Negotiating discounts on deals

Publishers and buyers can use Post-Auction Discounts to negotiate discounts on deals without an impact to win rate A percentage, calculated as number of bids won by DSPs divided by the number of bids submitted.. Both buyers and sellers may benefit from negotiating bulk spend discounts into their programmatic deals in the following ways:

• Buyers use them to get more value out of their dollar.
• Sellers use them to capture ad spend from large buyers.

How it works

	The publisher The owner of a website or app where advertisements are served. and buyer agree to a discount (%) for each deal A private auction that allows publishers to offer specific inventory directly to selected buyers identified by a deal ID. Terms are negotiated and are agreed upon before the auction occurs. (anywhere between 1%-99.9%).
	The publisher sets the discount in the Index UI The Index UI at app.indexexchange.com that allows you to manage integration settings, such as inventory, campaign, and deal settings. by specifying a value in the Post-Auction Discount field. For more information on creating deals, see Creating and managing deals.
	When a DSP Demand-Side Platform (DSP). A software platform that automates bidding decisions in real-time and efficiently connects buyers and audiences through an ad exchange or SSP. Also known as a buy-side platform. 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.
	When populating the win notification macro—${AUCTION_PRICE}— to the DSP, Index Exchange applies the discount to the paid price. For more information on how Index passes the disc field in the deals.ext object of a bid request An OpenRTB request that is sent from a supply-side platform (SSP) or ad exchange to the DSP requesting a bid response for potential impressions. A bid request contains information about the impression that allows the DSP to decide whether to bid on the impression., see the List of Supported OpenRTB bid request fields.
	The Index fee is allocated from the post-discounted price.

Note: Post-Auction Discounts is not supported for sellers with an Open Bidding or server-to-server integration.

Example

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

	Without Post-Auction Discounts impression 1	With Post-Auction Discounts 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.