The Interactive Advertising Bureau (IAB) today 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.
The idea behind the calculator is that better understanding of the fees each party incurs, should allow for greater pricing transparency across the supply chain.
How the calcuator works
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.
Default ad technology layers provided in the calculator, include some such as: ad serving; campaign management; data/targeting; DMP technology; DSP technology; pre-bid evaluation; post-bid evaluation; and verification platform.
But the tool gives the option of including as well additional technologies/services based on individual buyer or seller implementations.
A tool benefitial for both buyers and sellers
“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.”
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