Many publishers put a significant amount of effort on the advertising side of their campaign and tend to neglect user experience (UX). However, it is definitely worthwhile for them to ensure that their target audience has a better UX because this will positively impact the bottom line.
Publishers are now using a metric called ePMV (Earnings per 1,000 Visitors) for measuring and optimizing revenue. With this metric, they are realizing that visitor experience is directly tied to revenue. In fact, there are several documented case studies that reveal this insight.
What is ePMV and how does it affect revenue?
The metric ePMV measures how much money a business makes for every 1,000 visits on their website. ePMV is considered a ‘True North’ metric because it gives explicit information on the revenue that the business actually earns from visitors even when traffic is fluctuating.
Why is ePMV a better KPI than eCPM?
Even though the revenue earned by a website is influenced by several factors, many publishers still choose to focus on eCPM (Page Revenue per 1,000 page views). Although eCPM allows them to see how much they are making every time there are a thousand page views, it still doesn’t measure the page’s impact on users. It doesn’t answer questions such as, “Do extra ads increase bounce rates?” or “Are customers happy with increased page ads?”
ePMV, on the other hand, is a metric that considers two important things that affect revenue: bounce rate and page views per visit. ePMV is also called ‘session earnings’. In fact, improved session revenue is directly proportional to extended user time. The engagement time of users on a certain website has a direct correlation with ad viewability metrics. If session earnings are decreasing, then it means that the business is making less revenue per visitor.
Therefore, rather than managing individual ad pricing, which is what is usually done when the focus is solely on eCPM, publishers should be paying more attention to monitoring the value that their website creates for each visitor.
The Importance of User Experience
It is clear that user experience testing is vital for publishers. Simply put, when the focus is shifted to improving UX, it will bring more returning users and they will spend a longer time than usual on the company’s website. This will then lead to a higher engagement which in turn leads to higher user revenue.
While publishers invest a lot of time, effort, and money on the website and content creation, it could all be wasted if the user has a negative experience due to the number of ads on the page.
What is Considered Good UX?
Good UX occurs when a user’s behavior, needs, and motivations are understood. It anticipates what users might need through an easy-to-access, organized, and understandable interface. For instance, page load time is important because users don’t want to wait long for content to load.
At the same time, a good ad strategy is crucial to the user experience. Ads shouldn’t get in the way and make it difficult for the user to navigate the page. They shouldn’t detract UX. That’s why the appropriateness and placement of the ads are important. Ads placed on the page should also be matched to users’ needs. When you have the right ads at the right place on your page, it results in a better UX.
If you want to measure your revenue in a reliable way, consider using ePMV as a metric. User experience plus content and ad revenue should all work together in harmony. The publisher should be able to find the perfect balance between content and advertising.
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