What Is Floor Pricing in Programmatic Advertising? Floor pricing refers to the minimum bid price a publisher is willing to accept for an ad impression in a programmatic auction. Think of it as a reserve price in an art auction — anything below it gets ignored, ensuring your inventory doesn't get undervalued. Setting the right floor is part art, part science. Go too low and you devalue premium inventory. Go too high and you risk reducing fill rate. The magic happens when you find the optimal middle ground — and that's where intelligent floor pricing strategies shine. Static Floors vs. Dynamic Floors 1. Static Floors These are fixed CPM thresholds, often based on historical averages. While easy to manage, they rarely respond well to real-time changes in demand, seasonality, or bid density. They’re often used by smaller publishers or those new to programmatic. 2. Dynamic Floors Dynamic pricing adjusts floors in real time, based on auction behavior, page context, user l...
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