15 hacks to skyrocket your Q4 revenue!

Although advertising budgets for the fourth quarter of 2022 are difficult to predict, given the current macroeconomic situation, one exceptional event may end up being a good opportunity for your advertising monetization: the World Cup will start in November for the first time in its history. In a webinar held in early October, we presented publishers with 15 key recommendations to make the most of this period and maximize their revenues. Here’s what to remember:

Overview of revenue distribution by quarter and publisher vertical in 2021
Source: Opti Digital Analytical Platform

Before thinking about Q4, it’s important to make sure your website is following these basic tips for a successful annual monetization strategy:

1. Make sure you send valid consent strings

The legislation concerning the use of data varies according to the country and even the geographical area. In Europe, publishers must comply with the General Data Protection Regulation (GDPR), while in California they are subject to the California Consumer Privacy Act (CCPA).

2. Update your Ads.txt file

If you haven’t already done so, add an ads.txt file to the root of your site and make it public. Then make sure that all the vendor partners you work with are listed in this file so that they are all authorized to commercialize your ad inventory. 

3. Adapt your Advertising Pressure 

If you are tempted to increase the number of advertising spaces on your site, don’t do it! Instead of turning their site into a Christmas tree, we advise publishers to adjust the advertising pressure by finding the most harmonious distribution of ads. Doing so, you will improve your user experience and your Google ranking. How to do it? By using an automatic ad placement feature. This type of technology has another advantage: it identifies all potential locations, even in content of mixed lengths, and ensures that no display opportunity is missed. 

4. Use in-view ad-refresh

Definitely a must-have! This feature (available in our all-in-one solution), allows you to refresh an ad in the same ad slot, without refreshing the page. This way, you can have more impressions without increasing ad pressure. However, be careful not to over-use this technology: a too fast refresh could affect the click rate and eventually your eCPM and fill rate. 

5. Set up multiple ad sizes and formats 

By offering multiple sizes and formats for each ad slot, you will meet the criteria of more advertisers and receive a greater number of bids. This maximizes your chances of receiving a higher CPM and a higher fill rate.

To find out our 10 additional tips, fill the form and get access to the replay of our webinar:

Any doubt? Our team of experts is here to help you. Do not hesitate to contact us.

6 Reasons to Deploy Dynamic Price Floors for Your Ad Inventories

Adapting to market changes in order to stay competitive and continually optimizing ad inventories are the main areas of focus for publishers. To guarantee optimum performance, Opti Digital’s Opti Yield solution finds the ideal price for media using advanced dynamic floor pricing technology. Why should you deploy an automated price floor solution to maximize your yield? Find the answer in our new article. 

1. Improve Advertising Revenues

This is the main reason: the quest for more revenue. Deploying an automated floor price solution helps improve advertising earnings by adjusting them based on bid history (market trends, seasonality, day, time, etc.). But optimizing ad performance doesn’t mean you should solely target improved eCPMs. Instead, it’s about finding the base price that guarantees the best RPM (revenue per thousand impressions), because high minimum prices do indeed increase the eCPM, but they also lead to higher unsold rates. Opting for a dynamic solution means maximizing revenues for your media. 

2. Save Time and Resources

Dynamic price floors save you precious time and internal human resources. There is no manual action required from publishers. This plug & play technology connects to the existing ad stack via an add-on module and automatically optimizes bids. Agile and flexible, it can be quickly deployed and operates with any currency. Once implemented, this technology is managed via an online platform. This saves you more time so you can focus on content creation, audience engagement, and your SEO.

Read: All You Need to Know About SEO Search Intent 

3. Optimize Risk Management

Dynamic price floors offer numerous benefits for risk management. They offer the personalized promotion of all inventories and boost ad impressions, even generally low-value ones. This firstly avoids applying prices that are too high to low-value impressions and thus minimizes the risk of unsold inventories. It also encourages buyers to pay more for in-demand inventories, thus reducing the potential cost of their remaining unsold. 

4. Deal with the Issue of Seasonality

The complex sector of digital advertising presents a host of challenges, one of which is seasonality. The summer months and the first month of the year usually mean a drop in eCPMs and poor overall ad performance as there is more limited demand from advertisers. A specific feature of our dynamic price floors is that they adjust to seasonality, which compensates for this drop in demand and makes it possible to predict future variations in CPMs and thus any variation in fill rates and revenue. 

Read: Why Do Your Advertising Revenues Drop Every Year in January, July, and August?

