Programmatic ad transactions dominate the US display ad market, accounting for over 88% of spending. This sector's growth, especially in connected TV (CTV), has streamlined media buying for advertisers. However, complex fee structures from various parties—including demand-side platforms and supply-side platforms—complicate cost management. Recognizing these fees can empower buyers to reallocate savings into active media, enhancing campaign efficiency. As advertisers navigate programmatic ecosystems, knowing how costs impact the final bid and overall reach is essential for optimizing return on investment.
Programmatic transactions now account for over 88% of US display ad spend, with programmatic CTV growing rapidly, making media buying more efficient for buyers.
Each party within the programmatic ecosystem charges for its offering, making understanding fee structures crucial to redirecting funds into working media.
While DSPs typically charge 10-20% for real-time bidding campaigns, ad exchanges and SSPs also take a cut, often within the same percentage range.
Economic pressures in the ecosystem create opportunities for greater efficiency, where buyers can boost performance by understanding the complexities of fee structures.
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