Yes, definitely a complicated subject! Thanks again for reaching out, it is great to see publishers take interest whether or not they are setting every floor themselves.
Who are the multiple partners? Are you referring here to when a publisher has multiple bidders besides Sovrn in their prebid setup or are you referring to Sovrn’s having multiple demand sources to bid against each other and then Sovrn chooses the top bid to send to the publishers auction?
In my previous response, I am referring to multiple partners in the header bidding auction, but in fact, the other line items competing in the ad server also need to be considered.
If you have a direct deal scheduled to deliver X amount of impressions by some date, and these deals are set at $2.00, then you know that when this deal starts, we need to be bidding that much until it is on/ahead of schedule if we want to compete with it.
Also, consider a Sovrn or other 3rd party display tag competing at $0.75. The header bidding tags compete in the header bidding auction, then they compete in the ad server against everything else.
So, this is to keep Sovrn’s Demand Partners from knowing the floor price and manipulating their bids based on this knowledge?
It is really the opposite. We want demand to pay the true value of the inventory, and we want them to know what value is necessary to have a chance.
They want to spend money, but it makes sense to them to pay the cheapest amount that will successfully impress, as minimizing spend increases reach.
One of my other Header Bidding Partners asked if I am using a “3rd party flooring service” I wasn’t clear what that is. Can you explain if you know and is the floor price manipulation that Sovrn is using a similar concept?
I have not heard of this type of service, but I wouldn’t be surprised if it is out there. Setting floors, while tedious and confusing, is a big factor in overall yield.
I would not consider us a 3rd party service since we are connected to the exchange. We are just trying to optimize accounts by using the tools at our disposal.