"After years of immovable fees, the company signaled it was willing to do a deal. "It's the first time I've seen The Trade Desk actually be willing to negotiate rates," said the programmatic lead, who spoke on the condition of anonymity, as did all the buying execs contacted for this story. "We've had the same rates for several years. Now, they're willing to negotiate and give us some incentives.""
"But at scale, those basis points aren't abstract. They determine how far a budget stretches and where it lands. They know why The Trade Desk takes its cut. Once data, identity and measurement layers are fully loaded, the effective platform fee can run from the mid-teens to roughly 20%. That cut underwrites the machine - the bidding models, optimization systems, identity infrastructure, fraud and suitability tooling - that gives them access to better inventory."
The Trade Desk began negotiating platform fees after years of fixed pricing as Amazon's lower fees and Google's aggressive terms squeezed DSP economics. Agencies face a three-way DSP battle between Amazon, Google and The Trade Desk, with Amazon pitching a faster, more efficient open-web DSP and undercutting fees. Effective platform fees including data, identity and measurement commonly reach mid-teens to around 20 percent, funding bidding models, optimization, identity infrastructure and fraud and suitability tooling. At scale those basis points materially change how far budgets stretch and which inventory buyers can afford, often favoring Amazon. Buyers are reevaluating DSP mixes and pressing vendors for incentives.
Read at Digiday
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