Posted in Marketing and Strategy Terms, Total Reads: 527
Definition: Frequency Cap
In online advertising, frequency means the number of occurrences of an advertisement to a particular visitor on a website in a given period of time. Capping means putting a limit to the frequency and is usually done against a time-period of per-day, per-week or per-month.
Setting the frequency cap is a complex task as it depend on factors like:
• Ad format
• Type of site
Ad format can be intrusive or non-intrusive. Intrusive Ads include prestitials and pushdowns are very annoying, if presented again and again to visitors. Non-Intrusive Ads include brand-promoting campaigns. So, putting caps on intrusive ads is necessary but in case of non-intrusive ads, caps may have an adverse effect. This is because it is better to deliver more ads for brand promotion.
So, frequency caps can serve the following purposes:
• reduce wastage of consumer’s time and advertisers’ money
• optimize the money spent by repeating exposures while yielding above-average dwell rate
• limiting intrusive ads to prevent consumer frustration
Thus, publishers need to partner with brands to maximize the brand exposure while being fair and sensitive to their audiences.
Example of frequency capping:
This means after looking at this ad 5 times, the visitor will not be shown it again for 24 hours.