There needs to be a balance struck between transparency, performance to the KPI, and performance improvement. Often found with the higher costs, such as data fees, come better performance.
Although we do agree with Wayne here on the importance of receiving platform reporting, and as also expressed in our contribution to the Media Agency Compensation Practices we collaborated with ANA last Spring.
We advise against reducing the efficiency of the programmatic buying team where efforts are instead focused on explaining all costs and not focused on the optimizations; of course, both are important but we don’t want to sacrifice one over the other. We recommend a few things:
- See how performance has improved through optimizations YoY, QoQ, and analyze the fees attached.
- Continually evaluate the KPI. We have found that campaigns will beat the KPI, but not necessarily improve over time.
- Create internal cost-based benchmarks on like-kind placements to understand if new campaigns are over-spending unnecessarily.