UPR:
These pricing rules will enable publishers to boost CPMs and fill rates for their inventory.
By setting up these rules, bids received from the advertisers for an ad request chosen to be eligible or ineligible to participate in the auction i.e., any bid below the UPR floor will not be eligible to serve.
It allows publishers to protect their ad inventory from being sold at a price at which they were intended to sell.
We can apply Unified rules at various levels namely:
Inventory by Ad Unit
Geography
Position
Device Category
Inventory Type – Display, Video, Mobile App
Video Position – Pre/Mid/Post Roll
Custom key-value targeting
Operating System
Fold
Browser
Inventory Format
Where do UPR rules apply?
Unified rules are neither omni-present nor can be used everywhere as per our choice. It has some restrictions which are mentioned below:
UPR applies here ✅ UPR Doesn’t Apply here ❌
Private Auctions Direct
Open Auction Programmatic Guaranteed
First Look demand Programmatic deals
Third party exchanges that participates in Open Bidding House line item
Remnant line item types Price priority, Network & Bulk Remnant line items with a zero rate
Ad Exchange linked accounts May not apply to CPC line items on all requests
AdSense backfill
Different Types of Floors in UPR:
There are 3 different types of floors namely Hard floor, Soft floor (Target CPM) and Google optimized floors.
Hard Floor: In this, if we fix a floor that becomes static. Anything below that value will be rejected.
For ex: If we set the floor at $4, even $3.9 or $3.95 can be rejected.
Soft Floor (Target CPM): Here if we fix a floor, the nearest to the floor will be accepted in case if the bid value is less and the highest bid will be considered in case if the bid value crosses the floor.
For ex: If we set the floor at $4, among $4.5, $4.0, $4.9 – the bid value of $4.9 will be selected. And among $3.2, $3.6, & $2.8 – the bid value of $3.6 will be selected.
Google optimized floor: Google automatically sets floors based on bidder behavior
It’s a feature of Google Ad Manager that uses machine learning to automatically increase auction floor prices to more accurately reflect and protect your inventory value. Optimized pricing is enabled by default, but can be disabled via your network settings.
A little history:
Once upon a time, there was a method called “Second Price Auction” which allowed the winner to pay a cent higher than the second highest bid.
Ex: A bids a price of $7 while B bids $8. Here, B comes out as the winner who won the auction but pays only $7.01
Understanding the logic, many Bs started to bid at higher and higher values only to pay the second highest bid.
Some good guys in town wanted to create a fair marketplace by checking them with First Price Auction & UPR.
In the First Price Auction, the winner should pay the value of what exactly they bid. It made the buyers cautious about what they were bidding.
Looking for an Ideal UPR set up? And why Unified pricing rules matter?
There isn’t such a thing as called Ideal set up because of the fact that ‘one size doesn’t fit for all’. Wait, but we can work on setting up an almost ideal UPR set up by understanding………Read More
UPR & its Ideal setup to maximize yield