, ad personalization, fast analytics, and automated budgeting are critical to revenue generation. An ad server provides these functions, allowing businesses to manage ad impressions through user behavior, user profiles, and merchant business goals.
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An ad server is a server technology that accepts advertising requests and returns a proper banner, video, or dynamic unit. Its main task is to decide in real time what advertisement to show to a particular user. The choice is made on the basis of data such as:
This makes your ads meaningful and provides an increased opportunity to buy.
The inclusion of an ad server within the marketing infrastructure allows for not only the optimization of ad serving but also for obtaining authentic data on the effectiveness of every channel.
According to Statista studies, retargeting ads that are served through ad servers increase the possibility of a purchase by 70% on average. It is especially useful for e-commerce since customers browse but take time to make a decision.
WordStream’s research finds that companies, that leverage automated bid optimization and A/B testing through an ad server, get an ROI increase of up to 40% for priority campaigns.
In turn, according to IAB Europe, the implementation of an ad server along with a Customer Data Platform allows the creation of a complete personalized sales funnel that makes customers loyal and increases the average order value.
Using an ad server provides a series of strategically important benefits affecting conversion and sales efficiency directly. Below are the main ones with brief explanation.
All these features are included in developing a true, adaptive marketing system that allows you to react more effectively to customer behavior.
Perhaps the most widely used ad server is Google Ad Manager, which enables the serving of ads on websites, mobile apps, videos, and OTT platforms. With this, companies can:
This software is welcomed by small, medium, and large-scale e-commerce enterprises due to stability, high speed, and scalability.
A customer nowadays can get acquainted with the product on a mobile phone, continue browsing on a PC, and buy it on a tablet.
Advertisers are able to track these device changes with transitions, bringing them together into one user profile. Due to this:
For example, an ad server can know that a user has looked at a product before, and the next time will not show them generic ads, but offer them a discount or free shipping, i.e., proceed to the last incentive.
Suppose you shopped in an online store and browsed some items but did not buy anything. After a couple of minutes, you will see the same items in Facebook or Google advertisements. This is dynamic remarketing.
Its essence is to show someone exactly the items he looked at, but did not have time to buy or change his mind about. This reminder usually brings customers back to make the purchase final. It works better than traditional advertisements as the personalized ads are more stunning.
Mailchimp says that dynamic remarketing could increase conversions by up to 70%. And WordStream mentions that such ads get several times more clicks than regular banners.
Apart from the return customers, this tool helps to sell additional products, for example, accessories to already purchased goods. The point is that all works automatically. The store should install the system just once, and then it adapts to each user.
It’s a simple, effective, and very efficient way to increase sales at a low price.
Since personalization is data-driven by the user, ad servers have to comply with privacy requirements, such as GDPR, CCPA, etc. Most of the leading platforms have put in place systems of explicit consent and cookie governance.
The trend of pushing aside third-party cookies, which is moving aggressively
and is still Google-backed, is driving ad servers to first-party data models. This means that the first priority is held by the brand-owned user base and analytics quality. With this considered, ad servers are becoming data centers and future customer behavior predictors.
An ad server is not just a technical platform, but more of a strategic instrument of online commerce in e-commerce. Its capabilities – ranging from retargeting to tailored creatives and analytics – allow businesses not only to attract attention but also to convert it into real sales. With advancing technology and tightening conditions of privacy, the role of the ad server only increases in importance as an instrument of open, effective, and personalized communication with the customer.
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