DFP first look is a feature than allows Ad Exchange buyers to buy impressions on publisher websites ahead of the sponsorship line items. Since DFP and Google Ad Exchange is closely knit, Ad Exchange buyers can take a first look at the impressions that are served through DFP and can bid at rates higher than the sponsorship line items if they want to take over those ad slots. In this post, we will take a look at the CPM rates for DFP First Look impressions.
How to Enable DFP First Look Impressions?
Generally, Ad Exchange works on a second price auction model where the Ad Exchange buyer bids one cent higher than the highest bidder in your DFP waterfall model. Generally, ADX competes dynamically with all the other exchanges in DFP on a price priority basis and thus it has an added advantage over other networks. However, in order to retain publisher interest, DFP has a feature called first look where Ad Exchange buyers are given information of the inventory above the sponsorship line items (the highest level of line items in DFP) and if the rates offered by the advertisers in the ad exchange is higher than sponsorship line items, the impression is bought by the advertiser. This essentially is a first price auction where the advertiser actually ends up paying the bid rates. To maximize your DFP first look CPM, you should always set up Sponsorship line items at CPMs which are a bit higher and optimize it to maximize the overall ad revenue.
DFP First Look CPM Rates
DFP first look CPM rates are typically higher your normal CPM rates. Depending on the CPM rates of your sponsorship line items, you can notice the First look CPMs to be above 3-4 times above your regular ADX CPM rates.
If your impression CPM is around $1, then the first look CPM can be anywhere around $3 to $5. However, DFP will fill only a fraction of your first look impression which will be less than 10% of your total impression. It needs to be noted that first look impressions are not your most valued impressions or your tier one traffic impressions. Rather, the first look impressions are those which are most valuable to the advertisers and thus they are willing to pay the higher rates to show the
DFP First Look CPMs Rates vs Programmatic Rates?
Most exchanges are now transacting programmatically. The fact that first look impressions hold extreme value to the Ad Exchange buyers implies that they are willing to pay higher rates to take those impressions. However, programmatic rates
Additional Revenue with DFP First Look
Publishers who haven’t implemented DFP first look yet are losing out on their ad revenue. It is a known fact that DFP first look can bring in additional 15-20% extra ad revenue with some implementation. Price floor optimization forms a critical segment for such implementation and we suggest you take a period look at the CPM rates for your sponsorship line items. We do help publishers in setting up DFP line items to maximize ad revenue. If you need any assistance with the setup, feel free to get in touch with us and we will get back to you with a custom quote.