Private marketplace programmatic advertising is one of the most talked about marketing method right now .
What is private marketplace advertising?
Private marketplace is a advertising method where high quality publishers reserve their ad inventory for specific high paying advertisers.
That is, bidding on ad inventory can be done only by the advertiser who the publisher invites.
For example if I am planning to use private marketplace for this blog, then instead of displaying adsense ads
I will display only private ads which I am interested in.
Who Uses Private Marketplace?
Not everyone can use private marketplace to monetize their site.
Almost all publishers who use private marketplace for their websites are big publishers who have millions of page views per month.
Most private marketplace publishers are comscore top publishers like new york times, forbes…etc.
Also, most advertisers who use this method are high paying advertisers who have a big budget and who are in the need of highly targetted leads.
How Private Marketplace Works?
There are two type of pricing model when it comes to PMP they are fixed price model and dynamic price model.
Fixed price is most preffered by publishers where the ad rates are pre negotiated between the publishers and the advertisers.
Fixed pricing helps in generating stable revenue for the publishers.
whereas in the case of dynamic pricing model programmatic bidding takes place between different advertisers who are invited to the auction.
Advertisements of the Advertiser who has the highest bid will be displayed in a dynamic pricing model.
Benefits Of Using PMP
In terms of monetary gain private marketplace is beneficial for both publishers and advertisers.
Publishers get a chance to display high paying ads with high CPM and Advertisers also save a lot of money in reduced ad inventory competition.
The bidding process uses programmatic tools like Yahoo’s BrightRoll which helps in increasing the transparency between both publishers and advertisers.
Since, here the advertiser and publisher has a direct contact there is no need for intermediate advertiersing networks like adsense, bing..etc.
This reduces unnecessary commission rates spent by both publishers and advertisers, for example adsense takes a 30% commission from publishers ad revenue.
Through this method of advertising, only ads which are related to the content and user’s are displayed.
This helps in reducing the intrusive nature of the ads and improves user experience.
This also helps in generating high quality leads and increases the click through rate of the ads displayed.
PMP advertising reduces the advertisers cost on setting up of sales team and other indirect costs.
Since, the method used here is programmatic once setup the bidding process is automatic and there is no need for unnecessary manual bidding.