Myth: price floors only leave money on the table

Myth: price floors only leave money on the table

"Floors cost you fill, never set them" is half-right and expensive.

What it does — a minimum bid the auction will accept.
Setup effort — 3/5 to tune well.
The correction — no floor means low-ball bids win uncontested and train DSPs to bid you down over weeks. A smart per-geo, per-device dynamic floor raises the clearing price on inelastic demand. Yes, you lose a sliver of fill — but the won impressions clear higher. Unfilled-but-collapsed beats filled-at-a-dime.
RPM lift seen — dynamic floors (vs none) lifted RPM 9-14% on tier-1 geos, flat on tier-3.
Pros — recaptures hidden margin.
Cons — over-flooring kills fill; needs monitoring.

Lift: ★★★★☆ — Risk: ★★★☆☆
Best for: tier-1-heavy traffic. Skip aggressive floors on low-eCPM geos where fill is everything.