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 Media Owners, Market Floor provides several key advantages:
Market Floor works alongside other floors that Media Owners have set. Since the highest value is always chosen, we never submit a bid below a Media Owner's set floors.
Market Floor improves Index's ability to send DSPs a competitive bid that has a higher chance of winning a final auction.
Market Floor predicts the floors that Media Owners have set downstream or in an ad server, so we are able to pre-empt bids that would have had no chance of winning. This makes supply more efficient to DSPs.
