FatChilli automatic pricing rules

26. August 2021

The “FatChilli automatic pricing rules” is basically a set of rules that are automatically generated and applied to a selected inventory. As manual configuration, reporting, management and editing of the pricing rules can be very time-consuming, we created a solution for our publishers to unburden them from this process. The goal is to help maximize the Ad Request CPM, which is considered a direct metric reflecting publisher’s revenue.


Our modules to optimize pricing rules:

There are two different ways to use Unified Pricing Rules:

  • Pricing rules for inventory protection - this module sets minimal prices as default to use FatChilli automatic pricing rules. This is used when the system does not have enough data to create a rule profile.
  • “Personalized” profile of the unit, based on data.

The rules take into account:

  • Device category - Mobile/Desktop/Tablet
  • Geolocation - Country of visitors
  • Time of the day, day of the week and day of the year
  • Traffic source
  • Other data that is FatChilli’s know-how

What does the “personalized” profile of an ad unit mean?

The advertisers demand fluctuates throughout the day. Advertiser’s campaigns running in the morning may differ from the campaigns running in the evening. This profile is generated dynamically with 15-20 minutes frequency. It is based on the user's behaviour that differs at different times of the day.

Visitors behave differently based on day, time of the year, season and so on. To manually set rules for all these situations might be difficult. By analyzing Big Data we were able to create dynamic pricing rules to push publisher’s revenue up.

We also learnt that not every model works for every unit. So we use various settings for various units.

Does this work for every ad unit?

No, it doesn’t. The dynamic pricing floor does not work well when applied to high CTR units - but this was kind of expected. For those units we rather recommend to focus on improving the viewability which can boost their CTR even better. Also, blocking demand for low viewability units (or long rendering time) can, in the end, increase the revenue of that position. Especially with Above the fold positions or slots with aggressive lazy-loading settings applied.

Can I lose revenue?

These modules are not suitable for every placement. To protect the publisher’s revenue, we created another set of rules that display passback from another source, for example - AdSense. If you would like to replace AdSense slots with our ads, we recommend sending an average CPM of slots that are being replaced to your Account Manager. This information will help them set up the starting positions of automatic pricing rules.

What should you do?

  • Create a document with your Adsense passback (or other ads) for units.
  • Contact your Account Manager about setting up this pricing rules
  • Send your passback codes to your Account Manager
  • Monitor revenue and AdRequest CPM