Published on: 29 Jul 2022
Reading time: 6 minutes
Any organization that owns digital assets like high-traffic websites or mobile applications will at some point want to monetize the same. Digital ads are the most popular way of monetizing websites, but whether or not that will work for you is a different question altogether. It is crucial for you to first understand what advertising revenue is, its sources, and how you can optimize your digital ad revenue before you start monetizing through digital ads.
Advertising revenue is a term that refers to the income you earn from your online platforms, like social media accounts, websites, apps, etc., by publishing paid advertisements along with the content you publish. You can calculate the ad revenue per view, per user conversion, or per click, based on the ad management software you choose, and your target advertisers. Publishers with multi-channel digital inventories that include email, web, push notification platforms, apps, etc. can earn revenue through video ads, rich media ads, emailers, sponsored content, and much more by affecting monetization across their inventory.
There are several ways of monetizing and earning ad revenue – per view of a video ad, per user acquisition (conversion), per click, per 1000 impressions, etc. Publishers can choose how they want to charge advertisers for optimizing their average per user ad revenue. Today, the most popular and effortless way for publishers to monetize through digital ads is with programmatic advertising, where they work through a Supply Side Platform (SSP) that auctions the available display ad space to the highest bidder in real-time, every time a user loads the publisher’s site. The sources from which you can earn advertising revenue may vary, depending on whether you are selling ad space on social media or on your website.
There are many forms of advertising that can be done on a website, including:
The next step in monetizing your website should be for increasing user traffic and improving session lengths, which can help increase the digital ad revenue you earn. Mostly, ad payments are based on the PPC (Pay-per-Click) model, where the publisher gets paid every time a user clicks on an ad hosted by them, or on the PPM (Pay-per-Impression) model, where publishers are paid for every 1000 views of the ad (or impressions), regardless of whether they click on the ad or not. Another popular source of advertising revenue is the payment that publishers can charge for allowing advertisers to contribute to the published content or for simple referrals being included in the content.
OTTs or Over-the-Top services and platforms are enjoying a lot of popularity in recent times, as users shift online for their entertainment needs. OTTs are a completely new source of ad revenue for video streaming platforms that advertisers have begun taking notice of. The AVOD (Ad-Based Video on Demand) revenue model is based on platforms providing content to their users for free. However, the content is served with ads, and the platform generates revenue by charging advertisers fees for a space to play commercials. The AVOD digital ad revenue model can be applied by platforms by itself or in a hybrid revenue model, along with SVOD (Subscription-Based), and TVOD (Transaction-Based) models.
The ads can be played as sponsored content, sponsor screens, video ads, commercials, pop-ups, etc., and can be displayed pre-roll (at the beginning of the content), mid-roll, between video plays, or post-roll (at the end of the video.) OTT ad insertion methods include:
Selling ad space on OTTs can be done through Guaranteed Insertion Orders or IOs (Prices and impressions are set, based on the frequency of appearance of the ad and reach) or Programmatic (Real-time bidding where advertisers can control targeting but not the set frequency or impressions).
For significant savings on ad operations overhead, while delivering value for advertisers as well as an impactful end-user experience, it is important to find the right Creative Management Platform (CMP) for monetizing digital assets.
A CMP is an ad management platform that offers advertisers various features and capabilities, including:
Advanced Ad Analytics Tracking: Enjoy access to quality, real-time, detailed analytics, like viewability, time spent on ad, etc., which can be pivotal for optimizing ongoing and planning future campaigns as well.
Easy to Use Platform for Serving Various Ad Formats: Choose from various pricing models to have control over costs and the pricing offered to advertisers, saving significant time and expenses in ad serving.
Easily Connect with and Manage Multiple Demand Partners: An ad platform makes it extremely convenient for publishers to manage multiple advertisers (demand partners) at the same time, while also allowing you to run several rich media campaigns with advanced ad management tools and features.
Optimize the Sales of Your Ad Spaces: An ad management platform allows you to streamline your direct sales, ensuring that only relevant ads are served, which also helps improve the click-through rates and conversions of a campaign.
Enjoy Complete Control Over Campaign Performance: A CMP or ad serving platform for publishers is equipped with advanced features, offering complete control over how the campaign is performing with real-time ad serving analytics and over ad creatives for running A/B testing, etc., to help optimize ad campaigns.
Better ROI: Helping automate the workflow as well as the per user ad revenue being generated and offering capabilities like customized set-ups for high-value demand partners, an ad management platform can significantly improve your ROI.
Easy-to-Use Universal Tags: Tap into new opportunities throughout your digital inventory with easy-to-use tags that are compatible across platforms – it helps create highly interactive and engaging ad experiences.
The Creative Management Platform by Airtory allows you to launch and optimize digital ad campaigns, offering several features like comprehensive reporting, advanced ad serving tools, and much more for managing high-performing ad campaigns and maximizing ad revenue.
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