Overview

OneStrata has a large number of fields and terms related to costs and cost calculations, in order to effectively handle complex pricing scenarios that may involve multiple types of currencies.

Cost methods: The cost method defines what types of cost-related fields interact in which types of ways, in order to determine what is billed to the client, what is paid to the vendor, and what is income to the agency
Agency, Client, and Vendor Currencies: What type of currency or currencies the agency, client, and vendor transact in.
Cost types: Cost- and rate-related fields
Rate types: The primary unit type and rate being purchased

Cost Methods

The cost method of a Schedule grid line defines what type of cost-related fields are available or editable, and how they are calculated. Each top-level line on the Schedule grid (a Cost Package, a standalone Media Package, or a standalone Placement) can have a different cost method.

There are three cost methods:

Cost Method

Description

Standard Cost Method

In the Standard cost method, vendor costs and clients are directly connected:

Vendor Gross Cost = Client Gross Cost
If one set of vendor or client costs are defined, all other cost types can be calculated based on that single set of defined costs.
A set of costs is a combination of:
- Units and rate
- Unit and total cost
- Rate and total cost

Margin Cost Method

The margin workflow is a gated feature and not enabled by default. If the margin workflow is not enabled, the Margin cost method is not available.

To enable this feature, contact your OneStrata representative.

In the Margin cost method, vendor costs and client costs are not directly connected:

Vendor Net Cost =/= Client Net Cost
The difference between the Vendor Net Cost and the Client Net Cost creates a "margin", which is income to the agency. This difference is captured in the Other Income value.
If one set of vendor costs are defined, the other vendor cost types can be calculated from that set, but the client cost types cannot be directly calculated.
If one set of client costs are defined, the other client cost types can be calculated from that set, but the vendor cost types cannot be directly calculated.

Vendor costs and client costs are connected by a third value, the Margin Percentage value:

Vendor Net Cost = Client Net Cost - (Client Net Cost x Margin Percentage)

Allocated Cost Method

The allocated workflow is a gated feature and not enabled by default. If the allocated workflow is not enabled, the Allocated cost method is not available.

To enable this feature, contact your OneStrata representative.

In the Allocated cost method, a fixed amount of money has been "allocated", or set aside, to cover both the cost of the media purchase and any related fees.

Costs are calculated in the following order:

The Allocated Amount is entered.
The Allocated Fee Cost is calculated and subtracted from the Allocated Amount. The difference is the Client Net Cost.
- Client Net Cost = Allocated Amount - Allocated Fee Cost
All other costs and rates are calculated from the Client Net Cost, similar to the Standard cost method option.

Currencies

OneStrata provides support for up to three different currencies within a single transaction:

Agency Currency, or AC for short
Client Currency, or CC for short
Vendor Currency, or VC for short

Costs and rates are shown in one or more of these currencies, with AC, CC, or VC appended to indicate which currency type the value is in.

Currency Type

Description

Origin

Agency Currency

AC

Base Currency

Local Currency

The currency in which the Agency transacts. All cost lines in a campaign must be in the same Agency Currency.

Agency Currency is defined on the Agency record, on the Administration > Entity Management > Agencies > (Specific Agency) > Details tab.

Each Agency has only one Agency Currency.

Client Currency

CC

Billing Currency

The currency in which the Agency bills the Client. All cost lines in a campaign must be in the same Client Currency.

Client Currency is defined on the Client record, on the Administration > Entity Management > Clients > (Specific Client) > Details tab.

Each Client has only one Client Currency.

Vendor Currency

VC

Payable Currency

The currency in which the Agency pays the Vendor. Each cost line in a campaign can be in a different Vendor Currency.

Vendor Currency is defined on the Contract record, on the Administration > Entity Management > Contracts > (Specific Contract) tab.

A Contract may have one or more Vendor Currencies.

