‘Necessary, but insufficient:’ Advertisers are starting to question the value of low exchange fees

Digiday 23 Sep 2020 04:01
September 23, 2020 by Seb Joseph

As advertisers start to understand what it takes to win programmatic auctions, they’re realizing it isn’t just a matter of making the highest bid. 

If it was then some of the largest programmatic advertisers wouldn’t be failing to win impressions despite being the highest bidder for them. And, during a tough year, finding ways to turn those losses into wins is key to those advertisers on the lookout for new ways to work their dollars harder.

In doing so, some of those advertisers have started to question whether they should be spending so much time pushing supply-side platforms to take a smaller percentage of their bids in the belief that those fees can indirectly affect a campaign’s performance.

The assumption is that the smaller the cut for the ad tech vendor the more there is in the actual bid to compete for impressions that it may have otherwise lost. When an SSP reduces its take rate from 20% to 10%, the marketer begins to win impressions that it was previously losing, for example. But some advertisers are turning this received wisdom on its head

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