High-fees from third-party tech

Are third-party technology fees consuming too much of your advertising revenue and reducing your margins?

We can help.

Are third-party technology fees reducing your advertising margins?

Identify where owning your technology can reduce recurring platform fees, improve your unit economics, and allow your business to retain more of the value generated from your advertising operations.

arrow_circle_right HIGH FEES FROM THIRD-PARTY TECH EXPLAINED

Why can third-party technology become expensive?

Third-party advertising technology allows companies to access established capabilities without the upfront investment and ongoing responsibility of building and maintaining their own technology.

However, providers may charge fees based on:

Media spend
Impressions or transactions
Platform usage
Data volume
Number of users or accounts
Licensing or subscriptions
Revenue or other percentage-based models

At a certain point, owning some of the technology may offer better economics than continuing to pay recurring third-party fees.

arrow_circle_right SYMPTOMS

How do you know if third-party technology is costing you too much?

If third-party technology fees are becoming a problem, then you’ll likely be experiencing one or more of the following:

Your technology fees keep increasing

Your platform costs rise alongside media spend, transactions, data volumes, customers, or usage, even when the underlying functionality you use remains largely the same.

Technology fees are reducing your margins

A significant portion of the revenue or margin generated by your advertising operations is being paid to third-party technology providers.

Growth makes your technology more expensive

As your advertising business scales, percentage-based, usage-based, or volume-based pricing means your technology costs increase with it.

You’re paying for functionality you don’t need

Your platform includes features, services, or capabilities that aren’t important to your business but are still reflected in the price you pay.

Your costs are difficult to control

Vendor pricing models, minimum commitments, price increases, and changing usage make it difficult to predict and manage your technology costs.

Building your own tech becomes economically viable

The amount you spend on third-party technology has reached a level where building and operating your own solution may offer a lower total cost over time.

Experiencing any of the problems above?

Get in contact with our team and find out how we can help you reduce fees from third-party tech.

arrow_circle_right THE CAUSES

Why does third-party technology become expensive?

Third-party technology can be cost-effective when it allows you to access established capabilities without making a significant upfront investment.

However, as your business grows, pricing models that were attractive initially can result in increasingly high recurring costs.

Fees scale with your business

Percentage-based, usage-based, and volume-based pricing means your technology costs increase as your media spend, transactions, data volumes, or revenue grow.

Pricing includes the vendor’s margin

The price you pay covers not only the cost of operating the technology but also the third-party provider’s commercial margin.

Pricing doesn’t reflect how you use the platform

Standard packages and pricing models can mean you pay for capabilities, service levels, or capacity that your business doesn’t actually need.

Switching costs reduce your negotiating power

Deep integrations, established workflows, migrated data, and operational dependencies can make changing providers difficult, reducing your ability to respond to price increases or negotiate better terms.

arrow_circle_right THE BUSINESS IMPACT

How high third-party technology fees impact your business

High and increasing technology fees can reduce margins, make growth more expensive, limit pricing flexibility, and prevent your business from capturing more of the value generated by its advertising operations.

Lower margins

Licensing, usage, transaction, and percentage-based fees increase your cost base and reduce the margin you retain from your advertising products and services.

Growth becomes expensive

When technology fees scale with media spend, transactions, data, or revenue, growing your advertising business also means paying increasingly more to your technology providers.

Less control over your costs

Price increases, minimum commitments, changing fee structures, and vendor terms can affect your costs even when your own technology requirements haven’t changed.

Less pricing flexibility

High technology costs can limit your ability to reduce customer prices, introduce different commercial models, or compete more aggressively on price.

Less money to reinvest in your business

Money spent on recurring third-party fees can’t be invested in developing proprietary technology, new products, additional capabilities, or other growth initiatives.

Reduced profitability

As third-party costs accumulate across your technology stack, they can materially reduce the overall profitability of your advertising operations.

arrow_circle_right SOLUTIONS TO THE PROBLEM

How we can help you reduce third-party technology costs

01. Analyse

Understand what your third-party technology really costs and where the biggest savings opportunities exist.

We can analyse your:

Licensing and subscription fees.
Usage and volume-based fees.
Revenue-share arrangements.
Infrastructure and data costs.
Current and projected usage.
Total cost of ownership.
Cost of alternative approaches.

Output: A current-state cost assessment identifying opportunities to reduce technology spend.

02. Evaluate

Determine where replacing third-party technology makes financial and strategic sense.

We can:

Compare rent versus build costs.
Calculate potential break-even points.
Model costs at different levels of scale.
Estimate development and operating costs.
Evaluate build, buy, and hybrid approaches.
Prioritise components worth replacing.

Output: A business case and recommended technology roadmap.

2 Spyrosoft employees in front of a computer

03. Build and migrate

Replace expensive third-party technology where ownership provides better economics.

We can:

Build custom AdTech platforms and components.
Recreate the functionality you actually need.
Integrate existing platforms and data sources.
Migrate data and workflows.
Replace expensive vendor integrations.
Transition workloads to the new technology.

Output: Owned technology integrated into your advertising ecosystem.

04. Optimise

Continuously improve the cost and performance of your owned technology.

We can help you:

Optimise cloud and infrastructure costs.
Improve platform performance.
Scale capacity efficiently.
Reduce unnecessary data processing.
Monitor operating costs.
Maintain and support the platform.
Add new capabilities as your requirements change.

Output: A scalable technology platform with a cost structure aligned to your business.

A Spyrosoft AdTech employee sitting in front of a computer.

Need help reducing fees from third-party tech?

Get in contact with our team and find out how we can help you.

arrow_circle_right EXPECTED OUTCOMES

What outcomes can you expect from reducing third-party technology costs?

Replacing expensive third-party technology where ownership makes economic sense can reduce recurring costs, improve margins, and allow your business to retain more of the value generated by its advertising operations.