The Impact of Dynamic Take Rates: The Primis Report

The Impact of Dynamic Take Rates: The Primis Report

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Author

Rob Beeler

Published Date
October 30, 2024

Primis recently released this whitepaper on dynamic take rates and their impact on publishers and brands. I asked Rotem Shaul, Co-CEO at Primis & Co-Founder at Sellers.guide,  some questions about the report:

Rob Beeler: Do publishers know which SSPs use dynamic take rate strategies? Is it as simple as asking the SSP if they are doing this?

Rotem Shaul: Some SSPs, like Google, offer an opt-out option, and you can see if the feature is active in the UI. However, most SSPs implement it behind the scenes, and their responses to publishers' inquiries will vary.

Rob Beeler: Does an SSP using dynamic take rates hinder a publisher's ability to understand what CPMs they are actually getting?

Rotem Shaul: It does hinder their ability. The publisher believes the CPM value for their traffic is lower than it actually is. They don't realize that some brands are willing to pay $8 net, while they think $5.7 is the maximum. They also don't know that brands willing to pay $2.2 are losing out to those willing to pay $2.

Rob Beeler: Would this impact yield optimization strategies? Can a publisher measure the impact?

Rotem Shaul:  Not having a clear view of the true supply and demand landscape affects optimization strategies. Publishers optimize based on data, but the data they receive is incomplete.

Rob Beeler: Can a publisher measure the impact?

Rotem Shaul: There’s no way to measure it because the publisher doesn't know what happens behind the scenes (e.g., did a $10 bid subsidize nine impressions, or maybe five? And by how much?).

Rob Beeler: What’s to be done about dynamic take rates?

Rotem Shaul: SSPs are caught in a prisoner's dilemma and are not entirely to blame. Many engage in this practice as a form of "self-defense" against others doing the same. Companies on the buy side are the only ones who can and should demand that their spend is not used in an environment with dynamic take rates.

Download the whitepaper here

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