In online marketing, yield optimization refers to strategies for maximizing revenue or earnings from existing resources such as traffic or advertising space. The aim is to increase revenue per impression or click through data analysis, pricing strategies, and optimization of ad placement.
Yield Optimization means optimizing the yield and tries to optimize the available resources in order to increase sales. In this way, expenditure is invested in the best possible way and channels used are optimally utilized for sales.
If you want to optimize yield, you have to consider a few things. Shop revenue is influenced by many factors and changing one variable can disrupt another in its function. In the worst case, the yield after optimization is worse than before. This is why Yield Optimization (also called Yield Management) has become a very important part of large companies.
In the past, processes and flows within a business could be easily recognized and understood. In the meantime, however, many aspects have become more complex. Above all, the large amount of data that is now available must be interpreted and evaluated correctly. Today, complicated calculations are necessary for effective strategies to optimize earnings. Well-founded decisions can be made not only with the bare figures, but also with statistical processing. For this reason, yield managers are increasingly in demand. But experts also have to deal with constantly growing and ever new data. Yield Optimization is still very important and at the same time more complicated than ever before.
Many different industries and companies use the Yield Optimization system. Airlines and hotels, among others, like to use yield Optimization strategies in order to increase yield effectively and sustainably. However, the term is best known from online marketing.
This is exactly how Yield Optimization can be used by virtually any company that already places ads online. If this has not yet happened, then social media or Google Ads should first be run for at least 3 months. As already described, a solid data basis is mandatory for a meaningful Yield Optimization.
Yield optimization describes a data-driven process in which companies attempt to achieve maximum returns from existing resources. In online marketing and digital advertising, this primarily means increasing revenue per impression, click, or user as efficiently as possible.
The basis for this is the analysis of performance data. Companies evaluate metrics such as impressions, click-through rate (CTR), conversion rate, or effective cost per thousand impressions (eCPM) to understand which ads, placements, or target groups deliver the highest yield. Based on this data, various optimization measures are then implemented.
A central component of yield optimization is the continuous testing and adjustment of strategies. For example, different ad formats, advertising networks, or pricing strategies can be tested. A/B testing or automated bidding strategies can be used to determine which combination of ad placement, demand partners, and prices generates the most revenue.
In programmatic advertising, yield optimization is often automated. Algorithms analyze the demand for advertising space in real time and adjust prices or priorities accordingly. This allows publishers to dynamically manage their advertising inventory and market the available advertising space as profitably as possible.
The goal of yield optimization is therefore to make optimal use of existing traffic or advertising space and to continuously maximize the revenue generated. Data analysis, technical tools, and regular optimizations play a central role in this process.
But where do you start with Yield Optimization? It is best to first look at which campaigns or ad groups perform best and which pages or products they lead to. Then you look at the conversion rate. Does this correspond to the industry average? These pages/products receive the most traffic, so the conversion rate should at least match the average of the other pages. If not, there is potential for optimization here to increase revenue. Either the below-average CTR (or conversion rate) is then due to the landing page or perhaps the targeting of the ads is not perfectly adapted to the target group.
Another method for Yield Optimization is the evaluation of the channels. Does Google Search bring in the most revenue or do users mainly click on the display ads? In online marketing, you have a lot of power over the targeting of the ads. It is important to use this power to carry out many small or large A/B tests.
Yield Optimization is not simply changing existing systems and metrics. Rather, Yield Optimization consists of many A/B tests that help you determine the best setup. Every change must be tested before you adopt it permanently or for all pages. Even with a very good data analysis, it is not certain that the measures really bring the desired improvement. Yield Optimization is the constant striving for improvement and optimization. It is also about the constant effort to keep increasing sales and to get the most out of the resources used. Therefore, Yield Optimization is never over, but a continuous and sometimes exhausting process.
method | explanation |
|---|---|
Mindestpreis | Floor pricing sets a minimum price for advertising inventory. Bids below this price are not accepted. The aim is to avoid bids that are too low and to increase the average revenue per impression. |
A/B testing of ads and placements | A/B testing involves testing different ad formats, creatives, or placements to find out which variant achieves the best performance and highest revenue. The results serve as a basis for further optimization. |
Ad placement optimization | By analyzing user behavior and engagement, it is determined at which positions on a website ads achieve the highest interaction rate and thus the greatest monetary value. |
Programmatische Werbung / Echtzeit-Gebote | In programmatic advertising, advertising space is sold automatically via real-time auctions. Multiple advertisers bid simultaneously on an impression, creating competition and often generating higher revenues. |
Optimization of demand partners | Publishers often work with multiple ad networks or supply-side platforms. By analyzing the performance of each demand source, decisions can be made about which partners should be prioritized or supplemented in order to increase revenue. |
Table 1: Methods of yield optimization
Yield optimization can help companies and publishers monetize digital advertising space more efficiently. Data-based analyses and automated marketing can increase revenue from existing traffic. At the same time, implementation also presents a number of challenges.
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Olga Fedukov completed her studies in Media Management at the University of Applied Sciences Würzburg. In eology's marketing team, she is responsible for the comprehensive promotion of the agency across various channels. Furthermore, she takes charge of planning and coordinating the content section on the website as well as eology's webinars.
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