Why Do We Scale Up Businesses Through PMPs?
Private Marketplaces are on the rise and in the spotlight, with publishers and advertisers trying to increase their revenue in multiple markets.
PMPs To Outpace RTB in 2018
The number of publishers selling ad inventory in Private Marketplaces is said to be on the rise. PMPs, which means preferred deals or private auctions, are particularly in season now. According to Zenith Media, a large and growing number of publishers were using this model in the past year. PMPs are set to be the quickest premium programmatic buying product that’s easily adaptable to most markets, followed only by preferred and guaranteed deals in the upcoming year. Zenith reports that PMPs will likely outpace open RTB buying in the US by 2018, reaching $9.4 billion in spending, as opposed to $5.5 billion via open exchanges.
The number of publishers selling ad inventory in Private Marketplaces is said to be on the rise. PMPs, which means preferred deals or private auctions, are particularly in season now. According to Zenith Media, a large and growing number of publishers were using this model in the past year. PMPs are set to be the quickest premium programmatic buying product that’s easily adaptable to most markets, followed only by preferred and guaranteed deals in the upcoming year. Zenith reports that PMPs will likely outpace open RTB buying in the US by 2018, reaching $9.4 billion in spending, as opposed to $5.5 billion via open exchanges.
Publisher’s focus → PMPs
PMP deals offer programmatic inventory and are always done directly between an advertiser/agency and a publisher. An increasing number of publishers sell their inventories in Private Marketplaces through preferred deals or private auctions. This is mainly because notable media agencies declare in advance how much they’re willing to spend on inventory.
And that’s something publishers can appreciate, bringing them benefits through long-term revenue, less low-quality ads displayed, and more time to boost the user experience.
In the Preferred Deal model, the prices of eCPM are usually 3 times higher than in the open market. In Private Auctions, it’s between 120% and 200% of the open market’s price. So there’s no doubt about what drives publishers to set up deals for their buyers. As they say, money makes the world go round.
Advertiser’s target → PMPs
That’s fine for publishers, but what makes advertisers spend more if they can get the same product in open auctions for less? Well, some advertisers are expecting a 100% shift in display and video spending done in traditional channels, with mature markets to gradually become programmatic. To make a long story short, here are the key perks for any advertiser or agency:
- Prioritization: Using PMPs, buyers expect to be at the forefront – to have the possibility to show their ads prior to other advertisers.
- Transparency: Advertisers know what kind of inventory they get. All data on CPMs and creatives are always available on the spot.
- Programmatically guaranteed efficiency: Advertisers can set new buys quickly and effectively, or set packages of inventory.
Moreover, in the I-fear-website-content-may-harm-my-brand era, both preferred deals and private auctions enable buyers to book their placements in a surrounding that is brand safe.
All of this makes it hard for the spotlight to avoid Private Marketplaces.
Programmatic Provider To Open New Markets
So it’s clear now why Private Marketplaces are so popular in digital advertising. But how do you use them to scale up your publishing business internationally? Let’s take a look.
Imagine that you have your own external sales team covering all markets and setting up PMP deals for you. Having such a programmatic provider opens up ‘the global capitals of spending’ by multiplying the relations with buyers from all over the world. And that means all possible markets in London, Amsterdam, Barcelona, Miami, Istanbul, Moscow, and regions like CEE or LATAM.
To put it simply, an out of house programmatic sales team allows publishers to earn more money on a daily basis, bringing the best financial results from the publisher’s inventory sells, all through PD/PMPs.
In Business Relationships We Trust
Relationships in digital advertising matter now so much more than ever before. The reason behind it is simple: there are so many possibilities for advertisers to reach their target groups. Or if something isn’t working the way it should, there is always another premium publisher to handle the advertiser’s deals. An advertiser can easily switch to another PMP or even the open market.
These relationships are what keeps them on board and business ongoing (read more on the importance of relationships in the advertising industry). If a buyer has a maintained relationship with a seller or someone who acts on his behalf, they can easily make a call, email, or Skype each other to troubleshoot any error or malfunction. Or they can make another good deal – whether it’s a Private Marketplace deal or a special offer prepared by a direct sales team.
It builds trust that translates to another contact and another transaction. And at the end of the day, what matters is how many digits one earns.
