Publishers typically glance at their sales in two forms: direct and indirect.
Direct: When inventory is directly sold to an advertiser or agency by the salesperson. Indirect concerns with an inventory sold via third-party partners. In general, a publisher takes account which is not fulfilled by the direct channels and sends off the left-over inventory to a third party. This can be an exchange, a network, or a Sell Side Platform (SSP- technology for publishers).
In case of indirect sales, the publisher is required to view the eCPM generated on that placement from each demand source they have permitted. Thus, the eCPM calculation will be entire inventory divided by 1,000, divided by the total income.
On the other hand, several publishers try to track eCPM by the seller, even after the left-over inventory is passed on to a new vendor to generate revenue, which is an unfair demonstration of value (e.g., total impressions, divided by 1,000, divided by one vendor’s claim). This is often termed as daisy chaining.
What needs to be assessed is the paid inventory which the demand partner brings to the association, thereby altering the computation to paid impressions divided by 1,000, divided by vendor revenue. This will obviously result in a high CPM as the number of impressions is reduced.
What exactly is eCPM?
Before we plunge into discussing the strategies and ways to increase eCPM in detail, let’s first shed light on some very basic terms. eCPM stands for “effective cost/earnings per mille”. “Mille” is a Latin word that represents one thousand and “effective” indicate actual instead of face (projected) value. Thus, eCPM is the exact cost to the advertiser for thousand hits. The more the eCPM the more profits a publisher make.
Let’s understand this. If you’re working, with a CPA network you may have a high click-through-rate but since the visitors are not turning up for you from third-party platform, you are likely to have a low eCPM.
We can say that eCPM = click through rate*conversion rate*profit per conversion*1000
Based on this, we can define and address the useful tools and elements that need to be optimized for increased eCPM .
● Click-through rate: This is in all probability the simplest metric to optimize as it allows the publishers to manage and control a bundle of the variables. You can also test different advertising placements, time when an ad is shown and formats. Having said this, the network you choose and targeted campaigns plays an important role.
● Conversion rate: Ad conversion relies on how relevant an ad is for the user, whether optimised or not and timing of the full-screen ads
● Revenue per conversion: The revenue will maximize if you can increase the per click amount being paid for a click or paid per conversion.
The motive behind placing the ad-units on websites is to get more revenue from the online business. The more the eCPMs the more profits it generates. But how do you increase the eCPM?
Here are some of the tips that could help you to increase eCPM and maximize your profit as a publisher:
Experiment with all available ad networks: One of the essential factors for increased CTR is Ad-relevancy that ultimately effect eCPM. The more the CTR the more is eCPM. For example, if your ad is aimed towards pensioners but appears on the millennial gamers user base, then definitely this will be an unsuccessful ad.
All the ad networks have different target approaches, so toggling between these ad networks can repeatedly mean considerably high revenues if you can find the one that’s mostly well-matched to your target audience. A number of ad networks classify the sites in their network by the kind of content they envelop. For example travel, fitness, automotive, beauty sites might be clustered into vertical channels and traded to advertisers who desire to reach viewers who are interested in these areas. Several networks are limited to precise verticals while others are open to almost every type of site. Or on the basis of interest, behavior and demographic or any other data from publisher and third party, ad networks can alternatively sell audience subdivision.
Look for Ad mediation agencies: Yes, publishing ads via mediators’ calls for a greater success and increased eCPM. Ad networks generally unite publishers and advertisers, allocating ads on the basis of their own targeting criteria. It’s basically the middleman. As demonstrated in the first point, multiple networks have their pros and cons. A mediation company connects the publisher with various ad networks. As the mediation agencies have their own internal teams and processes, it very well evaluates and ranks the ad networks that could provide the best eCPM. Going through a mediation company offers a plentiful advantage for the publisher. With higher Fill rates, ads are enhanced, well targeted and better optimized. Some of the best mediation companies are Automatad, media.net
Attempt different ad formats: Approximately all the apps that have multiple ad formats, benefits in revenue monetization. By implementing multiple ad arrangements during initial stages, helps in tracking the ad performance, improving the erring ads and realizing the best ad format that drives maximum clicks.
Some of the ad formats that help in eCPM are:
Banner: Permanent small ads that appear on a website interface. These are considered as the lowest-performing formats across all browsers and apps.
Interstitial: These have one of the greatest eCPM rates. Also identified as “full page” ads, these occupy the full screen of the user’s device.
Video: Generally an interstitial ad but not always. These ads are both “intended” (the user can skip the ad), or “compulsory” (where the interface returns after the video is finished after a period of time).
Panel or List: One of the top performing ads with the best eCPM rate, that lists the selected potential apps that a user may want to download.
Change the ad placement: Be certain to generate numerous placements on your page flow for ads. It is believed that the higher the ad is on page, the more coverage it receives, but this is not always true. You require experimentation with different ad placements on multiple sections of the page using a mixture of ad sizes. Keep your statistic tools handy to compute CTR and best position on the webpage. If this is professionally handled, the right placements serve huge profits.
Same as the above point, many believe that adding multiple banners on a webpage can get increased clicks improving website performance. Again, this is untrue. Adding multiple banners on a webpage can lead to “ads blindness”. As more of the audience now-a-days are “ad liberal”, one should keep reasonable number of ads on a page as per your target audience.
Check for industry eCPM Index quite often: Keeping in mind the publishers, eCPM index was built. This index allows publishers to make informed decisions about their ad supplies thereby increasing eCPMs and making money out of their websites .
Generate more traffic: The greater the number of visitors, the greater is the opportunity of them interacting with ads and earning higher daily profits. But how can one achieve organic traffic on website? This can be easily achieved by implementing tools such as SEO, social media, web forums, direct and indirect marketing strategies, email marketing etc. Search engine traffic capitulate the highest eCPM.
Out of all the above, SEO is the organic technique of driving traffic and is considered to be one of the best inbound marketing process in generating leads and raising eCPM.
Social media also, on the other hand helps in getting the content quickly go viral. This provides thousands of unique website hits in a short span of time that significantly increase your eCPM. Sites such as Instagram, Facebook and Twitter are the places where people share content with one another. So, if you have a rich and valuable content, you can leverage these social media platforms to drive organic traffic to your website.
Get a mobile friendly website: With the recent introduction of a new change in algorithm by Google, many websites are said to get affected. This change says that websites need to be mobile friendly or need to be optimized for mobile phones for better user interaction. Non mobile friendly websites calls for a drop in traffic which results in poor eCPM. With more and more users browsing on internet via mobile devices, advertisers are now paying extra or higher rates for mobile traffic that leads to an increase in eCPM.
eCPM is quite easy to understand. And if it is broken down into CTR and conversion rate, it turns out to be a lot simpler to move towards new ideas to increase eCPM.
The best secret to driving eCPM is website traffic, mobile friendliness, and the optimized ad-units. It is not possible to get an ideal eCPM during initial efforts. Test a number of ad networks, ad placements, ad formats and traffic driving ways to observe the methods which bring out the maximum quality of organic visitors leading to increase in eCPM.