True Yield: The FreeWheel Perspective

Geoff Wolinetz Vice President of Client Relationships

In early March, I was fortunate to attend AdMonsters’ Publisher Forum in Palm Springs, CA—an event tailored to senior leaders in ad operations and technology featuring in-depth peer-to-peer discussions that drive actionable results and industry best practices.  In addition to being able to escape the frigid New York weather for a couple of days, I had the opportunity to speak to these industry leaders about something that we think about a lot at FreeWheel:  True Yield.

In my high school years, I was introduced to a concept in physics called Heisenberg’s Uncertainty Principle, which simply suggests that the closer that you attempt to calculate the position of a particle in motion, the less accurately you’ll be able to identify its velocity.  At FreeWheel, as we considered the various market forces that impact a publisher’s ability to monetize their inventory, I kept getting drawn back to this notion of uncertainty and the balance required to effectively observe a particle in motion.  True Yield as a concept embodies this notion of balancing and managing opposing forces.

We’ve heard a number of things in market that support this strategy:

Without question, it’s increasingly challenging to meet the needs of your own organization, your advertisers, and your viewers themselves. Furthermore, how do you balance these competing priorities?  How do you become less reactive and more strategic so your team can effectively address incoming challenges?  Most importantly, given a constantly changing ecosystem with a myriad of ways to run your business, how do you pick the right one?  The answer is True Yield.

The diagram above illustrates the competing market forces that advertising businesses contend with as they move to scale.  It’s a delicate, and challenging, balance between driving toward maximizing revenue, managing the demands of advertisers, and keeping users engaged with the right experience.  Real world forces shift these components around every day:

  • Product teams pull in the direction of user experience as feedback emerges
  • Revenue targets may increase as part of operating cash flow objectives change
  • Agencies and advertisers may require 3rd party metrics for transparency
  • Inventory shares to distribution and marketing teams increase complexity

The True Yield workflow suggests aligning your strategy to balance these competing priorities at the executive level, with parties from Sales, Yield, Operations and Product in the room.  Once that strategy is determined, it can be clearly articulated to individuals from those teams, empowering them to design a set of guidelines governing your sales, yield and execution processes.  This governance then informs the set of technical rules, process and business intelligence that’s input and extracted from your ad server.  The True Yield workflow also allows market-facing feedback all the way back upstream to the executives responsible for setting strategy, so they can pivot as necessary, and begin the process of implementing the strategy downstream all over again.  Simply put, the True Yield workflow solves one of the biggest complexities in the ecosystem by providing a mechanism to craft a sales strategy, a framework to develop rules to govern that strategy, implementation guidelines, and feedback loop.

The most notable takeaway from Heisenberg’s Uncertainty Principle is that you can never be certain of multiple moving forces at once, but with enough thought, oversight and communication, you can maximize the potential of your business.

Connect with our team to learn more about True Yield and how to optimize your business to succeed in the New TV Ecosystem.