E-Business
Digital Ad Payments can be Complex, but They Don’t Have to Be
By Stephen Newton, Managing Director for Sub-Saharan Africa, Aleph Group Inc.
While paying for digital advertising placements has gotten a lot simpler in recent years, it can still be complex. Anyone wanting to run a digital campaign, for example, has to know which pricing model (for example, Cost Per Click (CPC), Cost Per Mille/Thousand Impressions (CPM), Cost Per Action (CPA), and more) each platform uses, how to use the auction system, and ensure that they can make cross-border payments in the currency required.
Stephen Newton, Managing Director, Sub-Saharan Africa, Ad Dynamo by Aleph
It’s a lot for one person, or even a dedicated ad-buying team to keep track of. But this complexity can also make it difficult for companies that are entering the digital ad space for the first time to get full value out of their online marketing efforts. That’s no small thing either. After all, if you’re a business owner, you want to meet your customers where they are. And with Africans spending an increasing amount of time online (South Africa actually leads the world on this metric), that means having a presence on the biggest digital platforms and, more particularly, the ones most relevant to your business.
Fortunately, it doesn’t have to be so complicated. Advances in a number of fields mean that digital ad payments can be much simpler than has historically been the case.
Understanding complexities
Before looking at what those advances entail and allow for, it’s important to understand some of the factors behind ad payment complexity.
In addition to the wide variety of pricing models mentioned above, a significant part of the issue is the sheer number of platforms that offer advertising products. Each of those platforms has its own payment systems, pricing models, and rules. Advertisers often need to work with multiple platforms to reach their target audiences effectively.
Many digital ads are also placed through real-time auctions where advertisers bid for ad placements in milliseconds. Advertisers (or, more typically, their media buying partners) need to make rapid decisions about bids and budgets to secure desired placements. Another, related issue is that ad prices can fluctuate based on demand, user behaviour, and other factors. Advertisers need to adapt and optimise their budgets accordingly.
Additionally, digital advertising operates across international boundaries, involving different currencies, tax regulations, and payment methods. Advertisers must manage these complexities when running global campaigns.
These are, of course, other factors that add to the complexity of digital ad payments, but the ones listed above go some way to illustrating how advertisers might miss out on getting full impact from their marketing efforts. That’s not only to the detriment of the advertisers but also to the advertising platforms themselves, who end up missing out on valuable revenue from dissatisfied customers.
Taking a new approach
In other words, there’s a lot to be gained from making ad payments simpler. Whether you are a native digital advertiser based in Africa aiming to reach consumers in the US, who need hassle-free credit in local currency, or an ad tech platform aiming to offer your services, your experience should be as straight-forward as possible.
That’s part of the reason we’ve launched Aleph Payments. It’s a straight-forward cross-border credit and payment offering which allows eligible advertisers in 130 markets a line of credit for advertising. Once accepted, the advertiser pays Aleph invoices in local currencies, settling exchange and taxes, and allowing all of this to simplify commercial operations for digital ad-tech players.
Ideally, the more of this kind of simplicity we see in the sector, the more we can anticipate the expansion of the digital ecosystem in emerging economies such as Africa. That’s because simplicity leads to enhanced accessibility and creates an ecosystem that’s more user-friendly for everyone to navigate.
Less complexity benefits everyone
Ideally, the more of this kind of simplicity we see in business, the more growth we’ll see in the US$800 billion digital ecosystem in emerging economies. Because simplicity equates to better accessibility and a simpler ecosystem for everyone to function in.
Meta, a multinational technology company, has informed advertisers that it will begin applying new location-based fees to certain advertisements delivered in six selected jurisdictions starting July 1, 2026, as the company moves to offset costs linked to digital services taxes and other regulatory charges.
In an email sent to advertisers, the company explained that the new charges will apply to ad impressions delivered to audiences in specific countries, regardless of where the advertiser’s business is based.
“Meta will soon apply new location fees to ads delivered in specific jurisdictions to cover digital service taxes (DST) and other location-based fees imposed on Meta in those jurisdictions,” the company said in the mail.
According to the notice, the fees will be applied to ads delivered in Austria (5%), France (3%), Italy (3%), Spain (3%), Türkiye (5%), and the United Kingdom (2%).
The company added that these rates and jurisdictions could change over time.
Meta described location fees as additional charges tied to where ads are delivered rather than where the advertiser operates.
