Dynamic Floor Pricing
What does Floors do?
Floors is a constantly learning piece of technology that optimises Unified Pricing Rules in Google AdManager to create increased revenues.
The algorithm primary focus is to create the highest amount of revenue for each ad-request sent to Google AdManager. Please note that its focus is on Ad-Request eCPM and this will create some level of unfilled impressions. These unfilled impressions need to happen, as they are the bi-product are setting the optimal floor pricing and getting the best overall returns. Yes, you can fill these unfilled impressions with a house campaign if you so wish.
What results should be expected?
Most publishers see between a 30 to 50% revenue increase over an extended period of time. When Floors is first put to work on new inventory this percentage will likely be higher for a period of time, until the dynamic buyers DSP/buying platform technologies get accustomed to the new norm of the inventory pricing. There are no underhand bidding practices happening inside of Floors, the magic is managing & testing millions of pricing combinations at scale. Floors optimises across website, ad-unit, ad-size, geo, device, day and hour to ensure the right pricing is applied.
Are there any exceptions on the expected results?
Yes, there are a few small fringe instances where Floors hasn't seen seen the usual large revenue uplifts. Floors works extremely well with demand which has some level of dynamic or varied pricing and good examples of this are header bidding and Google AdExchange. The reason Floors works so well here is because its constantly optimising an unknown optimal floor price for each ad-request and thats where the magic happens. So why do some cases not work as expected? The answer is fairly straight forward, if the publisher/inventory to be optimised is heavily (85%+) sold out with direct campaigns then the uplift is likely to be stunted. That doesn't mean you won't see great results, but most of the magic happens away from the direct campaigns.