Frequency capping has long been used as a method for helping advertisers to improve the performance and reach of their online advertising campaigns.

In short, frequency capping allows the advertiser to limit the number of times a user sees a specific ad, resulting in increased return to the advertiser for every dollar spent.

While the benefits of frequency capping for advertisers are clear, frequency capping can result in significant challenges for publishers.

In particular, for advertising campaigns run by ad networks on a publisher’s web site, frequency capping can result in significant revenue loss for publishers.

Publishers have very limited insight into ad network pricing and are unable to determine how to allocate inventory to ad networks based on particular frequencies.

This white paper describes current trends in online advertising, the challenges publishers face with respect to managing their ad inventory, the components of a solution that take into account the relationship between frequency and eCPM in ad serving decisions, and PubMatic’s frequency revenue optimization solution.

Market Trends Are Expediting a Shift To Performance Advertising

Marketers’ success metrics are defined by the advertiser or media agency, and vary with respect to how they are measured. However, today’s economic climate has created a need for advertisers to demand more campaign accountability with less monetary investment, or greater ROI.

This has helped to expedite an already growing trend: advertisers are moving away from pure branding campaigns where the success metrics can be very subjective, and more towards performance based campaigns where success metrics are more clearly defined.

Economics are not the only reason why performance based advertising is a quickly growing trend; technological advancements have made it possible for advertisers to closely monitor and measure a more granular level of performance metrics of an advertising campaign.

Advertisers are taking advantage of these technology advancements to get better control over where, when, and to whom their ads are being displayed.

Traditional Role of Frequency In Online Advertising

One of the ways that advertisers are achieving enhanced performance from their online advertising campaigns is through the use of  frequency capping.

The term “frequency capping” refers to restricting (capping) the amount of times (frequency) a specific visitor is shown a particular advertisement within a period of time.

For example, a frequency cap of “3 per 24” for an ad means that after exposing the user to the same ad 3 times, the visitor will not be shown that ad for 24 hours.

Some of the key benefits of frequency capping are:

• Increased reach – frequency capping is an efficient way to increase reach by expanding the number of unique users that see the ad. Rather than using a marketer’s scarce budget to show the same ad to a small number of users over and over again, frequency capping can be used to ensure that a wider audience is exposed to the marketer’s message.
• Increased CTR – frequency is used as one of the key drivers to improve advertising campaign performance.  Click Through Rates (CTR) have been shown to drop precipitously after the first exposure and to plateau at four because of “ad blindness“, wherein the user becomes so used to seeing the ad that the user essentially becomes blind to that ad.
• Improved conversation rates – similar to CTR, the conversion rates also are highest on the first impression and typically diminish after 4 - 6 impressions.

Decoding The Frequency - eCPM Relationship With Ad Networks

Ad networks generally have multiple campaigns running at any given time, and those campaigns have different frequency cap, pricing and other characteristics, as specified by the advertiser.

Based on the success metrics defined by the advertiser and expected performance of the campaigns, ad networks value the first impression a user sees more than their second impression, and so forth.

Ad networks then allocate the highest paying campaigns to the first user impression, followed by the next highest paying ad campaign and so on.

While ad networks have their campaign delivery structured in a way that will maximize their performance metrics, the ad networks’ data is not made transparent to the publisher in a way that allows the publisher to maximize their revenue.

Without access to ad network pricing, it impossible for publishers to allocate their inventory in the best way possible. As a result, publishers require a solution that gives them insight into ad network pricing so that publishers can maximize the value of each impression shown on their web sites.

In order for publishers to maximize revenue on every impression, there first needs to be a method to predict where the most valuable impressions are coming from, and when.

The best method for achieving this is collecting historical data in order to find the relationship between frequency and eCPMs, and then creating a frequency eCPM curve.

A frequency eCPM curve is created by averaging eCPM data across thousands or millions of users on a site. Such a curve reflects the average eCPM that can be expected at different user frequencies from a particular ad network.

Optimal Impression Allocation Based On Ad Networks Frequency eCPM Curves

Given these frequency eCPM curves it is evident that in order to maximize the revenue for the publisher, an optimal impression allocation strategy across all of its ad networks can be set up as shown in the graph below.

For example, instead of giving all impressions to Ad Network -1 first, the publisher would allocate the first impression to Ad Network -1, the second impression to Ad Network -2, and the third impression to Ad Network -1 again and so forth as is detailed in the table below.

Implementing Optimal Frequency-Based Decision Making: Frequency Revenue Optimization

The data that is collected and applied to the frequency eCPM curve can be used for predictive modeling. However, leveraging this data to maximize the revenue of every single impression requires real-time decision making, and that is impossible to do without the assistance of advanced technology.

Understanding this, PubMatic has developed a propriety solution called frequency revenue optimization.

How frequency revenue optimization works:

Frequency eCPM curve predictions – By observing the frequency impression distribution, default impression distribution, and eCPM trends from an ad network on a continuous basis, an overall frequency eCPM curve for each ad network can be predicted.

