Exploring the Impact of New Triggers for Interstitial Ads on eCPM - Is it worth it?

In October 2023, the digital advertising landscape saw the introduction of new triggers for interstitial ad displays, specifically within Google AdSense and Ad Manager platforms. A significant addition is the 'unhide tab interstitial,' which initiates an ad when a user returns to a previously opened browser tab. Alongside this, both platforms have implemented a substantial reduction in the capping of interstitials.

As always, let's differentiate. Interstitials vs. Adsense Vignettes

In summary, while all vignettes are a type of interstitial ad, not all interstitials are vignettes. The term "vignette" specifically refers to a mobile-friendly, full-screen ad served by Google AdSense that appears during transitions between pages, whereas "interstitial" is a broader term that can refer to any full-screen ad that interrupts the user experience.

So what exactly happened in october 2023 with IS and Vignettes?

In a nutshell:

Google AdSense, known for its user-friendly ad experiences, has now set the bar with a mere 1-minute frequency cap on vignette ads, which is notably lower than Ad Manager's 10-minute threshold.

The crux of the matter lies in the availability of ad inventory. With the new triggers, there's a sudden surge in the number of times an ad could be shown, substantially inflating the inventory without a corresponding increase in advertising budgets.

This imbalance leads to a classic economic scenario where an increase in supply, with demand remaining constant, can lead to a decrease in the unit price—in this case, the cost per thousand impressions (CPM).

Anecdotal evidence from publisher messages already points to a tangible decrease in eCPM rates. This isn't surprising considering the mechanics of ad auctions. More ad slots mean advertisers have more choices, leading to less competition per slot and, ultimately, lower bid amounts.

The long-term implications of this shift could be multifaceted. Publishers may experience a short-term revenue boost but could face sustainability issues if the eCPM continues to fall. This could compel advertisers to rethink their strategies—potentially focusing on higher quality or more engaging ad placements that promise better returns.

For publishers, this evolution necessitates a careful analysis of their ad strategy. Balancing the frequency of interstitials with user experience will be paramount. Overexposure could lead to user annoyance and higher bounce rates, which would further erode the value of their ad inventory.

😎 Pro tip:

Check how number of interstitials shown changed per user or session. This will help you draw a better picture of what exactly is happening with your inventory, if it is suddenly inflated or the change was irrelevant.

In summary, while the new triggers for interstitials offer immediate benefits in terms of ad space, the potential decrease in eCPM highlights the complexity of ad monetization strategies. Publishers and advertisers alike must navigate these changes strategically to ensure a sustainable and profitable digital advertising ecosystem.

Will this be drastic?

The impact of the new interstitial triggers and reduced frequency cappings will likely be more pronounced in verticals where users tend to spend extended periods on a single page, engaging deeply with the content. In such scenarios, the introduction of triggers like the "unhide tab" interstitial could significantly increase ad inventory, as users frequently switch between tabs during long browsing sessions. This could lead to a more dramatic eCPM decrease due to a higher rate of ad saturation.

Conversely, for verticals with less in-page browsing time, such as news sites, where users often consume content quickly and move on, the "unhide tab" trigger may not inflate inventory to the same extent. Here, the primary factor affecting inventory will be the reduced cappings. Since news consumers typically hop from article to article, the lower threshold for ad frequency capping will become more relevant, potentially increasing ad exposure but not to the same degree as in more engagement-heavy verticals. The overall effect on eCPM for these sites may be less severe, but still noticeable, as the additional inventory from reduced capping on platforms like Google AdSense will have to be balanced against consistent or static advertising budgets.

What is your experience? Share in the comments, it is free!