This term is relevant for sites that monetize through display advertising as well as for those that have a subscription business or sell products online.
Suppose that your site features a paid membership product. In order to increase awareness of your products and generate new signups, you may begin a display ad campaign by purchasing ad inventory on other sites.
When ads promoting your products or services appear elsewhere, they are simply ads. When these ads appear on your site, they are referred to as “house ads.”
Many publisher will create house ad creator for use in their remnant monetization strategy. In other words, when ads have not been sold directly to an advertiser, the publisher must decide what to show in the ad unit. House ads are an alternative to filling this remnant space with ads provided by CPC ad networks.
House Ad Examples
Below is an example of a house ad running on WSJ.com, the online home of The Wall Street Journal.
The 300×600 ad unit that normally displays ads from advertisers paying premium CPMs to appear there in this case features an ad promoting the company’s tech-focused product. There is no direct revenue associated with showing this ad as there would be if a CPM-based impression appeared, but the company still has the opportunity to generate revenue by funneling visitors to a different product on the site.
Below is another example on ESPN.com. In this instance, the ad is promoting a product on an entirely different medium (i.e., a TV show) that is owned by the same parent company:
House ads can be a valuable asset if publishers:
- Want to avoid showing network-based CPC ads in order to drive direct sales
- Are able to achieve high conversion rates and effective RPMs from the products being advertised
Many ad networks feature settings that allow publishers to label certain ads as “house ads” in their system. DFP, for example, has a House ad setting that can be used for any line item (link below).
It is now surprisingly easy to get high quality ads created if you don’t have a professional designer on staff. The following resources may be helpful:
- BannerSnack is a web-based tool that lets users create ads from a number of professional templates (or from scratch if you have more design skills).
- 99 Designs is known for logos, but also has a display ad option.
There are a number of similar web-based platforms out there that let users create their own ads or put them in touch with professionals who can create ads in a quick, cheap manner.
FAQ
What are house ads in online advertising?
In online advertising, house ads refer to a self-promotional ad that a company runs on its own Web site or Network of Websites to use space left from unsold inventory.
How do house ad works?
House ads arise from unsold advertising inventory. Many ad spaces are relatively fixed, and house ads are often the logical solution to fill the space.
Why are companies using house ads?
running a house ad becomes an alternative. Pages that would normally be devoted to paid advertisements are used to promote something in its own interests.