How does a programmatic auction work in CTV?
When a CTV app detects an ad break, it sends a bid request through its SSP to all connected DSPs simultaneously. Each DSP evaluates the request against active campaigns, calculates a bid price, and responds within the auction timeout (typically 100–300 ms for CTV). The SSP collects all bids, identifies the winner based on price, applies the publisher’s floor price, and returns the winning VAST tag to the app. If no bid exceeds the floor, the slot goes unfilled (a passback or house ad may fill instead). In India CTV, the entire sequence must complete within the app’s ad request timeout — typically 3–5 seconds including video buffering — otherwise the player moves on without an ad.
What is the difference between first-price and second-price auctions in CTV?
In a second-price auction, the winning bidder pays €0.01 above the second-highest bid (or the floor price, if no second bidder). In a first-price auction, the winner pays exactly what they bid. Most India CTV programmatic inventory has moved to first-price auctions — following the global shift that occurred in display around 2019. In a first-price environment, DSPs use bid shading algorithms to reduce bids below their true valuation, estimating a price that will still win while not overpaying. For India CTV buyers: set your DSP’s bid shading to “aggressive” initially, then dial back if win rates are too low. Expect clearing prices 20–40% below the maximum CPM you set.
What is a floor price in CTV and how does it affect bid strategy?
A floor price is the minimum CPM the publisher will accept for an impression. Bids below the floor are rejected. In India CTV, floors vary by publisher and content type: JioHotstar premium content ₹300–600 floor; general entertainment ₹100–200; long-tail app inventory ₹40–80. Dynamic floors (floors that adjust based on historical bid data) are increasingly common. If your DSP win rate is near zero despite high bids, check whether the publisher’s floor has been raised — common during high-demand events like IPL. Floors are not always disclosed transparently in programmatic — bid log analysis showing bid price vs clearing price distribution will reveal effective floor levels.