Guidance on Bid Rates and Clearance*

Networks provide Tatari with rate cards. The rate cards show the rates that networks suggest submitting to achieve 70% clearance. While each network clears differently, we've found this to be true for the majority of our partners. Rate cards change regularly and Tatari receive weekly updates.

If you pay the rate on the rate card, we anticipate that you will clear 70%.
If you pay below the rate card, we anticipate that you will clear lower.
If you pay above the rate card, we anticipate that you will clear higher.

Tatari uses the term Shave Rate in our Media Buying Platform. Shave Rate is defined as the amount that you're bidding below the rate card.

The amount that you should increase or decrease a bid amount is largely dependent on market conditions and available inventory. The Tatari team is happy to discuss market conditions at any given time and offer an educated opinion. In general, the amount that you increase or decrease a bid should stay within certain thresholds, as listed below, to ensure that orders are not rejected by networks and publishers.

Pilots

During the pilot programs, we will be testing various types of networks, publishers, and inventory types to see what works best for your brand. We suggest conservative bid rates during this time in order to hit higher clearance and gain initial data points. During pilots, please do not decrease your bids by more than the percentages listed below:

Tier 1 - 5%
Tiers 2 and 3 - 10%

Regular Media Week

During a regular media week, we suggest using historical performance data to inform your upcoming media plan.

First, look at the inventory that performed well and cleared well. Since this inventory performed and cleared well, you will want to leave the rates the same as the previous week.
Then, take a look at inventory that performed well, but didn't clear well. You will want to increase the bid amounts so that a higher percentage of the inventory will clear.
Lastly, take a look at the inventory that didn't perform well. Since performance wasn't good, you will want to cut these pieces of inventory from your plan.

There are a couple factors you will need to take into account when determining how much you will want to increase or decrease a bid amount.

Tier 1 - decrease bid by no more than 20% depending on historical clearance
- If the inventory is a top performer, we suggest paying closer to the rate card price and not decreasing the bid by too much, especially during the first and fourth quarter of the year (when inventory is tighter).
- If the inventory performed well, but didn't clear well, we suggest increasing the bid amount. If the inventory is important, we suggest increasing the bid by 20%, not to exceed the rate card price. If the inventory is less important, we suggest increasing the bid by 5% - 10%, not to exceed the rate card.
- For inventory that cleared at or near 100%, we suggest decreasing the bid amount by 10%.
- Once you find a rate that you’re consistently clearing at, we suggest sticking with that shave rate going forward, subject to seasonality. For more information on seasonalities, please ask your buyer or see the seasonality section.
Tier 2 and 3 - 20% to 35%
- Similar to Tier 1 inventory, once you find a rate where you’re clearing 65% - 70%, we suggest you stick with this rate.

Market Conditions

Rate are also dependent on market conditions. At certain times of the year, there will be more or less rotations or spots available. We've found that:

Typically the first week of each quarter, there is more inventory available.
Typically the last week of each quarter, there is less inventory available.
March, April, May, September, November, December - generally we suggest being more conservation with bid rates, as market conditions are tighter
January, February, June, July, August, October - we suggest being more aggressive as rates tend to go down
***Please note, this can be different during the pandemic as viewership habits are abnormal***
Holiday Weeks, especially, Christmas and New Years - we suggest being more aggressive with bid rates to test new inventory//networks//pubs as market conditions tend to be more open. News content is especially open.
- Right before Christmas and New Years, there is typically more availability as brands can’t guarantee items will arrive by Christmas. If you would like to test new inventory and don't need to guarantee a Christmas or New Years deadline, we suggest being more aggressive with decreasing your bid rates during this time.

Clearance

We've found that ideal clearance is between 60% - 75% of a week's media plan. When looking at clearance, there are two important pieces to factor in - general clearance and performance.

If a plan is clearing at 60% or lower, but you are happy with performance, we suggest keeping your plan as is
If a plan is clearing at 60%, but you are not happy with performance, we suggest lowering your bid rate or removing certain spots or rotations from the plan
If you’re clearing 100%, there is most likely room to lower your bids and decrease some rates while still clearing
If you’re clearing less than 60%, your rates are most likely too aggressive and we suggest being more conservative with your bid rates

In the Tatari Media Buying Platform, you will see a Predicted Clearance button. This tool was created to help indicate how the plan may do directionally. While we are always working towards making our clearance prediction better, this tool should only be used to provide guidance. Please have your Tatari Media Buyer double check your plan.

A note on streaming clearance: Streaming clearance abides by a slightly different clearance schedule. changes based on the time of the year. In Q1, the markets are more open and it's easier to achieve higher clearance. In Q4, the market tightens as networks make up for deficiency units.

General Guidelines

**Important: Client accepts full financial responsibility for all cleared spend. The cleared spend might exceed The Client's planned target, up to the total booked amount (or Authorized Media Purchase). The Client agrees that Tatari is not liable for cleared spend including any overages to planned target.**

Please confirm budget by Monday morning of the week via Email. The earlier in the week that we can understand budget goals, the earlier we can get to work on your plans and get the media you want.
Please submit your plan by Wednesday morning at the latest. This will give your media buyer time to review your plan and make suggestions prior to sending the plan to networks and publishers.
Creative changes must be made by Tuesday morning. No changes to creative will be able to take place after this time.