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How to Optimize Your Prebid Revenue with Dynamic Flooring
Ad Technologies

How to Optimize Your Prebid Revenue with Dynamic Flooring?

April 29, 2024
May 24, 2024

For far too long, the industry has relied on traditional optimization strategies and technologies. Whereas the buy side kept on improvising their profit by using advanced, cost-saving algorithms and technologies, the sell side lagged behind by relying mostly on the legacy systems.

Let’s take floor price optimization as an example. Publishers always want to get the best bids out of every auction, and setting the floor price right is one step toward success. However, if you set it too high, potential advertisers won't even consider bidding, leaving your inventory unused. Conversely, a price floor that's too low means your ad space gets sold for less than it's worth. 

Setting the floor price manually adds an extra layer of complexity to it. And many publishers have still been using it. 

Thankfully, with the help of AI and ML, solutions like Dynamic Flooring are emerging. And platforms like Prebid are leading the change by offering dynamic flooring within their ecosystem. 

Let’s explore how you can leverage dynamic flooring for your Prebid auctions. 

Dynamic Flooring in Prebid

Prebid is an open-source technology that enables publishers to implement header bidding. This further increases the demand by enabling multiple ad exchanges to bid for your impression at the same time. 

Around 1% of the top 1 million websites worldwide use Prebid, which is the second most popular header bidding technology. 

However, floor price optimization had been a tough deal to crack in Prebid. That’s why Mile introduced AI-Powered Dynamic Flooring - the flooring module that can upgrade your Prebid stack incredibly.

What is Mile’s AI-powered Dynamic Flooring?

The Dynamic Flooring Module is a price floor automation tool that uses powerful algorithms and data analysis to determine the best possible price floor for every single auction. Built for the Prebid ecosystem, it uses machine learning to understand the bidding patterns to predict and get the highest price for each ad impression, irrespective of dynamic market changes.

This way, it ensures publishers that their ad inventory is sold at the best market value while ensuring suitable prices for buyers.

How Does Prebid Dynamic Flooring Work?

Dynamic flooring is a real-time floor price estimation module made to integrate with the Prebid setup. The flooring works based on machine learning algorithms that understand and leverage historical and real-time data and bid performance to find the best floors for each ad call and impression. 

Let’s see the step-by-step process of flooring optimization here:

Step 1: Data Collection

Once the module is integrated with the Prebid stack, it collects extensive data through an analytics adapter. The data includes historical bid performance data, ad unit performance, bidding patterns, device type, geo, bidder behavior, user experience, etc. 

Step 2: Data mining and training using ML

The algorithm analyzes the existing data set (historical data) to find patterns and trains the model using it to predict the ideal floor prices during every ad impression.

Step 3: Floor price activation on controlled and experimented groups

Based on the training and analyses, the model predicts and applies the floor prices at every 4-minute interval for a certain set of impressions, which is called a controlled group. The rest of the impressions are left to the existing floor price mechanism, which is called the experimented group. This A/B testing is to do the comparative efficiency analysis. 

Most importantly, it applies different floors across different browsers, geographies, ad units, and other criteria to come up with the best price for your ad inventory.

Step 4: The feedback loop

Once initiated, the ML algorithm sets the floor and starts the feedback loop. The loop collects real-time bid performance data and feeds it back into the model to find an intelligent floor price at every ad call. It tracks bidders' responses with respect to dynamic floors to adjust them in the next cycles. And ensures healthy competition between the buyer’s requirements and the publisher’s profitability.

Step 5: Continuous training 

The more it learns, the better it gets. The model enters into a continuous learning stage where it uses recent ad and bid performance data to optimize the floor price or Prebid CPM. It highlights and understands the pricing strategies a demand partner follows for your ad inventory and keeps updating the model to get ahead of the curve.

Dynamic Flooring: Exploring its Necessity for You

When it comes to getting the best price for your inventory, publishers face challenges with static floors and traditional floor setups. Our dynamic flooring module resolves those challenges with its awesome advances and intelligence. 

