How do you find and reach the right audience when everyone is fighting for consumers’ attention? Media buyers are always looking for new ways to address their next best customers, while smashing KPIs for their clients. Many programmatic advertisers are investing in private marketplace (PMP) deals, which provide a mix of transparency, control and premium inventory that a public ad exchange may lack.
In this post, we’ll dig into what exactly a Programmatic Private Marketplace Deal is, the benefits they offer, how PMPs work, and why they are important to the future of advertising.
What is a Private Marketplace or PMP in Programmatic?
Private market programmatic deals are an effective way to buy digital advertising space. Unlike open exchanges where inventory is available to all bidders, private marketplaces are exclusive, offering high-quality ad placements to selected advertisers.
What are PMP deals?
Private marketplace deals allow premium publishers to offer their high-quality ad inventory to select advertisers in a managed, invite-only environment. This helps enhance ad effectiveness while protecting brand safety.
Let’s take a look at the 4 main types of PMP deals:
1. Preferred Deals:
Definition: Preferred deals, also known as “right of first refusal” deals, give certain advertisers the ability to buy premium ad space through the open market at a predetermined price.
Pricing: A predetermined CPM (cost per thousand-impressions) agreed upon by both parties.
Access: Brands have first access to high-end ad inventory, with no obligation to buy.
2. Programmatic Guaranteed (PG):
Definition: Sometimes referred to as “programmatic direct,” this type of transaction guarantees delivery of a predetermined number of impressions at a predetermined price.
Pricing: Advertiser and publisher agree on pre-defined impressions volume and price.
Flexibility: Bridges the automatic nature of programmatic ad buying with the safety net of direct deals.
3. Private Auctions (One-to-one):
Definition: An open auction but only for a limited group of advertisers by invitation. Publishers can establish floor prices, and only invited advertisers can participate in the bidding process.
Pricing: Competitive bidding among a small number of advertisers, which generally yields higher CPMs than open exchanges.
Control: Publishers have more control over who buys their inventory with a private auction.
4, Auction Packages (One-to-many):
Definition: Auction Packages are curated bundles of ad impressions that are sold together under a single deal ID. These audiences are formed by aggregating ad impressions based on specific attributes such as the target audience, interests, or website content.
Pricing: Although auction packages may include premium inventory, the open auction format means they are usually competitively priced.
Efficiency: Auction Packages cut down on the middlemen for advertisers, as they only need to bid on and manage one deal ID instead of multiple individual impressions.
Where does Curation fit in?
To understand PMPs, you need to understand programmatic curation. ExchangeWire defines curation in simple terms as a way in which users get direct access to supply-side inventory, applying programmatic technology to create and manage the buying and selling of ads.
Think of curation like a personal shopper for your ad campaigns. Rather than sifting through an infinite number of clothing racks, you tell the shopper (the curation partner, in this case) exactly what you’re interested in: the styles, sizes and colors you want.
Here’s how it works:
- You Define the Audience: You partner with a curator and selected SSPs, to define who makes up your perfect audience: their demographics, interests, online habits, etc.
- The Platform Curates: The curator selects the best “ad spots” (available real-estate on websites and apps) from its pool of premium publishers that align with the audience you’re looking to reach.
- You Get a Custom Collection: These ad spots, all carefully curated, are packaged into a nice little deal ready for you to buy. Just a custom-fitted wardrobe for your brand!
Benefits of of PMP Advertising
So why does this matter? How does it affect your media buying objectives? To further explain the benefits private marketplace programmatic deals may bring, let’s continue the personal shopping metaphor.
1. Enhanced Control and Transparency
Curated PMPs are like a backstage pass to an expensive clothing store. Instead of rummaging through bins hunting for markdowns, this service is a one-on-one consultation with an expert stylist. They show you those unique pieces that were painstakingly selected according to your individual taste and your overall price range, ensuring all products fit seamlessly with your image and brand.
This translates to:
- Choosing Your Stores: You decide which publishers (the “stores”) your ads appear in, avoiding any that might not align with your brand’s values.
- Seeing Where Your Ads Go: You receive a detailed lookbook of your ads showing you exactly where your ads were placed and how much they cost, so you can see where your money goes.
2. Access to Premium Inventory
Think of gaining access to an exclusive showroom of designer labels unavailable to the masses — only you have VIP access. That is the power curated PMPs give an advertiser. You get a first right of refusal on premium placements on top-tier websites and apps that reach audiences that are actually plugged in and in-tune with your brand.
This means:
- Higher Visibility: Your ads shine on high-quality publisher sites, gaining more attention and ultimately performing better.
- Wider Reach: Your brand’s advertising message means more to your target audience, which helps boost engagement and drive conversions.
3. Overcome the Challenges of Open Marketplaces
Think of the open marketplace like a crowded flea market – full of great deals, but also lots of junk and uncertainty. With curated PMPs, you skip the noise and go for quality. You’re not as dependent on third-party cookies as you are on the first-party data of your customers.
This results in:
- More Reliable Targeting: You’re not shooting in the dark, you’re using your own data to connect with the right people, which makes your campaigns more successful.
- Stable Environment: You’re no longer subject to shifting algorithms or privacy rules. You have a consistent, set channel for your advertising.
Programmatic curated private marketplaces give you an edge up when it comes to advertising. You have access to the VIP treatment, premium inventory, and peace of mind that your messaging — and ads — are getting to the people, at the right places.
Future Trends in Private Marketplace Programmatic Deals
So what’s the future for curation within private marketplaces? What should you invest your media dollars in now to ensure future success for your clients?
Data Privacy Concerns
With increasing data privacy concerns, we will likely see a push for more transparency in private marketplace programmatic deals. Advertising and publishers will need to conform with privacy regulations while still prioritizing campaign performance. Now that third-party cookies are becoming stale, PMPs are positioned as a sustainable model.
Advancements in Curation Technology
Advancements in programmatic technology will further improve the curated PMP process. Advanced algorithms and AI-driven data insights will give more accurate targeting and campaign optimization. This will help advertisers achieve their marketing objectives more efficiently while retaining control over where their ads appear. Contextual targeting solutions and cohort-based strategies will become more popular, both of which can be efficiently managed within curated PMPs.
How Lotame Can Help
Private marketplace deals give advertisers a level up as they look to maximize their programmatic ad spend. Through a combination of premium inventory and sophisticated targeting capabilities, PMPs provide the control, transparency and access required to execute a successful campaign.
With the ad tech landscape in a constant state of change, the adoption of new solutions like Lotame’s Curated Marketplaces is the best way to make sure your digital marketing campaigns continue to deliver results. Lotame empowers media buyers to tap into the full potential of PMPs by offering:
- Performance and efficiency: The ability to optimize your ad buying and unlock unmatched performance with a tailored approach that removes waste & helps achieve your return on investment.
- Reliable, high-quality inventory: Access high-quality ad placements across all channels, to ensure your messaging is in brand-safe places and reaches the audiences that matter the most.
- Precise Targeting with Custom Audiences: Leverage Lotame’s expertise to reach the right people at the right time with tailored audiences built to your exact specifications.
- Data-Driven Insights: Get a better understanding of who your audience is while driving campaign performance with a full suite of analytics that help you continuously optimize your campaigns.
In a world where advertising costs are rising and quality is declining, Lotame Curation is your key to reversing those fortunes. Don’t just buy ads – invest in a partnership that offers proper strategy and measured results, while improving your brand’s presence in the digital marketplace.
Are you ready to unlock the full power of private marketplace programmatic deals? Connect with us to unlock the power of smarter, faster and easier advertising with curation.