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Everything You Need to Know About Private Marketplace in 2024
Revenue Optimization

The Ultimate Private Marketplace (PMP Deals) Powered by Mile

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Priyanka
May 14, 2024
November 27, 2024

Driven by growing demand and revenue potential, the shift towards open auctions became inevitable. However, the importance of direct connections in advertising never diminished. As the open web continues to evolve, the industry has transitioned from traditional direct deals to automated open auctions and, more recently, back to direct partnerships—this time in the form of Private Marketplaces (PMPs).

PMPs combine automation, data-driven insights, and premium ad placements, creating a seamless balance between advanced advertising technology and revenue maximization. Unlike traditional direct deals, today’s direct partnerships via PMPs offer streamlined processes, reduced resource demands, and enhanced opportunities for advertisers and publishers alike. With their efficiency, transparency, and data advantages, Private Marketplaces in programmatic advertising have become the core of modern ad strategies—and they’re here to stay.

But how do you harness the ultimate potential of private marketplaces in programmatic advertising to drive meaningful results? And how does Mile help you navigate this evolving ecosystem?

What Is a Private Marketplace (PMP)?

A private marketplace controls who participates in programmatic auctions by offering an exclusivity. Unlike open marketplaces, a private marketplace is an invitation-only digital marketplace where publishers conduct real-time auctions with a select group of demand partners. Through this setup, publishers grant priority access to their most valuable impressions, ensuring a more direct and personalized partnership with advertisers.

One of the key advantages of private marketplace advertising is the ability to maintain transparency and control over inventory, advertisers, and pricing. Publishers can choose their advertisers, conduct private marketplace programmatic auctions, and drive revenue while delivering exceptional campaign outcomes for brands.

Platforms like Google Private Marketplace exemplify how such environments create a blend of exclusivity and efficiency, empowering publishers to set competitive premium rates while fostering modest competition among invited buyers. This ensures maximum value for inventory while maintaining a direct relationship with advertisers.

Let’s learn how private marketplace programmatic empowers publishers to strike the perfect balance between control, transparency, and premium revenue opportunities.

PMP Deals: The Reality Check

We all know what PMP deals stand for? Now, let’s examine the value they bring in enhancing your inventory.

Due to the pros of PMPs, publishers are starting to prefer private auctions and want to make it a big part of their monetization strategies.

Since 2022, PMPs contributed 17% of the total programmatic ad spend. Likewise, in 2024, Private Marketplace (PMP) deals were expected to continue their growth in the programmatic advertising space. 

While specific figures for PMP's share of total ad spend in 2024 aren't readily available, the overall trend indicates a significant increase. 

Programmatic digital display ad spending is forecast to grow by 15.9% year-over-year, with programmatic digital video expected to see an even higher growth rate of 20.9%. This suggests that PMPs, being a crucial part of programmatic advertising, will likely see a corresponding rise in their contribution to total ad spend. However, let’s dig a little deeper beyond the numbers.

The state of fraud in Private Marketplaces

PMPs are not immune to ad fraud! IAS found PMP fraud occurs at a rate 19% lower than on open exchanges, which means they do not exist! 

While the publishers prefer PMPs for the premium rate advantage, direct partnership, and brand safety, the reality is a little different.

PMP deals are not completely resistant to ad fraud, and there is concern about MFA sites and botnet interference in PMP deals. Therefore, the revenue will still be downgraded even though premium inventory is sold.

The challenges of how to set up a PMP Deal

To establish a successful PMP deal, publishers must navigate technical integrations and strategic partnerships. While the process can be daunting, it's essential to optimize every step to maximize revenue and brand value.

Create a PMP Deal window that will appear once you've established a strong foundation with a reliable ad tech partner. This intuitive interface empowers you to define deal parameters, select inventory, and invite preferred buyers, streamlining the entire process. Nonetheless, getting the best demand still remains the biggest hurdle.

So, what should publishers do?

Be it private and open marketplaces, there are a fair proportion of pros and cons. The output efficiency lies in how you optimize it with the right data-driven solutions, technologies, and automated tools in place. 

To make that happen, we suggest you connect with leading ad tech partners like Mile.

PMP Optimization: Increase Your Lift and Manage Your Deals With Mile

A PMP deal is a type of programmatic advertising deal that empowers publishers like you to take control of your premium inventory. By partnering with Mile, you can realize the full potential of private marketplaces.

PMP deals give publishers more flexibility to curate exclusive deals with select advertisers. This allows you to command higher CPMs and maximize your ad revenue. But, how does Mile help?

How to Set Up a PMP Deal?

With Mile, setting up a PMP deal is simple. Follow these steps:

  1. Connect with AdX: Mile seamlessly connects you with trusted AdX partners, enabling you to establish private auctions for your premium inventory.
  2. Create PMP Deal Window: Access the intuitive PMP deal creation window within the Mile platform.
  3. Define Deal Parameters: Customize your deals by setting specific criteria such as target audience, pricing, and inventory types.

