We are giving a quick overview of second price auction problem, pacing, and making a switch from CPI to CPM.
As a publisher, you’re always on the lookout for effective strategies to increase your mobile ad revenue. The amount of information, tips and tricks out there is staggering. How do you sift through it all and get down to what really works?
We’ve compiled some of the most valuable approaches from Pavel Golubev’s presentation at Casual Connect, “Monetization: How to Triple Your Earnings from Ad Networks.” If you need a refresher on effective monetization lessons, we’ve got the recap right here for you.
The second price auction set-up is a conundrum for many publishers. Advertisers rarely pay the price they bid and often secure advertisement space with a single penny over the second highest bid. As Golubev pointed out, in this scenario, it’s necessary to bring in a decoy or shill to achieve a fair price.
Introducing a third party to bid brings the balance back to the auction process. Bids are instead lowered by set increments and networks purchase the impression at the price they bid.
In the end, the bidder gets their advertisement spot, and the publisher gets a fair price that meets the advertiser’s budget. It’s a win-win.
Pacing is one of the most important concepts for publishers. Advertisers make use of this technique to spend their daily budgets while delivering ads across an allotted time period. But what does pacing mean to the publisher?
Publishers can find themselves selling advertisements to second-tier advertisers when their users don’t match higher pacing advertisers. Instead of settling for second best, skip unattractive bids and run as many auctions as you can. This technique was implemented at Appodeal and increased earnings by 30%.
The CPI vs. CPM debate continues. Many publishers find the CPI model to be unfair as they may be penalized for elements outside their control.
Golubev explained the issue with CPI saying, “You only get paid when conversion occurs, but this is something that you can control. You cannot control as a publisher the quality of advertisements. You cannot control the quality of the landing page.”
CPM, on the other hand, allows publishers to earn revenue for every 1,000 impressions displayed. This model not only increases the potential for scalability, but it also spreads out the risk more evenly between the advertiser and the publisher.
So, what should publishers be aware of when making the switch to a CPM model?
Remember the importance of user data. Do you have enough on hand to share with advertising partners? This information is crucial for creating attractive user segments for advertisers.
If you’re thinking of heading to a DMP, hold off. These platforms are still largely amateur and inaccurate in the mobile world.
Instead, collect your user data through:
Social networks where you can integrate Facebook and the like in your app to request user permissions.
Rewarded surveys implemented in your app where users can gain premium status, coins, etc.
Just don’t forget to display a privacy alert.
Are you ready to level up your game monetization efforts? Then check out our summary of the latest report from Video Games Intelligence and SuperData.
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About Appodeal
We believe that the mobile ad industry is unfairly built in favor of advertisers. Our mission is to bring the power back to mobile app publishers.
We have established a marketplace where ad networks compete in real-time against each other for your ad inventory. Publishers increase revenue with our programmatic ad mediation solution, which engages ad networks in auction-based competition for every ad impression.
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