The option you choose depends on how you want pricing and priority to work for the deal.
Option 1: Standard
Choose this option if you want to get the highest price for your inventory. In the Index auction, the highest bid wins and no priority is given to this deal. This means that the deal competes against all other bids, including open market bids. Floor prices from the Deal with Marketplaces, the Marketplace Package that targets this deal, and open market are considered, and all bids must clear the highest floor between these.
Option 2: Preferred price
Choose this option if you want to allow bids to compete at the highest deal floor price. The highest deal floor price is the higher floor between the floor that you set on the Deal with Marketplaces and the floor that a Marketplace Partner set on the Marketplace Package that is targeting this Deal with Marketplaces. This option still gets you the highest bid from private market and open market bids, but bids only have to clear the highest deal floor price, and all other floors are ignored. A good use case for this option is when you want to set the deal floor lower than what you anticipate the open market floor would be, allowing buyers to bid in the auction at a lower clear price.
Option 3: Priority bidding
Choose this option if you want to give a buyer a preferred chance to bid on the deal and win the auction before other lower-prioritized or non-prioritized bids are considered. There are three ways for the bid to win the Index auction:
If it meets or exceeds the deal floor price.
If it's the highest bid at that priority level.
If the deal is the highest priority deal.
This is true even if a lower-priority bid or an open market bid would have been a higher price.
A note about how floor pricing works
Because you set a net floor price on the Deal with Marketplaces, any Index Revenue Share or Marketplace fees are added to the net floor price before we send the request to DSPs. For example, if you set the floor price on the Deal with Marketplaces to be $1.00 and there is an Index Revenue Share of $0.10 and a Marketplace fee of $0.10, a minimum floor price of $1.20 is sent to the DSP for that deal. This means when the deal competes with other bids, it competes at a price that makes sure you get your minimum price you want to receive for the deal.
