How basic PX bid is determined
Basic PX Bid is calculated as follows:
1. If Fixed pricing is set to Yes for the publisher, PX bid for each lead will be equal to Fixed price configured for this publisher.
2. If Margin is configured (Fixed pricing is set to No), PX bid is determined as a product of Margin and Lead price:
- Margin is set in Publisher settings according to the agreement between the publisher and PX.
- Lead price is described in detail below.
What is the lead price
Initial Lead price is calculated as follows:
- PX finds all campaigns eligible to buy the lead (according to their Vertical, Filter, Source Management configurations, etc.);
- All eligible campaigns are divided into exclusive and shared groups.
- In each group, the system analyzes direct bids (on prediction), or both direct bids and bids of ping post buyers based on real-time responses (on ping forwarding);
- The highest price between averages in exclusive and shared groups is taken as a bid calculated (reflected as Lead price in Transaction ping post report for PING transaction type).
Example. Margin set to 60% for a publisher. PX gets the lead from this publisher and determines the Lead price for that lead as $5.00. This means that PX will send $5.00*60% = $3.00 as a PX bid for this lead.
In addition, there are the following bid types in ping post - possible models of how PX bid can modified: Calculation, Correction and Correction to 0.
Calculation allows PX owner to set the Minimum price, for which the lead can be sold, which is calculated as Bid price*Bid floor. Bid floor is the percentage specified in publisher settings.
In this case, if bids received from buyers are less than this minimum threshold, PX rejects the lead.
Example. Bid floor is set to 80% for a publisher, which has Margin set to 60%. PX gets the lead from this publisher and determines the bid for that Lead as $1.25. That means that PX would bid the publisher with $1.25*60% = $0.75.
As the Bid floor is 80%, it means the lead must be sold to the buyer for at least $1.25*80%=$1.00. If the buyer rejects the lead at $1.25, PX can try to sell the lead for $1.00 or more. However, if there are no buyers at that price, PX rejects the lead.
Correction, apart from using Bid floor similarly to Calculation type, allows you to increase the bid sent to the publisher in the ping response in order to win this lead. The original price will be increased on the Outbid percentage amount, configured in publisher settings.
In this case, increased bid is sent to the publisher in the ping response. If PX wins the Lead, the bid is modified back to its original value and is sent to the publisher in the post response.
Example. Outbid percentage is set to 30% for a publisher. PX gets the lead from this publisher and determines the bid for that lead as $1.00. As the Outbid percentage is 30%, PX sends a bid $1.00*(1+30%)=$1.30 in the ping response.
If PX wins the lead and lead is sold to a buyer, the bid is modified back and PX pays $1.00 to the publisher in the post response.
Outbid percentage % allows applying Outbid percentage for a certain amount of leads from this publisher.
Correction to zero
Correction to zero bid type uses Bid floor similarly to Calculation type. In addition, when the lead is sold for the price less than the Minimum price (Bid price*Bid floor) on the post, this lead is reported as Unable to monetize to the publisher with 0 as the payout. This allows you to mitigate your losses when revenue from buyers is lower than expected.
This situation can happen when selling the lead to several shared buyers. In this case the total amount of their bids on Ping is compared to the Minimum price. However, one of shared buyers can reject the lead on post, and total amount of shared bids can be lower than you expected.
In this case, according to Correction to zero bid type, you can report this lead to the publisher as unsold.
Example. Bid floor is set to 80% for a publisher, which has Margin set to 60%. PX gets the lead from this publisher and determines the bid for that lead as $5 as the total amount of bids of 3 shared buyer campaigns:
- bid 1 is $2
- bid 2 is $1
- bid 3 is $2
That means that PX bids the publisher with $5*60% = $3 on Ping.
However, shared buyer with bid 3 ($2) rejects this lead on the Post, and the lead is sold for $3.
As the Bid floor is 80%, it means the lead must be sold to buyer(s) for at least $5*80%=$4 and Lead price ($3) is lower than Minimum price ($4).
In this case, this lead is registered in Transactions Ping Post Report with the folllwing parameters:
- Unable to monetize buyer result,
- 0 as Payout (reported to the publisher),
- $3 as a Lead price (PX revenue).