Tips for Publishers to Make PMP Deals More Efficient

PMPs are synonyms for higher price tags. You want the best deals for your ad inventory as a publisher. Private Marketplaces (PMPs) fit that bill.

You can expose your inventory to high-paying buyers who are looking for premium inventory to put on their ads. This ensures a better fill rate and higher revenue for your inventory.

But the marketplace comes with its own questions - What are the types of deals? How do I find advertisers? How do I negotiate with them? How much should I charge? How do I get paid? What if I need support? Am I using it to the best of its efficiency?

Let’s find out the answers to all your questions.

What Are Private Marketplace (PMP) Deals?

Private marketplace (PMP) deals are a type of programmatic advertising technique that offers a more exclusive and controlled environment for publishers and advertisers to sell and buy ad inventory. 

The logic behind the PMP deals is simple: A publisher offers a selected group of high-paying advertisers access to their premium ad inventory.

In 2021, PMP ad spending grew more than open markets. Advertisers spent $13.85 billion in the U.S. on PMP deals, while Open Exchange ads accounted for $12.33 billion.

A Look at Different Deal Types

Why this section? Because while going through Reddit, I stumbled on the following:

So, here we are, drawing the clear boundary lines! You love automation and want to use programmatic advertising to serve your ads. Here are the various deal types you can explore:

1. Open Marketplace

As the name suggests, open marketplaces or exchanges are open to all. Once your inventory goes into the auction process, all your demand partners are sent the bid requests in real-time. The highest bidder wins the auction, and the same ad is served. 

2. Private Marketplace

Also called private auction, private marketplaces are a sub-genre of real-time bidding. Here, too, the inventories are auctioned. But unlike the open marketplace, which sends bid requests to all, private marketplaces send out bid requests to a selected advertisers pool. The rest functionality remains the same. That is, the invited demand partners participate in the auction, bid for your inventory, and then the winning bid gets displayed. 

3. Programmatic Direct

Programmatic direct, unlike the open and private marketplaces, does not participate in the auction. Then why is it called programmatic? Because once the inventory is sold, the ad is rendered programmatically, with the involvement of the ad server and the rest of the technologies.

So, how are the inventories sold here? Just like private marketplaces, programmatic deals are also just for invite-only demand partners. But they do not take part in the auction. As a publisher, you get into a one-on-one deal with your selected advertisers.

• Programmatic guaranteed - You pre-negotiate a fixed volume of inventory with the advertiser at a fixed price. It’s a done deal with no backing out. 
• Preferred deals - You offer your inventory to pre-selected advertisers at a fixed price. However, the volume is not fixed, and the advertisers are not obligated to buy the inventory. If they buy, good. If they don’t, you send these remnant inventories to open marketplaces. 

Why PMP Deals Are Critical for Publishers

Private Marketplace (PMP) Deals offer several benefits to publishers and advertisers. Some of the benefits are

1. Higher CPMs

You can directly sell ad inventory to reliable advertisers, increasing CPMs. As the inventory is more valuable and exclusive, advertisers are willing to pay a higher price for ad impressions, ultimately boosting your revenue.

2. More control over ad inventory

You have greater authority over who can bid on their inventory through PMP Deals. You can choose specific advertisers to participate in the auction, guaranteeing that only reliable ones can access your inventory. This level of influence aids you in safeguarding their brands and ensuring that their inventory is sold to top-notch advertisers.

3. Better targeting

Through PMP Deals, you can provide advertisers with your first-party audience data, which can be utilized to target particular audiences, ultimately leading to more effective ad campaigns and greater ROI.

4. Transparency

It provides more transparency in the transaction process than Open Auctions. Direct negotiation between publishers and advertisers allows for a more honest and reliable transaction process.

How to Make More from PMP Deals?

1. AI-powered Contextual Targeting:

Train a machine learning model to analyze your content in real-time, identifying key themes, entities, and sentiments. Result - highly contextual ad targeting. The ads are matched not just to user data but also to the specific nuances of each article or content piece.

Next is to use ad-serving technology to dynamically insert targeted ads within relevant sections of your content. This ensures ad placements are not disruptive to the user experience while maximizing relevancy for advertisers.