5. Offer a Better-Quality UX

Dynamic price floors automatically optimize ad inventories based on the bids offered. This actually encourages advertisers to pay more. The highest bidders are often major brands that are familiar to users with sizeable budgets. This enables them to provide the visitor with more value through more sophisticated creatives and reduces access to inventories to long-tail advertisers who are often less well known and that might affect the user experience.  

In other words, it creates a virtuous circle that is as profitable for the publisher as it is for its visitor: improved user experience, increased visitor loyalty, and increased revenues. 

Automatic yield management also helps generate more revenue without adding advertising pressure. The opposite often occurs with an increase in unsold inventories and thus a lower ad density.

6. Calculate the Right Price for Inventories

Introduced a few years ago in the buy-side programmatic market, Bid Shading is a technique designed to lower CPMs by looking to find the lowest price from which SSPs can win bids. Marketplaces and bidders have been quick to allocate a significant proportion (around 20%) of their purchase budgets to searching for minimum prices in order to maximize their margins. 

In contrast, when it comes to publishers, bid shading tends to reduce profits, and dynamic floor pricing helps regain lost value by encouraging buyers to increase their prices. 

In this way, dynamic price floors avoid depreciation of the value of inventories. This technology offers prices that reflect the actual value of inventories, preventing advertisers from bidding below the set price. 

More revenue, saved time and resources, better UX… There are many benefits to implementing an automated solution to optimize your yield. Our Opti Yield solution delivers excellent results for our clients and will soon be released as a stand-alone solution. For an exclusive early trial, contact our team

How Do Dynamic Price Floors Allow Publishers to Increase Revenues by up to 40%?

Dynamic pricing is one of the hottest topics in the programmatic world. In parallel with the launch of Google’s new pricing option, “Optimized Floor Prices,” we unveiled our new product, Opti Yield, whose first flagship innovation is an optimized dynamic floor price technology that is already offering outstanding results. Why should you choose a dynamic price floor solution and how does Opti Digital’s offer stand out in the market?

Adapt the Price Floor to Surrounding Factors

Dynamic Price Floors by Opti Digital is a process for selling ads that involves setting a minimum price for your inventory and then automatically adjusting this price depending on certain factors. Unlike static price floors, this intelligent technology combines several advantages.

Firstly, it takes into account historical demand bid data of demand partners and adjusts price floors automatically, day by day, and hour by hour. By implementing dynamic price floors, publishers make sure that SSPs bid a minimum price in relation to the previous offers. 

More than bid history, this technology also adjusts the price of a publisher’s inventories according to the inventories: pages, placement, ad size, etc. For example, in-read ads are very qualitative and usually have a 70% viewability rate. Our algorithm will adjust the price floor based on this information. The user’s browsing history is also an element that feeds our algorithm: The more cookies there are in a browser, the better the targeting capabilities for the buyer who will pay more for a highly qualified user target.

While these adjustments can also be made manually, using a technology based on machine learning not only saves precious time but also avoids human error in data analysis and a lack of reactivity in case of a sudden change in the above conditions.

Seek Transparency to Challenge Competition

Today, few companies offering this technology are capable of managing such an algorithm and pushing it to SSPs through Prebid and to Google Ad Manager. However, not communicating the price floor to the wrapper client-side represents a real loss of revenue for publishers. That’s why at Opti Digital, we have chosen to offer a holistic technology that communicates price floors in the bid request to all connected marketplaces.

To better understand what this means in terms of profitability, let’s take a look at the following two examples:

Example 1 — With General Price Floors Used in Header Bidding

A static floor price of $1.4 is set in Google Ad Manager. However, when publishers sell an ad unit in Header Bidding, they could receive a bid of $1.3 through Prebid, as the price floor set in Google Ad Manager is not visible to all SSPs connected in Header bidding. The Prebid winning bid is then submitted to Google. In parallel, Google Ad Manager is informed of the $1.4 floor price and can bid accordingly, most likely $1.5. It penalizes the SSPs connected in Prebid until their bidding algorithms find the floor level, and gives the advantage to Google.

Example 2 — With Opti Digitals Dynamic Price Floors Used in Header Bidding

Opti Digital’s dynamic price floor technology sets a price floor according to several conditions. When the price floor is set, the information is directly communicated to the SSPs through Prebid. So if the floor price is set at $1.4, it is very likely that the SSPs will bid $1.5. This winning bid is then submitted to Google Ad Manager, which, if interested, will outbid at $1.6. 

In the second example, publishers will receive an offer at $1.6 instead of $1.5 due to competition of Prebid against Google.

Watch Your Ad Request Net eCMP Increase 

When implementing this technology on a publisher’s site, Opti Digital systematically performs A/B tests on smaller traffic in order to identify the average uplift and propose it to a larger audience (up to 85%) afterward.

