Solutions
Resources
Company
Moloco Commerce Media GrowthU
The success of auction-enabled ad businesses hinges on a delicate balance between supply and demand within the system. Demand, fueled by advertisers and their budgets, must be met with an adequate supply of impressions and clicks generated from available ad inventories.
Build and grow your advertising business with Moloco Commerce Media
There are many elements to consider when managing the supply and demand in ad businesses, ensuring that you effectively drive demand whilst prioritizing high-conversions. Some of these elements include:
Understanding supply and demand
Demand is the driving force behind ad revenue, influenced by the number of advertisers in the platform and their allocated budgets. At the same time, supply encompasses the total impressions and clicks generated from the ad inventories available on the platform.
How to increase ad supply
One of the most straightforward methods to boost ad supply is augmenting available inventory across the website. While auction pressure can potentially drive up cost-per-click (CPC), expanding inventories offers a more accessible approach to accommodate increased demand.
Strategic ad inventory selection
When selecting ad inventory, platforms should prioritize high-conversion and high-traffic sources to maximize value. Understanding current or expected demand levels is key to estimating the necessary inventory, starting with high-conversion rate pages to drive early value and seller engagement.
Build and grow your advertising business with Moloco Commerce Media
How to increase revenue growth through ad inventory expansion
Expansion of ad inventory is a pivotal strategy for driving revenue growth over time. Platforms should consider expanding inventory when budget utilization is low, typically below 40%, to ensure efficient allocation of resources.
Utilizing various products and inventory types is essential for diversifying offerings and attracting a broader range of advertisers. By continuously expanding and optimizing ad inventory, platforms can unlock the full revenue potential of their ad businesses.
Success story: Marketplace A in effective inventory selection and expansion
Marketplace A is an excellent example of effective inventory selection and expansion strategies. Initially, the platform strategically opened ad inventories on pages with the highest conversion rates and traffic.
As demand consistently exceeded supply, Marketplace A gradually expanded ad inventories to include new page types and slots, significantly increasing ad revenue.
Effective ad inventory selection and expansion are fundamental for maximizing ad revenue in auction-enabled ad businesses. By understanding demand, prioritizing high-value inventory, and strategically expanding inventory over time, platforms can unlock the full potential of their ad businesses and drive sustainable revenue growth.
Download our guide on ad inventory selection
If you would like to learn more about how to effectively maximize your ad revenue, you can download our guide on ad inventory selection and expansion here.
Make sure to read our first article in our GrowthU series, where we focus on how to successfully launch a digital ad business.
.webp)
