Floor price refers to the minimum price set by a publisher or ad exchange for selling ad inventory during real-time bidding (RTB) auctions. It represents the lowest acceptable bid price an advertiser must meet or exceed to display their ad.
When an ad impression becomes available for auction in the RTB environment, multiple advertisers can bid for the possibility of displaying their ad to the user. The publisher uses the floor price as a safeguard to ensure they sell their ad inventory at a certain minimum value. If the advertisers participating in the auction do not meet or exceed the floor price with their highest bid, they will not be able to purchase the impression.
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