Ad servers utilize a technique called yield optimization, to enable ad servers to improve the overall performance of an advertisement. Although yield optimization is not a new concept, it is still considered as a vital component of the advertising and selling process.
Here’s how it works: Yield optimization allows ad servers to identify particular impressions which are lacking in performance or impact. Once the lackluster impressions have been identified, they are separated from the ones that are performing well. Then, server resources are diverted towards the high “yielding” (performing) impressions, therefore optimizing the high yielding ad impressions.
The strategy used to anticipate and influence consumer behavior to achieve a maximum degree of revenue is known as yield management. It allows the seller to focus resources on the right product and directs it to the right customer at the right time with the most attractive offer possible to help the consumer in their purchasing process.
Traditionally, multiple ads are listed with the individual offers being the determining factor in differentiating between them. However, using yield optimization, the advertiser can use information from successful ad impressions, allowing them to improve efficiency with consumer engagement, and improving quality for the publisher all at the same time.
Furthermore, yield optimization allows one to determine the success rate of an ad by utilizing a tracking system, through which ads are ranked based on their expected revenue. This ensures a higher than average success rate for the ad, which allows the seller to generate more revenue while the buyer gets more value for their purchase.