How can an advertiser tell if arbitrage is happening?

Ask for the CPMs paid to publishers and the buyer's fee, stated separately. If a partner will only provide a single blended price, undisclosed margin may be present.

Does Aurum Networks use arbitrage?

No. Aurum Networks operates on transparent, disclosed pricing, showing working media and management fees separately.

Article

Agency Arbitrage, Explained

Agency arbitrage is the practice of buying media at one price and reselling it to an advertiser at a higher, undisclosed price, keeping the difference as hidden margin.

How does agency arbitrage work?

In an arbitrage arrangement, the buyer purchases inventory — often through an owned trading desk or resale relationship — and bills the advertiser a marked-up rate without revealing the true media cost. The advertiser sees a single blended price and cannot separate working media from the intermediary's margin.

Arbitrage is not inherently illegal, but it becomes a problem when it is undisclosed, because the advertiser loses the ability to judge whether its budget is being spent efficiently.

Why does agency arbitrage matter to advertisers?

Hidden margin quietly reduces the share of a budget that reaches actual inventory, and it distorts the incentives of the party doing the buying. When compensation is embedded in the media price, the buyer can profit from higher costs rather than better outcomes.

The remedy is disclosure. Transparent, disclosed pricing — the model Aurum Networks operates on — separates working media from management fees so the advertiser can see exactly where money goes.

Frequently asked questions

How can an advertiser tell if arbitrage is happening?: Ask for the CPMs paid to publishers and the buyer's fee, stated separately. If a partner will only provide a single blended price, undisclosed margin may be present.
Does Aurum Networks use arbitrage?: No. Aurum Networks operates on transparent, disclosed pricing, showing working media and management fees separately.