Evaluating Pricing

Mobile attribution capabilities are emerging, but not yet fully in place. This means that—for good or bad—agencies and buyers are still counting clicks to indicate ad performance.

Leading publishers are putting in place new and different tactics to maximize CTR because it has such a significant impact to eCPM and yield:

  • Accepting high-impact ad formats
  • Using adhesion units that stay in view longer, independent of how consumers scroll
  • Keeping the ad on the page longer to increase the chance of consumer engagement 

Pricing different types of inventory is more of an art than a science; nonetheless, publishers can refine their strategy by applying powerful analytic tools and approaches. This is especially important because the floor has a significant impact on the bid density (the level of existing competition for the impression) and the settlement price.

Leading publishers are taking a segmented and dynamic view to managing floors that is fitted to programmatic markets:

  • Pricing Strategy: Set different floors for different types of inventory based on the specific price-performance dynamics of that type of inventory. For example, banner inventory may be priced at 80% less than interstitial inventory; US inventory may be priced at 2 times higher than the inventory in China. AOL will provide the “going rate” based on the inventory type and the expected CTR so you can take advantage of rapid uptake from buyers.
  • Floor Management: AOL continuously adapts floors to changing market dynamics and to your changing priorities (I want to optimize on CPM vs. RPM) so that you are consistently priced right in the market. It’s important to note that sought after inventory that fits advertising campaign profiles achieves eCPM above the floor and is not correlated to the floor value itself.
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