In January 2022, we ran an A/B test on a web page of a media publisher in Europe. We tested our dynamic price floor solution on 30% of its traffic to see how it affected its net ad request eCPM. Here are the results we observed on a specific ad placement:

Dynamic Price Floors

In the first graph, you observe an average unsold rate of 0.11% in January, for an ad request eCPM (in the above graph, the clear violet line called “inventaire eCPM”) of $1.76. In the second graph, the unfilled rate is higher (2.98% on average), but the average ad request eCPM is better: $2.05, an increase of nearly 17%.

Dynamic floor price optimization is a general approach that adapts to complex market constraints and makes it possible to seize different opportunities throughout the year. The Opti Yield technology offered by Opti Digital goes even further, as it boosts the level of competition between Prebid, Amazon, and Google Ad Exchange. Through this transparency, Opti Digital is also preparing for the implementation of the future regulation, the “Digital Services Act,” which should come into effect in 2024. One of the main missions of this act is to make platforms more transparent; for example, they will have to explain how their algorithms work for targeting advertising.

To learn more about our solution, feel free to reach out to one of our experts.

Why do your advertising revenues drop every year in January, July and August?

Summer is here, the most frightening period for publishers, just like January. The reason? A drop in eCPMs and poor overall advertising performance. This yearly phenomenon is common to all publishers. There are several reasons why… Find out in this article and learn how to overcome them by implementing some good practices.

Why do we see a drop in advertising performance at certain times?

Every year, the same thing happens. The advertising statistics for January, July and August raise hackles. Here are the main explanations:

  • Fewer purchase intentions and advertising campaigns at the beginning of the year. 

After the fourth quarter, users’ purchase intentions decrease and e-commerce sites record less visits.

Due to this drop in traffic, most advertisers are significantly reducing their participation in auctions. Indeed, they tend to moderate their spending and be more cautious with their advertising budget at the beginning of the year, which results in lower eCPMs.

  • Summer break. 

In July and August, users slow down their web browsing to take full advantage of their summer holiday. Another reason for the drop in summer revenue is that budgets are sometimes reviewed at the beginning of the semester. July corresponds to the start of the 2ᵉ semester when advertisers budget is more spread out over the last quarter. 

Other, more specific, reasons for a drop in audience and revenue may include:

  • Inflation. 
  • The geopolitical context (The war between Russia and Ukraine since February 2022).
  • An increase in negative consents in 2022 vs. 2021 with the implementation of the new CMP format (“reject all” or “continue without accepting” options on the first screen of the CMP). However, comparisons between these two years should be made with caution. Q2 2021 was an exceptional period of post-lockdown recovery. 

How to minimize this drop?

To compensate for this decline, there are several techniques you can use:

  • Adopt the right floor price strategy. 

Since advertiser demand is stronger in the fourth quarter, we recommend increasing floor prices for this period. On the other hand, it is better to reduce them in January. 

Rather than doing this manually, we recommend implementing an automatic strategy. Our dynamic floor price optimization technology adjusts floor prices based on seasonality and a wide range of criteria calculated with AI. This strategy allows maintaining a good level of revenue for publishers and offers transparency to SSPs since the floor price is communicated to all marketplaces before the auction. 

To go further: discover Opti Yield, a solution that dynamically optimizes your ad yield.

  • Optimize your advertising inventories. 

You can, for example, offer formats with high eCPMs such as sticky bottom or sticky top formats and interstitials. 

We also recommend that you choose an automatic advertising insertion feature on your pages that host long content so that you don’t forget to monetize certain inventories. 

  • Improve your SEO and viewability rate. 

Optimize your site so that it loads quickly and is well indexed in the SERPs in order to gain traffic and therefore, additional income. We also advise you to improve the viewability of the ads thanks to lazy loading for example, in order to increase the loading speed of your site and obtain a better fill rate. Indeed, advertisers prefer to invest in an inventory with a high viewability rate, above 70%. 

  • Take advantage of the best performing months

June, October, November and December are the months when advertisers concentrate their ad expenses (increased traffic before the summer vacations, Black Friday, Thanksgiving in the United States and Christmas). This is why ad revenue is usually higher in the 2ᵉ and 4ᵉ quarters as traffic and user engagement increases. Maximizing your revenue in these months can help compensate for lower revenue in January, July and August. 

At Opti Digital, we constantly follow up with the advertising performance of our publishers via our dashboard, and we systematically check that our setup remains optimal. Our dynamic price floor optimization, automatic content insertion and intelligent ad refresh technologies are able to compensate for seasonal revenue drops.

