Advertiser spend settings apply to a whole group.
- Each group should represent a single contract (or a type of contract if you often use the same contract terms).
- If you need to customize advertiser spend settings for a single campaign, create a group that contains only that campaign.
What You'll Need
Advertiser spend uses values from your agreements with your clients.
Here's the information you'll need to know before you can set advertiser spend:
|Rate Type||Values Needed|
Cost Per Mille, the agreed dollar amount for each 1000 impressions.
Example: $ 4.75
Cost Per Click, the agreed dollar amount for every click.
Example: $ 0.27
The agreed margin percentage. Margin is defined as:
(advertiser spend - media spend)/(total advertiser spend)
If you spend $1.00 on impressions and charge your client $1.33, your margin is 25%.
The agreed markup percentage. Markup is a percentage added to the media spend that determines your client's cost.
If you spend $1.00 on impressions and charge your client $1.33, your markup is 33%.
If you've agreed to a maximum billable amount (the most your client has agreed to spend), you'll also need that number (a dollar amount). The total advertiser spend reported in Basis DSP will be limited to this maximum amount.
What is the maximum billable amount? If you are pulling reports from the DSP to use for billing your clients, the maximum billable amount makes sure that those reports don't exceed the amount you've agreed to charge.
For example, if you have margin of 50% set and an advertiser spend of $2,000, and for whatever reason spend $1,100, without a maximum billable amount, an advertiser spend of $2,200 would be noted in the reports. Since the most you can charge the client is $2,000, it makes sense to cap the amount in reports.
In statistics grids, the margin column is calculated based on advertiser spend/maximum billable amount, meaning in this scenario your margin would be reported at 45%.
Enabling Advertiser Spend
- When you create a group, select an Advertiser Spend Type.
- CPM: The advertiser pays you an agreed amount for every thousand impressions.
- CPC: The advertiser pays you an agreed amount for every click.
- Margin: The advertiser pays your media spend plus an agreed margin.
- Markup: The advertiser pays your media spend plus an agreed markup (also known as "cost plus").
- Enter the Rate, either a dollar amount or a percentage, depending on the Advertiser Spend Type you chose:
- CPM or CPC: Rate is a dollar amount.
- Margin or Markup: Rate is a percentage.
- Optional: Enter the Max Billable Amount if you've agreed to bill only up to a specific dollar amount.
The estimated Total Advertiser Spend will never be larger than the Max Billable Amount.
Remember: Max Billable Amount does not affect the group's budget.