Floor Price and Fill Rates? New to all of this!


#1

I am trying to get the best out of sovrn for my site. I am trying to figure out what exactly floor prices are and how to set up my fill rate. What percentage should it be at? I have looked everywhere on the site and haven’t found anything that simplifies and explains it yet. Any help would be so appreciated!! My site is faithkristina.com I have had an ads or two running for months now but nothing seems to move or make any money. I know it would just be pennies at this point but even still I am concerned I missed something and don’t have it set up correctly.


#2

Hi. This is my best explanation, others may feel free to correct me. :slight_smile:

For starters, you don’t “set up” your fill rates, you set your price floors and then your fill rates respond accordingly. The lower you set your price floors, in theory, the higher your fill rate. As you raise your price floors, fewer ads can hit that price and so your fill rate will again, in theory, be lower.

Fill rate is also affected by other factors, including platform (desktop vs. mobile), geo and placement.

For my site, I look at the floor price set up and then compare it to the actual CPM that is being generated. If the CPM is quite a bit higher, I raise the floor incrementally until the floor is like 80% of the CPM.


#3

Hi Faith,

Welcome, and thank you for posting on the Sovrn community page! My name is Alex and I am a member of the Publisher Support team at Sovrn and I am happy to help explain a little further.

Flyingpigdogs does a really good job explaining price floors and fill rate in their post, thank you for doing that!

To expand a little bit on what was stated, Sovrn is an open advertising exchange and we pay our publishers based on what the advertisers are paying for a publisher’s inventory. When a user comes to your page, in the time it takes for your page to load, an ad call has been sent to the Sovrn exchange where we host a real time auction. The advertisers send their bids for the inventory and the highest bid wins the right to show their advertisement. The CPM and fill you are seeing is entirely based on the bids that are coming in from the advertisers. Without a price floor in place, you can expect to see organic numbers for how the advertisers are viewing your inventory.

As flyingpigdogs mentioned, you can use the price floors to help manipulate the CPM and fill. With a price floor set, Sovrn will not accept any bids from advertisers that are less than the price floor you have in place. Therefore, having a price floor in place will increase your CPM but could also lower the fill you are seeing. In short, CPM and fill are inversely related.

However, you can also put passback tags in Meridian, Sovrn’s UI, to ensure that if an ad call is not filled by a Sovrn demand parter, we are still passing the ad call to another exchange to fill that impression. This ensures you are not leaving any money on the table. To insert a passback tag, go to the “Earnings” tab in Meridian and then click on the tag ID for the ad tag you want to have the passback in place for. This will open a new window where you can set your price floor and will also have a field for the passback tag. Insert the javascript from another partner exactly as you would place it on the page and you are all set.

A good rule to follow when setting your price floors and optimizing your account is that yield = CPM x Fill. As you increase your floors, you will want to let the tags run for a few days to see how the floors affected your CPM and fill and then recalculate the yield. Once you reach a point where the yield begins to decrease, you will want to decrease the floors to find that optimal “sweet spot”.

I know this is a lot of information but I hope it helps to provide a general guide to follow when setting your price floors and optimizing your overall performance. I also took a look at your account performance in Meridian and I am going to send you a personal message through our Community to provide some additional recommendations.

If you ever need assistance with anything please reach out to us at publishersupport@sovrn.com.

Thanks,
Alex Ten Eyck


#4

Thanks Alex, I think another point when it comes to fill rate is to consider seasonal fluctuations. I find that for my site, there are quarterly fluctuations that will happen no matter what action I take. As each quarter begins, there is a drop in fill rate (and even CPM) and it gradually rises as the quarter end nears. Then there is an overall increase as the year goes on and it all culminates in Q4 shortly before Christmas before the bottom falls out. For example, I saw a decrease in fill rate and CPMs as we hit April, which would coincide with an end to Q1 and start to Q2.

The first few weeks of January are the worst for fill rate and revenue in general, as it seems it’s not only the beginning of the quarter, but the beginning of the year. I guess all the advertisers have exhausted their ad budgets from the previous year and perhaps haven’t planned out how to allocate their $$$ for the new year.