Note:XFR is only available to select buyers. For more information, contact your Index Representative.
An XFR limits the Index Exchange (Index) rate above certain points (for example, 19%). We use a combination of the Media Owner rate and optional XFR to determine the amount Index will charge for a transaction.
When determining the Index fee for a transaction where a publisher rate and XFR are present, Index will evaluate if the XFR can lower the Media Owner's rate and apply the lower amount if we can. Index only applies a single publisher fee on transactions and allows XFRs to lower that fee to maximize savings for the Media Owner and buyer.
Example
Here's an example to show how XFR works in an auction:
| Buyer A wins an auction at the final bid price of $10.00. Buyer A owes $10.00 for the transaction with Media Owner X. |
| Media Owner X has a publisher rate of 20% and Buyer A has unlocked an XFR that limits Index rates above 19% because of their high ad spend with Media Owners through Index. |
| Since the XFR limits the Index rate at 19% and the Media Owner's rate is 20%, Index uses the XFR to determine the fee for the final bid price. In this case, Index receives 19% of $10.00 which is $1.90, instead of $2.00; a savings of 5% on this transaction. |
| Media Owner X receives $8.10 ($10.00 - $1.90 = $8.10) as a final payment from the buyer minus Index's fee (based on XFR). |
Review the tables below to see examples of impressions competing in an auction with and without XFR.
Example 1: When XFR is lower
| Without XFR | With XFR | |
|---|---|---|
DSP bid price | $10.00 | $10.00 |
Publisher rate | 20% | 20% |
XFR | N/A | 19% |
Index fee | $2.00 (from 20% publisher rate) | $1.90 (from 19% XFR) |
Index fee savings (%) | N/A | 5% |
Publisher revenue | $8.00 | $8.10 |
Example 2: When the Media Owner rate is lower
| Without XFR | With XFR | |
|---|---|---|
DSP bid price | $10.00 | $10.00 |
Publisher rate | 18% | 18% |
XFR | N/A | 19% |
Index fee | $1.80 (from 18% publisher rate) | $1.80 (from 18% publisher rate) |
Index fee savings (%) | N/A | N/A |
Publisher revenue | $8.20 | $8.20 |
