10 Questions Every Publisher Should Ask When Evaluating 3rd Party Monetization Partners
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In 2012, U.S. digital advertisers
spent over
$38 billion on digital ads.”
How much of that ad spend were you able to tap into in 2012? If the answer is “not nearly enough,” then you should definitely be thinking about working with a 3rd party monetization partner to help you grab a bigger piece of the digital advertising pie. A 3rd party monetization partner is a company that helps online publishers monetize (sell) their advertising inventory. Typically, the way they do this is by aggregating ad inventory across a group of publishers, and matching it with advertiser demand. Typically, because of their ability to aggregate a large volume of ad inventory, 3rd party monetization partners attract larger advertisers with bigger budgets than many smaller website publishers can reach on their own, exposing these publishers to valuable supplemental revenue opportunities. Additionally, many monetization partners offer an ongoing flow of paid advertising to fill ad inventory that publishers haven’t been able to sell. When it comes to selecting a 3rd party monetization partner, the options are many and information plenty. As a monetization partner specializing in matching regional and national advertisers with hyperlocal publisher content, we offer you this list of 10 questions we believe any publisher should ask a 3rd party monetization partner as part of their evaluation process.
Local Yokel Media LLC 175 Atlantic Street | Suite 203 | Stamford, CT | 06901 | 877-679-0100
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10 Questions Is there a term and contract requirement? Many monetization partners (especially ad networks) do have a contract, so it’s important to understand what you are getting into. Others, like Google AdSense and Local Yokel Media, simply request you accept their terms and conditions.
Do they require exclusivity? This is an important question. It is important to understand why there is exclusivity required, i.e. because they guarantee revenues? Do they offer higher rates? Once you understand the rationale, you can decide whether or not it's financially beneficial to your site to agree to exclusivity. The good news is that fewer partners today require exclusivity compared five years ago.
Do they require a guarantee of monthly inventory? Some monetization partners require that a certain amount (or a minimum guarantee) of your impressions be made available to them on a monthly basis to help them sell and manage their advertising sales effort. If you have consistent and healthy traffic, this is easier to manage. If your website is new and just building your audience, it may be wise to look for options that don't have a minimum guarantee.
What ad formats do they require (pop-unders, expandables, page takeovers, flash, etc)? This is an important detail to cover. Be sure you are comfortable with all the creative they serve, and ask for clarification if you do not know the meaning. Some partners will pay the publisher more to allow forms of disruptive creative (i.e. takeovers) to run on their sites. Unfortunately, some of these ad executions can be very intrusive. So, be careful here and understand what types of creative they plan to serve.
Local Yokel Media LLC 175 Atlantic Street | Suite 203 | Stamford, CT | 06901 | 877-679-0100
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Do they have a ‘black list’ or advertiser filter options? It is always a good idea to verify that the monetization partner will not serve ads with content that is potentially offensive or unfavorable to you audience, i.e. tobacco, alcohol, firearms, and pornography. You can also ask if they have the ability to block or restrict certain brands or advertisers from appearing on your website based on your guiding principles, and/or your existing relationships with advertisers. If monetization partner cannot offer a self-serve block list or filter, then it is important to ask how fast they can remove an undesirable advertiser upon request, should one appear.
How do they charge/pay for ads? Ad networks, for example, will typically withhold a percentage of the media campaign they sell as their commission. It is therefore useful to understand how they plan to pay you for your inventory. A few common examples include: CPM: Cost Per Thousand impressions – they will pay a specific dollar amount per 1,000 ad impressions you deliver them. The benefit to this model to you, as a publisher, is that you will be paid for your traffic, regardless of whether or not the ad is clicked on or leads to a sale CPC: Cost Per Click (Or PPC Pay Per Click) – they will pay per click that their advertiser receives as a result of advertising on your site. This is often a more favorable model for advertisers, since they only need to pay if their ad gets a click. However, even if the CPC is very high, it is important to remember that you have no control over the quality of an advertiser’s ad or the relevance of the ad to your audience, and therefore could end up serving many thousands of ad impressions (that you don’t get paid for in this model) before an ad gets a click – if ever. Flat rate/ tenancy: (monthly/yearly) -- they will pay a flat rate for a permanent position on a page or run of site (ROS). This is an approach commonly favored by local advertisers, as it is the easiest to understand. However, we recommend you calculate the CPM you could earn for this ad unit to make sure you are making the most out of traffic you are providing to the position. Here is an online calculator you can use to play with the numbers for comparison purposes.
Local Yokel Media LLC 175 Atlantic Street | Suite 203 | Stamford, CT | 06901 | 877-679-0100
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What are their fill rates? The fill rate is the percentage of impressions that you make available to the monetization partner that they, in turn, fill with paid advertising. It is defined as the number of ad impressions filled by the ad network, divided by the number of ad impressions you made available, multiplied by 100. Fill rates can range from 10-90%+. It is important to keep in mind that the “effective” CPM you earn for all of the impressions you make available can often be quite different than the advertised CPM, based on the fill rate. Here is another calculator you might find useful as you try to figure out your actual potential revenue based on fill rates.
How - and when - do you receive payment? Typically, monetization partners will pay publishers 60-90 days after the month the ads appear, giving themselves time to collect from the ad agencies which place the advertising. Many partners will require you to have accrued a minimum amount of revenue before they are willing to release payment, and some only offer payment in a certain format (i.e. online or check). You’ll want to be clear on all timing and delivery requirements regarding payment.
How are you able to view/track your earnings? Most monetization partners provide you with some form of web-based dashboard that posts daily metrics (some have a 24 hr. delay). This allows you to see your revenue and performance results by website, ad flow type, campaign, ad size, ad placement, and date ranges.
If you have questions or need assistance, is there a live person you will be able to speak with? We think this is an important consideration, and also indicative of the monetization partner’s commitment to you, the publisher. There is certainly efficiency in forums and FAQ pages, but when you need more than that, it is comforting to know that there are real people on the other end of the line who are available to help you. After all, your ability to earn revenue is what drives the sustainability of your website – you want to work with a partner who acknowledges and appreciates that.
Local Yokel Media LLC 175 Atlantic Street | Suite 203 | Stamford, CT | 06901 | 877-679-0100
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We hope you’ve found this list of questions useful in preparing for your evaluation of 3rd party monetization partners. Always remember that the reason to enroll with a monetization partner is to earn more revenue. In general, working with a partner that specializes in your content/audience/market (i.e. Local Yokel Media specializes in monetizing hyperlocal ad impressions) will earn you more supplemental revenue in the long run than a more horizontal or less specialized monetization partner. Interested in learning more about how Local Yokel Media can be your monetization partner for hyperlocal advertising impressions? Check out our “Getting Started Guide” for a comprehensive list of frequently asked questions. If you liked this list, please feel free to share it socially!
FOR MORE INFORMATION Call: 877-679-0100 Email: info@localyokelmedia.com Visit: http://www.localyokelmedia.com
About Local Yokel Media LYM aggregates and organizes hyperlocal blogs and websites by geography to empower local, regional and national marketers to authentically reach deep into granular, local geographies within defined service areas to execute efficient, geo-contextually relevant ad campaigns that get results.
Local Yokel Media LLC 175 Atlantic Street | Suite 203 | Stamford, CT | 06901 | 877-679-0100
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