Programmatic 101: Private MarketPlace (PMP)

Posted by Hannah Jeon on Nov 30, 2018 11:21:13 AM

Topics: Industry News & Trends

Advertisers continuously seek ways to get more return on ad spending (ROAS). This includes making sure that ads appear across premium sites with the right audience and therefore increase engagement and conversion. The awareness of programmatic Private MarketPlaces is growing as the focus on ad quality is rising.


What is a Private MarketPlace (PMP)?


What if you can get a pass to an invitation— only marketplace where selected buyers interact with publishers for premium inventories, bypassing the manual tasks that are involved in a traditional media buying process?


That’s what PMPs are all about. It’s all about exclusivity. In this preferred environment, once a buyer and a seller qualify each other, terms of the deal are negotiated, for example, the floor price, First Look* inventory, and ad position on inventory. Consequently, a unique identifier called a Deal ID that represents this buyer-seller transaction is generated. Passed in the bid request only to the specified DSP(s), it enables the buyer to identify Private MarketPlace inventory and bid accordingly.


*First Look provides the buyer with an exceptional right to the ad inventory that positively impacts the number of buyers and stimulates the demand for the inventory. This tactic enables buyers to buy the inventory for the fixed or minimal price, without taking part in the auction. Such privilege is usually provided to the buyer in return for the guarantee to commit the purchase.



The exclusivity of PMPs

Getting into an invitation-only marketplace also means that unlike open auctions, PMP deals give media buyers priority access to inventory before it becomes available in the open marketplace. In this setup, direct relationships with publishers are leveraged to curate packages that meet exact needs.


As you can see, PMPs appear to be the most effective approach for advertisers trying to increase their return on advertising spend (ROAS) and efficiency. With PMPs, they get controls, negotiated CPMs, and knowledge about inventory sources without foregoing the ease of use and power of programmatic technology.


The Growing Awareness of PMPs

eMarketer predicts that mobile programmatic ad spending will reach $32.78 billion, or 70.4% of all programmatic digital display outlays in the US in 2018. Furthermore, of the nearly $19 billion in additional ad dollars that will enter the programmatic display space between 2018 and 2020, the majority will go to private setups, such as private marketplaces (PMPs).






Advertisers want more control over their audience data, hence, they are looking for buying through transaction models where they can put some safeguards over the inventory they purchase.


Is a PMP right for you?

If you want to buy a specific type or amount of impressions from a publisher, at a predefined price, then you stand to benefit from PMPs. The type of impressions could be a preferential First Look at a publisher’s inventory, and the set price could be a bulk deal for a large amount of impressions at a relatively low-price.


Want to get started with PMPs? Setting up a PMP campaign is fairly simple on the Pocketmath PRO platform if you already have a PMP Deal ID.


If you do not have a PMP Deal ID, just ask the Pocketmath team. We will help you choose your favorite publishers from our PMP catalog.



Sign up to create your first ad now.




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