Inventory Pricing.

The whole adnetwork chain is cycled around the inventory. Today we will be talking about the inventory prices, why it is so much varied, what are factors which influence the pricing, and maybe how can we optimise an inventory.

First let’s figure out the Key Areas, which reflect an inventory price, and then we will list indicators, which can be used to measure the inventory prices.

Key Areas are (3Q’s):

1. Quality of content on the site
2. Quality of internet users on the site
3. Quality of campaigns which can run on the site.

 

The content indicators may be,
1. The rate @ which the content is updated, new and original
2. total number of different categories the site is targeted
3. the ranking of the site on search engines
4. content language
5. number of ad space positioned in the content
6. types of ad space in the content

 

The user indicators may be,

1. Total number of unique visitors, per day/week/month
2. Total Page views, per day/week/month
3. Bounce Rate
4. Average time spent by the users on the site
5. Click through rates by the user on the ads displayed
6. visitors count based on demography of the user
7. visitor count based on Age, Sex or different behaviours (can be get through BT (behavioural targeting)
8. number of fraudulent users

 

The campaigns indicators can be,

1. expected cost per click/impression/acquisition for ad space

Based on top two keys the third key is achieved. Next we will see how these Areas get translated to ecpm.

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