On the heels of the IAB Canada Programmatic Live event in Toronto that attracted hundreds of programmatic buyers and sellers yesterday, this morning IAB released a tool to help calculate transparency of programmatic buying to the industry.
The tool is designed as a directional resource allowing buyers to understand the costs of the various layers of ad tech as a percentage of the effective CPM.
This is an exciting day for the programmatic buying community and IAB Canada’s relevant councils and committees will be reviewing the tools’ accuracy over the coming weeks for the Canadian marketplace. Stay tuned for an update on findings.
Below is the press release from this morning:
Breaks Down Charges of Programmatic Ad Technology Services During a Bid Request or Response NEW YORK, NY (March 24, 2016)
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. 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.