Agency Fee
The Agency Fee is the additional charge imposed by an agency to the advertiser for managing a Teads Ad Manager campaign on their behalf.
This fee is mutually agreed upon between the agency and the advertiser and is not invoiced by Teads.
The agency fee can be viewed at the campaign level under the settings section for both Traffic Acquisition and Branding campaigns.
Note: The agency fee feature requires the seat to be enabled. Kindly contact your Teads representative or reach out via Intercom for assistance
Benefits of setting up the Agency Fee
By setting up the agency fee in TAM, the platform can consider this fee for budget pacing and reporting purposes. This means that the budget set in TAM represents the advertiser's total budget, inclusive of the agency fee. TAM automatically accounts for the agency fee as part of the delivered budget.
The benefits include:
Campaign setup: There is no need to manually deduct the agency fee from the advertiser's total budget when configuring the budget in TAM.
Reporting: Manual calculations of cost and revenue are eliminated. TAM reporting provides both the agency's revenue (the amount the advertiser will pay to the agency, including the agency fee) and the agency's cost (the amount the agency will pay to Teads, excluding the agency fee).
Frequently asked questions
Should the Agency Fee be included in budget settings?
Should the Agency Fee be included in budget settings?
Yes, when an Agency Fee is applied, the value set in the Budget fields at both the campaign and line item levels is considered as the advertiser's budget, inclusive of the agency fee.
Who is the new Agency Fee feature intended for?
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.
Does the delivered budget displayed in TAM's Budget report include the Agency Fee?
Does the delivered budget displayed in TAM's Budget report include the Agency Fee?
Yes, the delivered budget metric in TAM's Budget report includes both the Agency Fee and the TAM fee.
In the Reports section, you can also find spend metrics that exclude the Agency Fee. This allows agencies to track their costs and revenues separately, as well as analyze the breakdown of the media budget and various fees. You can explore all available reporting metrics here.
Should bid settings include the Agency Fee?
Should bid settings include the Agency Fee?
No, the bid set on your line items should not include the Agency Fee or the TAM fee. It should be interpreted as the maximum price that the agency is willing to pay for Teads media (i.e., Total Ad Cost).
Does the clearing price displayed in TAM include the Agency Fee?
Does the clearing price displayed in TAM include the Agency Fee?
No, the clearing price displayed in the Teads Ad Manager interface does not include the Agency Fee or the TAM fee.
In the Reports section, you can also find price metrics that do not include the Agency Fee.
How is the delivered budget calculated when both a Teads Ad Manager fee and an Agency Fee apply?
How is the delivered budget calculated when both a Teads Ad Manager fee and an Agency Fee apply?
Let's consider an example where you have a 10% TAM fee and a 15% Agency Fee set for your campaign. Assuming the campaign has incurred $10,000 in media spend (Total Ad Cost), the calculation for the total delivered budget is as follows
$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)
How are bids and prices calculated when both a Teads Ad Manager fee and an Agency Fee apply?
How are bids and prices calculated when both a Teads Ad Manager fee and an Agency Fee apply?
Let's consider an example where you have a 10% TAM fee and a 15% Agency Fee set for your campaign. Suppose you have set your bid at $10 CPM (Cost Per Mille), and the effective clearing price is $9.5. The calculations for bids and prices are as follows:
$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)
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.
Can I apply the Agency Fee to a campaign that includes Added Value?
Can I apply the Agency Fee to a campaign that includes Added Value?
Yes, the Agency Fee can be applied to campaigns that utilize Added Value. For Added Value line items, which are not invoiced by Teads, the Agency Fee is calculated as a percentage of the Budget Delivered Teads. This refers to the value that Teads would have invoiced if the line item did not involve Added Value.
Can I modify or remove the Agency Fee for a campaign that has already started delivering?
Can I modify or remove the Agency Fee for a campaign that has already started delivering?
No, the agency fee cannot be edited once the campaign is live.
How many decimal places is taken into account?
How many decimal places is taken into account?
To improve accuracy, Teads takes into account up to 3 decimal places for the agency fee e.g. 12.345%