For those who work in digital advertising, it may seem like private marketplaces rose to fame virtually overnight. It wasn't quite as fast as that, but they're definitely getting a lot of attention. PMPs have come to play a key role in modern digital marketing strategy—especially when it comes to buying and selling video.
In our previous post on Navigating Private Marketplaces, we describe PMPs as the best of both worlds: a long-awaited middle ground between open exchanges and the direct buys of old. PMPs took off by making buying and selling premium inventory easier for display advertisers. Now they offer those same benefits for the video marketplace—a higher-stakes game—along with the targeting and data-layering flexibility that brand marketers have come to expect from programmatic technology.
Why is this combination so important? Consumers are hooked on digital video. As the time they spend consuming video content on desktop, tablets, and smartphones increases, so too does the value of this medium for brands. Research firms believe that the digital video advertising market in the U.S. will hit $18 billion by 2020. The time is right to explore the massive PMP opportunity for video.
Audience Plus Environment Equals a Better Way to Buy and Sell
Now more than ever, buyers are leveraging video for their branding campaigns. But upper-funnel marketing activities often require premium, or high-performing, inventory—and historically, that inventory has been scarce. When there isn't enough supply to keep up with buyer demand, turning to the open marketplace often isn't an option.
This is where private marketplaces show their real worth. PMPs are designed to provide direct access to brand-friendly content. Their curated nature also makes them ideal for improving ad performance. Since CPMs for video are typically higher and creative can be costly to produce, viewability is a vital consideration for digital video campaigns. Private marketplaces comprised of well-known publishers and niche audience favorites create rich pools of premium video inventory, allowing buyers to access large audiences while also minimizing the risk of ad fraud. The environment is appealing for big-name brands seeking dependable placements.
Content owners, meanwhile, embrace private marketplaces so that they can monetize their digital video inventory more effectively. PMPs help publishers, TV networks, and other video content creators secure those higher CPMs, thus maximizing their revenue. They can leverage both first- and third-party data, while making the most of their desirable and relevant content.
Automation With a Human Touch
The industry is moving away from manual buys, but there are some aspects of direct deals that still provide benefits to buyers and sellers. One of them is the human touch. PMPs are automated, but because sellers can communicate directly with their buyers, private marketplaces build and foster industry relationships.
They also ensure that advertisers know exactly what they're bidding on and where their ads will run—a major advantage when you're dealing with branding campaigns. Buyers need premium impressions. They want top-notch placements for their videos so they can make the best use of their ad spend and meet KPIs. These private exchanges offer more control on both sides of the deal, leveraging programmatic technology while also delivering that person-to-person contact. Private marketplaces are transparent and trustworthy, offering the perfect combination of data and audience.
What's more, when buyers work directly with sellers through a PMP, there's a good chance they'll reap some rewards in the form of more customized campaigns and a place of honor higher up the waterfall. You're still buying programmatic, but receiving better quality impressions. On the other side of the equation, sellers get an advanced video monetization platform and the relationships needed to keep it running.
What does all of this mean for the future of buying and selling video? Now that buyers and sellers have had a chance to explore PMPs and use them to their full potential, it's getting harder to imagine planning branding campaigns without them. With a combination of automation and premium content, private marketplaces are ideally positioned to meet industry players' varying needs. They're efficient, scalable, and targeted. And there's no question that they're here to stay.