Frequency capping is a part of digital advertising terminology that refers to the restriction of the number of times a particular unique user is shown an advertisement.
Unlike traditional advertisements on billboards, television, radio and print which show specific ads for a defined period of time because it is difficult to attribute who saw the ad, within digital advertising (Mobile ads or Web ads) an advertiser can specify the exact number of times he/she wants the user to see the ad.
Frequency capping is of benefit to all concerned parties. How? Let’s explain this in more detail below-
User– If a particular user has experienced an ad a number of times then he already becomes aware of whatever product the advertising wants to create awareness about. The capability of frequency capping allows the user not to be over-exposed to this offering.
Advertiser– The advertiser here has the possibility to allocate his remaining budget to a new user or other modes of digital advertising than repeatedly showing the content to a user who has already viewed it multiple times.
Application Developer– As the user views more impressions of a particular advertisement, the advertiser is less and less inclined to show him the ad. Hence he will pay lesser for the second, third, fourth exposure and so on. Through frequency capping the space becomes available for a new alternative advertiser who would be more likely to pay higher to use the space for a first time viewer of his ad.