Marketing KPIs: Viewability

Definition

Viewability is a key performance indicator (KPI) that measures how much of an advertisement was actually seen by the viewer. This metric is crucial for evaluating whether the ad is being displayed in a way that maximizes its visibility and effectiveness. High viewability indicates that the ad is being shown in positions where viewers can see and interact with it, which can lead to better campaign performance and higher engagement rates.

What It Seeks to Measure
Viewability seeks to measure the effectiveness of an ad’s placement by determining the percentage of the ad that is visible to the viewer when it is served. This KPI is important because an ad that isn’t fully visible is less likely to make an impact on the audience, regardless of how well-designed or compelling the content is. Ensuring high viewability can lead to improved brand awareness, engagement, and return on investment.

Data Required to Calculate the KPI
To calculate Viewability, the following data is required:

1. Number of Viewable Impressions: The number of times the ad was served in a viewable position, meaning that a certain percentage of the ad’s pixels were in view on the user’s screen for a minimum duration (e.g., 50% of the ad’s pixels in view for at least 1 second).
2. Total Number of Served Impressions: The total number of times the ad was served, regardless of whether it was viewable or not.
3. Viewability Standard: The specific standard used to define a viewable impression, which may vary depending on industry benchmarks or specific campaign goals.

Step-by-Step Instructions

1. Define Viewability Criteria:
   Establish the criteria for what constitutes a viewable impression. Common industry standards, such as those set by the Media Rating Council (MRC), define a viewable impression as one where 50% of the ad’s pixels are in view for at least 1 second for display ads or 2 seconds for video ads.
2. Collect Viewability Data:
   Use ad tracking and analytics tools to gather data on the number of viewable impressions and the total number of served impressions during the campaign. This data is typically provided by the ad server or a third-party verification service.
3. Calculate the Viewability Rate:
   Use the following formula to calculate the Viewability Rate:
   • Viewability Rate = (Number of Viewable Impressions / Total Number of Served Impressions) x 100 This formula gives you the percentage of served impressions that were viewable according to the defined criteria.

Format of the Output of Analysis
The output of your analysis should include:

• Total Number of Viewable Impressions: The total count of impressions that met the viewability criteria.
• Total Number of Served Impressions: The total number of times the ad was served.
• Viewability Rate: The percentage of served impressions that were viewable.

Example format:

• Total Number of Viewable Impressions: 8,000
• Total Number of Served Impressions: 10,000
• Viewability Rate: 80%

How to Interpret Results

• High Viewability Rate (e.g., 80-100%): Indicates that the ad is being displayed in positions where it is likely to be seen by the audience. A high viewability rate suggests effective ad placement and increases the likelihood of viewer engagement and campaign success.
• Moderate Viewability Rate (e.g., 50-80%): Suggests that while a significant portion of the ad impressions are viewable, there may be opportunities to improve placement or ad formats to increase visibility.
• Low Viewability Rate (e.g., below 50%): Indicates that the ad is often being served in positions where it is not fully visible to the audience. This could be due to factors such as poor placement on the webpage, slow loading times, or ad clutter, and may negatively impact campaign effectiveness.

Steps a Firm Can Take to Improve on this KPI

1. Optimize Ad Placement:
   Work with ad networks and publishers to ensure that ads are placed in high-visibility areas on webpages. Prioritize placements above the fold or in content areas where users are more likely to see and interact with the ad.
2. Use Responsive Ad Formats:
   Implement responsive ad designs that adjust to different screen sizes and devices, ensuring that the ad remains viewable regardless of the user’s device or browser.
3. Monitor and Adjust in Real-Time:
   Utilize real-time analytics to monitor viewability rates throughout the campaign. If viewability is low, adjust targeting, placement, or ad formats to improve visibility.
4. Reduce Ad Clutter:
   Avoid placing ads in environments where there are too many other ads competing for attention. A less cluttered environment can lead to higher viewability and better audience engagement.
5. Increase Load Speed:
   Ensure that ads load quickly to maximize the time they are visible to the audience. Slow-loading ads may not meet viewability criteria if they do not appear on the screen long enough.
6. Use Viewability Metrics for Optimization:
   Leverage viewability data to optimize bidding strategies in programmatic advertising. Focus on inventory that consistently delivers high viewability rates to improve overall campaign performance.