Use Frequency Caps to Avoid Diminishing Returns

Use Frequency Caps to Avoid Diminishing Returns

Individual ads are much less valuable when displayed to a site’s visitor for the second, third, or even greater time. This makes sense, of course; ads are much less likely to be effective the more a user sees them (a phenomenon we’ve discussed elsewhere).

One way to increase the diversity of your ads, though not guaranteed to work, is to simply make sure you have a diverse assortment of ad networks competing with each other within each ad unit. Since the CPMs for ads fall the more often a visitor sees the ad units, the low-paying instances will just be outbid by the ads from other units.

But if you want to be guaranteed not to display an ad to the same visitor more than a certain number of times, turn on a frequency cap. You can find this in Doubleclick for Publishers under Orders >> Settings >> Adjust delivery.

You can set a maximum number of impressions per visitor, and you can also set how often the cap will be reset. For example, if you set a frequency cap of 20 that will be reset every week, then a visitor won’t see an ad more than 20 times in a week.

There’s no magic number, though. We can’t just tell you how to set a frequency cap because it depends on many different variables. But here’s what we do recommend: experimenting. Play around with frequency caps and time periods in which they’ll be reset. See how your revenue grows.

We’d love to help you increase your revenue by 50-100%. Contact us at MonetizeMore to learn more about how we can optimize your site’s revenue.

Kean Graham

CEO and Founder at MonetizeMore

Kean has been a pioneer in the AdTech world since 2010 who believes in the supremacy of direct publisher deals, programmatic advertising, and building ad technology as keys to scaling ad revenue. Here, he provides publisher resources and guides covering areas like website monetization, AdSense optimization, Google Ad Manager, Ad Exchanges, and much more.

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