Fees, Factors & Yields
This section will define how fees are applied within Bench Connect using instruments such as the System Factor, Yield and Client vs. Media Costs.
System Factor
The System Factor is the instrument that enables Partner, Agency and Bench fees to be loaded into the Media Cost Cost/CPM so that all fees can be presented to the client as one finalised amount (known as the ‘Client Cost’). The System Factor is calculated and applied at the Allocation level. This enables different fees or margins to be applied based on the media that is being activated.
The System Factor is presented as a multiplier (or 'markup' value).
Client Cost vs. Media Cost
There are two values within Bench Connect that are used to differentiate final costs that are inclusive of all fees ('Client Cost') and costs are exclusive of fees ('Media Cost').
Media Cost: The cost of all media, data and DSP/ad platform tech fees, as shown in the DSP or Ad Platform reports.
Client Cost: The cost of all media (as shown in the DSP/Ad Platform) plus all associated fees related to managing the campaign.
It’s important to keep in mind these values when performing different tasks when using Bench Connect. When creating contracts, planning budgets or using most reporting tools within Bench Connect, the Client Cost value will be used. When setting budgets or targets within the DSP or Ad Platform, the Media Cost will be used.
With this in mind, to calculate either of these values given the other, use the System Factor as follows:
Client Cost = Media Cost * System Factor
Media Cost = Client Cost / System Factor
e.g. For a particular campaign, you intend to spend $10,000 (Client Cost) on Meta in January.
The System Factor for this allocation is 1.56.
To calculate the budget value you will need to assign in the Facebook Business Manager Platform as your monthly budget, you will need to divide your Client Cost by your System Factor.
In this case, your Media Cost would be $10,000 / 1.56 or $6,410.25.
As this Media Cost is spent throughout the month, Bench Connect will automatically apply all associated fees (including Bench and Partner fees) as designated by the System Factor. Within Bench Connect, the Client Cost value will be shown across all reporting and billing interfaces.