It seems like the industry is constantly coming up with new buzzwords. As a result, lately you may have been hearing more and more about private marketplaces. So what is a private marketplace? Private marketplaces (PMPs) are customizable, invitation-only marketplaces where premium publishers make their inventory and audience available to select buyers, often times transacted through the use of deal IDs.
Private exchanges are a natural evolution of public marketplaces and in many ways represent a convergence of traditional media buying, which involved more direct relationships between publishers and advertisers, and programmatic technology, which eliminates manual work, instead taking advantage of automation.
How to use PMPs:
- Sellers can handpick which buyers are invited into the private marketplace, giving them control over which buyers have access to their premium inventory. PMPs also afford publishers the opportunity to sell complete inventory packages priced at a fair value.
- Buyers get increased transparency and control. Preferred buyers may even have the opportunity to leverage additional valuable additional information, like a publisher’s first-party data and the right of first refusal over impressions.
- Both parties get to leverage programmatic media controls to govern the trading relationship, as is typical in an RTB environment, improving the efficiency for everyone involved.
As mentioned above, one of the key components to the functioning of private marketplaces is the Deal ID. Stay tuned. Next week we will dig into “What is Deal ID” and how it is used in the execution of private marketplace deals. Also check out our posts on Private Marketplace Best Practices and a Q&A with Leading DSP, The Trade Desk.
Leah Brite, Senior Manager, Product Marketing