In an ecommerce context, Ad inventory refers to the quantity of available ad spaces that an ecommerce website has to sell to advertisers. It is pertinent for digital marketing and encompasses various placements including banners, sidebars, in-content, and pop-ups. In the online world, Ad Inventory is akin to the number of billboards a traditional advertising agency has in its possession.
In simplest terms, the formula for Ad Inventory is:
Ad Inventory = Total Ad Space – Already Sold Space
Let's consider an ecommerce website with 10 ad slots on each page and the site has 100 pages. If 400 ad slots are already sold, the ad inventory is (10*100) - 400 = 600 ad slots left.
Improving Ad Inventory has a direct impact on an ecommerce site’s revenues. Here is how to improve it:
Ad Inventory is influenced by many factors:
Average Customer Spend is the average amount of money each customer spends per transaction on an eCommerce website.
Audience Size is the total number of unique individuals who view, interact, or receive a certain marketing message.
Attribution Conversion Path Analysis is a technique of determining which marketing touchpoints contribute to a sale or c...
Ad stacking is a practice of stacking multiple ads in the same spot on a webpage.
Advertising to Sales Ratio is the percentage of total sales that is spent on advertising.
The Average Revenue Per Subscriber (ARPS) measures the average income generated from each active subscriber.