Announcement: Updated Trade Desk Pricing Model for Custom Segments (2/1/22)
The Trade Desk (TTD) will be transitioning all custom segments with a CPM of less than $5 to a hybrid pricing model. TTD has set an April 1, 2022 deadline for data sellers to enter hybrid pricing for active TTD custom segments and March 15 for new custom segments.
The purpose of the pricing change by TTD is to standardize data’s value across all channels within their platform. Because this pricing model involves a percentage of media (PoM) rate and a CPM cap, TTD refers to this as “hybrid” pricing. Data sellers will have until March 1 to enter hybrid pricing for active TTD custom segments and March 15 for new custom segments. LiveRamp will be updating Connect on February 7 to support hybrid pricing to enable you to easily make these pricing changes.
Starting on February 7, In order for your active custom segments to remain available and usable within and via TTD after April 1, you must provide your designated percentage(s) of gross media spend and CPM caps either via segment metadata file or the Connect UI (PoM can vary by segment).
Caution
Do not attempt to make these pricing changes before February 7, as the Ui will not have been updated until then.
All custom segments with a CPM of less than $5 that have not been converted to a hybrid pricing will be hidden in The Trade Desk platform after April 1, 2022.
FAQs
What steps do I need to take to have my custom segments converted to a hybrid pricing model at TTD by the April 1, 2022 cutover deadline?
Data partners are expected to have all custom hybrid price points finalized – this includes all client outreach, contract renegotiations, etc.
Data partners will be provided an export of all custom rates available in TTD’s database, and need to confirm all hybrid rates have been assigned. TTD will assist with this QA to ensure no active rates are overlooked.
TTD will offer pricing guidance for custom price points (to the best of our ability) leading up to this deadline.
Starting on February 7, In order for your active custom segments to remain available and usable within and via TTD after April 1, you must provide your designated percentage(s) of gross media spend and CPM caps either via segment metadata file or the Connect U .
How should I be pricing my data? How should I think about converting CPM pricing to percent of media for TTD’s Percentage of Media structure?
TTD will supply data sellers with pricing recommendations to help determine where rates should be set. Specifically, for each price level (e.g. $1.50 CPM) for existing custom segments, data sellers will get a TTD pricing recommendation.
How can I ensure I still generate revenue with the hybrid pricing 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 PoM 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.
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. Example:
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.
If I choose not to move forward with TTD Percentage of Media 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 PoM rates?
Yes, that is encouraged.