Ad Yield Ops 103: Ad Unit Placement and Settings Why is it Important?

In this lesson, you will learn why ad placement and ad settings really matter.

 

 

Lesson Overview + Resources:

In this lesson, we'll walk through the importance of ad unit placements. This includes:

  • Why ad unit placement and settings matter
  • The complex relationship between fill rate, CPMs, and ad revenue

Here are additional resources pertaining to this module:

Read the Transcript:

Before we jump into recommendations on ad layout, let’s go through why ad placement really matters in the first place.

There are a couple key reasons why every publisher should be concerned with ad layout and density, and most of them tie directly back to your ability to earn revenue.

The first, and foremost concern when it comes to ad layout is user experience. Users hate an experience cluttered with too many ads, or a disruption to their experience by an ad. They’ll happily accept experiences that incorporate ads so long as they don’t interfere too deeply with their ability to digest content or meet their needs.

Ultimately, ad clutter or poor ad experiences will result in unhappy users, which leads to reduced page views, which significantly alters your ability to drive ad revenue.

Supply and demand create a very delicate interplay in how they influence your total revenue. Increase your supply (or, the volume of ads) and the demand for that supply will go down (meaning, your CPMs).

You want the perfect balance between that supply and demand to maximize your top-line revenue. Increasing the sheer number of ads you show increases your supply. 

Adding too many ads to your experience will increase your supply to the point that demand drops precipitously and ultimately starts to decrease your top-line ad revenue.

If you have a direct sales team working to sell inventory directly to brands and agencies, you’ll quickly find that one of the most common areas of pushback on a publisher website is ad clutter. If a brand or agency views a publisher website as overly-cluttered with ads, it has no hope of earning direct advertising deals, which are huge drivers in increasing ad revenue.

Because advertisers don’t love overly cluttered sites, programmatic players like SSPs and DSPs may also black list sites that are overly cluttered with ads in an effort to keep advertisers happy and willing to spend on their platform.

Getting black listed on one of the major players in the ad supply chain can have huge implications on the amount of ad revenue a publisher can ultimately earn, as it cuts off vast swaths of buyers with the push of a single button.