End of Lockdown Impact on Publisher Ad Revenues

Posted by Asmaa Bentahar on

The ending coronavirus pandemic in Europe has impacted every part of our lives, from the priorities we have, to the way we spend our time, the places we can go to, and the way we spend our money.

Of course, this had a massive impact on advertising sales and inevitably on publishers’ advertising revenues.

Luckily, in Europe, we’ve started seeing the light at the end of the tunnel. If not for the crisis, at least for the virus.

To help publishers keep updated and allow them to benchmark their performance next to the market trends, we’ve conducted a short study on the impact of “End of lockdown” on publishers’ ad revenues.

Scope

As “end of quarantine” dates were different from a country to another, we limited our survey to only one country (France), going from this you can easily envision what could after-quarantine look like in your country.
For this study, we focused on Prebid revenues for the period of 13th-26th April 2020 compared to the period of 13th-26th May 2020, for French traffic only.

Conclusions

Overall, there was an average increase of 16% in revenue during the period immediately following the end of quarantine, despite a sharp drop in user traffic (30%) and subsequently in display opportunities. The sharp drop in traffic can be explained by the fact that people were allowed to go out and engage in other activities.

This decrease in traffic was compensated by the reactivation of ad campaign budgets leading to higher bids, which immediately led to:

  • a 26% increase in fill rate, which we can explain by more bids that could pass the predefined floors on the SSPs or Ad Server sides.
  • a 30% increase in eCPM (average revenue per thousand impressions)

==> The ultimate result is a massive increase of 65% in RPM (revenue per thousand auctions).

To sum up, “end of lockdown” had a very marked impact on revenues, despite reduced traffic, which bodes well (we hope) for a return to normal.

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