Dynamic impressions allocation to ad networks using Frequency eCPM curves – Each impression can then be optimally allocated to the ad network with the highest expected frequency eCPM, maximizing overall revenue.

Benefits To Implementing Frequency Revenue Optimization

Increased revenue for publishers – by intelligently allocating ad impressions across a mix of ad networks, based on the frequency - eCPM relationship, publishers can generate significantly higher revenue for each ad impression.

Reduced number of defaults – default rates for ad networks can be reduced significantly by allocating impressions to the best monetization opportunity. This results in reduced ad serving costs for publishers and ad networks as well as a better user experience because of faster web page load times.

Better user experience – frequency revenue optimization improves the user experience significantly by showing different and more relevant ads to a user during a web session. This is reflected in higher CTR rates on ads.

Higher quality traffic to ad networks – ad networks win with frequency revenue optimization because the web sites in their network perform better. The reduction in ad blindness and higher click-through rates translate into better performance for advertisers.

Examples of Publishers That Have Used Frequency Revenue Optimization

Benefits derived from frequency revenue optimization vary from site to site. There are several examples of publishers of varying sizes and verticals that have enjoyed demonstrated success with PubMatic’s Dynamic Default Optimization.

Conclusion

The major challenge presented to publishers with frequency capped campaigns is allocating inventory to ad networks in a way that will maximize publisher revenue. What makes this a challenge is the lack of transparency from ad networks about pricing, which makes it impossible for publishers to allocate their inventory in the best way possible. As a result, publishers leave substantial money on the table.

About the author

Founded in 2006, PubMatic is an ad revenue optimization service that helps web site publishers run the highest paying ads from top ad networks.

Frequency revenue optimization is a solution that PubMatic has developed as a way to give publishers the insight they need in order to implement an optimal inventory allocation strategy for frequency capped campaigns.

Over the last 8 months, PubMatic has developed a proprietary frequency revenue optimization solution that maps the relationship between frequency and eCPM for a particular ad network and optimizes ad serving decisions in real time.

This solution has been deployed to over 100 large publisher web sites, resulting in the following benefits for publishers:

• Up to 35% increase in eCPM
• 50% to 210% increase in CTR (click-through rate)
• 10% to 50% decrease in ad network defaults (ad requests for which the ad network has no ad to show)

In addition to the significant publisher benefits, frequency revenue optimization has also increased the flow of desired traffic to ad networks, reduced their ad serving costs by decreasing their default rates, and enhanced the end user experience by loading more relevant ads faster.

To date, over 100 premier publishers have successfully leveraged this solution to increase their revenue.

Usually, people don’t look and even read advertisements because  annoys them. However, not all advertisements are bad and some companies have thought to design some very clever advertising campaigns.

These bus straps designed by Jung von Matt/Alster for watchmaker IWC allow bus travellers at the airport to try the product first they buy at Berlin, Germany.

Another creative idea in the New York City. This cup of Folgers coffee print was placed on top of manhole covers. The holes on the print allows the steam to come out and make it very realistic. The message around the cup says ‘Hey, City That Never Sleeps. Wake up.” from Folgers.

This advertisement make people like were actually inside operating of vending machines, but in reality is an advertisement for a job recruiting company in Berlin, Germany. The message say ‘Life is too short for the wrong job.

This creative idea was designed for a Fitness Company. As you can see, it seems that the person holding the safety bar is doing weights. Heavy Weights were put at various subways in New York City.

This creative ad gives the perception that the Mini Cooper remain very large. It’s been placed in a train station of Zurich.

This giant mirror was placed in a shopping mall in Tokyo, Japan and allows anyone to stop and look at themselves wearing clothes.

In my view, some of these ads are very clever, while other might be annoying to use of commercialism, also, much humor in an ad might overshadow the product. What do you think?

Just a year ago I put adToll Peel Away ad to one of my blog. I’ve included it at the right corner, and add a small animated image(about 50×50 pixels) that once overed with the mouse it reveal much larger image.

Well, over the past few months, I’ve paid attention to my AdToll Peel Away stat. I always throught, just as you need to track the traffic coming in and out of your website, it important to track the performance of your banners. So, I did it.

Image credit: Munilfari

The result is: Sorry Adtoll, but I was disappointed by the Adtoll Peel Away ad performance. Now, I’m not saying that this is totally bad, but recently there was some thing that did not work it well.

Here, are three reasons why AdToll Pell Away Ad worked bad on my blog.

1. New owners - AdToll company was sold and managed by new owners, I think publishers has ended up to lose by that change.
2. Stats wrong - The first thing I noticed, was that stats are inaccurate and wrong and  while old owners had It fixed within a day, max two, their seem have abandoned the site totally.
3. Can’t Edit Pre-Peel Image - The pre-peel flash image is the most important thing on a peel away ads, better than the 500×500 mouseover image, but AdToll doesn’t let you edit it.