Market adaptability:
Market dynamics shift rapidly. Dynamic flooring uses automated technology to change floor prices with evolving market changes. It sets high floors when premium buyers are interested in your inventory and low CPMs when demand is low, unlike manual floors where a professional needs to change floors to high value whenever there are seasonal changes. 

Ad space won’t be empty:
Dynamic floors use every situation to covet potential bids. Also, it doesn’t compromise the fill rate with high floor prices when the demand is low.

Real-time data advantage:
The traditional floor price setup uses static floors determined based on historical bid performance data. Historical data is important, but static floors ignore real-time and prediction trends. In contrast, Dynamic Flooring uses historical and real-time data on bid performance and every nuance of auction data to predict optimal price floors, elevating fill rate and ad revenue. 

No one universal solution:
Different problems need different fixes. On that accord, dynamic flooring predicts different floor prices for different ad formats, browsers, devices, etc., as they have different demands and performances. Getting them auctioned at the same flooring would result in wrong pricing and underperformance. Dynamic flooring overcomes this situation by adjusting floor prices with high-edge data granularity and unmatched precision. 

Dynamic flooring is embedded into your Prebid stack, offering you the most vital aspect of adtech, which is high transparency. You can extract high-level information from it to have data privileges over your buyers.

Save time, cost, and resources:
Our module is automated with AI so that you can save your development, maintenance, and ad operations teams from spending time on manual adjustment of floors for different traffic segments, geos, etc. It also reduces the cost spent on those manual efforts. 

Overall, dynamic flooring technology has all that traditional floor price setup lacks, such as a data-driven process, data granularity, decision-making, speedy intelligence, etc. Therefore, hereafter, there are no more hard or soft price floors, only Dynamic and Intelligent, a killer combination.

Dynamic Flooring: Upsides and Key Enhancements

So, what does the dynamic flooring module offer you? Let's explore some of its notable enhancements:

  • Our Dynamic Flooring Module never misses out on the potential bids from the Prebid auction, and it activates floor pricing for all SSPs in the Prebid ecosystem.

  • The data is on your side with dynamic flooring. You relish the advantage of data being processed on your side. Over time, you get indispensable information on your buyer's pricing pattern, bidding patterns, requirements, and bid performance.
    Again, these performances vary depending on geo, browser, devices, etc. This insightful granular data is at your service with dynamic flooring. You have the privilege of increasing floor prices and CPMs that advertisers hesitate to deny.
  • The module tries to utilize every user's visit to improve revenue per visit or impressions and increase Prebid RPMO.
  • With flooring intelligence, the module increases the Prebid CPM and win rate, and offers an uplift in gross revenue. Ultimately, it will increase the Prebid revenue contribution in the Publisher's overall ad revenue.

Suggested reading: Leading digital publisher increases Prebid revenue contribution by 110% with Mile

Who Should Use Dynamic Flooring?

Dynamic Flooring by Mile is a tool built for publishers whose ad stack includes Prebid. Since it automates price floor optimization, it saves time and effort, making it a great choice for publishers looking to streamline their ad operations. Our "Dynamic Flooring" is a plug-and-play solution. So, you can just get it plugged to your existing Prebid setup and let it optimize the bidding ecosystem for you.

Not using Prebid but interested in the optimizer? No problem!

Implementing Prebid with Mile is a breeze – it only takes a few clicks. Plus, Prebid opens you up to a wider pool of ad demand beyond just floor price optimization.

Let’s Get Started

That’s pretty much it. We have explained almost everything that you would want to know about this cutting-edge tech and how it can boost your revenue. However, if you have any more questions, we would be happy to answer.

Also, if you are ready to optimize your ad stack and make your Prebid ecosystem more efficient, join Mile today. To make it efficient, fast, and cost-saving, our module comes with a 4-week free trial period. So, let’s get started.

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