An Agency Margin refers to the profit an Agency makes by charging a markup on the cost of services or media it purchases on behalf of a client. It represents the difference between what the Agency pays for a service (e.g., ad placements, production costs) and what it charges the client.
For an Agency to include its fees in an AdLib campaign, you have two options:
Option #1 - Agency Margin (CPM)
The example campaign has a Max Bid of $40
The Agency wants to include its Margin at $1
The result: AdLib will adjust the Max Bid within the DSP to be $39 CPM to account for the Agency’s Margin.
Option #2 - Agency Margin (%)
The example Campaign Budget is $3,252.15
The Agency wants to include its Margin of 25%
The result: AdLib will adjust the Campaign Budget within the DSP to be $2,439.11 to account for the Agency’s Margin.
Reporting
Once your campaign is live, you can review its performance in two ways: an Agency view (called Billable metrics) and a Client view. The CPM, CPC, and Media Spend will be affected because the number of impressions and clicks will remain the same.
Billable Metrics
Billable Metrics are internal metrics for the Agency.
Agency View/Billable Metrics—These billable metrics are the Agency’s actual cost, which is what AdLib will charge you to run the campaign (Media Spend, CPM, and CPC).
In this view, you will see that the Billable Metrics are less than the other non-billable metrics of the same name. (green)
You will also see a metric called Agency Margin, which calculates how much the Agency is taking/”profiting” from the campaign. (purple)
Non-Billable Metrics
Non-Billable Metrics are external metrics for the Agency’s client.
Non-Billable Metrics – These metrics include the Agency Margin (CPM, %). (green)
In this view, you will see that the Non-Billable Metrics are more than the other billable metrics of the same name.
You will also notice TWO campaigns where an Agency Margin was omitted, so the Billable and Non-Billable Metrics are the same. (yellow)
What is the value to me, the Agency?
AdLib will automatically perform all of the necessary calculations so that you can meet all of your campaign deliverables (Campaign Budget, Daily Spend, Max Bid, Impression Goal) while also accounting for your fees.
AdLib reporting allows you to see your cost, what AdLib will bill you, and your client's cost, what they were promised in the IO or proposal.
Related Articles: Set Up A Campaign | How Does Billing Work?
Have more questions? Message us directly in the App!