Guide: How Much Does Programmatic Really Cost?

Decoding programmatic costs from agency pitches is a bit like trying to solve a Rubik's cube while blindfolded. Each agency presents a colorful, seemingly straightforward offering, but the fees are cleverly ambiguous.

In the programmatic world, the term "working media" is…fluid. For purists like me, "working media" should only be the cost of the inventory itself. Simple. All other costs either fall into the category of pass-through vendor charges or constitute the service fees offered by the agency.

A working media percentage greater than 80% is excellent. Anything less than that, I call the “danger zone.” Anything below 70%…yikes.

However, how some agencies handle these costs would make a Vegas magician proud. They shuffle these fees around, give them fancy names, and hide them in the fine print. This creates a labyrinth of costs that's nearly impossible to navigate for a non-digital media expert.

To be fair, all of the major agencies I work with are transparent about fees — when asked. It is the “asking” bit that is crucial. Please, I beg you to ask!

So here's a user-friendly guide on agency-managed programmatic fees. Consider this your compass in the wild seas of pitch evaluation and agency relationship management.

First and foremost, you 🫵🏻 need to direct the show. Clearly define how you want the costs to be laid out and disclosed. Literally, provide the template. If you let the agency stage the play, you'll likely end up with a plot twist you didn't see coming.