Agency Fee

The Agency Fee represents the markup that an agency charges to the advertiser for operating a TAM campaign on their behalf. This fee is defined between the agency and the advertiser and is not invoiced by Teads. The agency fee can be found on the campaign level under the settings section for both Traffic Acquisition and Branding campaigns:

Please note: the seat needs to be enabled for agency fee feature, please reach out to your Teads contact or via intercom:

Who is the new Agency Fee feature intended for?‌

The Agency Fee feature is meant for TAM clients who operate campaigns on the behalf of an advertiser, and charge them a markup for this service. This is typically the case of media agencies and trading desks

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What are the benefits for an agency to set up their Agency Fee in TAM?

Setting up the agency fee in TAM allows the platform to take this fee into account for budget pacing and reporting. In this case, the budget set in TAM represents the advertiser’s total budget, inclusive of the agency fee. TAM will automatically count the agency fee as part of the delivered budget.

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The key benefits are:

Campaign setup: no need to manually subtract the agency fee from the advertiser’s total budget when setting the budget in TAM.
Reporting: no need to manually calculate cost and revenue. Both the agency’s revenue (the amount the advertiser will pay to the agency, which includes the agency fee) and the agency’s cost (the amount the agency will pay to Teads, which doesn’t include the agency fee) are available directly in TAM reporting.

‌Should budget settings include the Agency Fee?

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Yes. When an Agency Fee is set, the value that you set in the Budget fields (at campaign and line item level) is interpreted as the advertiser budget, inclusive of the agency fee.

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Does the budget delivered displayed in TAM’s Budget report include the Agency Fee?

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Yes. The Budget delivered metric includes the Agency Fee (as well as the TAM fee).

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In the Reports section, you can also find spend metrics that do not include the Agency Fee. It allows agencies to report on both their costs and their revenues, as well as breaking down the media budget and the different fees. See all available reporting metrics here.

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Should bid settings include the Agency Fee?

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No. The Bid that you set on your line items should not include the Agency Fee, nor the TAM fee. It is interpreted as the maximum price that the agency is willing to pay for Teads media (i.e. Total Ad Cost).

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Does the clearing price displayed in TAM include the Agency Fee?

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No. The clearing price displayed in the Teads Ad Manager interface does not include the Agency Fee, nor the TAM fee.

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In the Reports section, you can also find price metrics that do not include the Agency Fee.

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Example: how is the budget delivered calculated when a TAM fee and an Agency Fee apply?

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Let’s say that you have a 10% TAM fee and that you set a 15% Agency Fee on your campaign. Suppose that the campaign has spent $10,000 on media (Total Ad Cost). The total Budget Delivered are calculated as follows:

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$10,000 Total Ad Cost
+ $1,000 TAM Fee (10% * $10,000)
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= $11,000 Budget delivered Teads
+ $1,650 Agency Fee (15% * $11,000)
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= $12,650 Budget delivered (this is the amount paid by the advertiser to the agency)

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Example: How are bids and prices calculated when a TAM fee and an Agency Fee apply?

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Let’s say that you have a 10% TAM fee and that you set a 15% Agency Fee on your campaign. Suppose you set your bid to $10 CPM, and that your effective clearing price is $9.5. The prices are calculated as follows:

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$9.5 Total Ad Cost CPM (clearing price)
+ $0.95 TAM fee CPM (10% * $9.5)
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= $10.45 Budget delivered Teads CPM
+ $1.57 Agency Fee CPM (15% * $10.45)
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= $12.02 Budget delivered CPM (this is the CPM paid by the advertiser to the agency)

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Note: As highlighted in this example, the Budget delivered Teads CPM and the Budget Delivered CPM can exceed your CPM bid, because they include fees that are not included in the bid price.

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Can I apply Agency Fee on a campaign that uses Added Value?

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Yes. On Added Value line items - which Teads does not invoice - the Agency Fee is calculated as a percentage of the Budget Delivered Teads, i.e. the value that Teads would have invoiced if the line item were not Added Value.

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Can I change or remove the Agency Fee on a campaign that has started delivering?

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The agency fee can be changed or removed at any point in a campaign’s lifetime. However, the change is not retroactive: reporting will always reflect the agency fee that was set at the time of the impression.

‌Reporting metrics

Technical name	TAM reporting name	Definition
budget_delivered_advertising	Budget delivered Total Ad Cost	Advertising value (media & data) delivered by Teads. Includes Added Value budget. Does not include Ad Manager fee nor Agency fee.
budget_delivered_platform_fee	Budget delivered Fee	Ad Manager fee.
budget_delivered_teads	Budget delivered Teads	Total value delivered by Teads. Includes Added Value budget and Ad Manager fee. Does not include Agency fee.
budget_delivered_agency_fee	Budget delivered Agency Fee	Agency fee. It is not invoiced by Teads.
budget_delivered	Budget delivered	Advertiser budget consumed. Includes Added Value budget, Ad Manager fee and Agency fee.
turnover	Budget spent	Budget spent (i.e. invoiced by Teads). Includes Ad Manager fee. Does not include Added Value budget nor Agency fee.
turnover_advertising	Total Ad Cost	Budget spent on advertising cost. Does not include Added Value Budget, nor Ad Manager fee, nor Agency fee.
turnover_fee	Fee	Budget spent on Ad Manager fee.
budget_delivered_advertising_average_cost_per_result	Budget delivered Total Ad Cost - Cost per result	Average price of each result, based on the budget_delivered_advertising. This is the cost per result considering only the advertising cost.
budget_delivered_teads_average_cost_per_result	Budget delivered Teads - Cost per result	Average price of each result, based on the budget_delivered_teads. This is the cost per result delivered by Teads, including advertising cost and Ad Manager fee.
budget_delivered_average_cost_per_result	Budget delivered - Cost per result	Average price of each result, based on the budget_delivered. This is the cost per result paid by the advertiser, including advertising cost, Ad Manager fee and Agency fee.
turnover_average_cost_per_result	Budget spent - Cost per result	Average price of each result, considering the budget spent (invoiced by Teads) and the total volume delivered.
budget_delivered_advertising_average_cpm	Budget delivered Total Ad Cost - CPM	Average price of a thousand impressions (display) or starts (video), based on the budget_delivered_advertising. This is the CPM value considering only the advertising cost.
budget_delivered_teads_average_cpm	Budget delivered Teads - CPM	Average price of a thousand impressions (display) or starts (video), based on the budget_delivered_teads. This is the CPM value delivered by Teads, including advertising cost and Ad Manager fee.
budget_delivered_average_cpm	Budget delivered - CPM	Average price of a thousand impressions (display) or starts (video), based on the budget_delivered. This is the CPM value paid by the advertiser, including advertising cost, Ad Manager fee and Agency fee.
turnover_average_cpm	Budget spent - CPM	Average price of a thousand impressions, considering the budget spent (invoiced by Teads) and the total volume delivered.
budget_delivered_advertising_average_cpc	Budget delivered Total Ad Cost - CPC	Average price of a click, based on the budget_delivered_advertising. This is the CPC value considering only the advertising cost.
budget_delivered_teads_average_cpc	Budget delivered Teads - CPC	Average price of a click, based on the budget_delivered_teads. This is the CPC value delivered by Teads, including advertising cost and Ad Manager fee.
budget_delivered_average_cpc	Budget delivered - CPC	Average price of a click, based on the budget_delivered. This is the CPC value paid by the Advertiser, including advertising cost, Ad Manager fee and Agency fee.
turnover_average_cpc	Budget spent - CPC	Average price of each click, considering the budget spent (invoiced by Teads) and the total volume delivered.