Revenue at Risk
With hundreds of advertisements being shown on a publishing website at a moment in time, ad operations teams are often at their wits’ end to ensure that each one delivers on time, and garners the revenue it was set out to. Furthermore, each advertisement is measured and optimized against metrics that are not necessarily the same. Some ads are billed against impressions, some against views and others require an action to be taken from the target audience, adding further complications for the team.
Revenue at risk is a metric that has been gathering importance over the last couple of years and has finally reached the top priority spot for several publishers across the world. When a publisher scales, revenue at risk becomes crucial in order to ensure that there is no money being left on the table.
What is Revenue at Risk?
At scale identifying where your risk is originating from and identifying it at the right moment in time, becomes crucial to solve in double time.
Keep your focus on Delivered Revenue
While overall revenue is an aggregate of revenue from every ad displayed on the publisher website, even a single campaign under-delivering may severely hamper delivered revenue. For example, if a campaign was to deliver over the span of 4 days, with consistent inventory and no underdelivery on any day, the trend would be linear.
Campaign Progression is Not Linear
As campaign delivery is a function of inventory, duration, time slot, and targeting, an abrupt change in any of the above will lead to underdelivery, and therefore the risk of leaving revenue on the table. Let’s take fluctuating inventory as an example to graphically understand risk, the importance of risk reporting and corresponding corrective action. It is evident that without the presence of an external action, the campaign would have continued to underdeliver for the entire duration of the campaign.
The area between the two delivery trends depicts the revenue at risk for that particular campaign.
A risk report highlighting the existence of this risk is crucial to an operations team functioning efficiently to optimise their revenue. For the operations team to plan out how the campaign must deliver, their model will rely on a predictable inventory trend. This can be a constant value, or a constantly repeating, period graph-
Hit your Delivered Revenue Target!
However, reality very rarely reflects the ideal. Introduction of new shows on the publishing platform, the return of the most popular shows, time slots during the day, and even months of the year deeply affects the audience trend. Therefore, when an operations team records their campaign at risk, it is imperative that they take certain measures to mitigate. These measures can extend to changing campaign priority, increasing the time slot, extending geo and the list goes on, all within parameters requested by the buyer, of course.
At the end of the campaign, it should, with the ops team optimisation, deliver the required impressions/clicks/views, thereby ensuring that that particular campaign achieved its maximum.
Get an Advantage with the Voiro Risk Reporting Feature:
At Voiro, we believe that the Risk Reporting tool requires deep partnership with the publisher, as its success depends largely on collaboration with the operations team.
Voiro has a risk algorithm, a combination of the DFP projected risk and linear projection of risk, sending out alerts that highlight the percentage of risk to all concerned teams. This metric, paired with the number of days the campaign has remaining, the run rate and the targeting, will assist the campaign analyst in making an informed choice to optimise the campaign.
What’s next at Voiro?
Revenue at Risk protects the sale while leveraging technology and people in the right proportion.
Our in-built (and highly coveted!) inventory dashboard serves to guide sales teams to sell ad spots to the right target audience it is almost inevitable that publishers progress towards maximising every ad served on the website, and consequently, every bit of revenue!
Read all about it our next post!
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