Glossary

Floor Price

By
Jademi Jude
00
Minutes read
June 27, 2025

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Floor Price Definition

A floor price is the lowest price a publisher is willing to accept for an ad impression during auctions. It ensures that inventory isn't undersold, protecting revenue while influencing competitiveness in real-time bidding environments.

How Floor Price Works

  • Publishers set a floor price for inventory in ad exchanges or SSPs.

  • Bids below the floor price are automatically rejected.

  • Influences which advertisers win impressions and at what cost.

  • Can be static (fixed) or dynamic based on audience or content.

Example of Floor Price

A premium news site sets a $3 CPM floor price for homepage display ads, rejecting lower bids to maintain revenue standards.

Why Floor Price Matters in Advertising

  • Helps publishers maintain revenue and inventory value

  • Influences auction competitiveness and advertiser strategies

  • Balances supply and demand in programmatic ecosystems

  • Supports yield optimization for publishers and SSPs

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