Mastering Google Ad Manager: A Definitive Guide to Line Items

This guide navigates through the essentials of GAM Line Items, from creation to their impact on ad delivery, providing key insights for publishers to boost revenue and advertisers to refine targeting strategies.

If you’re a publisher looking to maximize your digital advertising revenue or an advertiser aiming to reach your target audience effectively, understanding Line Items is crucial.

In this blog, we’ll delve into the depths of Google Ad Manager’s Line Items, exploring what they are, how they work, and the various types available.

Whether you’re new to GAM or seeking to enhance your existing knowledge, this blog  will provide you with valuable insights and practical tips to master Line Items and optimize your ad delivery strategies. Let’s dive in!

What Are Line Items in GAM?

Google Ad Manager (GAM) stands out as a powerful tool for publishers to manage their ad inventory.

Line Items are like instructions that specify how and where ads should be delivered to the audience. They define the parameters for ad delivery, including targeting criteria, ad creatives, pricing, and scheduling.

With Line Items, publishers can fine-tune ad delivery strategies, targeting precise audience segments and optimizing revenue through various pricing models. They decide ad placement, formats, frequency, and pacing, ensuring a smooth user experience.

Each Line Item is part of a single order and cannot stand alone. Orders can have many Line Items, which helps publishers manage their ad campaigns better.

Line Items contain details like:

• The number of times your advertiser or buyer wants an ad creative to serve
• The cost you negotiated for the campaign
• Start and end times of the campaign 
• Targeting that allows your advertiser or buyer to reach its intended audience or demographic

How Does Line Item Work?

Line items act as a bridge between advertisers and publishers, ensuring that ads are delivered effectively to the right audience at the right time. They enable publishers to monetize their inventory efficiently while allowing advertisers to reach their desired audience segments.

After publishers create line items, GAM prioritizes line items based on factors such as type, targeting criteria, and pricing rules.

When a user visits a publisher’s website or app,  ad requests are sent to GAM. GAM’s ad server determines which line item to use based on prioritization and available ad inventory (e.g. ad location, size, user’s first-party data (if allowed), time zone, targeting details,…)

For non-guaranteed line items, GAM may conduct a real-time auction to determine the highest bidder among competing line items. The winning line item’s ad creative is served to the user’s device.

GAM continuously monitors the performance of line items, tracking metrics such as impressions, clicks, and revenue generated.

Publishers can optimize line item performance by adjusting targeting criteria, pricing rules, and other parameters based on performance data and campaign objectives.

GAM provides detailed reporting on Line Item performance, allowing publishers to analyze ad delivery effectiveness and make informed decisions for future campaigns.

How Many Types of Line Items in GAM?

In GAM, line items are sorted into different types, each with a priority level indicated by a number.

This priority decides which demand partner’s ads get shown first. By picking the appropriate line item type for each partner, you can make sure your chosen partners get priority ad space according to your agreements with them.

The lower the number, the higher the priority.

There are 3 main categories, which include different types of line items:

Guaranteed line items

Guaranteed line items are typically used when advertisers want assurance that their ads will be displayed in specific placements, at specific times, and with a guaranteed number of impressions or clicks. 

These line items are commonly used for direct sales and premium campaigns.

Line item type	Priority
Sponsorship	4
Standard	6 8 10

Sponsorship line items

Sponsorship line items are premium advertising options that offer advertisers a guaranteed share of visibility on your site, prioritizing their content over others. They operate on a “share-of-voice” basis, ensuring a specified percentage of page views or matching requests. 

These line items are typically time-based and can be sold on a cost-per thousand-impressions (CPM), cost per click (CPC), or cost per day (CPD) basis. 

All targeting criteria are available for customization, allowing advertisers to tailor their campaigns to specific audiences. Advertisers set percentage goals for their sponsorships, determining the portion of matching requests they aim to serve. 

These sponsorships are given priority over other line items of the same level, ensuring that advertisers reach their specified goals. 

Exclusive and competing sponsorships

They are distinguished by the percentage goals set for sponsorship line items, which dictate the portion of matching requests they will serve. These sponsorships receive priority over other line items of the same level, up to the goal set by the advertiser.

If a goal of 100% is set and no other sponsorship targets the same inventory and criteria, the sponsorship serves exclusively.

However, if the total percentage of all eligible sponsorships is less than 100%, sponsorships are ordered randomly at each request within the same line item priority.

