When aiming to increase revenue from Google Ad Exchange, understanding the difference between average eCPM and ad request eCPM and knowing which one to focus on is crucial. Here’s an explanation and guidance on which to choose:

Average eCPM

• Definition: The average eCPM (effective Cost Per Mille) is calculated based on the total revenue generated divided by the total impressions received, then multiplied by 1000.
• Pros: Provides an overall picture of how much revenue is generated per 1000 impressions.
• Cons: May not reflect the actual performance of individual ad requests as it includes all impressions, including unsold or low-priced impressions.

Ad Request eCPM

• Definition: The eCPM calculated based on ad requests made to the ad server, before considering the fill rate (the ratio of ads that are actually filled or shown).
• Pros: Gives a more accurate picture of the value of each ad request submitted.
• Cons: Does not account for the fill rate, so it might appear higher but doesn’t always reflect the actual revenue earned.

Which One to Choose?

To increase revenue, ad request eCPM is generally more useful for revenue optimization strategies because:

1. Focus on Ad Request Value: Ad request eCPM provides more specific information about how much advertisers are willing to pay for each ad request. This allows you to optimize for high-value ad requests.
2. Optimizing Fill Rate: Knowing the eCPM from ad requests, you can adjust your strategies to improve the fill rate or allocate ad inventory to more lucrative requests.
3. Data-Driven Decision Making: Offers granular data for decision-making, helping maximize revenue from each available impression.

Optimization Strategies

1. Optimizing Ad Request eCPM:
   • Audience Segmentation: Separate your audience based on demographics, location, or behavior to maximize the value of ad requests.
   • Floor Price Setting: Set competitive floor prices to ensure you get the highest value from each ad request.
   • Variety of Ad Formats: Experiment with different ad formats (video, display, native) to see which yields the highest eCPM.
2. Increasing Fill Rate:
   • Header Bidding: Use header bidding to invite more bids from various sources, thus increasing the fill rate.
   • Ad Network Optimization: Utilize multiple ad networks to ensure as much of your ad inventory is filled as possible.
   • Data Utilization: Use data to understand and enhance the user experience so more ads are seen and clicked.

By focusing on ad request eCPM and optimizing the fill rate, you can create more effective strategies to boost revenue from Google Ad Exchange.