Cost Types

In OneStrata, cost types—fields related to calculating costs—are broadly grouped into three types:

Client costs: Costs between the agency and the client
Vendor costs: Costs between the agency and the vendor
Other costs: Non-client-related and non-vendor-related costs

When a cost type is displayed or used, it specifies which type of currency the cost type is in:

Example: Vendor Net Cost (VC) refers to the vendor net cost, displayed in the Vendor Currency
Example: Vendor Net Cost (CC) refers to the vendor net cost, displayed in the Client Currency

Cost Type Reference

The following table is a list of available cost types:

Cost Type Group

Cost Type

Description

Calculation (Standard Cost Model With 1 Tax)

Origin

Client

Client Commission Cost

Client Commission

The amount of commission that the client is charged.

Client Commission = Client Commission Percentage x Client Commission Basis

Calculated

Client

Client Commission Percentage

Client Commission Rule

Client Commission %

Commission Percent

The percentage of commission that the client is charged.

N/A

Defined on the Administration > Entity Management > Clients > (Specific Client) > Commissions tab

Client

Client Commission Basis

Commission Basis

Basis

The cost type that the Client Commission Percentage is applied to:

Client Gross Cost:
Client Net Cost:

N/A

Defined on the Administration > Entity Management > Clients > (Specific Client) > Commissions tab

Client

Client Discount

Client Passback

The amount of the Vendor Discount that is passed on to the client.

Vendor Discount:

Client Discount = Vendor Discount x Client Passback Percentage

Calculated

Client

Client Discount Percentage

Client Discount Rule

Client Discount %

The percentage of the Vendor Net Cost or Vendor Gross Cost that is passed on to the client as a discount.

Vendor Net Cost:
Vendor Gross Cost:

Client Discount Percentage = Vendor Discount Percentage
x Client Passback Percentage

Calculated

Client

Client Gross Cost

Client Gross

The amount that the client is quoted, before any discounts are applied.

Client Gross = Vendor Gross

Entered in schedule
Calculated

Client

Client Gross Rate

The cost per unit that the client is quoted, before any discounts are applied.

If Rate Type is not CPM-based:
Client Gross Rate = Client Gross Cost / Units

If Rate Type is CPM-based:
Client Gross Rate = (Client Gross Cost / Units) x 1000

Calculated

Client

Client Net Cost

Client Net

The amount that the client is charged for the media purchases, after any discounts are applied but before any commission or taxes are added.

Client Net = Client Gross - Client Discount

Entered in schedule
Calculated

Client

Client Net Rate

The cost per unit that the client is charged.

N/A

Entered in schedule
Calculated
Defined in Administration > Reference Data > Fees & Tech Rates > (Specific Fee Record) > Client Rate Details

Client

Client Passback Percentage

Client Passback Rule

Client Passback %

The percentage of the Vendor Discount that is passed on to the client as a discount.

Vendor Discount:

N/A

Defined in

Administration > Entity Management > Client > (Specific Client) > Passbacks

Client

Client Tax

The tax on activity that the client is charged, not including any commission.

Depending on Client Tax Rule settings:

Client Tax = Client Tax Rule x Vendor Gross
Client Tax = Client Tax Rule x Vendor Net
Client Tax = Client Tax Rule x Client Gross
Client Tax = Client Tax Rule x Client Net

Calculated

Client

Client Tax on Commission

The tax on commission that the client is charged.

Client Tax on Commission = Client Tax Rule x Client Commission

Calculated

Client

Client Total Cost

Client Total

The amount that the client is charged, after any discounts are applied and commission is added, but before any taxes are added.

Client Total = Client Net + Client Commission

Entered in schedule
Calculated

Client

Client Total Cost with Tax

Client Total with Tax

The amount that the client is charged, after any discounts are applied and after any commission or taxes are added.

Client Total Cost with Tax = Client Total + Client Tax on Cost + Client Tax on Commission

Calculated

Client

Client Total Rate

The cost per unit that the client is charged, after any discounts are applied and commission is added, but before any taxes are added.

If Rate Type is not CPM-based:
Client Total Rate = Client Total Cost / Units

If Rate Type is CPM-based:
Client Total Rate = (Client Total Cost / Units) x 1000

Calculated

Vendor

Vendor Discount Percentage

Vendor Discount Rule

Vendor Discount %

The percentage of Vendor Net Cost or Vendor Gross Cost that the Vendor gives as a discount.

