Line items governs how campaign spend is calculated. They are managed in Assets / Line Items.
Programmatic Campaigns
In a programmatic campaign, "cost" is the sum of
- media costs
- audience costs (optionally)
- targeting fees (if any)
- platform fees
Campaign targeting is based on the concept of campaign "spend", which is derived from campaign costs and the line item assigned to the campaign. The line item facilitates the possibility to introduce a margin so that the costs represents a given percentage of spend. This enables e.g. an agency to have their own handling fee included in the campaign budget.
For example, consider the following scenario:
- Campaign has a cycle with a target spend budget of 100 000 SEK
- The campaign has a 10% margin line item assigned
In this case, campaign spend will be costs incurred from buying + 10% margin, so that the sum of all costs at the end of the campaign cycle is 90 000 SEK. This is what will be invoiced from BidTheatre, but campaign reporting will show 100 000 SEK campaign spend. Reports will also show cost columns, if that is preferred.
Of course, it is also possible to use a 0% margin line item, which will equate campaign spend with campaigns costs. This is probably the preferred setup for advertisers direct.
Max CPM and Line Items
Note that the set max CPM for bids do not take the assigned line item into account. This means that if you want to achieve a maximum spend CPM for a campaign including the line item margin, you will need to reduce the line item margin from your set bid max CPM.
Example: Campaign line item is 10%. Target eCPM including margin is CPM 50 SEK. Your max CPM should be 50 SEK * (1 - 0.1) = 45 SEK.
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