When multiple sponsorships targeting the same or overlapping inventory and criteria exceed a combined 100% goal, delivery becomes challenging to predict, and it’s generally recommended to avoid overbooking competing sponsorships.

Standard line items

Standard line items serve as the backbone for direct campaigns, offering advertisers a structured approach with fixed start and end dates, delivering impressions as specified.

For instance, advertisers can set up a standard line item targeting a specific ad unit for a predetermined number of impressions (e.g., 100k) within a defined time frame (e.g., June).

These line items are categorized into three priority levels: 6 (high), 8 (medium), and 10 (low). In cases where multiple standard line items have matching requests, priority dictates which ad is served, with higher priority line items taking precedence. However, lower priority line items can supersede higher priority ones if they offer a better price.

Moreover, standard line items may compete against remnant line items based on price, allowing ad network and non-guaranteed line items to outbid standard line items if they offer higher prices for the same ad request. This dynamic environment ensures efficient allocation of ad inventory while maximizing revenue potential for publishers.

Non-guaranteed line items

Non-guaranteed line items, including Network, Bulk, and Price Priority line items, cater to demand that is not guaranteed. This line item type allows third-party ad networks or exchanges to compete based on a price set by the publisher.

These line items, along with House line items for internal promotions, are excluded from forecasts since they can be superseded. For guaranteed inventory offerings, such as those desired by advertisers, Sponsorship or Standard line items are recommended.

Non-guaranteed are not reserved in advance. Instead, they compete in real-time auctions to fill ad slots when guaranteed campaigns cannot meet their delivery goals.

Line item type	Priority
Network	12
Bulk	12
Price priority	12
House	16

Network line items

Network line items serve as a specialized tool within Ad Manager for managing ad networks. They are used when dealing with ad networks that have no impression goal. It serves on the basis of a defined percentage. 

These line items offer flexibility by allowing publishers to allocate a specific percentage of their remaining impressions for fulfillment. Unlike some other line item types, network line items can have an unlimited end date, simplifying ongoing management. They are excluded from forecast results, ensuring accurate forecasting for guaranteed campaigns.

Network line items directly compete with AdSense and Ad Exchange line items based on their CPM rate or value CPM. The competition frequency of network line items against other indirectly-sold line items is determined by their weight, with higher weights resulting in more frequent competition.

However, even if set to 100% of impressions, a network line item may not deliver if consistently outbid by other higher-value line items or AdSense/Ad Exchange. 

Bulk line items

Bulk line items serve as a valuable tool for publishers to manage unsold inventory efficiently. Bulk line items are used when working with advertisers who have an impression goal but do not specify a fixed timeline. The impression goal represents the upper limit for the number of impressions to be delivered.

These line items allow publishers to specify a specific quantity of impressions, enabling them to unload unsold inventory within their network and they are not included in forecast results, providing publishers with clarity when planning their inventory.

Additionally, bulk line items compete directly with AdSense and Ad Exchange line items based on their CPM rate or value CPM. Within each priority level, line items are grouped based on their goal type, with preference given to line items with percentage goals, followed by absolute goals, and then unlimited goals.

However, if AdSense or Ad Exchange has a line item with a higher CPM, Ad Manager will serve the AdSense or Ad Exchange line item instead, potentially impacting the delivery of bulk line items. This dynamic ensures that the highest value line item is served, maximizing revenue potential.

Bulk line items are used for lower-priority deals.

Price priority line items

Price Priority line items are a strategic tool for publishers aiming to maximize revenue by filling unsold inventory with the highest paying line item available. Offering flexibility with options for specifying delivery caps, publishers can control the volume of impressions delivered over time.

Price Priority line item is used when there’s no impression goal and no end date. 

These line items can be set to deliver either a specified number of impressions or an unlimited number with no fixed end date, ensuring adaptability in inventory management. Excluded from forecast results, Price Priority line items compete directly with AdSense and Ad Exchange line items for ad impressions, prioritizing the highest paying opportunities. 

However, they adhere to a hierarchy when competing with other line items, with preferences given to line items with percentage or absolute goals before unlimited line items like Price Priority.

Despite having unlimited goals, Price Priority line items may not deliver if consistently outbid by AdSense or Ad Exchange line items with higher CPMs. 

Therefore, careful consideration is necessary when trafficking Ad Exchange snippets within Price Priority line items to avoid potential bidding issues and loss of critical information for ad serving and reporting.

House line items

House line items serve as a unique advertising tool primarily utilized by publishers to promote their own products and services, often with the goal of increasing brand visibility or engagement.

