Breaks Down Charges of Programmatic Ad Technology Services During a Bid Request or Response
NEW YORK, NY – The Interactive Advertising Bureau (IAB) released the IAB Programmatic Fee Transparency Calculator, a first-of-its-kind tool that advertisers, agencies, and publishers can use to analyze the costs of ad technologies and services that are commonly applied within programmatic executions. Better understanding of the fees each party incurs should allow for greater pricing transparency across the supply chain.
The tool asks users to input planning rates and budgets by channel, and then select the ad technologies that are being applied. Once that information is entered, the calculator tabulates the overall cost of the ad technology layers and their percentage share of the effective CPM.
The following ad technology layers are default fields included in the calculator, with the option of adding additional technologies/services based on individual buyer or seller implementations:
- Ad serving
- Campaign management
- DMP technology
- DSP technology
- Pre-bid evaluation
- Post-bid evaluation
- Verification platform
“This calculator will be invaluable to both buyers and sellers in understanding the anatomy of a programmatic ad request or response,” said Joe Laszlo, Vice President, Industry Initiatives, IAB. “The programmatic ecosystem is diverse, complex, and fast-changing. Clarity around processes and intermediaries is critical if we’re going to drive further growth for the programmatic marketplace.”
“There is a plethora of technology services available to support programmatic buying and selling,” said Jason White, General Manager and Vice President, Programmatic Revenue, CBS Interactive, and Co-Chair of the IAB Programmatic Council. “Some refer to the misunderstood fees associated with services as the ‘ad tech tax.’ It’s time we cut through the confusion, dispel the misnomer of ‘ad tech tax,’ and help practitioners on both sides of the fence manage and appreciate these valuable assets. As a result, this should improve trust and increase liquidity in the marketplace, which will provide a healthier ecosystem for all buyers and sellers.”
“Accuen and Omnicom Media Group are committed to go above and beyond in educating clients and providing choice around programmatic costs and their impact on campaign results,” said Christopher Murphy, Global Chief Strategy Officer, Accuen. “We believe initiatives like the IAB Programmatic Fee Transparency Calculator help clients the take first steps to calibrate ROI from technology, services, data, and media costs.”
To use the IAB Programmatic Fee Transparency Calculator, go to iab.com/calculator.
The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. It is comprised of more than 650 leading media and technology companies that are responsible for selling, delivering, and optimizing digital advertising or marketing campaigns. Together, they account for 86 percent of online advertising in the United States. Working with its member companies, IAB develops technical standards and best practices and fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. The organization is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., IAB advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City and has a West Coast office in San Francisco.