Digital ad spending is bigger than ever—over $600 billion—but if you’re a publisher, you might not be seeing the benefits. Instead, your ad revenue is shrinking. Why? AI-driven ad networks, stricter privacy laws, and the ever-growing dominance of Google and Meta make it harder for independent publishers to get their fair share.
But the real frustration? Watching your CPMs drop and not knowing why. Ad revenue will always have ups and downs, but you should at least know what’s causing them. Is it something on your end—new ad formats or a site redesign? Or external forces, such as Google’s latest algorithm update and seasonal trends? If you don’t have answers, you’re flying blind while your revenue takes a hit.
Read on to know what is causing this and how to fix it.
Why Are Publishers Losing Ad Revenue?
For years, publishers have depended on ad revenue to keep their businesses afloat, but that model is no longer as reliable as it once was. With declining CPMs, stricter data privacy regulations, and the dominance of walled gardens like Google, Meta, and Amazon, many publishers fight for a shrinking market share.
According to Digiday research, 83% of publishers reported significant revenue loss in the open marketplace in 2023. Meanwhile, Permutive data from over 150 publishers shows a 62% increase in direct-sold audience revenue in Q2 2023.
So, what’s driving this decline? Let’s break it down:
The open marketplace is failing publishers
In theory, the open marketplace (OMP) should be a lucrative channel for publishers. In reality, it’s proving to be a revenue trap.
- Low CPMs & fill rates: Many publishers rely on programmatic advertising but struggle with decreasing CPMs. Global programmatic ad spending is projected to reach $800 billion by 2028, yet publishers’ average CPMs remain stagnant or have even declined.
- Walled gardens take the biggest cut: Google, Meta, and Amazon control over 70% of the digital ad market, leaving independent publishers with a smaller share and lower bids.
- Ad fraud: Digital ad fraud siphoned over $84 billion in 2023, with bad actors engaging in bot traffic and domain spoofing, making advertisers cautious about spending on programmatic ads.
- Data privacy regulations: GDPR, CCPA, and Apple’s ATT update have severely restricted tracking-based advertising, impacting publisher earnings.
Consumers are tuning out ads
Even when publishers secure ad placements, engaging users is another challenge.
- Banner blindness: Users are exposed to thousands of ads daily, making them instinctively ignore anything that resembles a banner ad. Traditional display ads are seeing lower engagement rates as a result.
- Ad blockers: Over 42% of internet users now use ad blockers, costing publishers a staggering $54 billion in lost revenue in 2024—about 8% of the projected $695 billion global digital ad spend.
- Poor ad experiences: Auto-play videos, intrusive pop-ups, and slow-loading pages frustrate users and drive them away. A HubSpot survey found that 73% of people dislike pop-up ads, and 51% find them downright frustrating.
Seasonal volatility impacts revenue
Ad revenue isn’t steady—it fluctuates with seasonal trends, and publishers often struggle to adapt. Ad revenue naturally rises and falls over time, depending on your audience and location.
For instance, a sports website sees a surge in traffic during major events, driving up advertiser demand and earnings. But once the event ends, both traffic and revenue dip. Similarly, the “January slump” hits most publishers hard—after heavy holiday ad spending, many advertisers cut budgets, leading to a sharp drop in CPMs.
Election cycles and global events like the Olympics can temporarily inflate ad prices, but smaller publishers rarely see lasting benefits from these spikes.
Inefficient monetization strategies are costing publishers
Outdated ad monetization methods are leaving money on the table.
- Waterfall setups are outdated: Many publishers still use waterfall setups instead of header bidding, leading to missed bid opportunities and lower fill rates.
- Low viewability scores: Ads that aren’t easily viewable (e.g., placed below the fold or slow to load) result in advertisers reducing their bids or avoiding inventory altogether.
- Lack of diversification: Many publishers still rely heavily on display ads instead of exploring alternative revenue streams like subscriptions, branded content, or commerce integrations.
The shift toward first-party data & direct sales
With third-party cookies fading out, publishers without a strong first-party data strategy are feeling the heat. In a 2023 survey, over half (51%) rely on direct-sold ads for 75%-100% of their revenue, yet 28% see the cookie phaseout as a major risk. The message is clear—first-party data isn’t optional anymore.
- Advertisers are looking for high-quality, targetable audiences: Direct-sold deals are resurgent because advertisers want trusted, high-intent audiences rather than relying on broad, third-party cookie data.
- Publishers who leverage first-party data are winning: Those who build robust first-party data strategies—through newsletters, subscriptions, or content engagement insights—secure higher-value direct ad deals.
The Revenue Fix
Monetizing content is about smart strategies that maximize revenue while keeping users engaged. If you’re still relying on outdated methods or struggling to grow ad revenue, it’s time to rethink your approach. Here’s how to take control, optimize performance, and unlock new revenue streams.
First-party data & contextual targeting: taking control
With third-party cookies disappearing, publishers must focus on first-party data collection. Analyzing user behavior, subscriptions, and engagement enables better audience segmentation and higher advertiser demand.
A Deloitte-Google 2022 study found a 30-50% drop in ad revenue after third-party cookies were phased out. 65% of companies surveyed planned to collect more first-party data to adapt. Prioritizing this now is key to staying competitive.
Implementation tips:
• Build a robust data collection strategy through registration walls, surveys, and interactive content.
• Leverage machine learning to analyze audience insights and refine targeting.
• Use contextual targeting tools to align ads with content relevance.
