Could Flat Fee DSPs Solve The Tech Tax?
The “tech tax” is becoming a problem. This is the term for ad serving fees DSPs and SSPs charge clients and publishers for transacting media buys programmatically through their pipes. Right now programmatic buys usually come with 10-15% in fees (between DSP and SSP), which either the advertiser pays on top of their ad buy or the publisher eats as a cost of sale. Regardless of which party pays the tech tax, it drains media efficiency because less of the overall marketing budget is being put towards actual working media.
Now one DSP has come up with a novel way to solve this dilemma. Alpelphic, Viant’s DSP, is now offering a flat monthly subscription fee for clients who use their platform. For $3,000/mo advertisers can place unlimited programmatic buys through Adelphic. For comparison, a typical brand could spend tens or even hundreds of thousands a month in DSP ad serving fees, so $3,000 is an absolute steal.
As you can imagine, there’s quite a bit of interest (and a healthy dose of skepticism) about this new model. Obviously Adelphic will need to sell a heck of a lot of subs at that price to keep the lights on. But if they can pull it off this model could open up an entirely new price war in AdTech, which could eventually alleviate the industry’s current tech tax mess.