Publishers: Don’t Fear Curation Fees, They’re Just The Same Old Ad Tech Tax

Publishers care that as Kuration They move to the side of sales, SSPs take an even greater income income than ads than DSP.

As it turns out, however, most of the curator sales offers appear in accordance with Typical SSP take rates. In fact, some of these structures of fees resemble that publishers have long been working with their partners on the supply side.

What does the question ask: is it transition to curator on the side of sales Opportunity for publishers to gather a higher share of ad revenue or the trend simply transferred the same old tax ads to different hops in the supply chain?

Disappearance of an open auction

In March, program counseling media analyzed 1.5 billion requests for bids sent with 44 advertisements.

The offer requires that the SSP will send DSP and can contain more ways to offer an impression, including a combination of open auction and curated offer.

Courled contracts appear in the requirements for bids as a contract ID. It is up to the DSP to decide how they want to bid an impression -via an open auction or using one of the curated IDs. Some offering requirements carry dozens of IDs, Jounce states. The average offering request now includes an open auction, as well as 3.5 different ID -O’s contract.

Only 18.6% of the competing possibilities analyzed by Jounce was a purely open auction that was not done in the intention.

It blows “how much an open internet is an open auction,” said Scott Messer, founder of Publisher Consultacy Messer Media, responding to Jounce’s findings.

Meanwhile, 73% of the analyzed opportunities for the competition are multi-to-courished contracts, with an inventory of multiple publishers inventory.

The remaining 8.7% were contracts with one seller involving inventories of only one publisher. They are in line with traditional private markets (PMPS), which are not counted in the curator.

However, the fact that almost three quarters of Bidstreams now consist of courier contracts shows that the side is sold “strives to take control of the customer’s relationships,” said Founder of Jounce Media Chris Kane during the Webinar report last month.

Sales competition

This SSPS control struggle has consequences for the sale of publisher ad.

Consider pressure on individual publishers selling their own PMPs, Messer said. The inequality between offers with one seller and a multi-producer proves that the sales teams of publishers face a significant challenge.

“If your strategy is to lean on PMP’s publisher, I don’t think anyone realized how big the ID of the SPS-Generaded SSP ID is,” he said. However, he added, “If you are an open market publisher and do not have a lot of sales team, this is good news.”

Despite this, publishers lack transparency in multiple sales contracts, said Linda Chen, Senior Director of the Strategy and Advertisement Operation at the Chegg Teaching Publisher.

“My question with multi-pub offers is that I have no way to know why some budgets come to me and I have no way to talk to customers and improve performance,” Chen said.

Contracts with multiple sellers also do not represent guaranteed income with time for individual publishers, she added.

In addition, contracts with multiple sellers replace the market openly, which writes problems for publishers who are not involved. “Open auction used to be a significantly larger part [of programmatic]”Chen said,” and now the budgets are transferred to these multi-pub offerings. “

The actual benefits of publishers, according to Messer, would be if the curator could single out a part of the advertisement that goes to the masonry gardens, not just the consumption of the open market consumption, but this is yet to be fruitful.

Zero fees, zero worries

Macro market trends on the side, whether publishers on the sales side.

Curatores and SSP factors their curatorial fee into a floor price transferred to DSP in each offering request. Offer requirements may contain more floor prices associated with different contract IDs.

By examining the information on the request for offer, Jounce identified four different structures of courier fees.

About half of all couriers of the contract have no fees related to courier, according to Jounce. These offers zero Fee include only the standard SPP rate for open auction offer. The CPM Auction Auction Request is the same as CPM for the contract ID.

Zero FEE talks are related to two courier strategies, Jounce states. One is the inventory who bought a customer, in which Mark or the Agency cooperates with the SSPs to create always IDs that include only reliable publishers.

The second represents SSPs that proactively pack the inventory for customers as an additional value for publishers. SSPS has long been offered this type of offer of Zero Fee, Chen said, and since they are nothing new, and this type of service is a role for table tablespoons for demand partners, SSPs cannot actually justify additional collection.

But although such contracts are favorable for publishers under the leadership of the SSP, they have achieved an over-exaggeration point, Messer said. There are hundreds of thousands of these IDs that are active at any time and are not significantly optimized, he added.

There are also a lot of coherence in publishers involved in most of the contracts, he said, noting that a large DSP see more than 1,000 ID -OVs that meet the conditions for one impression -and they can only bid on one.

Taking the price to take over

It is important, however, to note that although half of the sales contract contract does not include additional fees, the other half.

The only difference in curator from sales is that the SSP collects and pays fee of curator, not DSP, Kane said to Adexchanger. Ultimately, publishers continue to end with the same cut they would get if the agreement is curated through a DSP. And, he added, although a rare subset of the contract has terrible rates of taking, it seems that the cavity does not hide the costs of the supply chain.

About 34% of the courned contracts bears fees based on margins, in which curator collects the percentage of the total transaction. For example, if the impression is cleaned at $ 2, 10% curatorial fee means $ 0.20. DSP would take its usual platform fee – say $ 15%or $ 0.30 – and the publisher and the SSP would then make their usual share of revenue in the remaining $ 1.50.

According to Jounce, the margin -based medium -based medium is 14% and almost 40% of marketing -based contracts have between 5% and 10% of the fee.

For video supplies, some curatories take a particularly large cuts of fees based on the margin, Messer said. A 25% fee at a $ 20 video impression, curator would deny $ 5, which seems a lot, he said. But if the publisher failed to sell the impression of $ 15 and the curator got a buyer to pay $ 20, a big cut may be justified, he added.

Publishers could request a limit of fees based on the margin, Messer said. But then they would not encourage curator to encourage the highest price for their inventory.

Instead of marketing on the basis of margins, approximately 10% of the curated contracts apply the standard CPM cost for each impression.

According to the standard CPM model, curatories take too much or too little, depending on cleaning the price of stock, Messer said.

For example, let’s say that the buyer pays $ 0.45 for an impression that is cleaned of $ 0.20, but which has a $ 0.25 courier fee. Curatorial fee is 55% of the total winning offer, which the publisher could be considered exaggerated, according to Jounce. However, the same fee of $ 0.25 on an impression that cleans $ 3.00 can underestimate Custos contribution.

Therefore, the standard CPM model would be “lighter for the stomach” for publishers who tend to net high CPMs as opposed to margin-based approaches, Chen said.

Less simple stomach is what jounce refers to “curator of static prices”. These contracts, which make up approximately 7% of the curated contracts, declare the same cost of the floor, regardless of the fact that the open auction part of the publisher. This results in the curator that leads DSP to offer much more to the impression than they would be in open auction.

For example, curator can declare a static CPM of $ 15 for the contract ID. But consider implications if the publisher declares an open auction floor of $ 4 for stocks that is included in that contract ID. If the DSP licorizes $ 15, where goes $ 11?

Even Jounce doesn’t know.

“We do not know how much the exchange has kept, opposite the data providers, as opposed to the curator, opposite the transmitter,” Kane said during the Webinar. He added that “this is a model that feels the extraction of value” on the curatorial part, but it is unclear how much value they actually pull out.

This disadvantage of clarity still exists whether to swim on the purchase side or on the sales side, Messer said. And at the moment, neither on the shopping side nor the approach of sale is made more favorable for publishers as a whole.

“At the end of the day, the net amount of publisher is roughly the same, and the gross amount paid by the paid salesman is about the same,” Messer said. “These are all middle suppliers by presenting fees and does not really change what the publisher gets.”