Mile can be your perfect partner here. We use AI-powered solutions for dynamic ad insertion and procure more contextually relevant ads. 

2. Let Attention Data Rule:

Implement eye-tracking technology or other attention measurement tools to understand how users engage with your content. This data goes beyond clicks and impressions, revealing which content sections receive the most attention.

Once you have the data, create audience segments based on attention data, targeting users who demonstrably pay attention to specific content categories or sections. This provides advertisers with a highly engaged audience segment, justifying premium pricing in PMP deals.

3. Interactive Ad Formats

Support interactive ad formats that incorporate gamification elements like quizzes, polls, or treasure hunts. These elements incentivize user engagement with the ad content, leading to better brand recall and ad effectiveness.

Offer PMP deals specifically focused on interactive ad formats. This caters to advertisers seeking innovative and engaging ways to reach your audience, potentially commanding higher CPMs (cost per mille) in the deal.

4. Blockchain-Enabled Data Clean Rooms:

Coincidently, both data and danger start with the alphabet ‘d’. Partner with companies offering blockchain-powered data clean rooms. These secure environments allow advertisers and publishers to collaborate on audience targeting without revealing sensitive user data.

Integrate data clean room access within your PMP deals, allowing advertisers to verify and segment your audience segments in a privacy-preserving manner. This fosters trust and transparency, potentially attracting premium bids.

5. Outcome-Based Pricing Models:

Explore alternative pricing models like cost-per-acquisition (CPA) or cost-per-action (CPA) for PMP deals. This aligns advertiser spending directly with desired outcomes, incentivizing publishers to deliver high-performing campaigns.

Offer PMP deals with outcome-based pricing structures. This caters to advertisers seeking guaranteed results, potentially leading to higher overall revenue for publishers through performance incentives.

Holy Grail Tip: Partner with platforms specializing in PMP deals. Mile possesses the technology and expertise to efficiently connect you with relevant premium buyers and manage complex negotiations.

PMP Deals vs. Open Auctions: Which One Should Publishers Choose?

The best choice for you between PMP deals and open auctions depends on your goals and priorities. If you want more control and value premium inventory, PMP deals are preferred; however, if you prioritize maximizing revenue and scaling, open auctions may be the better option. 

Combining both PMP deals and open auctions may help you optimize the programmatic advertising strategy and reap the benefits of both approaches.

FAQs For Publishers

1. What does PMP deal stand for?‍

PMP stands for Private Marketplace.

‍2. What Are Private Marketplace (PMP) Advertising Deals?‍

PMP deals allow publishers to directly sell ad inventory to select advertisers, bypassing ad exchanges. This ensures higher CPMs and better control over ad placements. 

By hand-picking advertisers, leveraging AI-powered targeting, tracking user attention, offering interactive ad formats, and utilizing blockchain-enabled data clean rooms, publishers can maximize revenue and deliver impactful campaigns. 

Partnering with platforms like Mile can streamline the process and connect with the right premium buyers.

3. What is PMP in Publishing?‍

In the publishing industry, a Private Marketplace (PMP) is a direct advertising deal between a publisher and specific advertisers. This arrangement allows publishers to bypass traditional ad exchanges and sell their premium ad inventory directly to select brands. 

This exclusive approach provides greater control over ad placements, ensures brand safety, and often results in higher CPMs. By offering premium ad space to top-tier advertisers, publishers can maximize revenue while maintaining a high-quality user experience.

‍4. Are PMP deals guaranteed?

PMP (Private Marketplace) deals are not inherently guaranteed. Unlike programmatic guaranteed deals, PMP deals do not ensure a specific volume of ad impressions or a fixed price. Instead, they offer a more flexible and exclusive environment where publishers invite select advertisers to bid on premium ad inventory.

‍5. Is PMP a preferred deal? What is the difference between a preferred deal and a private marketplace?‍

No, a PMP (Private Marketplace) is not the same as a preferred deal, although both are types of programmatic direct deals. Here are the key differences:

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6. What is the difference between PMP and PG deals?

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7. How to create PMP deals?

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