In Display & Video 360 (DV360), a "frequency cap" is a setting that allows advertisers to control the number of times a specific ad is shown to the same user within a specified time period. It is a crucial feature in advertising campaigns to manage ad exposure and prevent overexposure, which can lead to ad fatigue and reduced campaign effectiveness. Frequency capping helps ensure that users see ads at an optimal frequency without becoming annoyed or disengaged. Here's an explanation of frequency cap in DV360 with examples:
Frequency Cap Settings:
- Frequency caps can be set based on various parameters, including the number of impressions (how many times an ad is shown) or the number of clicks (how many times a user clicks on the ad).
- The time period for the frequency cap can be customized, such as per day, per week, or per month.
- Frequency caps can be applied at different levels, including the line item, insertion order, or campaign level, allowing for flexible control.
Examples of Frequency Cap Usage in DV360:
Impression Frequency Cap:
- Example: A retail company is running a branding campaign for a new product launch. They want to ensure that users are exposed to their ad but not bombarded with it. They set an impression frequency cap of 3 impressions per user per day. This means that no user will see the same ad more than three times in a single day.
Click Frequency Cap:
- Example: A travel agency is promoting a limited-time offer for vacation packages. They set a click frequency cap of 1 click per user per day to prevent users from repeatedly clicking on the ad and skewing the click-through rate (CTR) data.
Time-Based Frequency Cap:
- Example: A car manufacturer is advertising a special deal for a month. They set a time-based frequency cap of 5 impressions per user for the entire campaign. This ensures that users are exposed to the ad no more than 5 times throughout the campaign's duration.
Cross-Channel Frequency Cap:
- Example: An e-commerce platform is running a cross-channel campaign with display and video ads. They want to limit the total exposure across both channels, so they set a combined frequency cap of 8 impressions per user per week, regardless of whether the user sees display or video ads.
Geo-Targeted Frequency Cap:
- Example: A restaurant chain wants to advertise its daily lunch specials. They set a frequency cap of 4 impressions per user per day but increase it to 6 impressions per user per day for users located within a 5-mile radius of their restaurant locations.
Frequency capping is a valuable tool to strike a balance between getting your message across and avoiding ad fatigue. It helps maintain a positive user experience, improves campaign efficiency, and ensures that advertising budgets are spent effectively. Advertisers should consider their campaign objectives and audience behavior when setting frequency caps in DV360.