Holistic yield management has two goals:
- secure guaranteed (premium/direct) campaigns to avoid underdelivery; typically, these have a volume of impressions to be served
- optimize RTB+ to get maximum revenue
Thus, holistic yield management integrates the two channels guaranteed and programmatic and treats them as a whole.
For a better understanding, this article
- starts with a short video
- then, describes "non-holistic" yield management strategies
- finally, explains holistic yield management.
In this example:
- 90% of the inventory is occupied by premium campaigns (direct campaigns with dedicated volumes)
- 20% of the inventory going through RTB+ is actually sold (successful auctions): the RTB response rate is 20%
"RTB last" strategy
In an "RTB last" strategy
- 90% of the inventory goes to premium campaigns
- 10% of the inventory is free for RTB; since RTB has a 20% response rate, only 2% of the impressions will be sold through RTB (20% * 10% = 2%)
Conclusion: 8% of the inventory will remain unsold ("No ad"): overall revenue is not maximized.
"RTB first" strategy
In an "RTB first" strategy:
- 20% of the inventory goes to RTB; each time RTB can answer, the impression is sold through RTB
- 80% of the inventory goes to premium campaigns
Conclusion: There is a high risk that premium campaigns encounter a delivery problem.
Holistic yield strategy
In a holistic yield strategy:
- only 10% of the inventory (instead of 20%) is allocated to RTB; this secures guaranteed (premium/direct) campaigns: they meet their volume goals
- the 10% are then sold to the highest bids by setting an appropriate bid floor; this selects the "better half" in order to generate maximum revenue
The share of guaranteed (premium/direct) campaigns (90%) and free inventory for RTB is calculated using the forecast.
The ideal bid floor (e. g. EUR 1.23) is calculated using the bid floor statistics.
Holistic yield in insertions
Read Setting up RTB+ insertions to see how to enable holistic yield in insertions.
Smart AdServer’s holistic yield management allowed Régie E-Commerce site Rue Du Commerce to increase its revenue. We invite you to read the BPA-certified case study in our blog page.