Vendor Net Cost:
Vendor Gross Cost:

N/A

Defined in Administration > Entity Management > Contracts > (Specific Contract)

Vendor

Vendor Discount

Vendor Discount Cost

The amount of the discount that the vendor gives.

Depending on the Vendor contract:

Vendor Discount = Vendor Net x (1 / (1 - Vendor Discount Percentage) - 1)
Vendor Discount = Vendor Gross x Vendor Discount Percentage

Calculated

Vendor

Vendor Gross Cost

Vendor Gross

The amount that the vendor quotes, before any standard discounts are applied and any taxes are added.

Vendor Gross = Vendor Net + Vendor Discount

Entered in schedule
Calculated

Vendor

Vendor Gross Rate

The cost per unit that the vendor charges, before any standard discounts are applied and any taxes are added.

N/A

Entered in schedule
Calculated
Defined in Administration > Reference Data > Fees & Tech Rates > (Specific Fee Record) > Vendor Rate Details

Vendor

Vendor Net Cost

Vendor Net

The amount that the vendor charges for the media purchase(s), after any discounts are applied but before any taxes are added.

Vendor Net = Vendor Gross - Vendor Discount

Entered in schedule
Calculated

Vendor

Vendor Net Rate

The cost per unit that the vendor charges, after any discounts are applied but before any taxes are added.

N/A

Entered in schedule
Calculated
Defined in Administration > Reference Data > Fees & Tech Rates > (Specific Fee Record) > Vendor Rate Details

Vendor

Vendor Tax Cost

Vendor Tax

The tax on activity that the vendor charges.

Depending on Vendor Tax Rule settings:

Vendor Tax = Vendor Net x Vendor Tax Percentage
Vendor Tax = Vendor Gross x Vendor Tax Percentage

Calculated

Vendor

Vendor Total Cost

Vendor Total

The amount that the vendor charges, after any discounts are applied but before any taxes are added.

Other

Allocated Amount

This value is part of the Allocated cost method.

The client budget allocated to a media line within the schedule.

N/A

Entered in schedule

Other

Allocated Fee Cost

Allocated Fee

This value is part of the Allocated cost method.

The Client Net Cost of any fees applied to the line, where the fee is a percentage of the Allocated Amount.

N/A

Calculated

Other

Margin Percentage

Margin Rule

Margin %

This value is part of the Margin cost method.

The difference between the cost of a media purchase (Vendor Net Cost) and the price at which it is sold (Client Net Cost), as a percentage of the price at which it is sold (Client Net Cost).

Margin Percentage = (Client Net Cost - Vendor Net Cost) / Client Net Cost

N/A

Entered in schedule
Calculated

Other

Other Income Cost

Other Income

The general term for any type of additional income that an agency makes, aside from commission.

Sources of Other Income include:

A margin between client costs and vendor costs
A markup on vendor costs
A partial client passback on a vendor discount

Depends on the source of the additional income.

Calculated

Rate Types

A rate type indicates the primary ad metric being tracked or purchased, and how its cost is calculated (generally per unit).

Term

Description

Notes

Unit Type

An ad metric / KPI that is being tracked by an agency.

Examples of unit types include:

Impressions
Views
Clicks

Rate Type

The primary unit type and cost per unit negotiated between an agency buyer and a vendor for a media purchase.

For a Schedule grid line, its Rate Type value indicates what type of unit is represented in the Units value, and is required before entering rate, units, or cost information.

For a Fee record, its Rate Type value indicates how the fee is calculated (whether the fee is a flat fee, a percentage-of-media-cost fee, or a volume-based fee).

For a list of available rate types, see Rate Type Reference.

Examples of rate types include:
- CPM (Impressions): The primary unit type is impressions, purchased at a cost per mille (CPM) rate.
- CPV (Views): The primary unit type is views, purchased at a cost per view (CPV) rate.
- CPC (Clicks): The primary unit type is clicks, purchased at a cost per click (CPC) rate.
Rate type is required; a Schedule grid line or Fee record must have a rate type, otherwise it cannot be committed or saved, respectively.
A Schedule grid line or Fee record can only have one rate type.

