Timeouts can significantly impact publishers' digital ad revenues, particularly programmatic ad sales. In this blog post, we'll delve into how a careful definition of timeouts can help digital publishers increase their ad revenues.
Timeouts in Programmatic Advertising
In programmatic advertising, a timeout refers to the window within which an ad call must receive a response. When a user loads a website, the site requests ad servers or Supply Side Platforms (SSP) to display ads. If a response isn't received within a set time, the ad display may fail, or the site may attempt to load another ad. Thus, even a millisecond difference in a timeout duration can be significant for ad revenues.
Speed is critical in programmatic advertising. Timeouts help synchronise ad platforms in real-time auctions, minimising the delay between content selection and ad reception. Timeout settings determine how long the site waits for an ad to load before aborting the attempt. Too short a timeout can reduce ad displays and revenues, while too long can worsen user experience and slow down site performance.
Testing and Adjusting Timeouts
To find the optimal timeout length, we recommend publishers test different settings. For example, various time values can be tested side by side for different user segments and devices to understand their impact on ad revenues and site performance. This can help identify which timeout duration yields the best results in the tested environment.
Publishers should start with multivariate testing, testing different timeout values, and carefully analysing the collected data. Different timeout values can affect various metrics, including eCPM values, fill rate, and the number of timed-out bids.
In the example below, we conducted timeout tests in a publisher client's mobile environment with values of 800, 900, 1000, 1100, and 1200 milliseconds. The tests were carried out using Relevant Yield, which allows for easy testing of different settings without risk and real-time analysis of results. By starting testing with a small portion of your traffic, you can identify the optimal values for your site. Once these values are determined, you can apply them more broadly to your inventory to significantly improve performance.
For this publisher, the figures from Relevant Yield's HB Analytics module show that the fewest timed-out bids occur with the most extended value of 1200 milliseconds, and the fill rate and eCPM price are the highest. However, it's essential to evaluate whether such a long timeout slows down the site too much and whether, for example, 1000 milliseconds might be the best compromise. A general recommendation is to set the timeout between 1000 to 2500 milliseconds (1-2.5 seconds). This compromise balances the speed of ad loading and the fill rate of ad slots, minimising the deterioration of the user experience.
However, when testing, it's crucial to remember that every online environment is different, and the values that work best for some publishers may not be the optimal choice for monetising another site. In addition to timeouts, Relevant Yield allows for easy testing of other programmatic ad sales settings. For example, It may be relevant to understand how different alternative targeting methods affect the inventory value in that 1% of Chrome traffic no longer supports third-party cookies.
Summary
Fine-tuning timeouts is a crucial part of a digital strategy that combines technical know-how and strategic planning, providing a significant advantage to digital publishers' financial success and user satisfaction.
Well adjusted timeouts accelerate ad delivery and maximise ad revenues while maintaining a seamless user experience, which is crucial for strengthening publishers' brands and offering better experiences to site users. Active participation by publishers and awareness of the importance of timeout regulation, combined with continuous testing and minor adjustments, allow for an optimal balance between speed, efficiency, and user experience, thereby promoting the growth of programmatic ad revenues.
If you are a Relevant Yield user and want more information on timeouts or other testing-related issues, do not hesitate to contact your account manager. If you are not yet a Relevant Yield user and would like to learn more about the comprehensive tool designed for publishers and ad sales networks to enhance ad monetisation and increase revenues, feel free to submit a contact request here, and let's talk more.
