Anyone who has spent any time on the internet has definitely seen come across online ads. Indeed, they are just about everywhere online today, from video sites, to during "commercials" on online TV shows, to on random websites.
But why? Why are ads all over the internet? The reason is because online advertising is effective! Unlike TV ads where the viewer can simply fast forward past them, online ads will be seen by anyone who visits the website which contains them.
Online ads are profitable both for the people that display them as well as for the people who advertise with them. If you have a website, you can agree to put ads on your site in exchange for payment from the advertiser any time someone clicks on one of the ads. You are in essence letting the advertiser borrow space on your site.
The ads can be profitable to the advertisers as well, because they get more people exposed to the product. Consider the situation where you are displaying ads on someone's site and agree to pay them 50 cents each time someone clicks an ad. Now say 100 people click your ad (costing you $50), but of those 100 people, 2 of them buy a product for $300. You've just made $600 with an expense of $50, for a net profit of $550. And the person letting you advertise on their website made $50 without even really doing anything. It's a win-win situation!
This is all possible through ad servers, which are the computers on which the ads and all the related software exist.
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