PMP’n Made Easy

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.

Programmatic And Direct Relationships: A Beneficial Balance

Everyone is well aware at this point in 2015 that there are infinite benefits to being a programmatic buyer – cost-efficacy, time management, scalable audience insights, real-time optimization, etc. However, with all of the large real-time transactions that come with high volumes of programmatic trading, one thing that seems to get very lost in the shuffle is the direct relationship between the actual buyer and seller of inventory. Sure, there are ways to connect directly through programmatic pipes, though I’d still bet that the majority of exchange connections today are indirect intermediaries of inventory.

But this begs the question – with an ever-growing list of programmatic efficiencies, do we even need direct publisher relationships anymore?

The answer is easy – YES. And it all boils down to quality. Direct relationships allow both buyers and sellers to have a clear understanding of what’s important to each party and how to evaluate accordingly. Whether a campaign is actioned via programmatic pipes or managed by a direct publisher, a buyer can communicate the value of KPI’s like viewability, interactions, brand exposure – essentially any quality or performance-based metrics to the seller – for a much more efficiently executed transaction. Conversely, if a publisher values a certain type of advertiser, creative type, or execution, they could sell programmatically in the open market, though they’d likely have more success with a direct relationship intact.

That isn’t to say that direct relationships are better than programmatic. The point is that despite the heavy shift to programmatic, advertisers should not discount the power of building direct publisher relationships. Both methods benefit buyers and sellers, just in different ways. The key is to have a beneficial balance between the two to drive value and performance.

So even in a world of programmatic, there’s no reason not to be direct as well.