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How to Optimize Your Prebid Revenue with Dynamic Flooring
Ad Technologies

How to Optimize Your Prebid Revenue with Dynamic Flooring?

1
Priyanka
April 29, 2024
December 4, 2024

For far too long, publishers have relied on outdated tools for prebid revenue optimization, while the buy side has surged ahead with advanced, profit-maximizing technologies. This gap has left you, as publishers, struggling to keep pace. Dynamic floor pricing can be a powerful solution to optimize your revenue and regain your competitive edge.

What Is Dynamic Flooring In Programmatic?

Dynamic flooring in programmatic is all about setting smarter, more adaptive minimum bid thresholds.

Traditionally, managing these floors meant manually monitoring traffic segments and adjusting prices based on assumptions and historical performance. While this might yield occasional improvements over built-in tools like GAM’s default flooring, it’s far from optimal. Manual processes are resource-intensive, prone to errors, and fail to respond quickly to market fluctuations.

That’s where Mile’s AI-Powered Dynamic Flooring and machine learning helps! 

How Does Dynamic Floor Pricing Work?

Dynamic flooring tools continuously analyze performance data to optimize floor prices in real-time, improving efficiency and boosting incremental revenue. 

Platforms like Prebid are at the forefront, integrating AI dynamic flooring into your ecosystems and empowering you as a publisher to stay competitive.

Think of it as floor prices that move with the market. Instead of having a set pricing, it reacts in real time to shifts in demand, audience behavior, and other auction signals, helping you squeeze the most value out of every impression.

Now, add AI to the mix, and you get machine learning-driven dynamic floor pricing. This isn’t just about automation—it’s about precision. By analyzing both historical trends and real-time data, AI predicts and adjusts floor prices on the fly, ensuring you’re capturing maximum revenue potential without the hassle.

What is Mile’s AI-powered Dynamic Flooring?

Mile’s AI 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 Mile’s AI-Powered 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.

How To Select The Right AI Dynamic Flooring Solution For Publishers?

If you're a publisher looking to maximize revenue without drowning in operational inefficiencies, it’s time to embrace AI-powered dynamic flooring. But not all solutions are created equal. Here’s how to spot one that delivers real results.

  1. Market Responsiveness Is Non-Negotiable

A strong dynamic flooring solution adapts in real time. When premium buyers show up, it pushes floors higher to capture top bids. When demand cools, it drops them to keep the inventory moving. This flexibility beats the manual guesswork of traditional setups.

  1. Fill Rates Without the Drama

High floors can be risky business—too high, and you’re staring at empty ad slots. The right dynamic flooring tool knows how to ride the line, maintaining a balance between premium CPMs and strong fill rates. It’s not about compromise; it’s about optimization.

  1. Smart Pricing Starts With Smarter Data

A winning dynamic flooring solution combines historical insights with real-time auction trends. This one-two punch ensures you’re always setting floors based on the full story, not yesterday’s highlights.

  1. Tailored Floors for Every Variable

Your inventory isn’t one-size-fits-all. Different ad formats, devices, browsers, and geos bring unique dynamics to the table. Dynamic flooring that treats all these variables with the same precision ensures you’re not leaving money on it.

  1. Transparency That Works for You

Buyers want transparency, but so do you. The best solutions don’t just adjust prices—they give you a front-row seat to the auction data. Integrated with your Prebid stack, a great dynamic flooring system offers insights you can actually use, not just a black box of algorithms.

  1. The Future Is Dynamic

Traditional floors are slow, rigid, and painfully inefficient. Dynamic flooring? It’s everything they’re not—smart, agile, and designed for the complexities of today’s programmatic auctions. With precision-driven adjustments and real-time intelligence, it’s a solution that’s as ambitious as your revenue goals.

Dynamic Flooring: Upsides and Key Enhancements

So, what are the benefits of AI dynamic flooring? 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 AI 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 free 4-week pilot. So, let’s get started.

Frequently Asked Questions

  1. What is Dynamic Flooring in Programmatic?

Dynamic flooring is an automated pricing strategy that adjusts minimum CPMs in real-time based on market demand, bid data, and audience behavior. Unlike traditional floor setups, dynamic floors are flexible, ensuring optimal revenue capture across changing market conditions.

  1. How Do Dynamic Price Floors Increase Revenues?

Dynamic floors use real-time auction data to set the ideal floor price, capitalizing on premium buyers when demand spikes and ensuring fill rates during slower periods. 

Studies show publishers using dynamic floors have seen CPM increases of up to 30%, with revenue lifts ranging from 10–25%, depending on inventory quality and demand.

  1. How Does AI Dynamic Floor Pricing Work?

AI-driven systems analyze a combination of historical and real-time data, including bid patterns, buyer behavior, and auction dynamics. 

These insights enable the algorithm to predict optimal floor prices per impression, ad format, device, and region, ensuring maximum yield without manual intervention.

  1. What Are the Benefits of AI Dynamic Flooring?
  • Increased Revenue: Optimizes CPMs for higher yield.
  • Higher Fill Rates: Balances pricing to avoid unfilled inventory.
  • Efficiency: Automates price adjustments, saving operational time.
  • Granularity: Tailors prices for ad formats, geos, and devices.
  • Transparency: Offers clear insights into auction behavior and bid performance.
  1. What Are the Criteria to Select the Right AI Dynamic Flooring Solution for Publishers?
  • Real-time Market Responsiveness: Must adapt to auction trends dynamically.
  • Data Integration: Combines historical and real-time insights.
  • Customizability: Supports granular adjustments by format, device, and geo.
  • Transparency: Offers clear reporting and data access.
  • Ease of Use: Seamless integration with Prebid.
  1. How Can Publishers Make 4X More Money With Dynamic Floors?

Dynamic floors leverage auction behavior to increase CPMs during high demand while maintaining fill rates in low-demand periods. 

Publishers combining dynamic floors with header bidding and premium targeting strategies have reported revenue uplifts of up to 30–40% in high-value markets.

  1. How Do You Master Floor Pricing as a Publisher?
  • Adopt AI Tools: Use advanced tools for granular floor pricing.
  • Test and Optimize: A/B test floor adjustments for various segments.
  • Leverage Data: Use historical and real-time insights to inform strategy.
  • Integrate Across Platforms: Ensure consistency across GAM, Prebid, and other SSPs.
  1. How Can Publishers Set Dynamic Floor Pricing Across GAM, Amazon, and Prebid?

GAM: Use rules-based line items or dynamic yield partners for automatic adjustments.

Amazon: Leverage TAM (Transparent Ad Marketplace) settings to integrate dynamic pricing strategies.

Prebid: Use AI-enabled bidders or floor modules that align with header bidding for seamless execution - such as Mile’ Al Dynamic Flooring.

By unifying these strategies, publishers can optimize pricing across platforms and maximize returns.

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