Here is how to manage costs associated with placements
Bionic is designed to help you break out costs to help you keep track of where the money is going. In addition to the core cost of the media that you pay the vendor, you may also need to account for various production costs, agency commission, and delivery costs. These are all costs that you can custom build to your specific needs and use when and where they are needed.
Here is what you need to know about managing placement costs:
- Calculate Costs
- Setup Costs In Your Media Plan
- Default Cost Calculations
- Include or Exclude Costs
- Change Placement Cost Values
Calculate Costs
To start, it is important to understand how costs are calculated in Bionic. This will help you define how to setup placements and what additional costs you may need to include.
Key costs to note:
Net Media Cost - The amount you are paying the vendor.
Agency Commission - The amount your agency is making.
Total Cost - The amount your client will be paying all in.
How you set up the Rate will be the driving factor for how costs are handled.
- Rate - The fee you are being charged to buy the media.
- Rate Method - Defines how to calculate that fee.
- Currency - Defines the currency the money should be represented as. Only editable if established in the settings.
- Quantity - Defines the quantity, when applicable, to calculate the fee against.
- Net/Gross/Total - Defines how to calculate that fee into your costs.
- Gross Media Cost - When rate is Gross, Gross will be the calculation of your Rate. When rate is Net, Gross = Net + Discount.
Gross is NOT counted as your client total cost. - Discount - The % by which the gross is discounted, or the net is increased. This value is defaulted to 15% to represent most gross buy discounts.
- Savings - The calculated amount of the discount.
- Net Media Cost - When the rate is Net, Net will be calculated directly from that.
When rate is Gross, Net = Gross - Discount.
When the rate is Total, it will be the remaining cost after production costs, agency commission, & delivery costs are deducted from the Total Cost. - Production Costs - These are optional, custom built fields to represent production fees you need to track. Calculated based on how you set them up.
- Agency Commission - These are optional, custom built fields to represent agency commission you are charging. Calculated based on how you set them up.
- Total Media Cost - Net Media Cost + Production Costs + Agency Commission
- Delivery Costs - These are optional, custom built fields to represent delivery fees you need to track. Calculated based on how you set them up.
- Total Cost - Total Media Cost + Delivery Costs
Setup Costs In Your Media Plan
You will want to ensure you have the cost columns you need defined in your media plan.
Based on the default values established, Bionic will automatically calculate the values for each placement. If no default is established, the value will remain blank. You can enter a value for each placement as needed.
Default Cost Calculations
Calculations will display based on the defaults set and the ability to calculate the value.
- If there is no default established, the field will display grey until you enter a value.
- If a default has been established and can be calculated, it will display the calculated value.
- If a default has been established, but doesn't not have enough information to calculate a value, it will display a dash. In this case, Ad Serving Fees is based on CPM and Impressions are not available.
Include or Exclude Costs
Sometimes costs are simply not applicable to particular placements and you may want to exclude it. Or you may need to include a cost that was otherwise excluded.
To exclude a cost:
- Hover over the cost field you want to exclude for a placement.
- Press the Exclude button.
- This will result in the field being greyed out.
To include a cost:
- Hover over the cost fields you want to include.
- Press the Reset button.
- This will result in the value being reset to utilize the default established.
Include and Reset are also available in the batch edit.
Change Placement Cost Values
Production Costs, Agency Commission, and Delivery Costs are all editable at the placement level. You would use to this to override default values, or to establish values as needed when there is not a default set.
- Hover over the cost field you want to edit.
- Press the Edit button.
- Edit the value as applicable.
- Click out of the edit box to apply the change.
Include and Reset are also available in the batch edit.