New DV360 Fee: 2% fee on all UK Served Ads
Google Introduces 2% Fee on DV360 Ads Served in the UK
Google announced earlier this month that additional fees will now be added for Display Video 360 (DV360) ads serving in specific countries. More specifically, a ‘Digital Service Tax’ (DST) 2% surcharge will be added for ads served in the UK.
If you’re unfamiliar, Digital Service Tax was actually introduced by the government (back in April 2020) designed to tax on the revenues of search engines, social media services and online marketplaces. Disappointingly at the time, but somewhat unsurprisingly, Google simply passed this cost onto their customers.
You might be asking “did Google not already do this back in 2020?!”, and you would be correct.
However, this was only added onto the Google Ads platform initially. We discussed this in detail at the time and raised questions about whether Microsoft Ads (formerly Bing) and Social Networks would follow suit. Fortunately this did not happen.
Yet, what most people hadn’t considered at the time, was whether this would be rolled out to alternative advertising products from Google’s Marketing Platform. Like DV360…
Our advice remains the same as before. Costs within the DV360 platform will remain the same, and the fee will be added on top. This therefore needs to be factored in when planning budgets. Furthermore, if your total campaign budget remains the same, this does mean media spend on the platform will need to reduce, which means the possibility of reduced traffic and conversions as a result.
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