4 Price Floors and UPR

It is designed as a centralized floor price management system for all publishers’ inventory on Google Ad Manager.

It is the Ad Manager’s transition to the first-price auction. With the second-price auction model shifting to first-price, advertisers and DSPs will try to indulge in bid shading — they will try and lower their bids. Unified Pricing is supposed to tackle this by running a unified auction.

How it works?

With Unified Pricing Rules, you can centralize management of target CPM or floor prices across all your programmatic demands. You can set up different rules to ensure revenue.

Example

Rule A -- Banner - Tier 1 Countries - $4
Rule B -- Banner - Tier 2 Countries - $3

Please note that two rules targeting the same inventory: The one with the higher floor price applies

Rule A -- Banner - Tier 1 Countries - $4
Rule B -- Banner - Tier 1 Countries - $3

Rule B is the winner

It affects all these channels:
Open Bidding (Formerly Exchange Bidding)
AdX Open Auction
Private Auctions
First Look Pricing
Price Priority, Network, and Bulk line item types

Steps to Configure Unified Pricing
You can set up a new Unified Pricing rule by following these steps:

Login to Ad Manager account.
Move to ‘Inventory’ tab
Click the ‘Pricing Rules’ section
Go to the ‘New Unified Pricing Rule’ button.
Enter a name for the pricing rule.
Next to "Targeting," select the inventory to which you want this rule to apply.
Next to "Pricing," set pricing options.
Select how you want to set floor prices
Set floor prices
Set target CPMs
Let Google optimize floor prices
Check for affected line items if there are no issues then
Click Save

Best Practices

Set floor prices (fixed CPM) or set target CPMs

Floor prices: winning bid must be higher than the floor price.
Target CPMs (default): target CPM can earn you more revenue by adjusting floor prices to match more bids. Floor prices on individual bid requests can be either higher or lower than the target CPM you indicate.

Targeting

By default, UPRs apply to everyone and all sizes. You can optionally specify pricing for individual advertisers, brands, or sizes.

When you do so, you can then set a floor price under "Everyone and all sizes" or this option can be disabled (default). If enabled, the price set under "Everyone and all sizes" also applies to any advertisers, brands, or sizes for which you set a different price in the same rule.

( ! ) Set the price under "Pricing for everyone and all sizes" to a value lower than those for individual advertisers, brands, or sizes, or disable the "Pricing for everyone and all sizes" option.

NOTE: Currently, you can apply up to 200 UPRs per Ad Manager network, as highlighted by the Ad Manager system maximums and limits.

How to Exclude Inventory from Unified Pricing Rules?
We can easily do this with Content Rule Exclusion as we saw in a previous lesson:

Click the Protections tab.
Select New Protection - Inventory Exclusion
Give a name for your protection
Set targeting and inventory type to reflect the Open Auction pricing rule. Open Auction rule types are “Display”, “Mobile app”, “In-stream video”, and “Games”.
Press “Save” for the rule to reflect in the Rules tab.