However, all is not lost. Here are seven very important steps to improve ad revenue naturally, helping to fix a system that may not be working for your organization:
1) Be flexible enough to offer advertisers special executions, branded content, etc. Advertisers love opportunities to do something unexpected with great impact, and this will also further differentiate your premium channels from your secondary channels.
2) Be mindful of the user experience. Ads that are intrusive, low quality and/or malicious in nature will turn off your audience almost instantly. Make sure you have the control in place to proactively manage the type of advertising that is delivered to your site. Understand the effects of design/layout/placement on both the user and advertiser experience. Design your site with both the user and advertiser in mind.
3) Online, the performance of every impression counts, and advertisers monitor everything constantly and in detail. Make sure your advertising inventory is set up to perform well for advertisers. This starts with your ad partner — when screening potential partners, ask tough questions so you know exactly what to expect up-front. Any partner who is worth working with should talk in simple, easy-to-understand terms.
4) Strike a balance between the needs of both audience and advertisers by practicing “PACE” — Placement, Audience, Content, and Environment.
• Ad/content ratio: A low ratio enhances the user experience and makes your property more attractive. Limit the number of ads per page to between two and three.
• Page positioning: Like content, ads displayed above the fold have the greatest impact.
• Ad specifications: Be selective about the type of ads that run on your property. Consider the file sizes and how the format may impact the user experience. The key is to strike a balance between what advertisers want and what users will appreciate.
• Choose partners that can mitigate latency issues that can bog down the browsing experience.
• Consider the impact of site features, such as auto-refreshing or gallery-based content, that may lower the performance value of impressions for advertisers.
5) Don’t compromise the value of your premium inventory by bundling it with your long tail. Your brand value is affected by the type of ads that run on your site. If you plan to operate a direct sales force, make sure your premium channel’s interests are protected. Having stricter controls on that inventory protects your direct sales.
6) Context matters. Ads that complement the subject matter of your site will not only perform better for advertisers but will enhance the overall experience you provide to site visitors.
7) Invest in ad serving and ad operations, either in-house or outsourced. Consider working with ad networks that provide or supplement the necessary technology and reporting you will need to start monetizing your inventory. A third-party vendor can instantly make your property more attractive to direct advertisers and can help you optimize yield effectively. Advertisers are willing to pay premium rates for premium placements, but online, up to 80 percent of a typical site’s inventory could be classified as mid or long tail. A third party can help preserve the value of your premium bookings.
Making simple changes to how your property is set up to earn revenue from advertising can pay off immediately and will help you protect (and even enhance) the experience you provide to your audience. Most importantly, commit to educating yourself on the digital space, as it can change at any moment. This also means you should be focusing on hiring experienced talent to head up your digital efforts and lead change among existing teams. This investment will pay off in the long run.
Joe Casale is CEO of Casale Media, an advertising network that specializes in helping major publishers unlock revenue through unique online advertising solutions.