Indie Agencies Seek Better Deals With The Trade Desk And Amazon DSP
Independent agencies want The Trade Desk and Amazon DSP to recognize their buying power and offer more favorable terms. This could lead to cost savings and greater negotiating power for the agencies.
Original reporting · digiday.com
Original: “Indie agencies want The Trade Desk and Amazon DSP to acknowledge their buying power with negotiating leverage”
Read “Indie agencies want The Trade Desk and Amazon DSP to acknowledge their buying power with…” at Digiday →
How this was written. GMS Agency Desk wrote this article with a language model from Digiday’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Digiday’s report
- Independent agencies are seeking more favorable terms with The Trade Desk and Amazon DSP due to their significant spending power.
- Working with resellers can result in higher costs for agencies due to additional fees.
- Direct relationships with DSPs could allow agencies to eliminate intermediary fees and gain more control over fee structures.
- The requirements for direct access to The Trade Desk and Amazon DSP are not always clear, and agencies may face challenges in negotiating direct seats.
- The programmatic advertising industry is experiencing increased competition and a growing desire for more transparent and equitable relationships between buyers and sellers.
Independent agencies are pushing for better deals with major demand-side platforms, according to Digiday. These agencies believe their significant spending should earn them more negotiating leverage and direct relationships with the platforms.
Currently, many indie agencies work with resellers, which can result in higher costs due to additional fees. The agencies are expected to pay both the reseller and the main DSP, increasing their expenses.
A direct relationship with a DSP would allow agencies to eliminate intermediary fees, reducing their costs. It would also give them more control over fee structures and greater negotiating power, Digiday reported.
Some agencies have tried to negotiate direct seats with The Trade Desk and Amazon DSP but have faced challenges. The platforms' requirements for direct access are not always clear, and the agencies may be told they need to commit to a certain level of spending.
The Trade Desk and Amazon DSP have stated that they are available to all advertisers, regardless of size. However, the agencies' experiences suggest that the reality may be more complex, with resellers playing a significant role in the process.
The tension between indie agencies and major DSPs is part of a larger trend in the programmatic advertising industry. The industry has seen increased competition and a growing desire for more transparent and equitable relationships between buyers and sellers.
As the ad tech ecosystem continues to evolve, indie agencies are waiting to see if they will be able to negotiate better deals with The Trade Desk and Amazon DSP. The outcome could have significant implications for the industry, potentially leading to more cost-effective and efficient advertising practices.
Questions and answers
Why are indie agencies seeking better deals with The Trade Desk and Amazon DSP?
Indie agencies believe their significant spending should earn them more negotiating leverage and direct relationships with the platforms, leading to cost savings and greater control over fee structures.
What are the benefits of a direct relationship with a DSP for indie agencies?
A direct relationship would allow agencies to eliminate intermediary fees, reducing their costs, and give them more control over fee structures and greater negotiating power.
What is the current state of the programmatic advertising industry?
The industry is experiencing increased competition and a growing desire for more transparent and equitable relationships between buyers and sellers, with indie agencies pushing for better deals with major DSPs.
