Digital Pill: eCPM Floor vs Target
Whenever you are optimizing your waterfall, especially if you use multiple calls to the same network, making sure you have both optimized eCPMs and maximized fill rate is key.
During the conversation with the Ad Networks, it’s common to agree on a specific eCPM so we can guarantee an exact position to the network in our mediation setup.
However, a caveat is needed as we need to have a clear understanding of the difference between a eCPM floor and eCPM target.
eCPM Floor: it’s the minimum eCPM that needed to be reached for an impression to be served. Every campaign below this threshold will simply be excluded.
eCPM Target: the adnetwork algorithm will try to serve an average eCPM around the defined one, but there can be fluctuation in the value.
It’s really important to choose the right one depending on our goals.
If you don’t have fill issues, it might be worth using floors as we can make sure we will show high revenue impressions without leaving users with no impressions (for example if we have other networks taking care of backfilling).
On the other hand, if the fill rate could be affected, it’s better to go with targets, as we are not excluding any campaigns from being shown, but, in this case, you would accept possible eCPM fluctuation.
Talk with your Ad Network and find out if they work with targets or floors because each one is different!