It might seem like a great way to improve your ad revenue is just to add more ad slots. You might look at your page and see that one ad spot is worth $40 CPM. It might be tempting to add a second ad spot, but the reality is, you probably won’t end up making $80 total. You’ll also run into response, experience, and maybe even SEO problems. Let’s talk about ad dilution.
What is Ad Dilution?
If a website publisher has too many ads on a given page on their site, they become diluted, or less valuable. Now, this can happen with any web element, really. If a particular page has three videos, four ads, a pop-up, and a GIF, all of the elements on your page become less impressive or valuable.
How Does This Affect Advertising?
If you have that $40 CPM slot and you simply insert another next to it, chances are you’ll get the $40 revenue from both for a little while. Bids are based on past data, so that price will prevail for a little while, but it will eventually drop.
This happens because advertisers don’t want to pay as much if they’re going to be in competition. That particular ad space was worth $40 in part because there weren’t any ads around it. Visitors were able to focus on that particular ad when they reached your site.
An ad’s value will go up if it’s on a page with few distractions. If your strategy for increasing ad revenue is just to continue to increase the ad spots on your site, you’re in for a long road. As each of these ad spots becomes worth less and less, you’ll eventually be hosting many ads for the same price as your original single ad.
How Does This Affect User Experience?
Having too many ads on your website can also decrease load speed and hurt overall user experience. Have you ever visited a site that was full of nothing but ads? You might have been trying to read a post that you really cared about, but a pop-up kept appearing and distracting you. Many users will be annoyed with this experience – so annoyed that they don’t come back.
Ad dilution can also hurt your SEO. Google and other search engines can see your pages and they can tell if your ad placement is likely to annoy your readers. If you have too many above the fold, too many forced pop-ups, or ad placement that won’t help the user, Google can penalize your SEO placement.
Changing your ad strategy is best done with research and data. The general rule of thumb here is that fewer, higher quality ads will be worth much more than having many ads all across your site. If you’re looking to get started with advertising on your site, reach out to The Moneytizer today.