Buying and selling advertising in the programmatic space is not limited to an open auction. There are several different types of programmatic advertising. One of them is called a Private Marketplace.
What is it?
Similar to an open RTB, a private marketplace (PMP) uses real-time bidding to match advertisers with publishers. The difference is that a PMP is an invitation-only RTB auction between one publisher and only a few advertisers.
This is why PMP is also called “private exchange.” The publisher’s inventory is sold to a select number of buyers. The publisher knows exactly who these buyers are.
Why is this be a good approach?
In an open exchange, the publisher does not know what ad will run. Advertisers also do not know where their ad will run.
In a private marketplace, advertisers and publishers relationships are transparent. Advertisers know what sites or apps they are buying. Publishers know who they are working with. You can think of PMP as the merge between traditional direct buy and programmatic buy.
How does it work?
The terms of a private marketplace are pre-negotiated between advertisers and publishers. A unique Deal ID is generated to connect these buyers and sellers through their programmatic platforms.
Just like open RTB, advertisers can define targeting and pricing criteria for their campaigns in the DSP. The benefit is that these select advertisers gain access to the publisher’s inventory before any other advertiser in the open exchange.
What are the disadvantages?
It takes time to set up a private marketplace. Impressions cannot be guaranteed because PMP is still a real-time bidding auction.
- A PMP stands for Private Marketplace. It is an invitation-only RTB auction between one publisher and a few advertisers.
- Relationships are transparent. Publishers know exactly which buyers are in the exchange.
- A unique Deal ID is generated to connect advertisers and publishers through their programmatic platforms.
- It takes time to set up and impressions are not guaranteed.