How to compare a managed programmatic service with an in-house licence

What to take away

A Leeds media team with an illustrative £60,000 monthly programmatic display budget faces the fork most English agencies meet: managed supplier or licensed platform.
Managed agencies such as Brainlabs and Croud wrap technology, media and service into one fee; an in-house licence for Display & Video 360, The Trade Desk or Amazon DSP splits that into platform fees, seats and salaries.
Data duties follow the campaign rather than the contract, so both routes need a written lawful basis.
Score fee basis, data ownership, reporting access and exit terms before you discuss price.

What a supplier comparison must actually compare

A comparison that lists only management fees will mislead you. Two quotes can look identical and hand you different assets. Ask what you own when the term ends: audience segments, creative, conversion data and the seat licence. Ownership sets your switching cost.

Fee models compared

Fixed CPM

How charged: CPM plus margin
Supplier gains when: Volume grows
Example: Not given
Who sets bids: Supplier

Percentage of spend

How charged: Percent of spend
Supplier gains when: Your spend grows
Example: 15% of £60,000
Who sets bids: Supplier

Flat platform fee

How charged: Flat fee
Supplier gains when: Spend stays flat
Example: £4,000 seat fee
Who sets bids: You

Compare how each supplier buys. Google's Display & Video 360 sells seats inside Google Marketing Platform for a platform fee, commonly 8 to 15 per cent of media spend in most markets. Microsoft's Invest DSP, formerly Xandr, reaches MSN, Outlook and Xbox.

The Trade Desk charges a platform fee on gross spend, historically about a fifth. Amazon DSP opens Amazon retail, Twitch and Prime Video inventory, and sets minimum spend rules.

Managed agencies bill differently. Brainlabs, Croud, Jellyfish, Hallam and Impression sell programmatic buying inside a wider paid media retainer, usually a percentage of spend. Hallam works from Nottingham, Brainlabs and Jellyfish from London, and Impression has offices in both cities.

Fee models hide in the detail. A percentage fee rewards the supplier when your spend grows. A flat fee rewards them when it does not.

Ask for a worked example on your own numbers. A supplier charging 15 per cent on an illustrative £60,000 media budget collects £9,000 a month, against a £4,000 seat fee.

The wider programmatic advertising tools and supplier guide sets out platform categories and how each one charges, which helps when a quote lands.

Managed service or licensed platform, where the money goes

A managed supplier usually quotes one monthly figure covering technology, media and service. The fee is often a percentage of spend, so it rises as campaigns grow. An in-house licence reverses that.

Managed vs in-house licence

Managed service

What you pay: One monthly figure
Fee basis: Often % of spend
Rises with spend: Yes
Who signs contract: Supplier
Staff needed: Included
Exit cost: Rebuild tags and audiences

In-house licence

What you pay: £4,000 platform + seats
Fee basis: Flat platform fee
Rises with spend: No
Who signs contract: You
Staff needed: Trader, analyst, data lead
Exit cost: You keep the seat

A team paying £4,000 a month for platform access and two seats still needs a trader, an analyst and a data lead. UK programmatic trader salaries typically sit between £35,000 and £55,000.

Ask which entity signs the platform contract. If the supplier holds the seat licence, moving in-house later means rebuilding tags, audiences and conversion tracking.

Minimum spend clauses are the other trap. A platform that looks cheap per thousand impressions can carry a monthly commitment your brief cannot fill. Amazon DSP and several exchange deals set them.

Bidding mechanics deserve a read before you accept a supplier's account of rising costs. Google documents how Display campaigns and the ad auction work, including how bids and quality signals interact.

Data duties that apply whichever route you pick

Targeting duties do not transfer with the contract. If a supplier builds audiences from personal data, your business still needs a recorded lawful basis for that processing.

The ICO's guide to lawful basis explains consent, legitimate interests and the other grounds. Ask which ground your supplier claims on your behalf, and put the answer in writing.

A written processing agreement should name the lawful basis, the retention period and who answers a subject access request. Record the ground you rely on and the date you reviewed it.

Social and owned channels in the supplier mix

Not every brief belongs in a demand-side platform. Recruitment, employer brand and B2B campaigns often perform better where the audience sits, on LinkedIn or a publisher network. Amazon Ads self-serve tools cover retail placements when a DSP contract is too big.

Setting up a LinkedIn Company Page is a sensible first step when social sits outside the programmatic buy. Decide early whether social stays with the supplier or moves in-house.

How to score a shortlist

Four questions separate a good supplier from a cheap one. Add references as a fifth check once the shortlist narrows.

Ask

Fee basis: Is the fee a flat rate or a percentage of spend?
Data ownership: Who keeps the audience segments after exit?
Reporting: Can you export raw delivery logs?
Term and exit: What is the notice period and minimum spend?
References: Can two clients on similar spend take a call?

Warning sign

Fee basis: Fee climbs with spend for the same work
Data ownership: Supplier retains them
Reporting: Dashboard screenshots only
Term and exit: Auto-renewal with long notice
References: Only testimonials on the agency site

Once the shortlist is scored, programmatic advertising tool implementation covers tagging, seat setup and the first month of delivery.

Glossary of comparison terms

Managed serviceone fee covering technology, buying and reporting.
Seat licencea named user login to a demand-side platform such as Display & Video 360 or The Trade Desk.
Media feea percentage or margin added to the media you buy.
Exit termswhat you keep, and pay, when the contract ends.

Common questions

Is a managed supplier or a platform licence cheaper?

Neither is cheaper in every case. Low monthly spend usually favours a managed fee; high spend with an existing trading team favours a licence.

How many suppliers should we shortlist?

Three is workable for a fair comparison. Fewer narrows your view of fee models, and more creates paperwork that slows the decision.

What must the contract cover?

Cover audience ownership, notice periods and raw data exports. Name the trader who will run your account daily.

Do we still need a lawful basis if the supplier buys the media?

Yes. Processing personal data for targeting needs a lawful basis regardless of who operates the platform.