Goodbye AdToll Peel Away Ad, Welcome Peel Away Ad

However, i removed it from my blog because it doesn’t meet my requirements of software for make money online, thus I replaced with the Peel Away Ad as that you see here. This is one of the coolest ad units yet. The pre-peel flash image is customizable, and personalized support is included with your purchase. Also, you have 8 Week 100% Satisfaction Money Back Guarantee”

I already running Peel Away ads in other my sites and for only $17, has made more than my money back from it in less than a week.

I expect to see this type of advertising become more common in the future. You can get high click rates, then you can use the script to promote your own affiliate program.

I’ve personally used both  Adtoll Peel away ads and Pell away ads, and I have only had a real succes with the second script, so I  wrote this article for those are thinking of adding it at their blog.

Make Money Online With Peel Away Ad .

I always stated, one of the few ways to make money quickly through an existing blog without making too work, such as creating products like e-books or providing services like search engine optimization is certainly the direct advertisers.

In my view, text ads are crowded, banner ads are invisible, thus before you go spending your money for a product who promises to make you rich … let me tell you a little about Corner Stay Ads for those who are unfamiliar with this product.

What Is Corner Stay Ads?

Corner Stay Ads is a piece of script that create a pop up image at the corner of any page(look image below) and the ad is revealed when you move the mouse over.

The guys who created Peel Away Ads, Harris Fellman and Richard Osterude, after released version 3 of the Peel Away Ads,they have come up with a new type of   script that you can use on any your website.

According to the creator of Peel Away Ad, the ad is unobtrusive and super effective because it makes people want to see what’s hiding behind it.

As I said before, once you move your cursor over the graphic a small window pops up next to the graphic. In my view  Corner Stay Ads is a little more complete than Peel Away Ads, as it  you can put any thing you want here and use any graphic you like.

Order Your Corner Stay Ads With My Special Bonus

Example 1

Example 2

The main reason why you should buy Peel Away Ads are:

• Increase Your Monthly Earnings. You’ll get a steady stream of money by affiliate programs.
• Get Higher Click Through Rates. Getting attention from your customers, you have more chance to increase your Click Through Rates.
• Install On Multiple Domains. If you have more then one site, then, pay at once and you can use the same script in all your websites
• Supports 100% of online browsers
• One Time Payment. Just $127 $67 $37 right now(with my bonus).

We could probably add a lot more to this list, but is enough to know the potential of this script.

Special Offer, 120% Discount

The3dtechnologies readers can get  Corner Stay Ads at 120% discount. Just $127 $67 $37 right now(with my bonus). If you haven’t ordered your copy it’s not too late, you can purchase Corner Stay Ads and you are still eligible for my bonus until this post is online.

Also, here is what you get when you buy Corner Stay Ads today:

• The Corner Stay Ads™ Script for you to use in as many sites you wish.
• Access to the “Fill In The Form” Installation Page.
• 54 Pre-Made Graphics for your corner ad graphics.
• 6 Sample Hover mini-pages to get your imagination jump started
• 15 Templates so you can customize your own graphics
• And many more surprises for you

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What’s Your Opinion Of Corner Stay Ads?

Corner Stay Ads can be a new good way to attract the customer’s attention. I can say this, because yesterday I bought a copy and I’m using in one of my site. Since putting it up an hour ago, I’ve already received five new sign ups. So, we might expect a lot from Corner Stay Ads, right?

I would also like to hear from you, about your experience with these type of programs. Please, feel free to leave any comments.

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One question I keep getting is how do I sell advertising on my blog. Isn’t that an interesting question?

I already wrote about 4 powerful direct advertising methods to earn with your website or blog, however, unless you know how to promote your banner and win the competitive challenge with other blogs, then, these methods will be useless.

Everyone can promote a product or service into blog in under a paragraph, two sentences, seven words. If you cannot, you are not ready to sell advertising.

For instance, consider these twoo options:

• A paragraph, which you can use describe your site for promote your site.
• Two sentences, which you will use when you send an email to promote your site.

The first thing you need to do is to, establish the aims of your company. The type of  company says you which are the method of contact you can use to publicize your site. Email or Call.

How Big Is your Company? Which Methods Adopt To Selling An Ads Space? 

While a local company go in person or make a phone call to convincing to buy their ads space, a big company may be more open to email.

However, all companies still have a small business mindset in order that they want to meet people first to gauge interest.

To make this, add your contact information before proceeding to sell your ads space. As I said before, you need to know if your readers are interested in what you are selling before proceeding. Think What Might Best Serve Your Customers.

At this point you need to communicate with a minimal amount of effort in order to increase your chance of making a sale.

When you make a phone conversations it’s the same thing.

To summarize the three main points:

1. Call - Establish a contact with your customer. If interested you can send your sale kit with all your detailed informations about your site offers.
2. stop - If the store is local 
3. Send an email - If the store is national, then you can send your sale kit with all your detailed informations about your site offers.