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Ad Yield Optimization Guide for Retail Digital Media - Blogs

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Ad Yield Optimization Guide for Retail Digital Media

Jul 30 2024 ,

While the brick-and-mortar offline retail market is struggling post-pandemic, the online digital retail sector continues to experience strong growth as customers shift to online purchases. This increase in online customer activity is driving a steady increase in digital advertising spending running through the various Retail Digital Media (RDM) platforms. In 2024, ad spending in digital retail media advertising is projected to reach 136.07 billion U.S. dollars, with the bulk coming from the US market. One clear result is that a platform's user base and owned and operated inventory is becoming more valuable than ever before. The real question is, are you, as a platform, ready to harness the full potential of the market and increase your ad yield?

Before Optimizing Ad Yield, Optimize Your Site

One critical decision is how, when & where to place ads on your inventory. You need to balance advertising revenue with the user experience. Users want a clean layout free of clutter, and advertisers want to maximize budget efficiency via engaging ad units. 

7 Steps for RDM Platforms to Optimize Ad Yield

Publishers who have optimized their RDM platforms but are not seeing the results they want, should take steps to maximize their ad yield. Here is what we suggest:

Step 1: Comprehensive Data Analysis 

Gather and Analyze Your 1st-Party Data 

To start, leverage the 1st-party data stored in internal data warehouses. Focus on key metrics such as return on advertising spend (ROAS), click-through rate (CTR), fill rate, viewability, video completion, and user engagement. By analyzing these metrics, you can identify trends and patterns that highlight what works and what doesn't. 

Segment Your Audience 

Next, segment your audience based on behavior, demographics, and device type. Behavioral segmentation involves looking at users' interactions and time spent on your site, while demographic segmentation focuses on age, location, etc. Device segmentation helps you optimize ad strategies across different platforms (desktop, mobile, tablet). Analyze past campaign performance and delivery to inform upcoming media planning to ensure optimal KPI performance.

Did you know - Using AI can completely change the way you interact with the data and boost your efficiency, scalability, and speed. With customized GenAI models and a good partner, you can have your modern data platform, along with perfected models, that can help you analyze the vast amount of data needed for audience segmentation. 

Step 2: Optimize Ad Placement and Layout 

Conduct A/B Testing 

Utilize A/B testing frameworks to compare the performance of different ad formats, sizes, placements, creative content, and targeting options. Test creative messaging and ad unit type to see which ones attract more engagement. 

Example: Test whether a rotating carousel performs better at the top of the page versus in the middle of the content. Track the performance and choose the placement that yields higher engagement and revenue. 

Use Heatmaps 

Heatmap tools like Hotjar, VWO, or Crazy Egg can reveal high-engagement areas on your site. Position ads in these areas to increase visibility and clicks, ensuring that your most valuable real estate is used effectively. 

Tip: Regularly review heatmaps and adjust ad placements to align with changes in user behavior over time. 

Step 3: Enhance Targeting Strategies 

Nonendemic Advertising

To increase revenue and sell-through rates, utilize unique and dynamic ad units for top-of-the-funnel branding campaigns. Leverage higher engagement rates to pull ad spend from other inventory sources such as programmatic or social media platforms. 

Example: Your users are also receiving branding digital media ads in other inventory sources such as programmatic. Partner with nonendemic brands (such as airlines for home improvement platforms) to understand who they are trying to reach and align your audience segments with their desired audiences.

Geo-Targeting 

Serve ads relevant to the user’s geographic location. For instance, local business ads can be targeted to users in specific regions, making them more relevant and likely to convert. 

Retargeting Campaigns 

Implement retargeting to re-engage users who have previously interacted with your site but didn’t convert. For example, display ads for items users left in their carts to encourage them to complete their purchases. 

Example: A user visits your platform and views a pair of shoes but doesn’t buy them. Use retargeting ads to remind them about the shoes and possibly offer a discount. 

Step 4: Diversify Ad Formats 

Experiment with Different Ad Types 

Utilize a mix of ad formats such as video, static display, and offers/discount ads. Each format has distinct strengths and can cater to different user preferences, thereby increasing overall ad yield. 

