The term “Private Marketplace” has become one of the most widely used buzzwords in mobile advertising - and for good reasons. A Private Marketplace (PMP) is an invite-only marketplace where high caliber publishers offer their media inventory to a selected group of advertisers. Unlike the open real-time bidding (RTB) auctions, a private deal gives a select group of advertisers priority to inventory before it becomes available in the open marketplace.
The use of PMP can be beneficial for both advertisers and publishers, so let’s dig deeper into the benefits.
What will advertisers get by leveraging PMP? First and foremost, PMP allows advertisers to get a first-look and acquire premium inventory, which may not be available in an open exchange. However, this inventory comes at a premium cost, so advertisers must determine whether the high-quality media placements are worth the investment. On the other hand, advertisers get increased transparency into media placement. Hence, advertisers have a very clear idea of what kind of inventory they are buying and at what price. Efficiency is another benefit of PMP. Advertisers are able to quickly and effectively publish ads on premium inventory on specific segmented verticals.
Publishers stand to gain from PMP deals as well: better pricing, extensive control over media and stronger buyer relationships. PMP deals enables publishers to achieve better CPMs for their premium inventory, as they typically enjoy higher minimum floor prices than the open auction. PMP deals also provide publishers with the means to broaden their offering, such as utilizing first-party data to enrich inventory segmentations. Negotiation with buyers may be more time consuming than with open exchanges, but it also create direct relationships, which can lead to further opportunities.
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