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Key Ad Optimization Strategies

By December 13, 2023March 11th, 2024No Comments
Key Ad Optimization

Introduction

As a Supply-Side Platform (SSP), our primary objective is to support publishers in optimizing their ad performance and maximizing revenue. We understand the importance of fine-tuning ad inventory to ensure it reaches its full potential. In this article, we will explore various optimization opportunities that publishers can leverage with the help of our SSP to achieve higher CPMs, improve targeting, enhance user experience, and boost overall ad performance.

CPM / Floor Price Optimization

The floor price is set by the publisher within the SSP to ensure a minimum acceptable revenue for each impression. By optimizing the floor price, publishers aim to strike a balance between maximizing their yield and maintaining a competitive auction environment that attracts advertiser demand. Data analysis and modeling techniques are utilized to determine the optimal floor price based on factors such as historical data, market conditions, and performance metrics.

Importance of Floor Price Optimization

  • Maximizes revenue for publishers.
  • Ensures a competitive auction environment.
  • Optimizes ad inventory allocation.
  • Improves overall yield and profitability.

Inventory Change

From an SSP’s point of view, adding new ad units or placements expands monetization opportunities for publishers, attracts innovative engagement from advertisers, requires careful consideration of user experience, and necessitates optimization and reporting tools for effective implementation.

Importance of Inventory Change

  • Revenue growth through expanded inventory and new monetization opportunities.
  • Attraction of new advertisers, enhancing the competitiveness of the advertising ecosystem.
  • Enhanced user engagement through innovative ad units, improving the user experience.
  • Market differentiation by offering a variety of ad units, setting the SSP apart from competitors.

Introducing new ad units/placements can bring fresh opportunities for monetization and engage users in innovative ways.

Frequency Caps

Frequency caps refer to limits placed on the number of times a specific advertisement is shown to an individual user within a defined timeframe. It is a strategy used by advertisers and publishers to manage ad exposure and prevent overexposure to the same ad. Frequency caps help balance the need to reach users with relevant ads while avoiding excessive repetition, which can lead to ad fatigue, decreased user engagement, and potential negative impacts on campaign performance. By setting frequency caps, advertisers can control the number of times an ad is shown to a user, ensuring a more balanced and effective ad experience.

Importance of Frequency Caps

  • Budget Control: Frequency caps allow advertisers to control their ad spend and prevent wasteful expenditure on excessive ad impressions.
  • Ad Fatigue Prevention: Limiting the number of times an ad is shown to users helps prevent ad fatigue, maintaining user engagement and avoiding annoyance.
  • Improved User Experience: Frequency caps ensure that users are not inundated with the same ad repeatedly, resulting in a more positive and less intrusive user experience.
  • Increased Ad Effectiveness: By managing the frequency of ad impressions, advertisers can ensure that their messages are more impactful and have a higher chance of resonating with the target audience.

Volume Caps

In the context of supply-side platforms (SSPs), volume caps refer to the maximum amount of ad impressions or inventory that can be made available to advertisers within a specific timeframe. It is a mechanism used by SSPs to control and limit the number of ad impressions or the total volume of inventory that can be accessed by advertisers.

Importance of Volume Caps

  • Fair resource allocation among advertisers.
  • Control and optimization of the ad serving process.
  • Improved user experience by preventing ad fatigue.
  • Preservation of inventory value and pricing.
  • Positive advertiser relationships through equitable distribution.

Brand Blocklist Management – White/Block List

Brand blocklist management refers to the practice of maintaining a list of preferred (white list) or undesired (block list) brands or advertisers for ad placements within the supply-side platform (SSP) ecosystem.

Importance of brand blocklist management

  • Ensures brand safety by preventing ads in inappropriate contexts.
  • Provides advertiser control through white lists.
  • Maintains content suitability for ads.
  • Helps avoid conflicts between advertisers.
  • Optimizes ad performance and campaign success.

Recategorizing/Uncategorized Domains

Recategorizing or uncategorized domains refer to the process of assigning or reassigning domains to appropriate categories within the supply-side platform (SSP) ecosystem.

Importance of recategorizing/uncategorized domains

  • Improves ad targeting accuracy.
  • Maintains brand suitability.
  • Meets advertiser preferences.
  • Optimizes ad performance.
  • Ensures regulatory compliance.

Banned/Rejected Domains

Banned/rejected domains refer to domains that are prohibited or disallowed within the supply-side platform (SSP) ecosystem due to various reasons.

Importance of managing banned/rejected domains

  • Ensure brand safety.
  • Control ad quality.
  • Enhance user experience.
  • Maintain regulatory compliance.
  • Build advertiser trust.

