What is frequency capping?
Frequency capping is the term for placing limits on the number of times a viewer sees a digital advertisement. Most ad platforms have controls that allow companies to easily control ad frequency.
Without frequency capping, an ad campaign may show repeatedly to the same audience, resulting in ad fatigue. Setting controls helps ensure that those users remain amenable to the brand and that advertising dollars aren’t wasted by serving the same ads to the same people.
Cross-channel advertising software can help companies manage advertisements across multiple digital platforms. Besides offering frequency capping, these tools centralize the overall campaign into one easy-to-use hub.
Basic elements of frequency capping
No matter what platform a company uses, frequency capping typically involves making three main setting adjustments. These basic elements are as follows:
- Frequency: This is the number of times the ad is shown to a unique user in a set time frame. Each time a user sees the ad is called an impression. For example, a company could adjust the frequency setting to three impressions if that is the maximum number of times the ad should be displayed to a single user.
- Type of ad: The advertiser can choose the type of advertisements they want to cap. Advertisers can select a specific ad or the entire campaign.
- Time frame: The company can choose the length of time until the cap resets, usually in units of hours, days, weeks, or months.
Putting it all together, a cap may look like an organization limiting audiences from seeing the latest car ad more than three times a day. Because frequency is often described in a timeframe of hours, this company might say that the frequency cap is 3/24.
Benefits of frequency capping
Frequency capping is a simple practice that has benefits for the advertiser and the consumer alike. With a few simple clicks to change settings, frequency capping:
- Reduces ad spend: Showing the same ad to the same user repeatedly can harm the campaign. Frequency capping makes better use of funds, allowing the company to divert impressions to other target customers.
- Maintains a positive brand image: When audiences see the same commercials and banner ads multiple times an hour, they become annoyed. Sometimes that frustration becomes targeted at the brand itself. With frequency capping, companies can find the sweet spot between exposure and overexposure, helping maintain a positive image.
- Increases user engagement: In digital marketing, click-through rate (CTR) is a metric that helps measure an ad’s performance. A high CTR indicates that a higher percentage of people who see the ad are clicking on it to learn more. Typically, CTRs drop after the first impression and continue to drop with each impression after that. Frequency capping keeps the CTR high, leading to better ad positioning and lower costs.
Frequency capping best practices
A company’s specific numbers for frequency caps depend on its campaign goals and target market. Some best practices are detailed below.
- Choose a starting point. Each ad campaign is unique. Some platforms recommend starting with a higher frequency cap, especially if the advertiser cares less about reach and more about exposure to a key audience. However, if the goal is expanded reach, the cap might be set to only one or two impressions per week.
- Analyze data. Check key performance indicators (KPI) frequently. For many businesses, one of the main KPIs is CTR. Software comes in handy here by organizing data and running reports on key metrics.
- Adjust caps as needed. Even if a company thinks it has the optimal frequency nailed down, there may be shifts in the market, season, or brand positioning. Keep an eye on metrics and re-evaluate caps every on a regular basis.
