Setting a floor price without guessing

Setting a floor price without guessing

A floor price is the lowest amount you'll accept for an ad. Bids below it get ignored.

The method:
— 1. Pull your last 30 days of winning bids for one ad slot.
— 2. Find the price that 20% of winners paid below (your 20th percentile).
— 3. Set your floor just under that number — not at your average.
— 4. Run it for a week and watch your 'fill rate' (how often the slot gets an ad).
— 5. If fill drops hard, lower the floor a little. If revenue rises, hold.

A floor that's too high means empty ad slots and zero earnings there.

In plain English: floor below your weakest real winners, then nudge it carefully.