The IAB Fee Transparency Calculator provides advertisers and publishers with a granular, partner-specific evaluation of their programmatic technology, service and inventory costs as a percentage of their effective CPM. It is designed to be flexible enough to accommodate most media plan channels and cost models, including CPM based fees, percent of Media Fees, and Flat Fees. The calculator then organizes and quantifies the fees based on their role in the supply chain. For more information about the different roles of programmatic technologies and services in the supply chain, please see the corresponding IAB report: The Programmatic Supply Chain: Deconstructing the Anatomy . . .
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Step 1: Enter Media Plan
Media Plan Total
Execution
Publisher Inventory
Step 2: Enter Advertising Technology
Buyer Technology Layers
Ad Blocking
Technology that allows advertisers to block ad delivery based on a set of inventory quality signals, which could include viewability, brand safety and fraud. Can be blocked on either a pre-bid basis or a post-bid basis after bid is won.
Ad Serving
Service that provides centralized storage, tracking, and delivery of media campaign assets
Management Service
Service for setting up, managing, and optimizing programmatic delivery, as well as building / maintaining buy side infrastructure (inventory, technology, data, reporting relationships)
Data / Targeting
3rd party data segments used for identifying and targeting specific types of users or devices. Generally speaking, 1st party segments (those captured by user) are not paid for
DMP Technology
Technology service that allows operators to aggregate and normalize disparate data sets for advanced campaign analytics/reporting
DSP Technology
Software primarily used for access to and decisioning against exchange inventory. Other functions usually include bundled bidding algorithms / optimization techniques, 3rd and 1st party data integrations, tagging and attribution functionality, and media delivery reporting
Pre-bid Evaluation
Allows advertisers to evaluate the quality of individual publisher impressions and influence decisioning before bidding. Quality is evaluated largely against viewability, brand safety and/or fraud. Technology often offers option of blocking ad based on measurement
Verification Platform
3rd party technology intended to measure on target delivery, viewability, brand safety, or fraud. Often but not necessarily the same provider as pre-bid and post-bid tools
Publisher Technology Layers
Ad Serving
Software to manage advertiser creative tags and delivery priority
DMP Technology
Technology service that allows operators to aggregate and normalize disparate data sets for advanced campaign analytics/reporting
SSP Technology
Software to aggregate, consolidate, and manage available demand sources and exchange inventory
Step 3: Results
Hover over labels for more information.
Media Plan Totals
Execution costs
Advertiser Costs
Publisher Costs
Publisher Inventory
Scroll down and have a look below. The totals will update as you fill out this section.
These totals will continue to update as you fill out the calculator.
Notes:
Variations of “% of Media” cost model calculations include:
- When applied to campaign budget: this deducts the % fee from the total budget being allocated to a given campaign objective. After the fee is removed the remainder is available to cover media, data, and any technology or service fees. The IAB Fee Transparency Calculator uses this model.
- When applied to media budget: this deducts the % fee from the portion of the budget that is allocated to only publisher inventory costs
- When applied as a markup on media cost: this adds the % fee on top of the publisher inventory cost, and excludes any other costs such as data or other technology or service fees
Data / Targeting pricing is often variable in a programmatic context—even in the same ad groups—because impressions are usually evaluated against many differently priced data layers that have overlapping audiences. Users should work with your DSP or SSP to determine how specifically the auction mechanics assign credit to the appropriate data layer on your programmatic buy.
If you have any questions or suggestions about how this tool could be improved, please email ben@iab.com.