Rate Type Categories

There are three categories of rate types:

Rate Type Category

Description

Available For

Calculation

Fixed

The cost is a fixed, user-defined amount that does not take into account the volume (number of units) of the media purchase.

For example:

A purchase of 5,000 clicks for $1,500. Even if the number of clicks being purchased changes, the cost is still $1,500.
A flat ad serving fee of $2,000

Schedule grid media lines (Cost Packages, Media Packages, and Placements)
Entered fees
Central Fee records

For Schedule grid media lines:

Cost = Flat Amount

The Flat Amount is defined by the value of the Vendor Net Cost or Vendor Gross Cost field on the Schedule grid media line.

For Entered fees:

Fee Cost = Flat Amount

The Flat Amount is defined by the value of the Vendor Net Cost or Vendor Gross Cost field on the Schedule grid Entered Fee line.

For Central Fee records:

Fee Cost = Flat Amount

The Flat Amount is defined by the value of the Rate field on the Fee record (in the Vendor Rate Details section).

Percentage of Media (POM)

The fee cost is calculated as a percentage of the cost type of the Placement line that the fee is assigned to.

For example:

A fee that charges 1% of the Placement line's Vendor Net Cost

Assigned Fee records

For Assigned Fee records:

Fee Cost = Percentage x Cost Type of Placement

The Percentage is defined by the value of the Rate field on the Fee record (in the Vendor Rate Details section).

The Cost Type is defined by the value of the Cost Type field on the Fee record (in the Vendor Rate Details section), and is either Vendor Net Cost, Vendor Gross Cost, or Allocated Amount.

The fee is then calculated as a percentage of the selected cost type, for the Placement that the fee is assigned to. For example, as 1% of a Placement's Vendor Net Cost or 2.5% of a Placement's Vendor Gross Cost.

Volume-Based

All other rate types, such as:

CPM (Impressions)
CPC (Clicks)
CPA (Acquisitions)

The cost is triangulated from other values, including the volume (number of units) of the media purchase.

For example:

A purchase of 5,000 clicks for $0.30 per click
A volume-based ad serving fee that charges $0.01 per click, with a 10% buffer

Schedule grid media lines (Cost Packages, Media Packages, and Placements)
Entered fees
Assigned Fee records

For Schedule grid media lines:

Cost = (Rate / Rate Divider) x Units

The Rate is defined by the value of the Vendor Net Rate or Vendor Gross Rate field on the Schedule grid media line.

The Rate Divider is defined by the rate type (see Rate Type Reference).

The Units is defined by the value of the Units field on the Schedule grid media line.

For Entered fees:

Fee Cost = (Fee Rate / Rate Divider) x Units

The Fee Rate is defined by the value of the Vendor Net Rate or Vendor Gross Rate field on the Schedule grid Entered Fee line.

The Rate Divider is defined by the rate type (see Rate Type Reference).

The Units is defined by the value of the Units field on the Schedule grid Entered Fee line.

For Assigned Fee records:

Fee Cost = (Fee Rate / Rate Divider) x (1 + Fee Buffer Percentage) x Units of Placement

The Fee Rate and Fee Buffer Percentage are defined by the values of the Rate and Buffer fields on the Fee record (in the Vendor Rate Details section), respectively.

The Rate Divider is defined by the rate type (see Rate Type Reference).

The Units of Placement is defined by the value of the Units field for the Placement that the fee is assigned to.

