New Age Money

Multi-site (category/channel) targeting is the ability to advertise an ad on multiple sites within a specific category.

We all know this is possible with the CPC model, but in order to do the same with the CPM model, we need to do a few things.

First we need to build a category structure in order to achieve targeting. We are going to need a lot of categories and subcategories, the more, the better.

Suppose the category structure has a category named “Make money blogs”, with over 600 sites in it. We want to show our ad on all or at least some of these sites, but we also want to show the ad more times to ad spots that “convert” the most (the ad spots with higher ROI).

ROI (return of investment) is how happy is the advertiser from the specific advertisement, at the specific ad spot.

In order to recognize the ad spots with higher ROI, we have to use the only parameter that is not susceptible to fraud and this is the amount of spent money for advertising, on the ad spot. Either the “repurchase rate” or the “overall purchase amount” or any other suitable form of spent money, which i will call spent parameter, can be used to determine the real value of an ad spot. If others are spending money on it, there must be a reason.

Ad spots with a higher spent parameter, must be more productive than others with a lower one. This is how we can decide where to spent our money and how much money to spent.

Back to the example, the advertiser will be able to advertise on all sites that have a spent parameter greater than some number, so his advertisement will only show on sites that already have proved in past they are legit and worthy. We can also determine automatically the bid for each ad spot, based on the spent parameter. Less productive ad spots will get lower bids if any, and more productive ad spots will get higher bids.

For a new site without any money prior spent on it, the bids will start from the minimum and increase, in time, according to the spent parameter.

The advertiser must be able to select, out of all the publishers his ad is shown, the ones that have the best ROI. This will increase his bid for the selected ad spot and provide a higher spent parameter for the ad spot inside the network.

If the network can also track goals, we can use them to adjust dynamically the bids. Now the advertiser won’t have to select manually the sites with the best ROI, producing a completely automated advertising system.

The publishers on the other side, will see an extremely higher CTR (click through rate) because of the CPM pricing and thus higher bids and earnings. The multi-site targeting CPM system, demands the highest possible combination of ad targeting and quality of the advertised sites. Anything less, will result a lower ROI for the advertiser and eventually a lower bid and a lower position on the ad spot, outbidded by other advertisers who bid on the same ad spot.

This is by far the most productive advertising system for both advertisers and publishers, from any other system.

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Filed under: advertising networks by admin