Private marketplaces aren’t easy to discuss. Bring them up in conversation, and you may get stuck on the definition alone. That’s because they’re a relatively new mechanism, vary widely from one organization to the next, and only make sense in the context of programmatic buying — a whole ‘nother can of conversational worms. But private marketplaces are extremely important to digital publishers and advertisers, which is why we devoted time to an entire ebook about them.
First, our definition: Private marketplaces are invitation-only exchanges where publishers can sell premium inventory to select buyers, powered by programmatic technology.
Instead of negotiating every deal through a sales rep, advertisers get all of the advantages of programmatic video. These advantages include better audience targeting, improved efficiency, global frequency capping, more accurate metrics, and brand safety.
Let’s discuss how private marketplaces benefit publishers. If you’re selling premium inventory, here are our top five reasons to get excited about private marketplaces.
1. You gain the competitive advantage. A rising number of advertisers are shifting their standard video and display ads to programmatic. It’s only a matter of time before premium buys follow suit. Publishers who can offer these marketplaces to advertisers have a serious competitive advantage.
2. You can control the consumer experience. Many publishers hear “programmatic” and think “open marketplace” — which might be a risky place for your premium inventory. After all, in an open marketplace, publishers must sell inventory to the highest bidder, regardless of quality and relevance. You might worry worry, understandably, that the wrong ad could hurt a consumer’s experience of your premium content. But in a private marketplace, you can select the advertisers you invite into a deal.
3. You can predict pricing and revenue. Without control over pricing, it can be difficult to predict the revenue your inventory will earn. That’s why we recommend setting up private marketplaces with fixed pricing and reserved inventory. In this type of private marketplace, publishers negotiate the price of their inventory before it is sold. This makes it easy to forecast revenue.
4. You’ll enhance your analytics. A private marketplace can supply you with a new source of research and analytics, giving you even better insight into trends. Because your premium and non-premium inventory can be hosted on the same platform, you’ll be able to see the whole picture, making it easy to see patterns in advertiser demand, pricing, and preferences.
5. You’ll save time and money. This one is short, but sweet. Once your private marketplace is up and running, you won’t need to manually manage IOs (insertion orders) for every campaign. A private marketplace automates the process, which means simpler workflows, faster fulfillment, and saved money. Read more…