-
- The agency charges the marketer for digital media on a CPM or CPC basis. The cost is passed through at net or at an agreed capped mark-up.
- Associated technology costs are not hidden but are listed, so that the marketer can see exactly what proportion of budget is spent on the actual inventory, and what proportion is spent on associated technology costs.
- The agency does not buy inventory in bulk and pass it on to the marketer; it buys inventory specifically for the marketer. This may mean a cost increase in CPM terms, but there may also be a quality uplift.
- The marketer has the right to audit and has greater understanding generally of the cost model in place.
Advantages
- A Disclosed model gives transparency to the marketer.
- Fees and charges are disclosed on the media plan.
- The agency will focus on buying inventory specific to the needs of the marketer.
- Fully auditable by the marketer to ensure value and confirm charges are based on cost.
- Cheap and poor quality inventory is not acquired as this will be allocated to Non-Disclosed partners.
- Works best when supported by a performance based remuneration element.
Implications
- Disclosed models can come at a slight premium compared to Non-Disclosed models.
- Transparency generally does cost more.