We released broker fee functionality for our network clients last year. In this post I wanted to summarize why you might want to consider using broker fees to better manage your Exchange business.

What are brokers?

“Broker” is a catch-all moniker covering a range of third parties an ad network could engage with to enhance their business, such as:

• an entity that acquires advertisers in foreign markets where the network has no sales force, or
• a business that provides the network with premium targeting data

What are broker fees?

Broker fees are designed for situations when you need to compensate a third party based on the performance of a campaign and you want the financial impact to be baked into the auction. Expressed as either a percent of advertiser spend or a flat CPM, broker fees allow you to embed the cost of such payouts directly into your line items.

How do broker fees work?

By activating broker fees on a line item, you are telling the system that part of the advertiser’s spend needs to be allocated to an entity other than the seller (publisher). To accomplish this - during the auction - the adserver will reduce the advertiser’s bid by the amount of the broker fee. If the line item wins that auction, information about the winning bid and the broker fee amount are logged to reporting.

Where do I find broker fees?

As a network on the Right Media Exchange, you can set broker fees on any line item (managed or linked) where you are the seller. You can also set them at the insertion order level, which creates a default fee on all future line items under that IO.

What reporting is available?

The Profit Report allows network users to review the impact of broker fees on line items after the fact. In addition, users can run reports to determine the amounts owed to brokers at the end of each month. Finally, networks can give brokers access to reports too, enabling them to review the amounts they are owed.

What do you think?

We are very excited about this sophisticated and unique feature offered by the Right Media Exchange and look forward to your feedback! If you have questions or comments, please feel free to reach out to me via your account manager.

This entry was posted on Monday, March 3rd, 2008 at 11:33 am and is filed under About Right Media. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.