Marketplace Vendors provide valuable services and solutions that Marketplace Partners can use to enhance their Marketplaces. In exchange for using these solutions and services, Marketplace Vendors may collect a Marketplace Vendor Fee. Like other Marketplaces transactions, bids compete net of fees. This means that fees are removed from the bid price before the auction is conducted, and the net bid price competes against a publisher's open market and private market demand. This allows all parties in the transaction to collect the highest revenue possible on every transaction.
Example: Percentage fee with a Marketplace Vendor Fee
The following diagram shows an example revenue share structure where a Marketplace Partner earns a percentage of media spend and a Marketplace Vendor earns a CPM fee. In this example, a DSP has returned a gross bid of $10. The $10 gross bid (Marketplace Media Spend) minus a 5% Marketplace Owner Fee, a $1.00 Marketplace Vendor Fee, and a 15% Index revenue share with the Media Owner results in a net bid price of $7.22. The Marketplace competes in the Index auction using the net bid price of $7.22. If the bid wins the auction and results in an impression, the Media Owner earns $7.22, the Partner earns $0.50, the Marketplace Vendor earns $1.00, and Index earns $1.28.
