Vanishing spend

Acquire Online programmatic director Zane Furtado says that once a proposed media spend of $100 enters the supply chain, it’s clipped numerous times before any ads are served. Various providers take a cut of commission along each step. And as is always the case with commission, the rates are negotiable.

So negotiable, in fact, that Furtado compares the trading desk fees to stock brokerage, saying that an experienced trader could easily negotiate a commission of over 30 percent at this step (the standard rate is around 15 percent).

Given the complexity of the media supply chain and the potential for shadiness at every stage, some businesses are starting to take their programmatic buying in-house. But this is easier said than done and usually only recommended for bigger organisations with the capacity to dedicate specialised staff to the task.