Waterfall Model

The Waterfall Model is a sequential method of selling ad inventory in which publishers offer impressions to multiple demand partners one after another until the ad space is filled. Each demand source is ranked by priority, typically based on historical performance or average CPM.

If the first network declines an impression, it cascades down to the next until a buyer accepts it—hence the name “waterfall.” While once the industry standard, this model often resulted in revenue loss because higher-paying bids from lower-priority partners were missed.

Header bidding and unified auctions have largely replaced the waterfall approach by allowing all demand sources to compete simultaneously. Nonetheless, understanding the waterfall remains important for legacy systems and revenue analysis.

Similar content from our blog

AI, AGE VERIFICATION, AND KEY TRENDS FOR 2026

Despite being a large ad network, TwinRed doesn’t suffer from the same...

Read More

OPTIMIZING OUR WEBSITE FOR SEO AND GEO

Great news, everyone, our website got yet another update, right before 2025...

Read More

SKILLS THAT MAKE A MEDIA BUYER GOOD

Affiliate marketing isn’t easy money — but it could be big money...

Read More

TWINRED 2.0: HIGH-TECH NETWORK FOR YOU

Our updated ad network and ad exchange is here: advantages of TwinRed...

Read More

SUMMARY OF TES 2025: ONE STEP CLOSER TO YOUR HEART

Back in September, we attended one of the biggest events of the...

Read More

BALANCING USER EXPERIENCE AND AD REVENUES

To be a webmaster comes with a huge responsibility. After all, there...

Read More

This website uses cookies to improve usability. Here you can find our Privacy Policy. By clicking on the ACCEPT button, you agree.