The advertising industry across the globe has seen immense growth and transformation in the past few years. While advertisements previously only consisted of what we saw on the television or the billboards, advertisements today surround our lives in a far more profound and interactive way. With mass marketing and advertising being conducted over the internet through channels like websites, mobile apps, personalized emails and text messages, your ads just might not earn as much money as you hoped, even though profits have risen.

If you’ve encountered this issue, but never really found a solution for it, let alone a cause, here is a guide to help you overcome the issue and increase your profits. This may just help you maximize your payout!

  • Inability To Cater To The Target Market

The problem with the bulk of adverts is that they cater to a mass market. The objective of mass marketing, particularly in the case of mobile applications and social media ads, is to maximize viewership and to expand the reach of the advertisement. Although the viewership rates of these ads are projected after plotting the demographics of potential customers, they may not be able to achieve the expected revenue.

The dynamics of the industry have evolved enough that, today, there are advertising networks available which can help you in achieving the viewership—and the revenues—you desire. While some social networks can also help you attain your goals, a proper ad network can give you the best return on your investment. However, while choosing an ad network, it is not just important to select one that fits in with your budgeting requirements and your advertising needs. The most crucial decision is whether the ad network will be able to cater to the audience you are targeting with your advertising efforts. This is one of the root causes of why a typical ad may not make much money.

  • Dependency On A Single Ad Network

Depending too much on one ad network can result in trouble for your company because the demographic segments of the market they cater to may be similar to those of your target audience, although they may be dissimilar with regards to preferences, geographic location, or in terms of ideas and beliefs. Moreover, limiting yourself to one advertising medium or network can restrict your access to the market. Thus, limited exposure to the market may result in a reduced payout for the business.

Ad placement can also make a huge difference in your revenues. Pop-up ads have become largely unpopular, and pop-up blocking software has become an important factor in the lack of effectiveness of ads. Similarly, an hour’s advertising on online platforms during peak hours can yield better results as compared to advertising for months during non-peak hours. It is therefore ideal that you choose a platform based not just on its relevance, but also on the amount and type of traffic it receives.

  • Failure To Account For Competition

Another mistake that businesses often make which results in reduced revenues is the failure to take competitors’ ads into consideration while planning their advertising campaigns.

Whereas, many companies conduct extensive market research while developing their own ads, they neglect to factor in the platforms and the keywords their competitors may be using, thereby ending up with the same results—reduced ad revenue.

Automated Mediation—A Workable Solution For Underpaying Ads

To prevent your ad revenue from declining due to these reasons, an effective solution is to adopt automated mediation. This process allows for the integration of an ad or an app with several ad networks, using an algorithm to pick out the best ads for your company. It uses the fill rate to measure how effective your ads are, which in turn helps you earn more. Other metrics are also used to help determine exactly what you’re looking for in your ads and select an ad network that fits best with your needs.

Latest Update: Aug 11, 2017