Using ad tags can serve several functions, including identifying where an ad should be placed, sending an ad call to an external ad server, and enabling tracking and reporting capabilities. A variety of information regarding the ad units, such as size, format, basic page content, user information, and many more, can be included in what is known as "creative tags. "Ad tags that have been properly integrated simplify and improve the programmatic ecology. They serve a variety of purposes for everyone involved in the media buying and selling process. This tag’s main goal is to tell advertisers about available inventory by sending out bid requests. Publishers provide the groundwork for website revenue by producing ad tags and placing them into the source code.
Advertisers utilize ad tags to request and display their ad creative on the web page (also known as ad scripts). To help advertisers construct a better programmatic advertising strategy, they report how an impression is served on the website. Publishers generate ad tags that ad servers employ to transmit ad calls and facilitate the trading process. After that, bid requests are created to begin the auction. Inventory is subsequently sent along the exchange chain via ad tags. Additional functions can be performed with the help of third-party ad tags. Platforms can use creative tagging to collect user data and analyze the persona of the target audience. One example of this is data management platforms. There are two types of ad tags Synchronous ad tags and Asynchronous ad tags. Digital advertising relies heavily on ad tags since they are used at practically every media buying and selling stage.