These line items are typically non-revenue generating and are assigned the lowest delivery priority among all line item types, with a priority level of 16. House line items are not included in forecast results and function differently in the auction compared to other line item types.

They are only served when no other remnant line items, such as Network, Bulk, Price Priority, Ad Exchange, or Open Bidding demand, are available. In this scenario, the impression is allocated to the house line item, which serves the ad.

House line items are treated as if they have a $0 rate and do not compete on price through dynamic allocation. Instead, their ranking is determined by their CPM, although they do not need to meet any floor price set in unified pricing rules to serve an ad.

Consequently, house line items effectively function as fallback ads, ensuring that publishers always have content to display even when other demand sources are unavailable.

This flexibility makes house line items a valuable component of a publisher’s advertising strategy, allowing them to promote in-house products and services while maintaining control over ad serving and revenue goals.

Ad Network and Exchange line items

These line items help publishers monetize inventory through external advertisers. Publishers can integrate with external Ad Network or Ad Exchange to fill unsold inventory with ads from third-party advertisers.

They help maximize revenue by tapping into additional demand sources.

Line item type	Priority
AdSense	12
Ad Exchange	12

AdSense line items

AdSense line items facilitate the ad serving from one or more AdSense accounts, featuring a priority level of 12 within the Google Ad Manager (GAM).

To begin serving ads using this line item, it’s imperative to link your GAM account to your AdSense account and activate the AdSense line item type for your GAM network.

Furthermore, GAM offers the option to activate ad units for AdSense competition, enabling targeted line item delivery to specific inventory accessible to AdSense buyers.

Activation of the AdSense line item type within your Ad Manager network is essential for utilizing this feature, and if it’s not visible when adding a line item, consultation with your Ad Manager administrator is recommended.

This flexibility allows for the utilization of one or more AdSense accounts across various segments of inventory, enhancing targeting capabilities and maximizing revenue potential.

Ad Exchange line items

Ad Exchange line items are instrumental in serving ads from one or more Ad Exchange (Adx) accounts, harnessing demand to compete for impressions on remnant inventory. 

Sharing a priority level of 12 with AdSense line items, it’s imperative to link your Adx account with Google Ad Manager (GAM) to facilitate the serving of this line item. 

During preferred deals, the Ad Exchange line item takes precedence over non-guaranteed line items but follows after guaranteed line items have been served. 

These line items enable targeted delivery to specific inventory accessible to Authorized Buyers and the Open Auction, enhancing precision in ad targeting. 

Leveraging one or more Exchange accounts across various segments of inventory amplifies targeting capabilities and optimizes revenue potential.

Creating Line Items in GAM:

While Google Ad Manager simplifies the process, keep in mind that effectively managing and fine-tuning these items demands ad operation expertise.

Here’s a simple guide on how to craft a line item in GAM:

Step 1: Log in to your GAM account

Step 2: Go to the “Delivery” tab, then “Orders,” select “New Order” or the name of an existing order

Step 3: Click on the “New Line Item” button

Step 4: Select “Ad Type”, Display or Video

Step 5: Enter the necessary details for the Line Item, including:

• Line item name
• Line item type: Standard, Sponsorship, Network…
• Inventory sizes
• Start and end dates
• Goal (e.g., impressions, clicks)
• Specify the pricing model and rate (e.g., CPM, CPC, fixed rate).
• Targeting criteria such as geography, devices, demographics,…

Step 6: Upload ad creatives (e.g., images, videos, HTML5 ads) and ensure the creatives comply with GAM’s policies and guidelines.

Step 7: Configure delivery settings such as frequency capping and pacing

Step 8: Activate the line item and monitor performance through GAM’s reporting tools.

Conclusion 

Mastering Google Ad Manager’s line items is essential for publishers looking to maximize their ad revenue and advertisers aiming to reach their target audience effectively. By understanding the different types of line items and how they work, publishers can optimize their ad inventory management strategies and drive better results for both advertisers and themselves.

Frequently Asked Question

1. Can I edit line items after they’re created?

Yes, you can edit various aspects of line items, including targeting, pricing, and creatives, even after they’ve been activated.

2. What is the difference between CPM and CPC pricing?

CPM (Cost Per Mille) charges advertisers per thousand impressions, while CPC (Cost Per Click) charges based on the number of clicks received.

3. How can I optimize my line items for better performance?

Experiment with different targeting criteria, ad formats, and pricing models to find the optimal mix for your audience and inventory. Regularly monitor performance metrics and adjust line items accordingly.