Ideally, you would require 4 things to be able to optimize Google Adx Price Floors optimally:

1. Granular set of pricing rules covering every combination of adunit, adsize, country, device category, browser, operating system, etc. This can run into 100s of rules even if you consider only high volume segments
2. Algorithm which looks into win rates, branded & anonymous CPMs & Fill Rates and determines what is the optimal price floor at any point in time
3. Automated correction of price floors in real time using the above algorithm
4. Ability to run A/B testing of price floors as opposed to the currently supported pre-post testing method in Google Adx

Granularity of price floors, frequency of correction, methodology/algorithm used for correction & accuracy your testing process – all of these have a significant impact on the revenue you end up earning from Google Adx.

(Originally published on Quora.com)

Author
Gourav Chindlur
CEO, Tercept

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