In the digital advertising space, data plays a pivotal role in driving successful campaigns. With the right data, advertisers can target their audience with precision and amplify their results.
Digital advertising pricing models can be difficult to understand. But to get the most value out of your data and stick to your budget, it’s essential to understand the nuances of these pricing models.
Fee models vary across different platforms. This blog post will cover three common digital advertising fee models: percentage of media, digital CPM, and programmatic hybrid. Additionally, we’ll highlight the key differences between Deep Sync-billed and platform-billed destinations, helping you navigate these billing procedures.
Common Fee Models
When it comes to charging for data used in advertising campaigns, fee models differ by platform. Below is a high-level overview of three of the most common fee models in digital advertising that you’ll see in the Deep Sync One platform.
Percentage of Media (PoM): In this fee model, data usage costs are calculated based on a percentage of the gross media spend. For example, if a campaign with a gross media spend of $10,000 uses a Deep Sync dataset priced at 15% of media spend, the data usage costs will be $1,500. This fee model is common for data delivered to social platforms like Facebook and TikTok.
Digital CPM (Cost per Mille): Digital CPM pricing features a fixed cost per 1,000 digital impressions served using the data. This method is used by Google DV360 and other digital destinations. This model benefits advertisers by providing a clear understanding of the costs based on the number of impressions served.
Programmatic Hybrid: Hybrid pricing uses a combination of a percentage of media and a capped CPM rate. This model bills clients based on the percentage of media price, unless that amount exceeds the CPM cap. For Deep Sync One audiences deliverable to The Trade Desk, you will see both the Programmatic CPM and CPM Cap prices listed in the Deep Sync One platform.
Beyond understanding the different fee models, it’s important to understand the billing procedures and how they vary based on the destination of your data.
Deep Sync Billed vs. Platform Billed
Depending on the destination(s) you deliver to via the Deep Sync One platform, you may be billed by Deep Sync directly or the platform destination.
Deep Sync Billed Destinations
As of August 2023, Deep Sync directly handles billing for data delivered to Facebook and TikTok. Deep Sync monitors the gross media spend for any ad sets or campaigns that use Deep Sync datasets and directly charges your Deep Sync One account.
Certain destinations that Deep Sync delivers datasets to will monitor usage and bill clients directly for data usage. In these cases, your Deep Sync One account will not track usage or be charged directly. Instead, data fees will be tracked and billed in your Trade Desk or Google DV360 account and reported back to Deep Sync.
Have a question about a specific charge in your Deep Sync One account? Email firstname.lastname@example.org.
Understanding digital data pricing and billing procedures is crucial for advertisers to make informed decisions. With a thorough understanding of a campaign’s costs, you can budget accordingly and maximize your ROI.