Private Marketplaces - The effective way to book programmatically

With programmatic advertising, automation has found its way into the digital advertising industry. But why is it beneficial? For most advertisers, it means a clear increase in efficiency and the ability to deliver the right message, at the right time, in the right place and for all individuals of the different audiences. Automation uses data to book digital advertising space and - often in real time - decide which ad to buy, play and optimize at what price.

As a result of this efficiency enhancement, the importance of programmatic advertising and the advertising expenses in this area have increased significantly in recent years. Global programmatic advertising spending is expected to reach $ 84.85 billion next year, accounting for 67.5% of digital advertising expenses [1]. A key driver was not least due to the so-called private marketplace (PMP).

Private marketplaces, the new growth engine in programmatic advertising

Private Marketplaces are an exclusive agreement, where a publisher only gives selected affiliates access to their inventory through a programmatic platform. These agreements for example include access to certain inventory or a certain minimum price for selected inventory. A private marketplace can even be completely "private" so that only a single buyer has access to a specific section or specific inventory of the page.

Private marketplaces are becoming an increasingly popular alternative to Open Exchange because of the following reasons:

  • Brand safety
    To improve the quality and integrity of their inventory, it is important for publishers that the ads are appropriate and relevant to their own brand and audience. A PMP could prevent - as opposed to an Open Exchange – that inappropriate ads are displayed on the publisher's website. But brand safety is also a decisive factor for the buyer. A PMP provides marketers with the necessary level of transparency and also justifies a higher CPM.

  • Customer relations
    PMPs allow publishers to decide which buyers or ad networks they want to work with and enables them to establish long-term, direct relationships with trusted marketers.

  • Inventory Control
    Publishers have control over the availability and volume of ad impressions in a PMP. Furthermore, they can set the minimum costs per impression, which is usually higher in a PMP than in an Open Exchange, as the main focus there is on premium inventory.

  • Target group data
    Premium publishers have valuable and sometimes very detailed data about their target audiences - including their buying intent. This allows marketers to precisely target audience segments and address recipients directly and in real time. The data provided here is limited to the buyers invited to the PMP and are therefore used for ads that are tailored to the user experience.

  • Video Potential
    Especially for the growing video market, PMPs are a perfect match and offer a good alternative to direct bookings, because ads are integrated more deeply into the user experience and therefore the transparency requirements are considerably higher.

Private Marketplaces are interesting, because they combine the best aspects of traditional direct sales and programmatic. They are particularly suitable for premium publishers with high demand for their inventory and a strong brand promise. Both, publishers and advertisers profit from the transparency, which leads to an increase in trust as well as the quality level.

[1] Zenith, Programmatic Marketing Forecast 2017

About Shpock – the marketplace of the new generation

Shpock is a mobile marketplace that brings millions of private buyers and sellers and local businesses together. Shpock has more than 10 million active users and over 2 billion page impressions. These numbers and regular #1 rankings in the App & Google Play Store in 6 countries (UK, Germany Italy, Austria, Sweden and Norway) make Shpock one of Europe’s most dominant shopping apps.