How to estimate campaign potential and optimize bidding strategies for maximum reach within your budget based on the bid floor metric.
Content
Overview
The AVG Bid Floor metric in the Analytics → BI screen shows the average minimum CPM that publishers accept for their inventory. This supply-side metric helps you understand market pricing, estimate campaign potential, and optimize bidding strategies for maximum reach within your budget.Understanding Campaign Potential and Reach
What AVG Bid Floor Reveals About Market Opportunity
- Market Access: Lower average floors indicate more accessible inventory with broader reach potential
- Competition Level: Higher floors suggest premium inventory with limited but valuable reach
- Budget Efficiency: Understanding floors helps maximize impressions within your budget constraints
Reach Estimation Using Bid Floor Data
- Above-Floor Bidding: Bidding above average floors increases your potential reach and win rates
- Budget Planning: Use floor data to estimate how much inventory you can access at different price points
- Market Penetration: Compare floors across segments to identify untapped reach opportunities
Strategic Filtering for Actionable Insights
Why Proper Filtering is Critical
Unfiltered AVG Bid Floor data combines all inventory types, geographies, and formats into a single average, making it too broad for strategic decisions. Proper filtering reveals the actual market conditions for your specific campaign requirements.Essential Filter Framework
Primary Filters (Always Apply):
Source Type:
- App: Mobile application inventory - typically higher engagement, younger demographics
- Site: Website inventory - broader reach, diverse audience segments
- Banner: Standard display ads - broadest reach, lowest floors
- Video: Video placements - premium pricing, higher engagement potential
- Audio: Audio ads - specialized inventory, growing reach opportunity
- Geographic targeting reveals regional pricing variations
- Identifies cost-effective markets for budget expansion
- Shows premium markets where higher floors limit reach
Secondary Dimensions for Deeper Analysis:
- Publisher: Compare pricing strategies across different supply partners
- App Bundle/Site: Identify specific high-value or cost-effective placements
- Ad Size: Understand format-specific pricing and reach potential
Campaign Planning Workflow
Step 1: Define Your Reach Goals
- Target Audience: Determine geographic and demographic reach requirements
- Budget Allocation: Set spending limits for different market segments
- Performance Objectives: Balance reach quantity with audience quality
Step 2: Analyze Market Potential
- Go to Analytics → BI screen
- Apply inventory filters: Source, Media Type, Country
- Add the Publisher dimension to see supply partner variations
- Review the AVG Bid Floor across different segments
Practical Applications
Budget Allocation Strategy
Multi-Market Campaigns:- Allocate larger budgets to low-floor markets for maximum reach
- Reserve premium budgets for high-floor, high-value inventory
- Balance spend across floor tiers to optimize total reach
Bidding Strategy Development
Competitive Positioning:- Bid 20-50% above average floors for strong reach potential
- Test bid levels against floor data to find the reach/cost sweet spot
- Adjust bids seasonally as floor patterns change
Market Entry Planning
New Geography Assessment:- Compare floors across potential expansion markets
- Estimate budget requirements for meaningful reach in new regions
- Identify low-competition markets with reach opportunities
Advanced Analysis Techniques
Trend Analysis for Strategic Planning
- Seasonal Patterns: Track floor changes to plan campaign timing for maximum reach
- Market Evolution: Monitor floor trends to identify emerging reach opportunities
- Competitive Intelligence: Rising floors may indicate increased competition limiting reach
Cross-Segment Comparison
- App vs. Site Reach: Compare potential audience access across different source types
- Format Optimization: Identify which media types offer the best reach for your budget
- Geographic Opportunities: Find underpriced markets with strong reach potential
Key Insights for Campaign Success
Reach Optimization Strategies
Floor-Based Targeting:
- Target inventory segments with floors matching your bid strategy
- Avoid markets where floors exceed your profitability thresholds
- Scale campaigns in segments with favorable floor-to-performance ratios
- Shift budgets toward segments with improving floor conditions
- Reduce spend in markets where rising floors limit reach efficiency
- Test new segments when floors become more accessible
Performance Monitoring
Reach vs. Floor Correlation:- Track how bid levels above/below floors affect actual reach
- Monitor fill rates at different floor price points
- Adjust bidding strategy based on reach performance data
Common Analysis Scenarios
Scenario 1: Maximizing Reach with Limited Budget
Filter by low-floor markets (under $1.50 CPM) across multiple countries to identify where your budget can achieve maximum impression volume.Scenario 2: Premium Campaign with Quality Focus
Target high-floor inventory ($3+ CPM) in tier-1 markets, budgeting accordingly for limited but valuable reach.Scenario 3: Market Expansion Planning
Compare average floors across potential new markets to estimate budget requirements and reach potential for geographic expansion.
Key Takeaway: AVG Bid Floor data becomes a powerful reach planning tool when properly filtered by source, media type, and geography. Use this metric to estimate market potential, optimize budget allocation, and develop bidding strategies that maximize your campaign's reach within budget constraints.