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Glossary of Mobile Advertising Terms

Yield Management

What is Yield Management?

Yield Management is a strategy that’s used to maximize revenue and profits. Put simply, it revolves around selling to the right customer at the right time for the right price.

How is Yield Management Used?

The usual example of yield management use, are hotel rooms or airplane seats. The whole process is somewhat complicated to explain and practice, but generally, it’s based on anticipating and influencing consumer behavior, and in some situations, it can be said that it’s based on supply and demand.

The principle is basically the same in the digital advertising world. Publishers inventory is managed based on market demand and at the best price.

How Does This Apply to the Mobile Ad Industry?

For advertisers and mobile advertisers, yield management helps maximize revenue by pairing the right ads with the right users. In theory, yield management is a great approach for advertisers as their strategy already revolves around targeting the right users with the right ads. With a proper use of yield management, advertisers will have a great chance to increase the value of their ad impressions and ROI.

To make the most out of yield management, mobile advertisers tend to use Data Management Platforms (DMP), and in addition, some also use Demand Side Platforms (DSP) to be even more effective. While it can be complicated, yield management is something that advertisers and mobile advertisers should definitely take a closer look at.