The Interactive Advertising Bureau (IAB) just 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.
“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.”
Indeed, programmatic changed the way digital media is purchased and created a more efficient way for advertisers to reach consumers individually across all addressable media channels – social, display, search, video, mobile, connected TV - in a scalable, automated and optimal way, resulting in greater ROI for the advertiser and a more relevant experience for the consumer.
IAB’s tool asks users to enter planning rates and budgets by channel and select then the ad technologies that are being applied, be it campaign management, demand-side platform (DSP) technology, pre-bid or post-bid evaluation. Once that information is entered, the overall cost of the ad technology layers and their percentage share of the effective CPM gets calculated.
Marketers who employ programmatic technology are able to drive business results by uncovering what influences conversions along the consumer journey through algorithmic attribution. That way, programmatic does not only allow for better ROI optimization over time, but gives in general a broader understanding of the consumers and insights in what influences them along their path.
“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.”
Indeed, a better understanding of the fees each party incurs should allow for greater pricing transparency across the supply chain. Therefore, initiatives like the ‘IAB Programmatic Fee Transparency Calculator’ will definitely be appreciated by all those interested in calibrating ROI from technology, services, data and media costs.
Again, IAB proves to stand in the forefront of developing technical standards and best practices on interactive advertising, while at the same time educating brands, agencies and the wider business community on the importance of digital marketing.
To use the IAB Programmatic Fee Transparency Calculator, go to iab.com/calculator.