Underestimated, Yet Powerful Driver of Website Monetization

As the Website Monetization ecosystem grows in complexity, so do the setups of Publishers. This means that more aspects need to be managed, optimised and monitored on a regular basis.

Often we advise Publishers on the most efficient way of reviewing and diagnosing all unused potentials, inefficiencies or gaps in monetization; solutions which would redress issues pertaining to where to invest or what to simplify so as to secure effective daily maintenance and long-term results. That leads us to another question on how to define maximum monetization potential, taking into account current internal and external circumstances; and how to make inventory and monetization processes as competitive and resilient as possible.

Internal drivers of website monetization.

Firstly, internal circumstances need to be analysed such as:

· Resources that can be invested in setup management, development, new solutions and strategies testing and collection of market knowledge;

· KPIs, short and long-term;

· Internal policies or strategies that might impose limitations on monetization options;

· Budget for tech cost.

External drivers of website monetization.

Externally we need to stay on top of all market shifts and new requirements stemming from regulations, policy updates; and on top of that follow competitor movements and their optimisation strategies.

The second aspect becomes even more challenging when we realise that in Open Market inventory is a commodity which means that buyers target specific audience parameters as opposed to particular domains.

This means that from the Advertiser’s perspective it doesn’t matter whether they buy impressions on the ad space of Publisher X or Publisher Y. Instead, they focus on their goal to show their ad to people in their target group.
When we consider and collate internal resources, goals and limitations, together with external factors, we are able to map current monetization potential and start building a roadmap that will address current gaps, and goals; not to mention potential risks from market shifts and direct competition.

Knowledge is a key

Once we fully understand what we are missing in the setup or from the processes or know-how perspective, we are then better placed to research the market with a clear goal in mind. It’s best in these circumstances to refer to market benchmarks, or specific benchmarks to other publishers (eg. close competitors) and best practices; followed by an estimation of the potential uplift that each change would bring. Such an approach makes strategising for budget a more straightforward matter; having chosen optimal solutions to close the spotted gap. It might be investing upfront and expanding the internal team, in-house development, outsourcing parts of the operations, paying only for the usage of the tool, a solution that automates some part of your daily operations, including regular collection of market benchmarks.

Keep up to date with your inventory’s market position.

Such a review is definitely not a one-off task.

Access to regular updates, market knowledge, fresh ideas and resources to obtain such data and run competitive analysis or test new products and strategies are cornerstones to remaining competitive. This analytical approach should become a core competence that is harnessed within your in-house team.

That said, there is one potential risk to keep in mind; and that is to avoid following already known patterns. Having access to know-how is one thing, but knowing how to convert it into strategy; and translating this knowledge into a specific setup or process changes is another challenge entirely. Sometimes it is worth looking to external support that would offer an independent and fresh perspective.

A good example here would be analysing your pricing strategy and market positioning from the buy-side, which would help when it comes to understanding the scale of limited demand or bid shading risk. This will help you assess the true value of your inventory and choose optimal strategies in terms of staying competitive!