Post-Auction Discounts on Deals

Publishers and buyers can use Post-Auction Discounts to negotiate discounts on deals without impact to win rate. Both buyers and sellers may benefit from negotiating bulk spend discounts into their programmatic deals: buyers use them to get more value out of their dollar and sellers use them to capture ad spend from large buyers.

How It Works

The following workflow occurs for Post-Auction Discounts on deals:

  1. The publisher and buyer agree to a discount (%) for each deal (anywhere between 1%-99.9%).
  2. The publisher sets this discount in the IX app . To learn more, see Setting Post-Auction Discounts.
  3. When a DSP submits a bid in an auction, it will compete as if the discount was not present. If the bid wins, the discount on the deal is processed after the auction is complete.
  4. When populating the win notification macro—${AUCTION_PRICE}— to the DSP, Index Exchange (IX) applies the discount to the paid price.
  5. The IX fee is allocated from the post-discounted price.

Review the table below to see examples of impressions competing in an auction with and without Post-Auction Discounts applied.

 

Without Post-Auction Discount
Impression 1

With Post-Auction Discount
Impression 2

DSP Bid Price $10.00 $10.00
Exchange Fee % 15% 15%
Bid Competes at $8.50 $8.50
Discount % n/a 10%
DSP Pays $10.00 $9.00
Exchange Fee $1.50 $1.35
Publisher Revenue $8.50 $7.65

Note

DSPs with discounted deals will see differences in bid price and paid price in reporting.

Setting Post-Auction Discounts

Publishers can set Post-Auction Discounts when creating a new deal in the IX app. You can specify the discount under New Deal (Controls > Private Exchange > DealsCreate a New Deal) for each deal by switching the Discount toggle ON and entering a value in the Discount (%) field as displayed below.

A screenshot of the Discount toggle switched ON in the IX app.

Note

The Discount toggle will only be visible if it is enabled on your account.

Post-Auction Discounts in Deals Ext Object

To provide transparency to DSPs during an auction and to identify Post-Auction Discounts opportunities on deals, IX will pass the following disc field in the deals.ext object of a bid request:

Field Type Description Example JSON
disc Float

A number between 0.01 - 1.0 representing the discount negotiated between a publisher and buyer. This value is applied to the ${AUCTION_PRICE} win notification macro for winning impressions. IX supports one value past the decimal point on discounts (e.g. 15.5%).

Example: A 25% discount is sent as disc = 0.25. For a $10.00 winning bid, the 25% discount is applied and passed as $7.50 in the ${AUCTION_PRICE} macro.

{"deals": [
   {
    "id": "AB-Agency1-0001",
    "at": 1,
    "bidfloor": 2.5,
    "ext": {
      "disc": 0.25
    }
   }
  ]
 }

Note

Post-Auction Discounts is not supported for sellers with an exchange bidding or server-to-server integration.

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