What are Unified Pricing Rules?


Unified Pricing Rules (UPR) is an enhancement released by Google in 2019 to their Pricing Rules feature, enabling publishers to centralize floor prices management across all programmatic demand.

In a nutshell this feature avoids the hassle of creating hundreds of pricing rules for each line item type (with exception of Standard and sponsorship line items, Adsense backfill, House line items and Line items with "zero" or no CPM value set).



Why do you need UPR?


To refresh our memories, Pricing Rules are intended to ensure a minimum CPM rate for specific line items (e.g. if you set a floor price of $1,00, no bid below that price will be considered). Simple right?


But that sounds a bit arbitrary as well. If I set random Floor prices, wouldn't I be messing up the demand curve and price elasticity and thus risk my yield?


Furthermore, if Header Bidding already ensures that I will always get the highest bid for my impressions, why do I have to set Floor Pricing rules?


Truth is that even in the presence of Header Bidding, it still makes sense to set Pricing rules, to avoid the "$0.01 more than the second-highest bid" rule or bid shading, but in the presence of First pricing auctions, does it still make sense to overcomplicate things with Pricing Rules?


The short answer, is yes - provided you are in the business of maximizing your yield- as it will incentivize competition among programmatic demand.


Here are 5 reasons why UPR are good stuff:


  1. Get a grip on your yield strategy. By setting less Pricing Rules you have more control and better overview. It's not the same to manage and optimize 500 pricing rules than 50 of them. If you are serious about maximizing your revenue you need to have pricing rules.

  2. Avoid overlapping. The UPR feature allows you to prioritize overlapping pricing rules, that means that it will give priority to rules with higher floor price to be applied to the line items.

  3. Cover more ground. The more ad inventory is covered by Pricing Rule, the more you avoid your inventory to be underpriced. Ad Manager has a pretty cool Experiment feature that allows you run experiments on smaller parts of your inventory allowing you then to extend the rules to the whole inventory.

  4. Incentivize competition. Knowing the performance of your supply partners can help you set pricing rules to push the others with a real purpose.

  5. Dynamic pricing. UPR give you more flexibility to adapt your pricing rules to seasonality, demand and performance, allowing the forces of the demand curve to work in your best interest. To learn more on how to properly set up your dynamic floor prices read this post.


Conclusion.


  • If you are serious about maximizing your yield, you need to put in place a Floor pricing strategy.


  • Unified Pricing Rules have represented a step forward for Publishers and AdOps managers but there's still certain complexity involved.


  • Setting UPR won't maximize your yield alone, you need to make them dynamic and adjust them with a purpose.


  • To make them dynamic and find their purpose run experiments and set alerts to give a more scientific approach to your UPR strategy.


Useful Resources.



Use yieldPass Surveillance Software to set customized alerts and run experiments.



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