Ads.txt

Ads.txt, which stands for Authorized Digital Sellers, is an initiative in the ad tech industry that aims to increase transparency and combat fraudulent advertising practices. It is a simple text file that publishers can create and host on their websites to publicly declare the authorized sellers of their digital ad inventory. Publishers regularly update and maintain their ads.txt files, ensuring that it accurately reflects the authorized sellers of their ad inventory. Advertisers and programmatic buyers can then crawl these files to verify the legitimacy of the sellers they are purchasing inventory from, helping to reduce ad fraud and protect their advertising investments.

Importance of Ads.txt

  • The purpose of ads.txt is to prevent unauthorized reselling of ad inventory and domain spoofing, which occurs when fraudsters misrepresent themselves as legitimate publishers to sell ad space that they do not own.
  • By implementing ads.txt, publishers can specify the authorized sellers or resellers who are permitted to sell their inventory.
  • It provides transparency by providing a publicly accessible record of authorized sellers for a publisher’s ad inventory.

SSP Fee Optimization

From the bids that the advertisers are sending, the SSP will take a share of the bid value. This is called a fee. When an impression is sold through an SSP, the SSP typically charges a fee for facilitating the transaction and providing various services. The specific fee structure can vary depending on the SSP and the negotiated terms between the SSP and the publisher.

Importance

  • Higher SSP fees can impact the publisher’s net revenue, so it’s essential to strike a balance between the fees charged and the value provided by the SSP in terms of ad optimization
  • Lower fee can result in revenue loss for the SSP as that is the most important way of making money for the SSP partners
  • The SSP fee allows the SSP to cover the costs of providing technology, infrastructure, and services that facilitate the selling of ad impressions on behalf of publishers.

QPS

  • QPS, also known as Queries Per Second, serves as a widely used performance and scalability metric. It quantifies the number of bid requests that a DSP (Demand-Side Platform) can process within a single second. When users engage with websites or mobile apps, ad spaces become available for real-time auctions through ad exchanges. These ad exchanges transmit bid requests to DSPs, containing comprehensive information about the available impressions, such as user data, demographics, context, and targeting criteria.
  • Upon receiving a bid request, the DSP evaluates its viability and decides whether to participate in the auction and determine the bid amount. Subsequently, the DSP responds with a bid, and if successful, delivers the winning ad to be displayed to the user. QPS plays a crucial role when DSPs face a high influx of requests and need to establish an upper limit on the volume of requests they can handle. For instance, if the QPS is set at 10K, the SSP (Supply-Side Platform) must not exceed 10K requests per second directed to that particular DSP.

Importance

Enhances Real-Time Bidding (RTB) Efficiency:
Optimizing QPS allows DSPs to promptly assess bid requests and analyze user data in real-time. This capability ensures the DSPs can respond with personalized and targeted bids, thereby improving the efficiency of real-time bidding.

Effectively Handles Scale and Volume:
By setting an optimal QPS limit, DSPs can effectively manage and handle the scale and volume of bid requests. This ensures that the DSPs’ infrastructure and resources can efficiently accommodate the incoming requests without experiencing performance issues or overwhelming the system.

Throttling

Throttling in the context of SSPs (Supply-Side Platforms) refers to the practice of limiting the number of bid requests or ad impressions that are processed or served by the SSP within a certain timeframe. Throttling is implemented to control the flow of bid requests or ad impressions to ensure optimal performance, maintain a balanced auction environment, and prevent system overload.

Importance

SSPs often receive a significant volume of requests from various sources like publishers or networks. Throttling allows SSPs to manage and control the flow of requests to avoid overwhelming their infrastructure or causing latency issues. By limiting the incoming traffic, SSPs can maintain a stable and efficient platform.

Databeat’s take on these Optimizations

At Databeat, we understand the significance of regular optimizations to improve performance and increase yield for an SSP. We follow a standard optimization calendar for each optimization type mentioned above, ensuring that no opportunity is missed to enhance performance. A detailed analysis is conducted to implement these optimizations, and A/B experiments are conducted in the case of floor price optimizations.

In conclusion, implementing these key ad optimization strategies can significantly enhance revenue and performance for publishers utilizing SSPs. By fine-tuning floor prices, optimizing inventory, setting frequency and volume caps, managing brand blocklists, maintaining domain categorization, adhering to banned/rejected domains, leveraging ads.txt, optimizing SSP fees, and considering QPS and throttling, publishers can maximize their revenue and create a harmonious user-advertiser-publisher ecosystem.

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