Why Do We Scale Up Businesses Globally Through PMPs

Private Marketplace by Yieldbird
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Private Marketplaces are on the rise and in the spotlight, with publishers and advertisers trying to increase their revenue in multiple markets.

PMPs To Outpace RTB in 2018

The number of publishers selling ad inventory in Private Marketplaces is said to be on the rise. PMPs, which means preferred deals or private auctions, are particularly in season now. According to Zenith Media, a large and growing number of publishers were using this model in the past year. PMPs are set to be the quickest premium programmatic buying product that’s easily adaptable to most markets, followed only by preferred and guaranteed deals in the upcoming year. Zenith reports that PMPs will likely outpace open RTB buying in the US by 2018, reaching $9.4 billion in spending, as opposed to $5.5 billion via open exchanges.

Publisher’s focus → PMPs

PMP deals offer programmatic inventory and are always done directly between an advertiser/agency and a publisher. An increasing number of publishers sell their inventories in Private Marketplaces through preferred deals or private auctions. This is mainly because notable media agencies declare in advance how much they’re willing to spend on inventory.

And that’s something publishers can appreciate, bringing them benefits through long-term revenue, less low-quality ads displayed, and more time to boost the user experience.

In the Preferred Deal model, the prices of eCPM are usually 3 times higher than in the open market. In Private Auctions, it’s between 120% and 200% of the open market’s price. So there’s no doubt about what drives publishers to set up deals for their buyers. As they say, money makes the world go round.

PMP benefits for publishers by Yieldbird

Advertiser’s target → PMPs

That’s fine for publishers, but what makes advertisers spend more if they can get the same product in open auctions for less? Well, some advertisers are expecting a 100% shift in display and video spending done in traditional channels, with mature markets to gradually become programmatic. To make a long story short, here are the key perks for any advertiser or agency:

  • Prioritization: Using PMPs, buyers expect to be at the forefront – to have the possibility to show their ads prior to other advertisers.

  • Transparency: Advertisers know what kind of inventory they get. All data on CPMs and creatives are always available on the spot.

  • Programmatically guaranteed efficiency: Advertisers can set new buys quickly and effectively, or set packages of inventory.

Moreover, in the I-fear-website-content-may-harm-my-brand era, both preferred deals and private auctions enable buyers to book their placements in a surrounding that is brand safe.

All of this makes it hard for the spotlight to avoid Private Marketplaces.

Programmatic Provider To Open New Markets

So it’s clear now why Private Marketplaces are so popular in digital advertising. But how do you use them to scale up your publishing business internationally? Let’s take a look.

Imagine that you have your own external sales team covering all markets and setting up PMP deals for you. Having such a programmatic provider opens up ‘the global capitals of spending’ by multiplying the relations with buyers from all over the world. And that means all possible markets in London, Amsterdam, Barcelona, Miami, Istanbul, Moscow, and regions like CEE or LATAM.

To put it simply, an out of house programmatic sales team allows publishers to earn more money on a daily basis, bringing the best financial results from the publisher’s inventory sells, all through PD/PMPs.

Have a cookie and eat a cookie

You might be thinking “Hey, but don’t publishers have their own sales team that do the same thing?” That’s somewhat true. The difference between them and Yieldbird’s demand team is that the latter is focused on departments within media agencies or corporations who are specialized in buying ads programmatically. And that we operate internationally.

Programmatic and direct sales are not contradictory by definition. Experts from both fields can maintain synergy and keep up relationships that are developed and elaborated through direct sales teams, and vice versa.

How about an example? Imagine you start working with a new publisher. Now try to find out which advertisers spend on their inventory through the open market. First, contact them directly. It’s worth offering them a PMP deal while they are interested in a particular inventory, whatever their reason. But sometimes participating in an auction for a selected bidder or even having a preferred deal is not enough.

So, pass the buyer to our in-house sales team to prepare something extra for them. This is a win-win situation. Or even a win-win-win, where you, the publisher, and the advertiser are all happy with the solution. Why is this a win for you? Because you strengthen my relations with the buyer. Simple as that.

In Business Relationships We Trust

Relationships in digital advertising matter now so much more than ever before. The reason behind it is simple: there are so many possibilities for advertisers to reach their target groups. Or if something isn’t working the way it should, there is always another premium publisher to handle the advertiser’s deals. An advertiser can easily switch to another PMP or even the open market.

These relationships are what keeps them on board and business ongoing (read more on the importance of relationships in advertising industry). If a buyer has a maintained relationship with a seller or someone who acts on his behalf, they can easily make a call, email, or Skype each other to troubleshoot any error or malfunction. Or they can make another good deal – whether it’s a Private Marketplace deal or a special offer prepared by a direct sales team.

It builds trust that translates to another contact and another transaction. And at the end of the day, what matters is how many digits one earns.

Interested in running successful PMP campaigns for your advertisers?

Fill in the form below and watch our short animation on the 10 commandments for rookie PMP publishers. And don’t leave just yet if you use Private Marketplace deals on a daily basis. You too should keep these rules close to your heart. And your business.


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