Ad technology enables publishers to sell their inventory via different methods like direct deal, real-time bidding, and private auction, programmatic guaranteed, and many more and the advertisers have option to buy particular inventory for their ad campaigns directly. As the multiple options occur, publishers get bit confused which method they should choose to get maximum outcome from their ad inventories and same situation occurs for advertisers as well.
Private Marketplace (PMP) is an exclusive RTB auction where selected buyers are invited to bid on specific ad placements.
Private market places are effective way to ensure the advertising campaigns reach their target audience at the right moment.
Several buying options like
Preferred Deals: Direct pre-auction deal with one buyer at a fixed price.
Private Auctions: 2nd price invite-only auction with variable floor prices set per buyer.
Open Auction (RTB): 2nd price real-time auction with all buyers.
Let’s dig in details………….
Direct deal or preferred deals: In simple words, process of selling publisher’s ad inventory directly to the advertiser. By using direct deal, the ad inventory holders don’t need to put their requests in auction, their inventory is sold at a fixed price for a fix period or interval of time.
Private Auctions: Private Auctions allow publishers to invite a set of ad inventory buyers to bid on a portion of their inventory via an auction. They can specify a minimum CPM floor price on a per-buyer basis, and that buyer must exceed that floor price in order to be eligible for the auction. The winner is determined using the same auction model that applies to the Open Auction.
Open Auction (RTB): Open auction is the official name for real-time bidding method; here all available publishers and advertisers are eligible to participate at the same time. Publishers offer their inventory at a specific minimum price, and advertisers bid for the available inventory and the highest bid wins. This is the most traditional way to buy an ad inventory by using programmatic auctions.
How Do They Work?
As the word programmatic itself defines, automated bidding. Programmatic bidding deals are fully automated. When a user connects with a publisher’s site or app and their ad space is ready to serve impressions to users, a bid request is generated from publisher side, A bid request carries maximum possible details of user’s or their ad inventory parameters like user’s history, demographics, behavior to target exact audience for the running ad campaign. Publisher’s SSP then sends this bid request to the connected ad exchange to find a suitable banner for the user. Then, based on SSP’s request data the ad exchange further passes the request to the demand-side platforms (DSP). Then the all connected DSPs with the exchange send their buyer bids back to the ad exchange. Now here the time comes, the ad exchange conducts the auction and selects the winning creative who was able to manage higher bid for their creative. The publisher’s site retrieves the ad creative from the ad server and start showing it on user’s screen.
Let’s come to direct deals or preferred deals, here publishers are directly contacted by the advertiser or they are contacted by an agency who is handling multiple advertiser. Here, publishers send a direct request for proposal (RFP). And it doesn’t matter by which medium they are connected to each other, after choosing direct deals publisher and advertiser communicate directly to discuss the campaign terms. Once they finalize the price and budgets, the advertisers get the selected publisher inventory for their ad campaigns on the publisher’s site or app for agreed fixed price and time interval.