Does raising the price floor increase ad revenue?
Sometimes. A higher floor always raises observed eCPM and lowers fill. Revenue rises only if the extra price on the impressions that still clear outweighs the value lost on the impressions that no longer fill. In second-price clearing there is usually a revenue-maximising floor; in pure first-price clearing a floor mostly removes low bids.
What is revenue per eligible opportunity?
Ad revenue divided by every opportunity where an ad could have been served, filled or not. Unlike eCPM, it cannot be improved simply by rejecting cheap impressions, which is why it is the right scorecard for floor changes.
Why does the auction type matter?
In second-price clearing, the winner pays the higher of the second bid and the floor, so a floor between the top two bids raises the price. In first-price clearing, the winner pays their own bid, so a floor cannot raise the price of a bid that already clears it — it only turns low bids into no-fills (though in practice it can change how bidders shade their bids).
How realistic is this model?
It is deliberately simple: bids follow a log-normal distribution with the median and spread you set, bidders are independent, and there is no bid shading. Use it to build intuition about the fill–price trade-off, then test real floor changes against revenue per eligible opportunity by geo and placement.