The Programmatic Glossary
A practical glossary designed to help marketers, advertisers and ad-tech professionals understand the terminology that powers programmatic advertising
Monetisation
Dynamic Floor Pricing
An automated approach to setting floor prices where the minimum acceptable bid adjusts automatically in real time based on factors like the audience, time of day, historical bid data and inventory quality, rather than staying at a fixed price set manually.
HOW IT WORKS
An algorithm analyses historical bidding patterns for each impression type and sets the floor at the level most likely to maximise revenue: high enough to avoid underselling, low enough not to drive away bids and kill fill rate. Floors might change by the hour, by device type, by geography or by audience segment.
EXAMPLE
A publisher manually sets a flat $2 floor for all their display inventory. With dynamic floors, the system might set $4.50 for London-based users on mobile during weekday mornings, but $0.80 for anonymous weekend traffic, reflecting actual buyer demand and recovering revenue on both ends.
RELATED TERMS
Bid Floor | Yield Optimisation | ARC (Adaptive Rules Centre) | Fill Rate | CPM
★ LIMELIGHT INSIGHT: Limelight's ARC (Adaptive Rules Centre) toolkit enables dynamic floor pricing rules, allowing partners to automate floor adjustments based on real-time demand signals without manual intervention.
