Best Practices for Setting Frequency Caps in Advertising
Setting the right frequency caps is like ensuring the perfect amount of spice in your dish—not too much that it overwhelms, but just enough to keep things flavorful and engaging. With this in mind, let's dive into how you can make frequency caps work for you.
Frequency caps play a crucial role in programmatic advertising by controlling how often your ads are shown to a specific user. The primary goal is to find a balance between ensuring sufficient ad exposure for brand recall and avoiding ad fatigue, which can lead to negative user experiences.
Imagine seeing the same ad over and over while watching your favorite videos—that's ad fatigue, and it's no fun. Frequency caps help by controlling how often a single user sees your ads. Getting this balance right boosts your click-through rates and ensures your brand remains on the good side of your audience, making your ad dollars work smarter, not harder.
Let’s talk a little more about ad fatigue–an issue that can quietly sabotage your advertising campaigns, and here’s how:
Reduced Engagement
When people see the same ad too often, they start to ignore it. That means fewer new customers are being reached, and your message isn’t getting through.
Negative Brand Perception
Seeing the same ad over and over can make people feel annoyed. Instead of seeing your brand as helpful, they might view it as bothersome, which is something nobody wants.
Lost Opportunities
Every time your ad is shown but goes ignored, it’s a missed chance to connect with someone new. Ad fatigue means those opportunities can slip right through your fingers.
When determining frequency caps, audience size is a pivotal consideration. Although the chance of ad fatigue is something to be mindful of, for smaller audiences, higher frequency caps are typically necessary to ensure that your message reaches them effectively. For instance, targeting a few zip codes with a layered 3rd Party Audience may require more frequent impressions.
On the other hand, larger audiences, such as those targeting an entire state with a broad 3rd Party audience, can sustain lower frequency caps due to the broader reach. Understanding the nuances of your audience size helps in setting realistic and effective frequency caps that align with your campaign goals.
As highlighted by Trade Desk “In a recent analysis, we found that marketers who managed frequency across a single environment achieved six times more effective reach — meaning they were able to scale budgets to preferred audiences (and outcomes) by six times through frequency management alone.”
When it comes to frequency settings, one size definitely does not fit all. Each channel you use has its own audience behavior, which means your frequency settings should be tailored accordingly.
For example, CTV and audio campaigns can usually maintain lower frequency caps because these formats are consumed in more engaged environments, leading to higher user engagement.
On the other hand, display ads generally require higher frequency caps to ensure visibility amidst the vast amount of online content. Similarly, online video ads might need moderate frequency caps to strike the right balance between engagement and ad fatigue. Tailoring your frequency settings based on the channel can significantly enhance your campaign effectiveness.
Strategies for Retargeting vs. Prospecting Campaigns
Retargeting is about reconnecting with those who have already interacted with your brand in some way. Imagine giving a gentle nudge to someone who showed interest but didn’t follow through. These potential customers are somewhat familiar with your brand, so you can afford to remind them more often. Given that these users have already shown interest, it is beneficial to set higher frequency caps to reinforce brand awareness and drive conversions. This approach helps in keeping your brand top-of-mind for potential customers who are closer to making a purchase decision.
In contrast, prospecting campaigns aim to attract new users who may not be familiar with your brand. Lower frequency caps are ideal here; they help you introduce your brand without coming across as overwhelming. It’s about making a positive first impression that intrigues and invites them to learn more. Both retargeting and prospecting strategies have their place, and when used effectively, they can significantly enhance your overall marketing performance.
To adjust the frequency cap on the Growth Channel DSP, navigate to edit the desired campaign and proceed to the Settings. The frequency cap can be adjusted per hour, day, week, or month and include decimals if and when desired to optimize for efficient campaign delivery.
Keeping your marketing campaigns running smoothly isn't a "set it and forget it" situation—especially when it comes to your frequency caps. Regular analysis and adjustments are vital to ensure you’re getting the most out of your campaigns while staying on budget.
Start by diving into real-time data to see how your audience is reacting to your ads. Are people engaging, or are they tuning out? Analyzing frequency and making adjustments to your campaign is something you can easily do using the Growth Channel platform. Check out our Resource Center to learn more about how you can better optimize your programmatic advertising campaigns.
