The price floor is one of the main tools used by publishers to optimize revenue on their platforms. It works by setting the minimum price for which a website’s advertising inventory can be sold.
In this article, we’ll explore what the price floor is and how publishers can use it to increase revenue on their sites.
What is the Floor Price?
The floor price is the lowest price at which an ad can be sold on a specific ad exchange. It’s determined by publishers and represents the minimum value they’re willing to accept for each ad impression on their site.
Why is the Price Floor important for Publishers?
The price floor is an essential tool for publishers because it helps to maximize the revenue generated by their advertising space. By setting a price floor for each ad impression, publishers can ensure that their inventory won’t be sold below a fair value.
Additionally, the price floor allows publishers to control the quality of ads displayed on their site. By setting a price floor for each impression, they can prevent low-quality ads from being displayed on their advertising space, which can harm the user experience and negatively impact the site’s reputation.
How to Define the Ideal Price Floor?
Defining the ideal price floor is a process that requires careful analysis and constant monitoring of results. There are several strategies that publishers can use to set the price floor for their advertising space.
One of the most common strategies is to set the price floor based on the demand for each advertising space. This means that spaces with higher demand can have a higher price floor than those with lower demand.
Another strategy is to use performance data to define the ideal price floor. Publishers can monitor the performance of their advertising space and adjust the price floor based on click-through rates, conversion rates, and other performance indicators.
Conclusion
The price floor is an essential tool for publishers who want to maximize revenue from their advertising space. By setting a price floor for each ad impression, they can ensure that their inventory won’t be sold below a fair value and control the quality of ads displayed on their site.
Defining the ideal price floor is a process that requires careful analysis and constant monitoring of results but can bring significant results in terms of revenue and quality of displayed advertising.
Finally, if you’re looking for an SSP that can help you define the ideal price floor, with full control over your campaigns, no fees, and total transparency through premium programmatic advertising with an easy plug-and-play experience, GnetRTB has its ad exchange connecting global DSPs to the main inventories in Latin America. Click on this link and be assisted by our team of experts.
