Glossary A–ZLetter F
Floor price
The floor price is the lowest price at which a seller releases advertising inventory in automated trading.
Bids below it are rejected. It is usually set as a price per thousand impressions.
A network operator might set a higher floor price in its supply-side platform for screens in railway stations than for screens in small shops, and a higher one for popular times of day than for the night. If no bid exceeds the threshold, the slot remains free for direct bookings, house ads or filler content. Private marketplaces can have their own floor prices for each buyer.
A floor price that is too high leaves many slots unsold; one that is too low gives away revenue and can annoy direct clients who paid more. Operators should regularly compare the threshold with the bids actually received. It also matters which impression figure underlies the price per thousand impressions, because it determines what a single ad play costs.