ADSDAQ Beta Invitation
I received an invitation today to apply for the new ADSDAQ ad exchange. I signed up for notification a couple months ago but had not heard anything until today.
The concept is very intriguing and I am excited — hopefully we can get SuperMotors in on this. The premise is that you set your CPM, they guarantee they will display ads at the CPM you specify, if they can’t, they will distribute impressions to the other ad networks on which you are already a member (i.e. Tribal Fusion, Google AdSense, etc.). I’ll review the steps here that they outline on their site:
Step 1: Set your desired CPM
This will take a bit of strategy and testing, I’m sure, but setting the CPM at which you will display ads on your site is a very nice model. ADSDAQ will then match you up with advertisers matching your site’s demographic and choose the best performing ads to display on your site. Of course, this also means advertisers will also be able to specify their desired CPM, so don’t count on getting ridiculous with your CPMs, as it’s ultimately the advertisers who will be driving the pricing.
Step 2: Define your existing ad networks
We already use Tribal Fusion, Google AdSense, and AuctionAds. The dilemma we face is Tribal Fusion is our primary ad network, yet they only fill 71% of our available inventory we supply them. The remaining inventory goes to Google AdSense, which as we all know, is a CPC (Cost-Per-Click) ad network, and not a CPM network. In other words, we only get paid if users click on ads, not if they simply see the ads. AuctionAds (AA) on the other hand requires custom keywords that we dynamically supply on pages, so we really don’t run these in our standard ad rotations, which is fine — AA performs very well in the locations we currently have it implemented.
Maximizing revenue on excess inventory
So, enter ADSDAQ. It can act as our primary ad network. We analyze the CPM at which Tribal Fusion is paying us, we bump it up by a small margin (or even set it equal to Tribal Fusion’s CPM) and set this as our CPM for ADSDAQ. If ADSDAQ can’t fulfill inventory at this rate, it’ll distribute ads to the Tribal Fusion ad network. The key for us is filling the remaining 29% of our inventory with something more profitable than Google AdSense ads. This is difficult to do with other ad networks that are available because the Google ads perform fairly well.
The Big Assumption
This model of course assumes ADSDAQ can fulfill inventory at a higher price than Tribal Fusion. If it can’t, we will most likely reverse the model and still utilize Tribal Fusion as our primary network, have it load ADSDAQ ads at a lower cost (when it can’t fill our inventory), and have ADSDAQ display AdSense ads when all else fails. In any case, the ability to control ads based on CPMs we define is very desirable, and has the potential to be extremely effective for site owners who are strategic about it.
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