Building mutual trust with advertising partners has always been challenging for publishers. As a publisher or SSP, basic logic tells us that the easiest way to maximize revenue is to send an ad request on every impression opportunity. However, simple as this solution appears, it could harm your relationship with advertising partners if you have an overabundance of requests that create unwanted costs for the DSP. Today some DSPs are calculating “Request CPM” – total revenue divided by number of ad requests – to evaluate the value of each request. If the value becomes too low, they won’t hesitate to cut the traffic. For some utility apps and websites, these situations might become a vicious cycle due to their high traffic/low fill rate behavior. Intowow’s dynamic traffic shaping mechanism is designed to automatically deal with this challenge, with no human intervention required. Let’s take a closer look at this two-part solution.
1. Intelligent Traffic Management
Generally, advertising partners buy based on targeted campaigns that have parameters around specific time periods, individual apps, markets of locations, and even placements, based the characteristics of the campaign. In addition to – and sometimes in conflict with – this targeted buying are budget constraints and impression capping practices. So, for example, a DSP may love a given beauty app for their current makeup campaign, but the campaign might have a daily cap of 100k impressions for a single channel, despite the app boasting 500k DAU. Sending more than 100k ad requests to this DSP strains the financial relationship because of processing costs. On the flip side, when demand partners have an influx of traffic, they will inquire about additional inventory opportunities. Knowing this, Intowow studied ad fill behavior and developed a mechanism to automatically control the amount of traffic requested and inventory opened for each demand partner. The algorithm is live and has already proven to at least maintain the same revenue as full traffic while cutting down overall traffic by up to 2/3. In many cases, revenue performance will outstrip even full traffic because of precision traffic distribution.
2. Precise Targeting of High-Value Users
In the course of our traffic research, we found that certain users will receive more ad fills than others, potentially due to better data and targeting, or because of proactive viewing or engagement behaviors. By funneling more traffic to those users, Intowow can further increase overall fill rates. As a result, overall fill rate and Request CPM can be improved by 1.5x or more over full traffic.
While it will always be true that showing more ads will always result in more revenue, that’s often not the best course of action. With dynamic traffic shaping, we can now improve revenue via intelligent traffic management to maintain the value and relationships shared between supply and demand partners. At Intowow, this is the ideal solution – one that supports our publishers’ needs and supports optimizes revenue according to budgeting goals.