Non Disclosed Media Fee

• • The agency charges the marketer for digital media on a CPM or CPC basis.
  • Within this cost, there are ‘hidden’ fees to cover the cost of associated technologies used in programmatic trading. The agency may significantly mark-up such fees.
  • The agency may buys inventory in bulk and in advance. It then on-sells the inventory to the client at a marked-up cost. This is known as ‘Principal Based Trading’
  • Buying inventory in greater bulk can make it cheaper. However, quality of inventory may be a concern.
  • The marketers cannot see, nor have any right to see, how much profit the agency is making via on-sell of inventory.

Advantages

• The Non Disclosed model is simpler to understand with only one price provided.
• Through a non-transparent sourcing the costs are often lower than through a Disclosed model.

Implications

• The Non-Disclosed model provides no transparency to the marketer in not just fee, but source and legitimacy.
• Cheap and poor quality inventory is often acquired under this model.
• There is no auditable by the marketer to ensure value and confirm charges are based on cost.
• There is an increased risk of AdFraud and Brand Safety with this model through the lack of sourcing transparency.

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