When Index Exchange (Index) sends bid requests to DSPs, we pass machine learning-based pricing signals to help DSPs submit more winning bids. To determine these signals, we use a feature called Market Floor.
Market Floor analyzes historical data to determine optimal bid prices, then passes them to DSPs to make sure they submit bids that are able to compete. If the Market Floor is higher than a Media Owner's Index UI floor settings or the floor that the Media Owner sends us in their bid request, we send the Market Floor value to DSPs so they can bid more strategically. For more information about floors, see How floors work in the Index auction.
For DSPs, Market Floor provides several key advantages:
We send reliable price guidance on 100% of Index traffic, making price discovery cheaper and easier.
Market Floor fills in the gaps where Media Owner signaled floors are missing or below the ad server floor, reducing the likelihood that DSPs will lose the auction due to bids below hidden floors.
By providing better price guidance, Market Floor improves the ability for DSPs to submit bids that have a higher chance of winning an impression.
Market Floor signals the same floor to every DSP, ensuring a fair and efficient auction.
