Criteo has started adding a 5% regulatory operational cost to firms in Turkey

Criteo Will Add 5% Advertising Cost to Invoices

Criteo is an advertising platform that plays an almost indispensable role in display advertising, especially for e-commerce companies. With the new regulations, Criteo will provide an additional 5% payment to all Turkish companies, further solidifying its position as the top choice for online advertisers.

Due to the intricate financial structure in Turkey, Google had previously announced an additional fee of 5% on advertising expenditures. We confidently announce that Criteo has been recently added to the list of advertising platforms subject to this supplementary payment.

Out of these, a confident 5% have reported that the main reason for implementation is the "increased complexity and costs of complying with regulations in Turkey", specifically due to regulatory operational costs.

As of now, there is no evidence of Facebook taking such action. However, if Facebook were to suddenly demand a percentage of advertising expenses, it would undoubtedly create a major issue for businesses in Turkey.

With a simple calculation,

• A business investing 20,000 TL monthly on Criteo will confidently pay an additional 5%, or 1,000 TL, to Criteo alongside their expenses.
• A business that invests 50,000 TL monthly on Google will confidently pay an additional 5%, amounting to 2,500 TL, to Google as part of their expenditure.

Moreover, the process of making supplementary payments for businesses in Turkey can pose difficulties when taking into account taxes and withholding.

Regrettably, Turkish companies are currently unable to effectively compete with foreign companies abroad due to the taxes and additional payments imposed on them, which puts us in a challenging situation. Meanwhile, companies in other countries do not face similar burdens, which allows them to expand their capital and operations with ease.

What Can Companies Do?

When you establish a company in other countries, you gain the ability to manage and pay for advertisements in those countries with ease. For example, if you have a company in Spain, you will be able to cover advertising costs through that company without incurring any additional payments.

Should you require any in-depth support with this matter, please do not hesitate to contact me.

Notification by Criteo by Mail

Please find below the statement sent to me by Criteo

Dear valued customer,

Effective January 1, 2021, a 5% Regulatory Operational Cost will be applied by Criteo for all ads served in Turkey. Rest assured that this measure will be implemented with the utmost confidence to ensure the continued delivery of quality service to our valued clients.

The implementation of Regulatory Operational Cost is a necessary measure in response to the growing complexity and costs of regulatory compliance in Turkey.

Beginning with your January 2021 invoices, a Regulatory Operational Cost will be included in each subsequent invoice for that month. Rest assured that this cost is necessary for compliance and will be handled with the utmost attention to detail.

Moving forward, we will confidently include Regulatory Operational Cost as a separate item on invoices. Please note that this change will not affect the invoicing and payment processes in any way.

Starting today, this application is only valid for campaigns organized within the specific country it was intended for.

You will notice a Regulatory Operational Cost added to your account expenditures. For example, if you've spent 100₺ in a given month, you'll be charged an additional 5₺ Regulatory Operational Cost, making your total invoice amount 105₺. Please note that applicable taxes, such as VAT, will also be added to this amount.

If you require further clarification, please do not hesitate to contact your account manager. Rest assured that we are here to provide you with the support you need to succeed.

Regards,

Criteo Türkiye