If you have any questions about our products and support, contact us 😊

Everything You Need to Know about Price Floors in Programmatic Advertising

In just a few years, the digital advertising market has been transformed by changes in advertising practices and the huge influx of complex technical innovations. So publishers now have a problem finding their way around and effectively optimising their advertising gains, while their resources are sometimes lacking. Implementing an effective price floor strategy is one of the many parameters to be taken into account to maximise advertising revenue. But what is a price floor? Why is it important to choose the right pricing strategy? And which is the best one? Everything is explained in our article.

The Principle of Price Floors in Programmatic Advertising

According to Marketing-Definitions (French online encyclopaedia about marketing), a price floor, also known as a floor price, is a “minimum auction price specified by the advertising medium on the SSP through the bid request”. This is the value below which an advert cannot be sold in an ad server. In other words, a price floor prevents advertisers from buying at a price lower than a certain amount, thus guaranteeing minimum revenue per impression for the publisher. 

If it is set correctly, the price floor is good for the audience, who may benefit from adverts that are often more qualitative. In effect, lower-quality adverts are usually sold at a cost lower than that set by the price floor.

But finding the ideal price floor is not obvious for the publisher: if it is too high, it can result in an increase in unsold inventories and have a significant impact on total advertising revenue. This is why it is key to choose the right strategy for your media. 

The Various Price Floor Strategies

There are now several price floor techniques that can be set in the Google Ad Manager Ad Server. A price floor can be applied to all inventories on a site or be dependent on well-defined targeting criteria: by advertising location, device, country or format type, for example. Price floors can also be applied in each SSP.

Price Floors
Source: Google Ad Manager Platform of an Opti Digital client

The Static Price Floor

A static, or hard, price floor is an amount set by the publisher as a minimum price for its advertising inventories. This strategy is used to obtain the highest prices on advertising that attract more commitment. This strategy means that certain undesirable advertisers can be avoided, so as to offer visitors qualitative and profitable adverts. 

On the other hand, there are some drawbacks with static price floors: 

  • Setting a price that is too high can represent a loss of earnings in addition to reducing the fill rate. 
  • The price floor needs to be changed regularly and the context (seasonality, day of the week, time, events, etc.) taken into account, otherwise publishers can miss out on opportunities relating to sales and revenue.
  • Therefore, this strategy can lead to a reduction in the number of displays and a lower RPM than in the context of a strategy with target CPM. 

The Target CPM

The target CPM enables the fill rate and profitability to be increased, while maintaining an average minimum price for inventories. The aim of this strategy is to achieve an average eCPM that is usually higher than for static price floors. 

The advantage of the target CPM is that it protects publishers should there be several bids below the set price. The target CPM allows campaigns with a slightly lower CPM to be disseminated, so as to optimise the fill rate. This flexibility is offset by the tool with other sales opportunities at a price higher than the target CPM.

The disadvantage is the lack of transparency: this variable limit is only visible to the Google Ad Exchange marketplace. The other partners connected through header bidding are unaware of the minimum limit before submitting their bids.

Dynamic Price Floors 

Recently, Google has been offering a beta version of a new price floor strategy in its Ad Server: Optimize floor prices. Driven by an intelligent algorithm, the strategy means that publishers can maintain competitive prices for their adverts, while leaving Google to set the minimum price. If the demand for inventories is low, then the price floor will also be low. Conversely, if demand is high, the price floor will be higher. 

Dynamic price floors can be beneficial for publishers as they guarantee a fair value for inventories, based on bidders’ participation in auctions. 

However, there are limits to this strategy: 

  • Dynamic price floors take fluctuation in demand into account, which can result in a price variation for the same inventories, potentially creating some frustration for buyers. 
  • This increases the lack of transparency and strengthens the dominant position of Google Ad Exchange over other SSPs as these price floors are only visible to Google Ad Exchange and Open Bidding, but they are imposed on all marketplaces. SSPs connected via Prebid and Amazon have to continuously adjust their auctions.

Although these three methods enable impairment of inventories to be avoided, today they present major limitations. 

A new strategy will soon be available, thanks to Opti Digital. In fact, our product team, formed from data scientists, engineers and computer programmers, is putting the finishing touches to an intelligent price floor optimisation technology, calculated according to many criteria (history, page, location, time, days of the week, etc.). Offering more transparency to all demand partners, dynamically applied price floors will be communicated to all ad exchanges connected to Google Ad Manager: Prebid, Amazon, Google Ad Exchange and Open Bidding. It is in beta on a portion of our media traffic, and we are already observing an average increase of 40% in their advertising gains… 

Don’t hesitate to click here: Dynamic Price Floor Optimisation or contact us to find out more: contact form