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A Flooring Guide Overview

Beeler.Tech Flooring Guide

In ad operations and ad tech, the term “flooring” (or more commonly “floor price”) refers to the minimum price set for selling an ad impression in a programmatic buying environment such as an ad exchange or a supply-side platform (SSP).

The floor price acts as a threshold in programmatic auctions, which means that bidding starts from this minimum price. Any bids that are below the floor price are automatically disqualified from the auction. The main purpose of setting a floor price is to prevent the ad inventory from being sold at too low a price, thereby protecting the publisher’s revenues.

Floor pricing strategies can significantly impact the performance of a publisher’s monetization efforts. Setting it too high might lead to unsold inventory, while setting it too low might undervalue the inventory. Therefore, finding the right balance is key.


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