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About Platform fee

This article provides information on how the platform fee is calculated when using Teads Ad Manager.

Updated over a week ago

Teads Ad Manager Platform Fee

Teads charges a fee for using our platform that is calculated as a predefined percentage of the advertising spend.

Platform Fee = Predetermined Fee% * Total Ad Cost

The budget spent is now defined as the sum of the advertising spend and the platform fee:

Budget spent = Total Ad Cost + Platform Fee

Example of how the Platform Fee is calculated

Suppose that the platform fee is set to 7% for your TAM seat, consider the two following scenarios:

  • If you have $100 in advertising spend (media cost only), then the total budget spent, including Teads platform fees, would amount to $107.

  • If your total budget is $100, including Teads platform fees, your advertising spend will be $93.46, while the platform fee will amount to $6.54.

Budget spent = Total Ad Cost (advertising spend) + (Total Ad Cost * Fee%)

For full reporting metric definition, refer to this article here.

How Platform fee is factored in max bid price

The max bid price that a customer inputs in the platform should be interpreted as the maximum advertising spend that this customer is willing to pay per billable event.

For example, if the max bid CPM is $10 for a given TAM insertion, then consider the following:

  • eCPM of Advertising spend must be <= $10

  • eCPM of Budget spent can be > $10

For full reporting metric definition, refer to this article here.

Note: Platform fees are not applied to Added Value budgets.

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