Digital Pill: eCPM per impression number
When publishers want to increase their ad revenue, the first idea they tend to come up with is getting users to watch more rewarded videos.
There is a thin line here though, as the focus should be on the number of users who watch videos (so called engagement) rather than on the number of videos watched by the same users ( known as frequency).
Why is that?
Because, essentially, from the advertiser perspective, the more videos the same user watches, the lower her/his conversion rate is (they will be less likely to click on an ad and actually install the advertised app).
I’ve run an analysis based on feedback from several video ad networks and it turns out that eCPM goes down a lot after the first 4 impressions.
Let’s have a deeper look at the trend: say the eCPM of the first impression is 100%. How much will it decrease when the same user watches different videos?
The line gets basically flat after 6 impressions so there is little value added after this threshold.
Still, is value added?
Yes, the publisher will earn something from these long-tail impressions. This is something, however, marginal.
It’s no surprise if the impression number is significantly increasing but, on the other hand, the ad revenue is not following; engagement and frequency are very important KPIs to analyse, in order to understand why this is happening.
Don’t just focus on delivering more impressions: this will affect the average eCPM.
Instead, try to engage more users to watch video ads.