SSPs Shake Up Fee Structures for Publishers

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The two biggest supply-side platforms (SSPs), Magnite and PubMatic, have started charging publishers additional fees for bespoke programs that connect them more directly to the right buyers, rather than relying solely on algorithms to do the job.

Magnite is charging higher fees for publishers to participate in auction packages, curator deals and supply path optimization (SPO) programs, the SSP told publishers via an email in May.

PubMatic, meanwhile, offers a monthly subscription service for publishers that want more direct access to buyers, tech and revenue opportunities, a program it started in late 2022.

The companies have for the first time confirmed the existence of these new fee structures to ADWEEK. Digiday reported on early plans of the new charges last year.

Publishers and buyers have for several years said that the SSP market is commoditized and undifferentiated. Curation products and special access programs like these can help SSPs stand out and help buyers, who increasingly want to avoid the open web, find premium content. Monthly fees have the obvious benefit of adding recurring revenue lines.

Details of the new fee structures

Magnite told publishers in May that it would charge a 4% higher fee than the current open market rate for auction packages and curator deals, according to an email seen by ADWEEK.

Publishers taking part in Magnite’s SPO programs, which are supposed to bring transparency and a cleaner supply path between buyer and seller, may get charged an even higher fee. Magnite said this charge would vary but would not be more than 10% above the auction package and curator deals rate.

A Magnite spokesperson confirmed the veracity of the email and said that it was part of an effort to inform publishers of fee changes in a more standardized way. They would not go into more detail about the fees.

“[The email] highlights a specific type of non-standard SPO deal and does not represent a significant change in overall fees for our publishers,” the spokesperson said.

Meanwhile, PubMatic offers a program called Access Membership, which started in late 2022 and currently has over 50 publishers enrolled, a PubMatic spokesperson said. Publishers pay a monthly flat fee to gain special access to agencies and advertisers, opportunities for co-selling with the buy-side, as well as to influence PubMatic’s product management roadmap and get early access to products. It wouldn’t say what the fee is or if it varies by publisher.

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