Definition
An ad buying method where inventory is offered sequentially to buyers in descending priority order until someone bites. Like a retail clearance rack that goes through progressively less desirable shoppers.
Example Usage
Our premium inventory goes through waterfall strategy—first to direct deals, then PMPs, and finally whatever's left hits the open exchange.
Origin
Adapted from software development methodology; entered programmatic advertising vocabulary circa 2010
Fun Fact
Header bidding technology emerged specifically to disrupt waterfall strategies, allowing simultaneous bidding and better yields.
Source: Programmatic advertising terminology
Related Terms
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See “waterfall strategy” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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