For non-guaranteed deals in Display & Video 360, when is it recommended to bid 20% higher than the floor price?
When you're working across multiple publishers within a deal.
When you want to guarantee a fixed number of impressions.
When you're paying in different currencies for a global ad campaign.
When you want to apply frequency management to your deal.
Explanation
Analysis of Correct Answer(s)
Bidding 20% higher than the floor price is a best practice specifically for non-guaranteed deals that involve different currencies. This is crucial for global campaigns where your advertiser account currency (e.g., USD) differs from the publisher's currency (e.g., EUR).
- Currency Fluctuation: Exchange rates are not static. A bid that meets the floor price at one moment might fall below it a few hours later due to currency fluctuations.
- Safety Buffer: By bidding approximately 20% higher, you create a safety buffer. This cushion ensures your bid remains competitive and consistently clears the publisher's floor price, even if the exchange rate changes unfavorably. It significantly increases your chances of winning impressions that you would otherwise lose.
Analysis of Incorrect Options
- When you want to apply frequency management: Frequency management is a setting that controls ad exposure. It is independent of the bidding strategy needed to clear a floor price. You can apply frequency caps without adjusting your bid relative to the floor.
- When you're working across multiple publishers: While deals can involve multiple publishers, this fact alone does not require a 20% bid increase. Bidding strategy should be based on performance and floor prices, not the number of publishers.
- When you want to guarantee a fixed number of impressions: This describes a Programmatic Guaranteed (PG) deal, not a non-guaranteed one. The question specifically addresses non-guaranteed deals (like Preferred Deals or Private Auctions), where impressions are not reserved or guaranteed.