Source Pricing Models

Example

Let’s say you’ve set a 70% revshare for a source.

If the publisher is expecting to get $3, the system calculates how much needs to be charged to the demand side in order to still give the publisher their $3 after taking your 30% margin.

Here’s how it works:

• $3 ÷ 0.70 = $4.29 (this is the price we need from demand)

• $4.29 - 30% margin = $3 to the publisher

• Your margin = $1.29

Important Notes*

There is no dynamic inbound bidfloor for tag-based sources. That means the system can’t automatically calculate a proper bidfloor using the revshare setting. So, the floor sent to the demand side is always set to $0.01, unless you manually set it higher.

However, Your margin and channel revenue reports won’t change,  they're calculated based on the actual response from the demand campaign, not the $0.01 bidfloor.

Floor Price

A Floor CPM is a CPM threshold below which a publisher will not sell an ad impression to the advertiser. The source won't work with those campaigns that are below Advertiser's floor CPM value. At the same time, if the source works with the campaign with a higher price the publisher earns more.

• Share of revenue defines the percentage that your publisher will receive for inventory added to the platform.
• Floor CPM for Publisher defines the minimum CPM that your publisher will receive for their inventory added into the platform.
• Advertiser's floor CPM defines the minimum CPM that the platform will allow demand-side partners/advertisers to bid or pay for connected inventory.

If the revshare value is 50% and Publisher's CPM is $2 then the advertiser's floor CPM will be set automatically to $4. In this case, the source will work with those campaigns that have a CPM value of $4+. Let's say the source works with a $6 campaign. In this case, the publisher should get more than $2 and 50% of the total revenue which is $3

Fixed CPM

This model allows you to define the payout for inventory and the demand's side CPM completely by yourself. 

• Fixed CPM for Publisher defines the CPM that publishers will receive by selling their inventory.
• Advertiser's floor CPM defines the minimum CPM that the platform will allow demand-side partners/advertisers to bid or pay for inventory assigned to them.

If a website publisher charges $5 CPM, an advertiser must pay more than $5 for every 1000 impressions of its ad (please do not forget to include ad serving costs to the margin). In this case Advertiser's floor CPM is $6, which means your margin will be $1. 

Dynamic floor

Once this price model is selected, the tag will include the parameter &floor_price=[replace_me], where the system expects a dynamic floor price value from the supply partner. Based on this value, the outgoing bid in the request to the demand campaign is calculated using the revshare. This pricing model is therefore suitable for working with revshare on tag-based sources.

You’ve set a 70% revshare on the tag based supply source.
For example, if the incoming bid from the publisher is &floor_price=3, the bid that will be sent to the demand side is calculated using the formula:

$3 × 100 / 70 = $4.29
Once the demand campaign responds, we apply your 30% margin and send the remaining amount to the publisher:
$4.29 - 30% = $3
So, your margin is $1.29.

"Show Price in Extension" Toggle

When enabled, this toggle instructs the system to include a Pricing Extension in the VAST response sent to the supply partner:

<Extension>
<Pricing currency="USD" model="CPM">
<![CDATA[ 3.000000 ]]>
</Pricing>