Deal ID has emerged over the past few years as a way to individually match buyers and sellers as a part of programmatic ad buying. It’s used in the context of private marketplaces to allow buyers and sellers to negotiate a variety of deal criteria before the deals actually occur. For example, the two parties may negotiate, among other things, the minimum price the advertiser is allowed to bid, the types of ad units that will be available and the section of the site where the ads will appear.
Just as you may be willing to do a favor for a friend or family member that you may not be willing to do for someone you’ve not yet formed a close relationship with, publishers don’t want to treat all buyers alike. They would like to have the controls to give some buyers preferential status and Deal ID provides added functionality that makes it easier to set up rules for deals. Publisher may, for example, want to give better deals to top spending buyers while these top buyers may want to specify campaign objectives up front. Since for instance, KPIs for a direct-response campaign aimed at driving downloads are different from those used to measure a brand-building effort, when a buyer shares their KPIs with the publisher upfront, publishers can help optimize the inventory destined for the buyer’s PMP deals, making it more likely that the buyer achieves their objectives.
Deal ID in action
Let’s say a premium publisher makes a deal with top brand advertiser. While the publisher doesn’t want to expose their inventory in the public marketplace as it is worried it might undercut its direct sales efforts, Deal ID gives the publisher direct control over who it exposes its inventory to in addition to controls, such as price floors and purchase minimums, allowing it to protect the value of its premium inventory. Once their deal is made, a 19 character Deal ID is generated and then used to identify the deal between the publisher and advertiser. The Deal ID will then be included in all bid requests that are passed as part of the preferred deal, allowing the deals to be executed under the guidelines agreed on upfront by both parties.
If you are interested in taking advantage of this technology, stay tuned for our post next week on Private Marketplace Best Practices or reach out to us to find out how you could benefit from PMP deals. Also check out our posts on What is a Private Marketplace? and a Q&A with Leading DSP, The Trade Desk.
This article was written by Leah Brite, director of product marketing at SpotX.