Announcement: Required Updates to Data Marketplace Pricing for The Trade Desk (9/22/21)
The Trade Desk (TTD) will be transitioning all standard segments with a CPM of less than $5 to a hybrid rate pricing model (which involves a percentage of media (PoM) rate and a CPM cap) effective October 21, 2021. The purpose of the pricing change by TTD is to standardize data’s value across all channels within their platform.
In order for a data seller’s standard segments to remain available and usable within and via TTD after October 21, 2021, they must provide their designated percentage(s) of gross media spend and CPM caps directly to TTD (pricing can vary by segment). Contact the TTD representative listed in the email you will get from your LiveRamp team to get the necessary form, along with TTD’s rate guidance information.
Note
To keep your segments from being hidden starting October 21, 2021, you will need to send TTD this information far enough in advance to give them time to process these pricing changes (TTD’s recommendation is by October 1, 2021).
If you’re a data seller affected by this change, your LiveRamp team will also reach out to you with a letter containing more details concerning this change.
Segments Affected
All standard segments with a CPM of less than $5 that have not been converted to a hybrid rate will be hidden in The Trade Desk platform after October 21, 2021.
If a standard in-flight campaign does not set a hybrid rate by October 21, the campaign will continue on CPM pricing until campaign end or January 2022.
Note
TTD will be moving custom segments to hybrid rate pricing sometime in January 2022.
What steps do I need to take to have my standard segments converted to a hybrid rate pricing model at TTD by the October 21, 2021 deadline?
Contact the TTD representative listed in the email you will get from your LiveRamp team to get the necessary form, along with TTD’s rate guidance information. Once you’ve filled out the required information in the form, return it TTD, preferably by TTD’s recommended date of October 1, 2021.
How should I be pricing my data? How should I think about converting CPM pricing to percent of media for TTD’s hybrid rate structure?
TTD will provide pricing guidance based on analysis of existing CPM prices of data segments, applied to all inventory and channels. Pricing is applied the same way it is currently, where segments or categories can all be priced at different levels. Data sellers can then decide how competitive or premium they would like to set their prices.
How can I ensure I still generate revenue with the hybrid rate structure?
TTD and LiveRamp’s goal is to ensure even revenue during this transition and will be available to make changes to rates as necessary to ensure a smooth transition.
As a data seller, what are the advantages to me of moving to this model?
TTD’s goal is to get more data used, more often. By making data prices relevant to the media (with safeguards), we can remove barriers to applying data to campaigns. By making smarter buying decisions, we open up our business to serving more impressions, increasing revenue.
How will reporting on usage of my data within TTD’s hybrid rate structure work?
The reporting will generally look the same, except the effective CPM will have some variances since it’s not always a consistently flat CPM being charged.
What if I have questions about the usage reported from TTD? Who can help?
TTD would be happy to answer questions regarding usage reports.
Does this impact custom segments?
At this time, this impacts only standard segments.
TTD plans to move custom segments to this hybrid rate pricing model in January 2022.
Note
If a standard in-flight campaign does not set a PoM price by October 21, 2021, the campaign will continue on CPM pricing until campaign end or January 2022.
How will this be reflected in The Trade Desk UI to buyers? Will buyers see a CPM or any reference to price?
Clients in TTD’s platform will see both the PoM and CPM cap prices very clearly, as shown in the example screenshot below:
Is the percentage of media negotiable?
Absolutely. TTD wants to work with their partners to ensure that prices are set appropriately. The percentage of media can vary across portions of the taxonomy and segments.
Are there alternative options for working with The Trade Desk through LiveRamp’s Data Marketplace?
TTD is requiring that all standard segments with a CPM of less than $5 adopt the percentage of media pricing model change by October 21, 2021.
If I choose not to move forward with TTD hybrid rates at this time, will I have the ability to opt-in at a future date?
Yes, TTD would be happy to have the conversation.
What does the transition for this look like? How will buyers be notified?
TTD is doing heavy analysis prior to switching any data rates for clients, and having their client services teams directly reach out to clients
Can I list my segments at different hybrid rates?
Yes, that is encouraged.