The DSP says it’s the first to present a program as a carrier fee, in addition to direct bills by the advertiser to proprietors like data management platforms. Barry Levine on November 8, 2018 Marketers regularly whinge about transparency in electronic advertisements and, this week, Viant’s Adelphic announced a pricing change that it believes solves the problem for a requirement side platform DSP. What’s new. Instead of charging a percent of media spend as other DSPs do — customarily 10 to 15 % — Adelphic will now charge an all you can eat monthly subscription price of $3,000 per log in, with a 12 month minimal.
And all proprietors concerned in the procedure — targeting data providers like data control structures, inventory suppliers like ad exchanges, verification facilities and others — are billed without delay to the advertiser. For those of us who don’t use DSPs on a regular basis, it seems mind-blowing that a subscription model and direct billing is new, but Viant CEO Tim Vanderhook said in an interview that he’s unaware of another DSP that has an identical structure. SaaS versus media agency pricing model. Adelphic, which Viant bought two years ago, also previously charged a percentage of media spend and paid owners itself as a part of its fee. Vanderhook said his agency spent the time because the acquire getting overall running costs of Adelphic right down to some extent where it may offer a subscription.
After all, he said, it doesn’t cost a DSP more to handle one thousand dollars in commercials than to handle ten million dollars’ worth. The trade off for advertisers, he acknowledged, is that Adelphic calls for a 12 month commitment, whereas other DSPs only charge advertisers for his or her spend. Typically, he said, DSPs employ a pricing model derived from media buying businesses, which charge a percentage of media spend as their fee. Many DSPs, he added, don’t have a set percent, but set that fee according to how much company an advertiser does. Instead of using a model based on media buying businesses, Adelphic is now providing the subscription model of application as a service. In the traditional pricing model, the advertiser will often pay the DSP a further monthly amount according to, say, average CPMs, with the costs for focused on data, inventory, verification services and other owners buried in the typical charge.
Vanderhook added that this monthly amount, break away the DSP fee, is nearly as if the DSP is a publisher itself, charging for its impressions. The 800 pound gorilla. That ends up in advertisers’ suspicions about what the vendors’ prices truly are, he said, and even if there are kickbacks among DSPs and owners. “The 800 pound here,” he said, “is that no one trusts each other, and there has to be a model so everybody trusts everyone. ”Ari Paparo, CEO of ad tech firm Beeswax, told me via email that it is “naïve and just a little a gimmick to give a one size fits all pricing structure on a product as complicated and bespoke as an business DSP.
”But, he added, this move “is a strong indication that the market is demanding more obvious and fairer pricing models that are commensurate with generation usage, rather than arbitrary pricing models that penalize for more media spend and media spend on more expensive stock. ”Why this concerns to agents. Transparency in ad pricing is central to creating all the industry more faithful for brands, and a program as a provider subscription model for DSPs, with direct fee by brands to proprietors, would appear to without delay tackle that a part of the equation. This story first gave the impression on MarTech Today. For more on advertising and marketing technology, click here. About The Author Barry Levine Barry Levine covers advertising technology for Third Door Media.
Previously, he covered this space as a Senior Writer for VentureBeat, and he has written about these and other tech subjects for such guides as CMSWire and NewsFactor. He established and led the web site/unit at PBS station Thirteen/WNET; worked as a web Senior Producer/writer for Viacom; created a successful interactive game, PLAY IT BY EAR: The First CD Game; established and led an independent film showcase, CENTER SCREEN, based at Harvard and M. I. T. ; and served over five years as a specialist to the M. I.
T. Media Lab. You can find him at LinkedIn, and on Twitter at xBarryLevine. Marketing Land – Internet Marketing News, Strategies and TipsBarry Levine covers advertising generation for Third Door Media. Previously, he covered this space as a Senior Writer for VentureBeat, and he has written about these and other tech topics for such publications as CMSWire and NewsFactor.
He founded and led the site/unit at PBS station Thirteen/WNET; worked as an online Senior Producer/writer for Viacom; created a a hit interactive game, PLAY IT BY EAR: The First CD Game; headquartered and led an unbiased film display, CENTER SCREEN, based at Harvard and M. I. T. ; and served over five years as a expert to the M. I.
T. Media Lab. You can find him at LinkedIn, and on Twitter at xBarryLevine.