“Location fees are additional charges that may apply to ads delivered in selected jurisdictions to cover part of the costs associated with doing business in those jurisdictions,” the company said.
The company noted that the charges will be calculated after ads are delivered and will not be deducted from campaign budgets.
Meta gave an example in the email: if an advertiser spends $100 on ads delivered in Italy, where the location fee is 3%, the final cost would be $103, excluding any applicable value-added tax.
Explaining the reason for the change, the company pointed to regulatory developments affecting technology platforms.
“The cost of delivering ads in specific jurisdictions is changing due to the evolving regulatory landscape, including digital services tax legislation. Until now, Meta has covered these additional costs,” the company said.
The company added that the move aligns with broader industry practices, noting that other digital platforms may introduce similar charges linked to digital service taxes.
Meta said the location fees will apply to all ad formats, including image and video ads, as well as campaigns such as WhatsApp click-to-message ads that are billed together with advertising.
The fees will appear on invoices with clear descriptions by jurisdiction, such as “Italy digital services,” the company said, adding that taxes like VAT will still be applied on top of the total amount.
Advertisers were advised to review the affected ad accounts and share the update with their finance, procurement and marketing teams to prepare for the changes.
Tizeti Network Limited, West African broadband provider, has launched an advertising-supported internet platform across its hotspot network in Nigeria and Ghana, allowing users to watch short video adverts in exchange for data access.
The system converts advertising engagement into internet connectivity, offering users the option to view a short video advertisement to unlock data without paying upfront.
Tizeti said the platform is now active across all its hotspot locations in the two countries, covering residential areas, campuses, commercial districts and other high-traffic urban locations.
The service runs on Google Ad Manager’s rewarded web advertising technology, which allows users to voluntarily watch advertisements and receive data rewards once the video is completed.
At a hotspot location, users connect to the network as usual but are given the option to watch a short advert in exchange for a defined amount of data. Those who choose to participate can repeat the process to earn additional internet access.
The company said the approach creates a value exchange between users, advertisers and network providers.
Users gain internet access without immediate payment, while advertisers reach audiences who have actively chosen to view their messages.
“Internet access is a fundamental driver of opportunity,” said Nsikak Asuquo, West Africa manager at Tizeti Network Limited.
“By rolling out reward-based internet access across Nigeria and Ghana, we are expanding connectivity without financial barriers while offering brands a high-engagement platform to reach more than 2.5 million active users,” he added.
Tizeti said participation in the advertising programme is voluntary and operates under its privacy policies, with data handled in compliance with the Nigeria Data Protection Act and Ghana’s Data Protection Act.
The launch comes as Africa’s digital advertising market expands rapidly. Industry projections suggest programmatic advertising spending could exceed $5 billion on the continent by 2028 as brands increasingly shift marketing budgets online.
By integrating Google’s advertising infrastructure directly into its hotspot network, Tizeti aims to turn public Wi-Fi locations into scalable digital advertising channels while widening access to the internet.
Advertisers will be able to buy ad placements through Google Ad Manager’s ecosystem, including open auctions, private deals and programmatic guaranteed campaigns.
Tizeti said its hotspot network serves more than 2.5 million active users across Nigeria and Ghana.
The company provides broadband services using a mix of fibre infrastructure and public Wi-Fi networks, targeting communities, schools and businesses across the region.
National Information Technology Development Agency (NITDA) is partnering with Nkenne AI, a local artificial intelligence (AI) company, to develop language translation technologies tailored to the country’s diverse linguistic landscape.
There are more than 500 languages spoken nationwide, however many digital systems in Nigeria still operate primarily in English, leaving millions underserved.
NITDA and Nkenne AI have partnered with the ambition to improve accessibility and inclusion across Nigeria’s digital economy.
Nkenne AI’s chief executive, Michael Odokara-Okigbo, said the company is building localised AI translation tools designed for critical sectors, including healthcare, financial services and public administration.
According to him, these tools should enable users to interact with digital platforms in indigenous languages, thus improving accessibility and trust.
It’s not just a Nigerian challenge however, language barriers remain one of the biggest obstacles to technology adoption across Africa.
Beyond translation, the partnership between NITDA and Nkenne AI also seeks to strengthen Nigeria’s startup ecosystem by promoting responsible data practices and supporting emerging AI ventures.
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