Glossary/Programmatic/Floor price

What is a floor price in programmatic advertising?

How floor prices work in programmatic advertising, the difference between hard and soft floors, and how publishers set floors that raise revenue instead of leaving inventory unsold.

Written by Samhub with the help of AI·Updated 12 Oct 2026·5 min read
Definition

A floor price is the lowest price a publisher will accept for an ad impression. In a programmatic auction, any bid below the floor is rejected, so the impression either goes to a higher bid or stays unsold.

How floor prices work

When a reader loads a page, each ad slot is offered to buyers through an auction. The publisher, or its SSP, sets a floor price for that slot. Buyers that bid below the floor are filtered out before the auction is decided.

Floor €2.00
Bidder A
€1.40
Bidder B
€1.85
Bidder C
€2.60
Bidder D
€3.10
Bids below the €2.00 floor are rejected. In a first-price auction, Bidder D wins and pays €3.10.

Floors protect the value of your inventory. Without them, impressions can sell for whatever the lowest interested buyer offers, which pulls down your average CPM over time.

Hard floors vs soft floors

Most programmatic setups today use hard floors, because first-price auctions make soft floors less useful.

Hard floorSoft floor
How it worksBids below the floor are always rejectedBids below the floor can still win, at a lower price
Best forPremium inventory and data dealsTesting demand and filling remnant inventory
RiskUnsold impressions if set too highLower revenue per impression
Common inPrivate marketplaces, programmatic guaranteedOlder second-price setups
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How to set floor prices

01

Start from your bid data

Look at what buyers actually bid per ad unit, device and country before you set anything.

02

Set floors per segment

One floor for the whole site leaves money on the table. Set them per placement and audience.

03

Test and adjust

Raise floors in small steps and watch fill rate and revenue per thousand visits together.

04

Add audience data

Impressions with audience data are worth more to buyers, so they can carry a higher floor.

Example calculation

A higher floor sells fewer impressions, but it can still raise total revenue when the impressions that do sell earn more.

Example

Revenue = impressions sold × average CPM ÷ 1,000
No floor: 1,000,000 × €1.60 ÷ 1,000 = €1,600
€2.00 floor: 820,000 × €2.35 ÷ 1,000 = €1,927

Illustrative numbers. Fewer impressions sell, but each one earns more.

Floor prices and audience data

Buyers pay more for impressions they can target. When you attach first-party audience data, such as interests, context or household data, you can set higher floors in private marketplace deals without losing the buyers who need that audience.

+€1.33

CPM uplift at Stampen Media after activating first-party audiences with Samhub.

Frequently asked questions

There is no single number. A good floor sits just below what your most valuable buyers already pay, and differs by ad size, placement, device and audience. Start from your own bid data, not a market average.

In programmatic advertising the two terms mean the same thing: the minimum price a seller accepts in an auction. “Reserve price” is the general auction term, “floor price” is the one most ad tech platforms use.

Yes. You can set floors in your header bidding wrapper, in your SSPs and in your ad server. Keep them consistent, or the lowest floor in the chain decides the price.

Review them at least monthly, and around seasonal peaks such as the fourth quarter, when demand and bids rise. Many publishers also adjust floors automatically based on recent bid data.

Yes. Impressions with audience data attached are worth more to buyers who need that audience, so you can set higher floors in private marketplace deals for those segments.

Related terms

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