I''m Jagadish from the Ad ops and Customer success team. In the previous mail, we discussed about ''what is a Private Marketplace (PMP)?''
For publishers, part of the programmatic advertising is obvious. For instance, higher fill rates - when we sell through programmatic auctions, fill rates are higher.
But, part of it isn't - why should we invest more time to set up PMPs; we just implemented X?
Thus, most of the times if not all, you will be in a dilemma.
To make a final move, you need to analyse both the pros and cons. Neglecting either of them will impact your revenue considerably.
So, let's take a look at:
Lesson 2: The benefits and drawbacks of running PMPs.
Why should you run PMPs?
1. PMPs > Open Exchanges - It offers more flexibility than open exchanges. You can pre-negotiate the types of ads, pick the advertisers, and settle on a flat CPM for your impressions.
2. Fewer Middlemen - There are no ad exchanges in PMPs. You can cut them off completely, saving you 20% to 30% of your revenue.
3. Higher Transparency - From the number of impressions to the CPMs, you're in control of the whole process. Besides, fewer middlemen mean more transparent auctions.
4. Better User Experience- As you're pre-negotiating and deciding the ad formats/no of ads beforehand, you can deliver a better user experience.
Why shouldn't you run PMPs?
1. Complex Set up - Without the right platform, it is difficult to set up a PMP.
2. Suitability - PMPs aren't suitable for all the publishers. In order to close a PMP, you need the niche, audience, and other engagement metrics. Naturally, advertisers will look for a 10MM impressions with the engaged audience.
Now that you know the pros and cons of PMPs, you can make an informed decision.
In our next email, we're going to dive deep into the specifics and glossary. Watch out for the ring!