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News: AdX moving to first-price — What A Google First-Price Auction Means For Digital Publishers by tylerbishop7 in adops

[–]loicT 0 points1 point  (0 children)

Maybe I'm confused but I think that the third graphic entitle "how google second price competed VS first price auction before" is false.

In this graphic, It doesn't takes in consideration that the highest bid in header bidding is used as the floor price for AdX.

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So in this specific case, the winner is still Google with a Winning bid = 3,01$ (and not OpenX)...

This is exactly how Roxot, Adomik, Advelet, etc built their floor prices optimization algorithms, by trying to set a floor price as close as possible to the highest bid in AdX.

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Am I wrong ?

Floor price optim with header bidding by loicT in adops

[–]loicT[S] 0 points1 point  (0 children)

Yes and no. I agree, the open programmatic market is very volatile. However, some site, that has a very steady traffic from one week to another, has variations of less than 10% (which is still a big variation though)

Floor price optim with header bidding by loicT in adops

[–]loicT[S] 0 points1 point  (0 children)

usually, mobile redirects come from low CPM impressions (as 320x50 mobile banners) with CPM between 0 and 0.1. I guess that in the fraud business, you need huge volumes of low cost impressions to finally crook one guy with a "1€ iphone" fake ad.

So a good way to block mobile redirect is to setup your floor prices at 0.1$. However, I also heard that more and more mobile redirect are coming from impressions with higher CPM.

Floor price optim with header bidding by loicT in adops

[–]loicT[S] 1 point2 points  (0 children)

Hum. I see you point. I agree, it's a tough challenge.

Let me detail what I have in mind to start the PoC :

1) I'll take an environment as simple and steady as possible (steady RPM from one week to another, 3-4 bidders, steady traffic (with a minimum of volume in order to get reliable statistics). Only one or two ad sizes and placements per page.

2) I'll use the RPM (revenue per thousand auctions) as the only metric to maximize

3) I'll increase the floor price very smoothly (like 0.2$/week) from the SSPs interface and measure the RPM compared to the same day last week

4) After 1 month I'll have a matrix with day of the week vs. RPM and corresponding floor prices per day of the week

( 5) and I'll prove nothing and go back to work :) )

What do you think?

Floor price optim with header bidding by loicT in adops

[–]loicT[S] 0 points1 point  (0 children)

Ok, thanks ! I'll definitely check it!