Product Overview

Clickio Pricelift automatically prices your inventory

Clickio Pricelift automates price floor management in your Google Ad Manager account.

Correctly adjusted open auction price floors create additional Ad Exchange auction pressure and can significantly increase revenues. However, optimal floors are different for every ad placement, content type and user segment. They also change from day to day due to seasonality and other factors. This makes maintaining a correct setup manually a considerable challenge.

Clickio Pricelift tests numerous price floors and uses artificial intelligence to create optimization strategies based on patterns in performance data. Different strategies are constantly competing against each other and against the base sample of unoptimized impressions.

How can price floors increase revenues?

The way price floors influence revenues depends on the auction type. Until recently, the second price auctions dominated in the ad market. However, this will change soon as Google Ad Manager is planning to fully transition to the first price model in 2019. It is worth understand both auction types.

Second price auctions

In the second price auction, price floors have a direct role in the auction mechanics.

All advertisers bid for an impression. They usually send their "maximum possible" bid, because they know that the bid will be reduced to the second price or the floor (whichever is higher).

The winner pays the price of the second bidder or the CPM floor, whichever is higher. The average difference between the first and the second bid is over 50%. This means that over half the revenue are left on the table, even though the buyer was willing to pay it in a more competitive environment.

2nd-price-auction-big.png

First price auctions

In the first price auction, buyers can no longer afford to send their "maximum possible" price, because the bid is no longer reduced to the second price.

The initial bid needs to be reduced to a level which is lower than the maximum, but would still have a decent probablility of winning. In other words, buyers must estimate what the second highest price would be, and adjust their price accordingly. This is called "bid shading".

The price floor puts a lower price limit for bid shading algorithms. The effect is similar to the second price auction, but the adjustment happens on the side of the bidder, not in the auction itself.

1st-price-auction-big.png

Outcomes

In both auction types, correctly placed price floors can significantly improve auction outcomes for the publisher. However, if the floors are too high, this can have an opposite effects and depress earnings, especially in the first price auction.

By adjusting floor prices for every ad unit, device, geography and buyer, Clickio Pricelift increases earnings for the publisher while maintaining the maximum fill rate.

How does Clickio Pricelift integrate with Google Ad Manager?

You can easily integrate Clickio Pricelift with your Google Ad Manager in just a few steps.

  1. Register a Pricelift Account. We will get in touch with you regarding the contract and other details.
  2. In the Pricelift account, link a Google Ad Manager network you wish to optimize and choose ad units and the share of impressions enabled for optimization.
  3. Give Pricelift access to your Ad Manager account, allowing it to create and manage Pricing Rules. The system will automatically download relevant performance data and create initial pricing rules. The rules are targeted to specific Pricelift Key-Values, so they will not be used until the Pricelift snippet is implemented in the next step.
  4. Our team will manually check the setup before the launch. Once everything is ready, we will send you a few lines of Javascript (“Pricelift snippet”) to be added to the Ad Manager head code. Pricelift snippet sends Pricelift Key-Values to Google Ad Manager. This activates Pricelift Pricing Rule on the chosen portion of ad impressions.
  5. Follow Uplift calculations reporting in the account.

How much does Clickio Pricelift cost?

It is free to try Clickio Pricelift for the first 21 days. There are no installation or other costs.

After 21 days, we will only charge you a share of additional revenue that is generated as a result of Pricelift optimization. You can read more about the Uplift Calculation here.

How can I try Clickio Pricelift?

Currently, we accept publishers with over $15,000 monthly Ad Exchange earnings in Ad Manager.

If you are interested, please register at pricelift.clickio.com, and we will get in touch shortly.

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