The Benefits of Private Marketplace (PMP) Over Open Auction Deals

Programmatic ad exchange auctions automate the Out-of-Home media buying and selling process entirely, making the lives of both advertisers and publishers easier. The convenience and efficacy of programmatic media buying explain why it has become so popular with advertisers. 

Programmatic data-driven media buying and its efficiency are making waves in the Out-of-Home sector. At Drovo Media, our mission is to simplify Out-of-Home advertising, and focusing on programmatic in our digital screen campaigns is very much part of that. 

There are different ways that programmatic advertisements can be bought and sold, here we explore the benefits of private marketplace deals over open real-time bidding auctions for advertisers. 

What Is a Private Marketplace (PMP)? 

A programmatic-media private marketplace is an invite-only auction where publishers are able to control the advertisers who compete in real-time bidding for ad inventories. Publishers sometimes choose to negotiate pre-agreed fixed prices and terms with clients before the media buying auction opens, such as setting a maximum bid price. 

What Is an Open Auction?

In real-time bidding (RTB) programmatic open auctions, publishers allow hundreds of media buyers to bid on their inventory on a programmatic DSP at the same time. Unlike in private marketplaces where publishers can negotiate prices with advertisers before the bidding starts, in open marketplaces, publishers cannot negotiate prices. 

Why Choose Private Marketplace Over Open Auction Deals 

What do you get from media buying with private marketplace deals that you don’t get with open auction ones? Let’s take a closer look and assess the various standout advantages of open auction deals. 

Prime Placements 

For advertisers focused on brand management and getting their brands displayed in the most exclusive ad spaces, private marketplace deals are the best option. One of the main reasons why PMPs tend to offer more high-quality ad placements than open auctions is due to advertisers being able to selectively pick the more appealing ‘exclusive’ ads they want to bid on. 

PMP auctions give advertisers more control over choosing the right media placements for them and their advertising goals. 

Private Marketplaces Are Safer and More Transparent

Advertisers get increased safety and transparency when using private marketplace auctions. This comes from the fact that the publisher has control and selects advertisers who are ‘the right fit’ for the private marketplace auctions and places them in a pre-agreed list. As a result, PMPs often provide advertisers with more safety compared to open auctions.

The Cost-saving Potential of Private Marketplace Deals for Advertisers

Programmatic media buying on private marketplaces has the potential to save advertisers money. In a recent survey, 57% of advertisers adopting programmatic DOOH advertising said that generating ROI was one of its distinctive advantages.

Advertisers Get Access to Useful Campaign Triggers on Private Marketplaces

On private marketplace auctions, advertisers have access to programmatic publishers offering ads with real-world triggers that change depending on the location, weather, and time of the day. By bidding on a PMP, advertisers can take advantage of screen ads that display sunglasses or sun cream products for example whenever the temperature rises above 20C. 

You now should have a better understanding of the benefits of private marketplace media for advertisers. Why not run an on-vehicle programmatic DOOH transit media campaign with our team of experts at Drovo?