Fixed traffic scale, using ecpm formula to improve advertising monetization capabilities

According to the concept of eCPPM, given a fixed scale of traffic, how to improve advertising monetization capabilities?

1. Concept of ECPM

ecpm=ctr*cpc unit price*1000, which can also be transformed into revenue=impressions*click-through rate*click price.

2. Improve advertising monetization capabilities

Advertising monetization capabilities do not only rely on the ecpm method.

According to the needs of advertisers, we can also distinguish between brand advertising, performance advertising, integrated brand and effect advertising, and cooperative advertising; according to the settlement method, there are CPT, CPA, CPC, CPO..., each type of advertising has different advantages and disadvantages; according to the access method, we also need to distinguish between SDK advertising, API advertising, and JS advertising; according to user attributes, we also need to distinguish between new users and old users; according to the source of advertising, we also need to distinguish between our own advertising and external advertising... This article mainly discusses the ECPPM perspective, and other perspectives will be supplemented later.

From the perspective of ecpm, to increase advertising exposure, let’s take an example based on the ecpm transformation formula.

1. Impressions

Display volume: Increasing advertising revenue by increasing the amount of advertising exposure

(1) General advertising space format

The core of commercialization is to match the behavioral paths generated under user demand goals with platform resources. The core needs of users of novel apps can be roughly divided into those who look for novels to read with a clear goal and those who look for novels to read without a clear goal.

The core resources of the novel platform are massive novels and convenient search and recommendation. The general behavior of users with clear goals: enter the app – search – browse search results – start reading; users without clear goals: enter the app – browse bookstore recommendations – select a novel – start reading (currently the user behavior is simplified, and there are still steps to search for categories, browse introductions/catalogs/beginnings, etc., and repeat the behavior until a satisfactory novel is found);

Novel platforms can add banner ads (or carousel banner ads) to the search interface, the search box can have default copy (internal traffic-generating ads), the top of the search results page can have related recommendations/banner ads, the search results information flow can have information flow ads, and the search results interface can have floating windows (floating ads);

Banner ads and internal traffic diversion ads can be placed at the top of the bookstore, and cooperative ads (traffic exchange between different platforms) can be placed at the bottom;

You can place relevant recommended internal guide ads or banner ads at the top of the comments;

Banner ads can be placed at the end of the novel reading interface (UC novel reading page gameplay);

ps: Some advertising users can be exempted through VIP.

(2) Activity form

• Add time-period check-in gameplay to wake up users at regular intervals and increase the number of times the splash screen ad is exposed
• Set interactive ad types, such as a big turntable and golden eggs, to stimulate user participation by rewarding points, display static image ads on the reward pop-up window, and provide a reward doubling button, which requires watching the rewarded video ad to double the reward.
• VIP redemption method, by completing the required tasks (incentive videos, downloads), you can redeem a limited VIP

2. Click-through rate

Click-through rate: Increase click-through rate, thereby increasing the price of the ad (there is an upper limit to the increase in click-through rate and price, which is generally a normal distribution type)

(1) Matched users

• Promote books with the same tags in search results;
• You can try to match different types of ads to the types of books that users like. For example, if they like the urban category, you can run online earning ads; if they like the chef category, you can provide food ads.
• Label different users and differentiate them by gender, region, number of ad views, etc.

(2) Activity-based gameplay

For CPM advertising, the settlement method is exposure, but if it is a long-term cooperation, the advertiser will calculate the specific user conversion (CPA type), and can guide users to download, install, try out, etc. through online earning.

(3) Scenario

• Generally speaking, the click-through rate of permanent functions (such as check-in) is better than that of information flow;
• A good activity gameplay will have a higher click-through rate;
• There are also some unconventional methods, such as accidental clicks on the reading interface, accidental clicks on pop-up close buttons close to ads, and activity methods specifically created to create accidental click scenarios; it is best to distinguish between new and old users and pay attention to the impact on retention.

3. CPC price

CPC price: Increase the price per click by optimizing the delivery of advertisements

(1) Optimizing advertiser prices

• Through the above-mentioned methods of improving click-through rate, if the click-through rate is high, the CPC price will be increased to a certain extent;
• Guiding users to download and install through tasks will increase click prices to a certain extent.
• According to the user's life cycle stage, the price performance of alliance advertising and small and medium-sized DSP advertising is distinguished to achieve the goal of optimizing click price; (the price of alliance advertising is higher in the early stage, and it is supplemented by small and medium-sized DSP platforms in the later stage);
• The prices for new and old users are different, and the delivery is differentiated.

(2) Internal delivery logic

• Each time a user is exposed to an ad, it is ensured that the ad types with higher prices are displayed first, and the exposure prices of primary and secondary ads are differentiated;
• Different types of ads can complement each other to increase the display fill rate of ads;
• Depending on the location, you can place brand ads or performance ads.
• Control the frequency and magnitude of different advertisements. Sometimes high exposure can actually reduce CPC prices.

END: This article only represents my personal opinion, welcome to discuss with seniors~

Author: The World is a Mystery

Source: The World is a Mystery