Ep 10: Incremental vs cannibalised revenue

One question for every new SSP. New money, or moved money.

Incremental revenue is money you wouldn’t have earned without that partner.

On news.example, a new SSP wins one hundred thousand impressions at a two dollar CPM. Its dashboard says two hundred dollars. Now ask what happens without it. In most of those auctions, another bidder was right behind, say at one dollar eighty. Often it’s the same advertiser, through a second path. That’s cannibalised revenue. The money moved, it didn’t grow. The true gain is twenty cents per thousand, about twenty dollars, plus any impressions that would otherwise go unsold. Incremental partners bring buyers your other SSPs don’t reach. Partners like RediAds add demand through Prebid, and the same test applies to them.

Judge partners by site-wide revenue in a holdout, and ask how many buyers are unique to them.

That wraps season seven. Next series, Ad tech explainers.