Rate Type Reference

The following table is a list of available rate types:

Rate Divider: A number by which the rate is divided, when calculating costs
- If the Rate Divider is 1000, this means that the unit type is purchased at a cost per mille/thousand (CPM/CPT) rate.
- For example, if the rate type is CPM (Impressions), the Units value is 100,000, and the Vendor Net Rate is $1.00, this means that:
  - Units: 100,000 impressions are purchased
  - Rate (Vendor Net Rate): $1.00 per 1,000 impressions
  - Cost (Vendor Net Cost): $100.00 (= 100,000 units x ($1.00 / 1,000 units))
Available For Schedule Lines: Whether or not the rate type can be added to a Schedule grid line
Available for Fee Records: What type of Fee record (Central or Assigned) the rate type can be added to, if any

Rate Type ID	Rate Type Full Name	Short Code	Unit Type	Category	Rate Divider	Available For Schedule Lines	Available For Fee Records
1	Fixed	Fixed	N/A	Fixed	N/A	Yes	Central
40	Percentage of Media	Percentage of Media	N/A	POM	1	No	Assigned
2	CPM (Impressions)	CPM	Impressions	Volume-based	1000	Yes	Assigned
3	CPC (Clicks)	CPC	Clicks	Volume-based	1	Yes	Assigned
4	CPA (Acquisitions)	CPA	Acquisitions	Volume-based	1	Yes	Assigned
11	CPA (Conversions)	CPA	Conversions	Volume-based	1	Yes	Assigned
12	CPA (Leads)	CPA	Leads	Volume-based	1	Yes	Assigned
13	CPE (Engagements)	CPE	Engagements	Volume-based	1	Yes	Assigned
14	CPV (Views)	CPV	Views	Volume-based	1	Yes	Assigned
15	CPV (Completed Views)	CPV	Completed views	Volume-based	1	Yes	Assigned
16	CPV (Visits)	CPV	Visits	Volume-based	1	Yes	Assigned
17	CPLPV (Landing Page Views)	CPLPV	Landing page views	Volume-based	1	Yes	Assigned
18	CPL (Likes)	CPL	Likes	Volume-based	1	Yes	Assigned
19	CPSU (Swipe Ups)	CPSU	Swipe ups	Volume-based	1	Yes	Assigned
20	CPM (Messages)	CPM	Messages	Volume-based	1	Yes	Assigned
21	CPUR (Unique Reach)	CPUR	Unique reach	Volume-based	1	Yes	Assigned
22	CPS (Sent InMails)	CPS	Sent inmails	Volume-based	1	Yes	Assigned
23	CPL (Lands)	CPL	Lands	Volume-based	1	Yes	Assigned
24	CPLC (Link Clicks)	CPLC	Link clicks	Volume-based	1	Yes	Assigned
25	CPP (Purchases)	CPP	Purchases	Volume-based	1	Yes	Assigned
26	CPATC (Add To Carts)	CPATC	Add to carts	Volume-based	1	Yes	Assigned
27	CPCV (Content Views)	CPCV	Content views	Volume-based	1	Yes	Assigned
28	CPL (Lifts)	CPL	Lifts	Volume-based	1	Yes	Assigned
29	CPR (Reads)	CPR	Reads	Volume-based	1	Yes	Assigned
30	dCPM (Dynamic Impressions)	dCPM	Impressions	Volume-based	1000	Yes	No
31	dCPC (Dynamic Clicks)	dCPC	Clicks	Volume-based	1	Yes	No
32	dCPA (Dynamic Actions)	dCPA	Actions	Volume-based	1	Yes	No
33	dCPE (Dynamic Engagements)	dCPE	Engagements	Volume-based	1	Yes	No
34	dCPV (Dynamic Views)	dCPV	Views	Volume-based	1	Yes	No
35	dCPMV (Dynamic Viewable Impressions)	dCPMV	Viewable impressions	Volume-based	1000	Yes	No
36	dCPCV (Dynamic Completed Views)	dCPCV	Completed views	Volume-based	1	Yes	No
37	vCPM (Viewable Impressions)	vCPM	Viewable impressions	Volume-based	1000	Yes	Assigned
38	vCPCV (Viewable Completed Views)	vCPCV	Viewable completed views	Volume-based	1	Yes	Assigned
39	vCPV (Viewable Views)	vCPV	Viewable views	Volume-based	1	Yes	Assigned
41	CPA (Actions)	CPA	Actions	Volume-based	1	Yes	Assigned

Table of Contents

Overview

Cost Methods

Currencies

Cost Types

Cost Type Reference

Rate Types

Rate Type Categories

Rate Type Reference