The term Private Marketplace (PMP) is creating a significant buzz amongst publishers and marketers, particularly in relation to video advertising. A PMP is an invitation-only marketplace that enables premium publishers to make their inventory available to a select pool of buyers, allowing publishers to protect their brand and control advertising yield in a real-time environment.
So what are the key benefits of a PMP to premium publishers?
Control over buyers
A PMP offers a plethora of benefits, empowering publishers to select a group of brands and companies aligned with their business. If a publisher decides to sell video inventory, it can handpick the most suitable media-buying platform as a partner within that marketplace. The crucial element here is control – a PMP works with a bespoke pool of partners rather than an unregulated ocean of advertisers, which creates an additional layer of visibility into campaigns and allows for the monitoring of content.
Control over inventory available
There are frequent situations when a publisher needs to control the flow of inventory or ad impressions on its site and a PMP has the flexibility to control metrics such as time of day, landing page, position on the page, and ad format. Creating a marketplace for an invitation-only group of advertisers also eliminates the 'race-to-the-bottom' trading scenario that cheapens inventory offering, ensuring publishers are guaranteed a premium for each impression.
Ultimately, the publisher is the brand guardian – but with third, fourth and even fifth-party partners present in an open marketplace environment, they may unknowingly leave themselves vulnerable to advertising that might not be the right fit for their brand. Furthermore, while an open marketplace is often perceived as the best route to maximised yields and healthy competition, it can result in less control for publishers. In fact, GroupM recently announced it will solely focus on buying inventory within a PMP environment due to concerns over brand safety.
Control through customisation
As more advertisers make requests for video inventory via RTB, the opportunity is there for publishers to customise their offering without creating cross-channel conflict. Whereas an open exchange generally enforces rules and regulations over the content and advertising environment, a PMP hands the power back to the publisher where specific business rules and objectives can be applied on a granular level.
Video as a channel
Video is an increasingly popular channel amongst those responsible for TV ad pend and it is predicted that video will account for 69% of all consumer internet traffic by 2017. As a result, publishers should seize the opportunity that a PMP – combined with RTB – presents. As eBay's Head of Programmatic Trading, Guy Jones, recently said: "Our private marketplace strategy is part of a long-term aim to make ads an integral fit with our user experience – with more relevant ads being served through long-term partnerships.” Jones continued, “We’ve never been able to offer this level of granularity to advertisers before, and trading desks are seeing greater performance and insight through private marketplaces than ever before.”
Given the considerable benefits that a PMP offers to publishers, particularly via video channels, is it any wonder that publishers are looking to join the club?