How floors work in Index Marketplaces

A floor A pricing control used by publishers and exchanges to set a minimum sale price on inventory. is a predefined minimum acceptable price for a winning bid for a piece of inventory. When floors are set on inventory, Index Exchange will only accept bid responses from DSPs that are greater than or equal to the floor price, and reject bid responses below the specified floor price. Rejected bids that did not clear the floor price are shown as “bid below floor” in reports. The minimum floor price that you can set on a Marketplace Package is $0.10.

To make sure publishers make the minimum amount of money they want for the inventory for Marketplace transactions, Marketplace fees must be accounted for when determining the floor price that Index passes to DSPs. To do this, Index takes the highest publisher The owner of a website or app where advertisements are served. floor and adds applicable Marketplace fees to it. Index then compares the publisher's highest floor value + fees to the Marketplace Package floor and applies the following logic:

For first price An auction where the highest bid wins, and the winner pays the highest bid amount in full. auctions, whichever floor is highest between the highest publisher's floor + fees and the Marketplace Package floor is sent to the DSP Demand-Side Platform (DSP). A software platform that automates bidding decisions in real-time and efficiently connects buyers and audiences through an ad exchange or SSP. Also known as a buy-side platform..
For fixed price For specific deals, a fixed price can be negotiated between a publisher and a buyer. If the advertisers bid at this fixed price or above, their bid responses are eligible to compete in the auction, and, if they win the auction, they only pay the fixed price regardless of what their bid amount was. auctions:
- If the highest publisher's floor + fees is lower than the Marketplace Package fixed floor price, the fixed floor price is sent to DSPs and the deal A private auction that allows publishers to offer specific inventory directly to selected buyers identified by a deal ID. Terms are negotiated and are agreed upon before the auction occurs. can transact.
- If the highest publisher's floor + fees is higher than the Marketplace Package fixed floor price, the deal is considered ineligible to transact.

First price floor example

To figure out which floor to pass, we must compare (highest publisher floor + marketplaces fees) to the Marketplace Package floor, and send the highest value to the DSP.

Highest publisher floor	Marketplace fees	Marketplace Package floor	Calculation	Floor sent to DSPs
$5.00	10%	$4.00	($5.00 / (1 - 10%) = $5.56) compared to $4.00	The publisher's floor + fees is highest, so DSPs are sent a floor price of $5.56.
$2.00	15%	$5.00	($2.00 / (1 - 15%) = $2.35) compared to $5.00	The Marketplace Package floor is highest, so DSPs are sent a floor price of $5.00.
$5.00	$1.50 fixed-rate CPM Cost Per Thousand (CPM). A pricing structure for buying impressions and is the cost of serving an advertisement 1,000 times. Also known as Cost Per Mille (where M represents 1,000 in Roman numerals) or Cents Per Mille.	$4.00	($5.00 + $1.50 = $6.50) compared to $4.00	The publisher's floor + fees is highest, so DSPs are sent a floor price of $6.50.
$2.00	$0.50 fixed-rate CPM	$5.00	($2.00 + $0.50 = $2.50) compared to $5.00	The Marketplace Package floor is highest, so DSPs are sent a floor price of $5.00.

Fixed price floor example

If a Marketplace Package has a fixed floor price, we send the Marketplace Package fixed floor price to DSPs, but only if it is higher than the highest publisher floor + fees.

Highest publisher floor	Marketplace fees	Marketplace Package fixed floor price	Calculation	Will the deal transact?
$5.00	10%	$4.00	($5.00 / (1 - 10%) = $5.56) compared to $4.00	No, because the publisher's highest floor + fees is higher than the Marketplace Package fixed floor price.
$2.00	15%	$5.00	($2.00 / (1 - 15%) = $2.35) compared to $5.00	Yes, because the Marketplace Package fixed floor price is higher than the publisher's highest floor + fees.
$5.00	$1.50 fixed-rate CPM	$4.00	($5.00 + $1.50 = $6.50) compared to $4.00	No, because the publisher's highest floor + fees is higher than the Marketplace Package fixed floor price.
$2.00	$0.50 fixed-rate CPM	$5.00	($2.00 + $0.50 = $2.50) compared to $5.00	Yes, because the Marketplace Package fixed floor price is higher than the publisher's highest floor + fees.