What Are Floor Optimizations?
Floor optimizations involve setting minimum prices (or “floors”) for your ad inventory. In simple terms, a floor ensures that impressions don’t sell below a set baseline value. This helps publishers avoid undervaluing their inventory and creates an environment where buyers must bid more competitively to win.
Why Do Floor Optimizations Matter?
Digital advertising auctions move quickly, and bid values can vary widely depending on demand, audience, and timing. Without floors, you risk letting impressions clear at prices that don’t reflect the true value of your audience. Floors help to:
- Protect inventory value by setting a baseline and balancing fill rate with CPM.
- Encourage stronger buyer competition and higher average CPMs.
- Adapt to market conditions, as floors can be adjusted by device, geography, format, or buyer type.
Benefits You Can Expect
- Higher RPM (Revenue per Mille): By pushing up average CPMs, floors directly impact RPM, the amount you earn for every thousand impressions served. This is one of the most useful metrics for understanding yield across your site.
- Stronger RPS (Revenue per Session): Floors also drive value at the user level. When your impressions clear at healthier prices, the total revenue captured per visitor session increases, helping you make the most of every pageview.
- Healthier Auction Dynamics: Floors reduce “low-ball” bids and create a more competitive marketplace, which can stabilize demand and strengthen buyer confidence.
- Long-Term Yield Gains: Floors aren’t static. Regular testing and adjustments help you find the sweet spot, keeping buyers engaged while consistently capturing maximum revenue.
What Publishers Should Expect
When we implement floor optimizations, results often show up quickly in CPMs, RPM, and RPS. But the process works best with ongoing tuning. Sometimes raising floors increases yield; other times, lowering them opens up more demand. It’s a balancing act, and our team continually monitors the data to maximize your results.
Bottom line: Floor optimizations are about protecting the value of your inventory while increasing RPM, to ensure you generate more revenue from every impression and session.