Exploring alternative revenue streams
Diversifying revenue beyond traditional display ads helps mitigate risks and improve financial stability. The New York Times has surpassed $1 billion in digital subscription revenue. BuzzFeed generates over $50 million annually from affiliate partnerships.
Relying solely on ad revenue is risky—market fluctuations, policy changes, and ad blockers can cut into earnings. Diversifying revenue streams helps publishers maintain financial stability and reduce dependence on any single source.
Implementation tips:
• Introduce tiered subscriptions with exclusive content.
• Partner with relevant brands for affiliate marketing.
• Experiment with native advertising formats to maintain a seamless user experience.
Header bidding & supply path optimization (SPO): maximizing auction value
Header bidding is like an open auction where every advertiser gets a fair shot at bidding for your ad space at the same time. Unlike the old-school waterfall method, where ads were filled in order, this setup ensures the highest bidder wins instantly. On top of that, direct advertiser partnerships help publishers take back control from third-party ad exchanges, leading to better rates, higher-quality ads, and a more predictable revenue stream.
Implementation tips:
• Implement a header bidding solution via Google Ad Manager or Prebid.js.
• Optimize ad placement strategies based on real-time bidding performance.
• Regularly evaluate demand partners and remove underperforming ones.
Improving ad UX & reducing ad blocker impact
A poor ad experience drives users to ad blockers, cutting revenue potential. Non-intrusive ad formats like native ads can increase engagement while reducing ad blocker detection. Ad-light subscriptions (ad-free experiences for a fee) have successfully driven revenue for Forbes and The Guardian.
Implementation tips:
• Optimize ad formats for mobile and desktop to enhance the user experience.
• Offer incentives for users to disable ad blockers (e.g., exclusive content access).
• Implement consent-based advertising for better engagement.
Direct-sold ads & private marketplaces (PMPs): regaining control
Ad exchanges take their cut, but selling ads directly or through private marketplaces lets you keep more revenue. 63% of publishers say direct-sold ads are growing, and PMPs attract premium advertisers by offering better brand safety and higher CPMs. More control, better rates.
Implementation tips:
• Develop relationships with premium advertisers to secure direct deals.
• Use PMP strategies to offer exclusivity and premium pricing.
• Build a dedicated sales team to negotiate direct ad placements.
Optimizing ad placements on your website
Strategic ad placement improves visibility and engagement, leading to higher revenue. Prioritize high-visibility zones—ads placed above the fold, within engaging content, and in high-traffic sections tend to get more views and clicks.
Implementation tips:
• Compare revenue per mille (RPMs) across different ad placements and double down on high performers.
• Use Google Analytics, Hotjar, or Microsoft Clarity to track scroll depth, click patterns, and user engagement.
• Avoid clutter—too many ads lead to ad blindness and lower engagement.
• Experiment with different layouts while maintaining a balance between UX and revenue.
Improving ad viewability
If your ads aren’t loading fast or are hidden where users don’t scroll, they might as well not exist. Faster load times and strategic placements keep ads in view and revenue flowing.
Implementation tips:
• Optimize images and use responsive design to enhance ad load times.
• Enable lazy loading to ensure ads load as users scroll.
• Monitor viewability rates and adjust placements based on performance data.
Diversifying ad formats
Different users engage with different ad types, and a mix of formats maximizes monetization.
Implementation tips:
• Incorporate video, native, and interactive ads alongside traditional display banners.
• Leverage high-CPM formats like programmatic video ads.
• Experiment with social media and programmatic ad networks for additional revenue streams.
Balancing ads with user experience & engaging content
Too many ads can push users away, but a great content experience keeps them engaged. Video is now a top marketing priority, with 95% of marketers considering it essential—up from 88% in 2024.
Implementation tips:
• Rotate ad creatives regularly to prevent ad fatigue.
• Use A/B testing to determine optimal ad-to-content ratios.
• Invest in high-quality content to drive organic traffic and increase monetization opportunities.
Improving mobile & CTV monetization
Mobile and CTV ad revenue is growing fast. Mobile phones drive most web traffic, and CTV ad spending keeps climbing as more people switch to streaming. Optimizing for in-app ads, responsive formats, and premium CTV spots means more engagement and revenue.
Implementation tips:
• Use mobile-friendly ad formats like interstitials and in-app advertising.
• Explore CTV partnerships and programmatic CTV advertising.
• Test mobile ad performance across different devices and operating systems.
Analyzing data to refine your ad strategy
A “set-it-and-forget-it” approach won’t cut it—advertising revenue thrives on continuous optimization. Tracking key metrics helps you make smarter decisions and maximize earnings.
Implementation tips:
• Regularly track key metrics like CTR, fill rate, viewability, and CPMs.
• Run A/B tests to compare different ad formats, placements, and strategies.
• Stay updated on industry trends and adjust strategies accordingly.
Bonus tip: Enable ad refresh
Refreshing ads based on user behavior (e.g., every 30-60 seconds) increase impressions and boosts eCPM. Just ensure it enhances user experience rather than disrupting it. Use event-based triggers like scroll depth or hover actions to refresh ads.
The Future of Publisher Monetization
Success hinges on owning your audience data, diversifying revenue streams, and leveraging AI-driven ad strategies.
MangoAds helps publishers eliminate inefficiencies and boost earnings with AI-powered ad placements, real-time auction optimization, and premium advertiser connections.
With interactive ad formats, dynamic audience targeting, and AI-driven insights, you get higher CPMs, stronger engagement, and more revenue—without compromising user experience.
Stop leaving money on the table. Get in touch with us today.