February 14, 2018 by converge-digital
A Beginner’s guide to PMPs
When the acronym PMP is mentioned, the first thing that springs to mind is the big bold open exchange for most of you (Who haven’t dealt with PMP’s before), I would bet. Well I know that’s what I thought when I first started out working in this industry!
However, I quickly learnt that although PMP’s run alongside the open exchange, they actually belong in a much safer environment due to how these deals are sealed. This, I will let you in on how, in a bit.
But first comes first – for those of you who are clueless as to what PMP’s are or who have never traded with them (Not yet!), I am going to give you the down low on what PMP’s are, the advantages they have over the Open Exchange, how PMP’s look in Converge and why I suggest you use them.
WHAT IS A PMP
A PMP (‘Private Marketplace’) is a form of programmatic trading which consists of an invitation only RTB auction where a publisher(s) allows certain buyers to access their inventory using deal IDs for an agreed price. Depending on what the buyer is looking for, the publisher can offer it – whether it be highly viewable inventory, a specific audience, top notch placements and much more.
ADVANTAGES OF PMP’S OVER THE OPEN EXCHANGE
There are many advantages to trading over PMP’s rather than the open exchange:
- The floor prices fluctuate daily over the open exchange whereas there are agreed floor prices set when trading with PMP’s.
- Publishers can forecast the amount of inventory they will have for PMP’s where buyers will see consistent volumes whereas the available inventory passing through the open exchange will vary greatly.
- Guaranteed impression goals can be agreed over PMP’s however this is not possible over the Open exchange.
- Buyers can have access to high performing inventory through PMP’s but the only inventory they will have access to over the Open exchange is the bottom of the barrel inventory.
- Various types of targeting are difficult over the open exchange whereas through PMP’s many forms of targeting such as Category, Contextual, Audience and Performance targeting can be applied.
- There is domain level transparency when it comes to PMP’s where transparency is very limited when buying over the Open exchange.
HOW PMP’S LOOK IN CONVERGE
Within Converge, Publishers and advertisers alike, have an opportunity to strike deals with one another individually OR we (Converge) can act as the solution for both, where we can sell our publishers inventory on their behalf or, on the other hand, we can package up the ideal inventory that our trusted buyers require such that they can reach their campaign goals.
PMP’s give publishers control over how their preferred customers (Buyers) get treated. Depending on their customer’s goals, they decide on what inventory they should send their way and set the priorities for each PMP accordingly to ensure each customer reaches their campaign needs. This method is extremely efficient also as buyers can run several campaigns using the one Deal ID if these campaigns fit the same inventory being offered. There is also complete two-way transparency with this approach as the buyer is fully aware of the inventory they will have access to.
In terms of how Converge package up PMP’s, we can offer buyers good quality inventory at scale as we can provide them with a mix of all our publisher’s inventory in the buyers preferred method – Whether it be through Contextual targeting, Categorical targeting, Audience targeting, Performance targeting etc. There is also full transparency between Converge and the buyers when it comes to PMP’s as we always outline the domains that the buyers should expect to see regardless of the targeting method chosen. To add, we ensure that each of our publishers have adopted ads.txt which, in case you are unaware, is a new method of identifying trusted partners that are selling publisher’s inventory on their behalf preventing fraudulent activity.
To grow the programmatic relationships between publishers and buyers, we ensure that we keep them in the loop of any new inventory/features that we can offer (E.g. Trading App traffic programmatically as of 2 weeks ago J) such that more doors are opened for publisher and buyers to trade programmatically and such that we can offer a greater solution in the ever-growing programmatic world!
If you get on board with the programmatic way of buying using PMP’s, you will quickly realise how much simpler your life will be, how you will be able to access the most premium of inventory and most importantly reach your campaign goals, all at the click of a switch.