Manage Away Your Chain Of Defaults
May 29th, 2007
(Contributed by Luke Walsh, Head of Client Services for Direct Media Exchange)
Many publishers choose to manage networks by creating a chain of defaults (1-2-3). “Defaults” from each network ensure that #1 in the chain delivers a high CPM and maintains control over frequency. #2 gets the second-best block of impressions. And so on. This creates a status quo, constrained marketplace that quality networks can find challenging to break into. These networks often have high CPM campaigns in need of fill, but limited access to premium visitor impressions. For these networks and their publishers, the ideal world is one limited only by auction bid price, not by a chain of defaults.
An exchange can remove these bottlenecks to growth, but only if publishers pursue better ways of controlling visitor ad impressions.
With Direct Media Exchange, publishers have the power to set frequency-caps and establish pricing assumptions that limit, and manage each network for maximum site eCPM.
It’s time to dispel some myths about publisher-side frequency-capping:
Myth #1: Frequency-capping is more challenging than “chaining.”
A chain of defaults offers several limitations.
First of all, it is defined by access. Defaults are not setup to help you manage your inventory; they’re simply a way for networks to pass less desirable impressions to another network or house ad. With the DMX Manage tab you can force networks to compete on a level playing field, for a day, a week, or however long you want to test them.
Secondly, managing defaults and chain eCPM can be enormously time consuming. Real eCPM for all impressions sent through the “chain” is often far lower than the eCPM as reported by a network. This is because networks can’t give you the price of default impressions, or even estimated price for those impressions, they can only give you the eCPM for impressions filled. If you update CPM regularly in the Manage tab, DMX can provide a far more accurate picture of your entire eCPM.
Lastly, to reconfigure or test a new chain setup, publishers are forced to modify script tags in each network. For some networks, this can take days to implement. With the Manage tab in DMX, you simply re-price your estimated tiers, and network tags serve accordingly.
Myth #2: Networks don’t apply the same frequency rules as my DMX ad server so I will lose money if I rely on DMX frequency cookies.
In a perfect world:
1. All ad servers will represent the same frequency data equally.
2. All visitors to your site will leave cookies in their cache so they can get more relevant advertising.
3. All predictive ad servers will communicate with all others so that you know if you are getting the highest priced campaign for a given impression.
Obviously publishers, networks, and advertisers don’t operate in a perfect world. Ad server discrepancies will always leave some money on the table.
Publisher-side frequency-caps and delivery controls are designed to give publishers more control. Proprietary ad servers will always create inefficiencies when they are forced to communicate. Yet visitor frequency-caps are used by ALL network ad servers to limit campaign and exposure for advertisers. Why can’t publishers do the same to optimize campaign delivery?
Myth #3: If I don’t determine the perfect frequency-cap quickly, I will lose a lot of money.
You can easily avoid this risk. When you place your highest paying network into the DMX Manage tab, start each Managed placement with a very high frequency-cap. You can tighten the frequency later when you feel more comfortable auctioning those top-tier impressions.
Results
Publishers who take the leap to optimize via the Manage tab rarely return to the status quo chain of defaults. In fact, several have become successful Direct Media Exchange publisher case studies, following double-digit revenue growth via Direct Media Exchange.
