February 15, 2023

The Importance of Diversified Demand to Maximize Revenue

The Importance of Diversified Demand

As a small or medium app publisher, it's no secret that optimizing your advertising revenue is crucial to the success and sustainability of your business. While it may be tempting to rely on a single demand side platform (DSP) to manage your ad inventory, diversifying your demand stack is essential to maximizing your revenue potential.


One key step you can take to diversify your demand stack is to add direct bidding partners. We have found that the most effective way to do this as a small or medium publisher is to work with an exchange that allows you to directly connect multiple bidding partners.


Another important factor to consider is volatility. Each DSP has its own unique strengths and weaknesses, which can result in fluctuations in ad performance. To ensure a more stable revenue stream, it's crucial to add multiple DSPs to your demand stack. If one DSP experiences a dip in demand, other DSPs can help fill the gap and keep your revenue flowing.


Testing different ad units is also an important part of optimizing your revenue. It's essential to experiment with various ad units to assess their impact on user experience and revenue generation. For example, replacing interstitial ad units with app open ad units may result in fewer impressions served, but you could see a significant increase in CPMs and sessions per user, ultimately driving higher revenue per user. Finding the right balance between ad revenue and user experience is crucial to maintaining user engagement and keeping them coming back to your app.


Finally, it's important to be selective and start small when evaluating new DSPs. Test their performance on a small app, if possible, before committing to a larger integration. Be wary of DSPs that require you to add an SDK, as the more ad request paths there are, the greater the chance of an ad not showing due to a timeout error.


By following these steps, you can successfully diversify your demand stack as a small or medium app publisher, maximizing your revenue potential and building a sustainable business. While it may require some experimentation and patience, the rewards of a diversified demand stack can be significant, both in terms of revenue and user engagement.

By Vic Gausepohl / vic@loyal.app