Recently, I was asked if paying for third-party data for targeted advertising is really worth it.
We know that participants in the TownNews iQ DMP program experience big growth in their programmatic advertising revenues. But how do we know that third-party data accounts for this lift? Maybe advertisers are willing to pay higher CPMs even without targeted segments?
These are interesting questions, and they prompted me to do some spreadsheet wizardry to find out if the benefits of third-party data are real or illusory.
To sort this out, I performed a regression analysis on the dozens of metrics and variables involved with TownNews iQ Ad Ops to see if I could uncover a relationship between revenue and targeting segments.
Just as we suspected, the data shows that compared to their non-targeted counterparts, targeted segments have significantly higher coverage and fill rates.
Great! What about revenue?
I analyzed how much revenue would have been lost if the targeted segments were filled at the untargeted rate. Good news again: The lift in revenue from targeted segments was just over 22% of iQ Ad Ops gross revenue during the month of April.
Bottom line: The revenue lift generated by third-party data far exceeds its cost. By using third-party data to create targeted segments, sites see big improvements in the areas that matter most: revenue, coverage and fill.
Contact us today to get started with the TownNews iQ program!
Ryan Ingersoll is the TownNews iQ DMP program manager.