Here's how Mile elevates your PMP strategy:

  1. New revenue

At Mile, we help you sell your premium inventory through private auctions to a curated pool of high-value brands seeking your specific audience segments. This targeted approach ensures your inventory reaches the most relevant advertisers willing to pay top dollar for ad placements.  Our expertise lies in identifying partners who not only value your audience but also demonstrate a history of effective ad campaign execution. This translates to premium CPM rates and a significant boost to your ad revenue.

  1. Complete control

Since it's a private auction, you have ultimate control over every aspect of your PMP deals. Mile empowers you to select the ideal partners, set competitive pricing floors, and define deal priorities that align with your revenue goals.  We provide a user-friendly interface with advanced filtering options, allowing you to ensure the highest quality ads are served on your site, meeting your brand safety standards. This granular control unlocks new revenue opportunities and empowers you to maximize your yield over time. 

  1. Progressive partnership

We understand the importance of fostering strong relationships with your premium partners. Mile goes beyond simply setting up PMP deals. We help you optimize them throughout the campaign lifecycle to deliver on the promised results.  Our team provides ongoing support and guidance to ensure your partners achieve their campaign objectives. This collaborative approach builds trust and establishes long-term, mutually beneficial partnerships that maximize ad yield for both parties.

  1. Revenue analytics

Mile's automated revenue analytics software, powered by cutting-edge AI and ML algorithms, goes beyond basic reporting. It provides real-time performance insights into your PMP deals, allowing you to track key metrics and identify areas for improvement.  The AI engine analyzes vast amounts of data to uncover hidden patterns and trends. These insights empower you to make data-driven decisions for future PMPs, such as optimizing audience targeting, adjusting pricing floors, and refining deal structures. This ensures you continuously improve campaign performance and achieve new thresholds for ad yield.

  1. Constant support

Our dedicated team of engineering strategists and support specialists are here to ensure a smooth PMP experience from start to finish.  They leverage their extensive experience to handle the setup, configuration, and ongoing maintenance of your PMP deals. In case of any unforeseen issues, our team is readily available to troubleshoot quickly and accurately, minimizing downtime and preventing delays in your ad revenue program. This constant support guarantees a smooth revenue flow and allows you to focus on what matters most – creating high-quality content for your audience.Additionally, Mile also offers:

  • Fraud detection and prevention. Our built-in safeguards protect your website from ad fraud, ensuring your inventory sells for its true value.
  • Delivery transparency. You get access to granular insights into ad serving and campaign performance, giving you complete control over the user experience on your website.
  • Seamless integration. Mile integrates seamlessly with your existing ad tech stack, minimizing disruption to your workflow.

By partnering with Mile, you gain a trusted advisor who champions your success in the ever-evolving programmatic landscape. Across the board, your pathway to managing PMP is a bed of roses with our team, demand, technology, and optimization support.

Join the Future of Programmatic Success

The world of programmatic advertising is constantly changing.  At Mile, we stay ahead of the curve,  providing the tools and expertise you need to thrive in this dynamic environment.  Partnering with Mile ensures you're not just keeping pace, you're leading the way.

The future of programmatic advertising is built on innovation, control, and transparency. Mile empowers you to achieve all three. We become an extension of your team, ensuring long-term success through strategic partnerships, cutting-edge technology, and data-driven optimization.

So, look no further. Get a trial today to see how we are your beacon in the lost sea of competition and advances in adtech, guiding you to success.

FAQs: Understanding the Power of PMP Deals for Publishers

1. What is a private marketplace (PMP)?

A Private Marketplace (PMP) is an exclusive, invitation-only advertising exchange where selected buyers bid on premium inventory. PMPs empower publishers to maintain control over their ad inventory, ensuring it reaches high-value, brand-safe advertisers who align with their audience and objectives.

2. What does PMP deal stand for?

A PMP deal stands for Private Marketplace Deal—a dynamic programmatic arrangement that gives publishers unparalleled flexibility to set pricing, control inventory, and collaborate with demand-side platforms (DSPs) to deliver premium campaigns.

3. What are private marketplace deals?

PMP deals allow publishers to negotiate directly with advertisers or DSPs, tailoring terms to suit unique inventory and audience demands. With features like audience segmentation, exclusive ad placements, and flexible pricing, a PMP deal is a type of transaction that ensures maximum ROI while upholding quality and brand safety.

4. How to set up a PMP deal?

To create a PMP deal, publishers initiate the process by accessing their programmatic platform's "Create PMP Deal" window. This step allows them to define pricing, select demand partners, and specify inventory access—securing high-value transactions and fostering deeper partnerships with advertisers.

5. What is the difference between preferred deals and private marketplaces?

Both are exclusive arrangements, but PMPs go further with real-time bidding (RTB) capabilities to optimize pricing and scale reach. Preferred deals, in contrast, rely on fixed pricing without the flexibility or competitive edge that PMP deals give publishers through RTB-driven auctions.

6. What is a private company marketplace?

A private company marketplace is a bespoke PMP tailored to a single advertiser or a small group of buyers. It’s ideal for publishers seeking to create hyper-targeted, premium campaigns for select advertisers, with exclusive access to curated inventory.

7. Is a PMP the same as a private auction?

Not quite. While both are exclusive, PMPs involve negotiated terms and flexibility in campaign customization. Private auctions, on the other hand, operate solely on a bidding process, offering less control over pricing and buyer selection.

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