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Waterfalling, sometimes also referred to as daisy chaining, is a strategy for publishers to monetize their ad inventories as efficient as possible.

Using the waterfall principle, publishers work with networks that offer the highest rate first, before working with those who offer lower rates, until they have monetized every impression.

In more detail, the idea of waterfalling works like this:

  1. Publishers send an impression to their preferred Supply-Side-Platform (SSP) with a relatively high floor price.
  2. If the impression doesn’t clear, they redirect it to a second SSP with a slightly lower floor price.
  3. Publishers repeat this process until they have sold their impression.

This way, publisher can squeeze as much revenue out of every impression as possible.