Use Rich Media Ads 

Incorporate rich media ads that offer interactive elements. These ads can include animations, quizzes, or other interactive features that increase user engagement and click-through rates. Ensure that your ad spaces can support rich media creatives. 

Tip: Enable your platform to support engaging rich media ads that encourage interaction, such as ads that let users spin a wheel for a chance to win a discount. But, while doing so, always take care of your core web vitals (CWV), especially the page load speed. And never ever let these ads interfere with your user's experience. 

If certain ad formats aren't delivering the desired results, it's time to explore additional ones. For example, if single ad units at the top of the results page are not yielding a satisfactory yield, switch to a rotating carousel with multiple brand options. 

Step 5: Leverage Programmatic

Real-Time Bidding (RTB) 

Enable RTB to allow ad exchanges to bid on your inventory in real time. This is one way to augment your internal sales activities by bidding on unsold inventory. It increases the sell-through rate, driving up revenue. Understand core RTB protocols governing communication between publishers, ad exchanges, and advertisers during real-time bidding. 

Two additional options are private marketplaces (PMP) & direct deals with advertisers. Compared to open auctions, PMPs provide more control over who buys your inventory and at what price, leading to better deals and higher-quality ads. For direct deals, platforms interact directly with advertisers looking to buy inventory via their already established buying platforms. However, direct deals eliminate auctions, meaning publishers will have to set fixed rates to sell their inventory.

Step 6: Utilize Advanced Analytics and Reporting 

Real-Time Monitoring 

Use real-time analytics tools to monitor ad performance and make immediate adjustments. This helps you react quickly to issues or opportunities, ensuring optimal ad performance. 

Example: If you notice a sudden drop in eCPM, investigate immediately to identify the cause and take corrective action. 

Custom Dashboards 

Develop custom dashboards to visualize key metrics and track performance over time. Dashboards provide a comprehensive view of your ad performance at a glimpse, making it easier to identify trends and make informed decisions. 

Tip: Use our AI-powered analytics engine and customizable dashboards for real-time monitoring, which will allow you to focus on optimizing your ad strategy without wrestling with complex data sets.

Predictive Analytics 

Leverage predictive analytics to forecast performance trends and make data-driven decisions. Predictive models can help you anticipate future performance and optimize strategies accordingly. 

Example: Use machine learning models to predict which ad placements are likely to perform best during certain times of the year and adjust your strategies accordingly.

Step 7: Focus on User Experience

Optimize Ad Load Speed

Ensure ads load quickly to maintain a smooth user experience. Slow-loading ads can frustrate users and increase bounce rates. Implement lazy loading for ads to improve page load times and user satisfaction.

Tip: Compress ad files and use asynchronous loading to prevent ads from slowing down your site.

Balance Ad Density

Avoid overcrowding your site with ads. Maintain a balance between ad density and content to ensure a positive user experience. Too many ads can be intrusive and force users away.

Example: Limit the number of ads per page to avoid overwhelming users. A common best practice is to keep the ad density below 30%.

Ensure Ad Relevance & Quality

Ads relevant to the user’s interests and the content they are viewing are more likely to be clicked and less likely to be ignored, enhancing overall ad performance.

Tip: Use contextual ad networks that match ads to the content on your page for higher relevance.

Few Bonus Tips

  • Regularly test different strategies and iterate based on performance data. This comes in handy when identifying the most effective tactics and refining your approach for better results.
  • Keep up with the latest trends and technologies in digital advertising. It will help you adapt to changes and leverage new opportunities.
  • Conduct regular ad inventory and performance audits to identify and rectify any issues.

Before You Go

iOPEX Technologies aids publishers with comprehensive yield management and optimization solutions designed to extract the best out of their investments. Enabling customers to continuously optimize and scale, our Digital Advertising solutions set a new standard for every key metric that matters - from high-quality ads to AI-powered technology and real-time ad ops support.

Interested to learn how?
Contact us, and we will help you discover the true potential of your business within 30 minutes.


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