Floor price

A method to ensure auction granularity is the set of minimum price bids, or floor-prices. In an open auction in fact, the seller can set all ad placement entry prices of with a huge level of detail: inventory, buyer type, buyer name, ad format, ad placement, section, etc.

In various types of private auction with “one-to-few” participation, the floor-price works as the initial bid price. In Programmatic, can be set two different level of floor-prices by the sellers:

  1. Hard floor: the minimum price to bid in the ad exchanges. Any bids below the hard floor-price will be rejected.
  2. Soft floor: is a price above the hard floor that sellers can set to capture what would otherwise be missed opportunities.

Important to note that in the soft floor, the auction is run on first price and the winners pay the exact amount they bid.

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October 20, 2017
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