Defining a Private Marketplace
The term “Private Marketplace” has become one of the most widely used buzzwords in digital advertising. A Private Marketplace, also known as a PMP is an invite only marketplace where high caliber publishers offer their ad inventory to a selected group of advertisers.
Private Marketplace vs Open Auction
The difference between a private marketplace and an open marketplace is that a private marketplace gives a publisher tighter control on which kinds of buyers, advertisers and creatives will displayed on their site while not having to manage individual advertisers like they would in a direct buy. Typically CPM’s are much more competitive in a PMP because premium advertisers are competing for the highest quality ad inventory on very reputable digital properties.
BrightRoll Private Marketplace
BrightRoll has created a globally targeted private marketplace for video inventory. They are able to provide an efficient integration process that eliminates inserstion orders, reduces the duplication of audiences and centralizes all reporting and optimization
Benefits of PMP’s
While a large publisher may choose to only sell a portion of their inventory in a PMP, there are many benefits to incorporate this strategy into their ad stack:
- Transparency on both ends: The publisher and advertiser both have a very clear idea of what kind of inventory they are buying, what CPM needs to be paid and the creatives that are running.
- Programmatic Efficiency: Advertisers are able to quickly and effectively set new buys live on top tier websites or even packages of inventory on specific segmented verticals.
- Becoming an industry standard: Available on many of the largest programmatic exchanges such as DoubleClick Ad Exchange, AppNexus, MediaOcean and Kantar Media.
- Can remove the need for a direct sales team: It can be quite expensive and time consuming to manage a direct sales team. PMP’s can potentially replace a sales team with technology.
While Private Marketplaces are still relatively new and have barriers at times, its pretty clear that they will become an integral part of the ecosystem in due time as ad technology continues to become even more advanced and integrated.