Multi-advertiser ads allow multiple advertisers to place ads on your website or mobile app. This can increase ad revenue, but may impact user experience. Here is an in-depth look at the pros and cons of enabling multi-advertiser ads.
What are multi-advertiser ads?
Multi-advertiser ads, also known as multi-format ads or medley ads, allow multiple advertisers to place ads in a single ad slot through an ad network. So instead of having a dedicated ad slot for a single advertiser, the slot rotates between different ads from various advertisers.
Common types of multi-advertiser ads include:
- Display ads like banners and native ads
- Video ads
- Text ads
Ad networks facilitate multi-advertiser ads by filling ad inventory from multiple sources. The ad network automatically optimizes performance and selects ads to show based on factors like relevance, click-through rate, and bid price.
The pros of enabling multi-advertiser ads
Here are some potential benefits of turning on multi-advertiser ads:
Higher ad fill rates
With multi-advertiser ads, ad fill rates are likely to be higher compared to using just one or two advertisers. Instead of relying on a single advertiser to fill impressions, the ad slot draws from a diverse pool of advertisers and demand sources. This minimizes the risk of unsold ad inventory.
Increased competition and revenues
Higher ad fill rates lead to more competition between advertisers. With an auction-based model, advertisers bid against each other for the chance to display their ads. With multi-advertiser ads, the increased competition generally results in higher cost-per-click (CPC), cost-per-thousand (CPM), and effective cost per mile (eCPM) rates. Ultimately, this means more ad revenue for publishers.
Exposure to multiple brands
Rotating multiple ads gives users exposure to a diverse range of brands and products. This variety can make the ad experience feel less repetitive for users. Advertisers also benefit from being able to reach larger, more diverse audiences.
Performance benefits
Certain types of multi-advertiser ads like video and native ads tend to outperform standard display ads. Ad networks optimize which ads to serve based on factors like relevance and expected click-through rate. This means higher-performing ads are more likely to be shown, potentially driving better results for publishers.
The cons of enabling multi-advertiser ads
However, there are also some potential downsides to be aware of:
Lower transparency and control
With single advertiser partnerships, publishers often have more visibility into performance and direct communication with the advertiser. Multi-advertiser ads offer less transparency since you don’t necessarily know which advertisers’ ads are being shown.
Publishers also have less control over which specific brands and ads appear. You have to rely more on the ad network’s targeting and optimization.
Potentially lower RPM with text ads
For publishers running text ads like Google AdSense, multi-advertiser networks may drive lower revenue per thousand impressions (RPM). Competition between advertisers brings CPC rates up. But text ads typically have lower click-through rates, so the actual revenue generated per impression still tends to be lower compared to a single exclusive text ad placement.
Ad clutter and disruptive ads
Too many ads from different advertisers can clutter the user experience. While ad networks try to optimize relevance, some irrelevant or disruptive ads may slip through. This could reflect poorly on your website or app’s brand image.
Frequent animation and flashing banners also degrade user experience. With no control over which ads are shown, it’s harder to enforce ad quality standards.
Should you use multi-advertiser ads?
So should you enable multi-advertiser ads? Here are some key factors to consider:
| Factor | Favors Multi-Advertiser Ads | Favors Single Advertiser |
|---|---|---|
| Ad revenues | Higher potential revenues due to increased competition and demand | Lower, but more predictable and stable revenue |
| Ad transparency and control | Lower transparency and control over brands/ads shown | More visibility into performance and control over brand image |
| User experience | Potentially more disruptive and cluttered experience | More consistent ad experience |
| Operations overhead | Less time spent managing individual advertiser relationships | More operational overhead for direct sales and optimization |
In general, multi-advertiser ads tend to work better for publishers who:
- Prioritize ad revenue and have significant unsold ad inventory
- Offer ad slots like video and native ads that command higher rates
- Have limited sales resources for managing direct ad partnerships
Single advertiser partnerships make more sense for publishers who:
- Care deeply about user experience and brand image
- Rely heavily on lower-value ad formats like text ads
- Have the resources to cultivate direct advertiser relationships
Tips for successfully implementing multi-advertiser ads
If enabling multi-advertiser ads, here are some tips to minimize negatives and maximize benefits:
- Test ad networks and targeting to find the optimal fit for your audience and content.
- Set frequency caps to limit how often users see the same ad.
- Use lazy loading or time delays to control speed and timing of ads.
- Screen new creatives for inappropriate content.
- Block ad sizes, animations, and behaviors that degrade experience.
- Closely monitor user feedback and metrics like bounce rates.
- Consider premium ad units like video and native ads to command higher rates.
Conclusion
Multi-advertiser ad networks offer potential revenue benefits thanks to increased competition and demand. But publishers need to weigh this against potential downsides like lower transparency and disruptive ads. Test implementation carefully and monitor both revenue and user experience closely to find the right balance.