Variable Costs

A variable cost is a line-level configuration that enables you to better manage and track expenses that affect the profitability of campaigns including ad serving costs, ad verification costs, audience measurement costs, and brand safety costs. Variable costs are currently available only to Self Serve seats.

Variable costs may affect the amount that a line can bid on an ad placement and the amount billed depending on the billing method.

Billing Method Description
oCPM If the line uses oCPM billing, variable costs are used to calculate both the amount bid on ad placements and the margin applied to billing costs.
Fixed CPC If the line uses Fixed CPC billing, variable costs are used to calculate the amount bid for an ad placement. The line is billed on a Fixed CPC basis.
Fixed CPM If the line uses Fixed CPM billing, variable costs are used to calculate the amount bid for an ad placement. The line is billed on a Fixed CPM basis.

The Variable Cost area of the Line Properties page displays controls that enable you to create and define line-specific variable costs.

variable-cost-section

Variable costs are calculated on a CPM basis. Every variable cost is defined by a CPM amount that specifies the amount paid per thousand impressions. For example, if you have a brand safety cost of $1.00 CPM, DSP automatically captures that cost when it calculates your margin using the total budget.

A line may be defined by up to six variable costs. The DSP supports the following variable cost types:

Ad Serving Cost Description
Ad Serving Cost An Ad Serving Cost enables you to track expenses associated with the third-party storage, tracking, and delivery of creatives including per-impression charges and fees.
Ad Verification Cost An Ad Verification Cost enables you to track expenses associated with the measurement and verification of target delivery.
Audience Measurement Cost An Ad Measurement Cost enables you to track expenses associated with the identification and measurement of delivery to specific audiences, segments, or devices.
Brand Safety Cost A Brand Safety Cost enables you to track expenses associated with inventory quality, brand safety, and fraud avoidance.
Viewability Cost A Viewability Cost enables you to track expenses associated with the measurement and verification of ad viewability.
Other Cost An Other Cost enables you to track miscellaneous line-level expenses.

You can aggregate variable costs by generating a report in Report Builder. To learn more, see Report Builder.

To track variable costs:

  1. In the Variable Costs area, select a cost type option in the Cost Type drop-down list.
  2. Specify the name of the variable cost in the Cost Name field.
  3. Specify the CPM amount in the CPM field. The CPM amount specifies the amount paid pay per thousand impressions.

To add variable costs:

To add another variable cost, click the plus sign to the right of the cost. You can add up to six variable costs.

To remove variable costs:

To remove a variable cost, click the remove button to the right of the cost.