Ad Yield Management

Ad Yield management is maximizing yield (revenue, profit, etc.) on your ad inventory. It involves finding and selling to as many advertisers who value what you offer the most. This means a publisher can end up with different sell prices for the same ad spot over the course of the day and that is where the dance starts!

The seller is incentivized to close as man deals at the highest possible price possible to win while the advertiser wants to close as many deals of a preferred inventory at the lowest price possible. This naturally births the marketing game.

A game

  1. of managing the perceived value of an impression
  2. that is anchored on supply and demand.
  3. driven by feelings – FOMO (Fear of Missing Out)
  4. that can be thrilling
  5. that can quickly cloud fundamentals.

It is fun to play games but it is also important to remember fundamentals of enjoying a game sustainably.

To make a Warren Buffet quote my own – “it is far better to buy a wonderful inventory at a fair price than a fair inventory at a wonderful price

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