Media buying continues to evolve year after year. From the timeless direct-deal down to automated programmatic buying, our industry has exploded with ways to purchase inventory. One relatively new inventory source quickly gaining traction is the Private Marketplaces, also known as a PMP. Recently, an E-Marketer study projected that in 2016, roughly 28% of digital spend (over $3 billion) will be allocated to PMPs, making them a thing to keep your eye on.
So what is a PMP? A Private Marketplace is a customized publisher inventory source run on an invite only basis. Publishers are able to make inventory available to advertisers, similar to how a direct buy has always been executed. The difference however, is the deal is executed via programmatic media buying, allowing for access to most of the targeting and tools used in the open RTB world, but with a much higher level of inventory control, predictability, and quality.
While there are a few different types of Private Marketplaces, they all function similarly. A publisher will reach an agreement with an advertiser on specific inventory within their network. Publishers will often offer higher quality guarantees, predictable CPMs, and even publisher audiences to advertisers to entice them to commit to certain budgets. Once a deal is reached, the publisher will share a Deal ID, which contains all the agreed upon terms of the deal, with the advertiser. An advertiser will share the Deal ID with a partner to execute. Partners then have access to that inventory and apply programmatic controls and targeting as if they were buying from an exchange.
Through the VISTO™ marketing platform and managed service, Collective is able to accept negotiated PMP Deal IDs on behalf of our clients, and run them through our partnerships with SSPs. This will allow clients to have further insight into the PMP and enjoy the benefits of a truly open and transparent view of their media buy.