Netflix, The Trade Desk: CTV Campaign Economics & Publisher Positioning

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How do you decide between PMP and PG allocations?

By nature, we know that PG typically performs better, which has been proven repeatedly. So, we usually allocate 60% to 70% to PG. For instance, we had a client launching their first CTV campaign. Knowing they were cost-conscious, we initially recommended only 10% for PMP and 90% for PG. However, they wanted to test more targeted strategies, which are only possible via PMP, so we increased it to 20%. Since it was their first CTV activation and they were conservative, I was also cautious about how much to allocate to biddable options, confident that non-biddable PG would likely outperform biddable options.

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If I look at a Shopify client of yours, for example, giving you a budget of 100, how much reaches the publisher? What are the commissions and other deductions before the money reaches the publisher?

That's a good question. It depends on the type of media you're activating. For display and online video on open exchange, about 40% to 50% stays with The Trade Desk. This covers their margin, audience fees, and other incremental charges. Their margins on this type of media are better than on CTV. For CTV, it depends. For PMP, about 20% to 30% stays with The Trade Desk. For PG, there's no bidding, so they just take their 4%, and 96% goes to the publisher and SSP. I don't know how much goes to the publisher versus SSP because those fees aren't transparent.

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