[Tech Talks] What are Programmatic Private Marketplaces
Updated: Aug 31, 2020
Often referred to as PMP, private market places are typically ‘’Invite Only’’ auction deals that provide priority or preferred access to a publisher’s premium inventory outside the open market. The adoption of PMPs is on the rise as concerns about ad quality and brand safety continue to grow among brands.
Essentially, the PMP offers exclusivity: publishers allow a selected number of advertisers to bid on exclusive inventory on their sites, getting the “First Look” at their ad inventory and ad position.
For advertisers, the main advantage of using such an approach is twofold:
Advertisers with exclusive excess to ad inventory can take greater control over which sites their ads are served, as well as placements, formats, messaging, and data.
With access to a premium environment on trusted and credible publishers, advertisers can build a strong image for their brand and be certain their brand equity will not be damaged in any way.
For publishers, the benefits are a little different.
The PMP approach gives publishers full control and visibility over advertisers, which helps manage their inventory efficiently, and allows quality ads from reputable brands to pass through.
It also offers high-value premium inventory, provides better first-party audience data, and helps reduce online ad fraud since advertisers have a clear view of the inventory they are bidding on. This, in turn, helps the credibility of the publisher and the advertising process in general, encouraging brands to feel more comfortable trading and driving greater investment into the digital advertising ecosystem.
Different Types of PMP Deals
Now let’s look at the different kinds of deals you can have within a private marketplace. There are two main types of PMP deals: Private Auction or Preferred Deal.
A Private Auction is similar to an open auction -- bids are submitted in real-time, and bidding is only accepted from a selected number of advertisers competing to win the bid.
Conversely, a Preferred Deal approach allows publishers to offer their inventory to a single advertiser at an agreed fixed price. This is an exclusive approach, allowing only that advertiser to get a “first look” at the inventory.
To pick the right deal, buyers will often negotiate with the publisher on a floor price or fixed price to bid. PMP is a combination of direct sales and trading programmatically on premium inventory.
Programmatic Guaranteed (PG)
There is also a slightly different approach to trading known as programmatic guaranteed. A PG deal is where the advertiser buys inventory directly from the publisher, and both parties agree to a fixed number of impressions for a guaranteed price, to execute on all environments (standard and rich media formats, video, positions, sections, and more). The process may require some human interaction with the publisher’s sales rep but the entire buying process is handled programmatically.
PMP deals are rapidly gaining traction in the industry, and that’s because they close the gap between traditional direct sales and programmatic trading. Advertisers that are looking to combine scale, targeting and quality at a level beyond the open marketplace will find that PMP or PG is the ideal direction.
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