Despite the fact that paid content and premium services are back in
fashion today, a significant number of online publishers still rely
wholly or partially on advertising revenue.
Yet many of them shoot themselves in the foot by engaging in behavior
that limits their potential to generate ad revenue instead of boosting
Here are five of these behaviors…
- Poor yield management. Serving up more impressions usually doesn’t mean greater revenue, and trying to create impressions like a central bank printing currency often has the effect of devaluing each impression. But that doesn’t stop many publishers from doing swinish things in an effort to maximize impressions instead of yield.
- Lazy ad placement. ‘Ad placement‘ encompasses the location of advertising, the format of the advertising and the type of advertising (CPM, CPC, etc.). The right ad placement can deliver stellar results, while bad ad placement can produce disappointment. Unfortunately, thoughtful ad placement is often missing in action.
- Relying too much on ad networks and exchanges. Ad networks and exchanges may be a necessity pragmatically, but publishers have good reason to be careful about how and when they employ them as ad networks can be detrimental. Ad networks and exchanges may hamper a publisher’s efforts to sell inventory directly at a premium, as savvy advertisers can often get access to ‘premium‘ sites for pennies on the dollar through them.
- Not making an effort to sell. Ads don’t sell themselves. While it may not be possible for smaller publishers to hire a dedicated sales team, in my experience a surprising number of publishers don’t even try to sell their ads proactively on their own. That makes it awfully hard to build a business that isn’t dependent on ad network crumbs.
- Having a ‘once and done’ mentality. Making money with an ad-based business model online is a journey, not a destination. Publishers who throw up a bunch of ads and who aren’t constantly analyzing performance and experimenting with their ‘ad formula‘ will almost always earn far less than they otherwise could.
By focusing on what really matters, staying proactive and avoiding the above behaviors, publishers can often realize significant increases in their ad revenue.
Photo credit: Photos8.com via Flickr.