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TechnologyWhite Paper 
Predicting Ad Network Frequency Cappingto Increase Publisher Revenue
Technology Outlined:
Frequency Revenue Optimization
Technology Benefits:
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Technical Level of White Paper:
 
Table of Contents
Executive Summary: Increasing Revenue for Publishersand Ad Networks with Frequency Revenue Optimization................................................. 3Market Trends Are Expediting A Shift To Performance Advertising.................................. 4Traditional Role of Frequency in Online Advertising........................................................ 4Decoding the Frequency-eCPM Relationship with Ad Networks..................................... 5Implementing Optimal Frequency-Based Decision Making:Frequency Revenue Optimization.................................................................................... 8Conclusion...................................................................................................................... 10About PubMatic............................................................................................................... 11
Predicting Ad Network Frequency Cappingto Increase Publisher Revenue
Published by PubMatic, 2009
2
TechnologyWhite Paper 
 
Executive Summary: Increasing Revenue For Publishers And Ad NetworksWith Frequency Revenue Optimization 
Frequency capping has long been used as a method for helping advertisers to improve theperformance and reach of their online advertising campaigns. In short, frequency cappingallows the advertiser to limit the number of times a user sees a speci
fi
c ad, resulting in in-creased return to the advertiser for every dollar spent.While the bene
fi
ts of frequency capping for advertisers are clear, frequency capping can re-sult in signi
fi
cant challenges for publishers. In particular, for advertising campaigns run by adnetworks on a publisher’s web site, frequency capping can result in signi
fi
cant revenue lossfor publishers. Publishers have very limited insight into ad network pricing and are unable todetermine how to allocate inventory to ad networks based on particular frequencies.Over the last 8 months, PubMatic has developed a proprietary Frequency Revenue Optimi-zation solution that maps the relationship between frequency and eCPM for a particular adnetwork and optimizes ad serving decisions in real time. This solution has been deployed toover 100 large publisher web sites, resulting in the following bene
fi
ts for publishers:• Up to 35% increase in eCPM• 50% to 210% increase in CTR (click-through rate)• 10% to 50% decrease in ad network defaults (ad requests for which the ad network hasno ad to show)In addition to the signi
fi
cant publisher bene
fi
ts, Frequency Revenue Optimization has alsoincreased the
fl
ow of desired traf 
fi
c to ad networks, reduced their ad serving costs by de-creasing their default rates, and enhanced the end user experience by loading more relevantads faster.This white paper describes current trends in online advertising, the challenges publishersface with respect to managing their ad inventory, the components of a solution that take intoaccount the relationship between frequency and eCPM in ad serving decisions, and Pub-Matic’s Frequency Revenue Optimization solution.
Predicting Ad Network Frequency Cappingto Increase Publisher Revenue
Published by PubMatic, 2009
3
TechnologyWhite Paper 
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