Private Marketplace (PMP)
An invite-only programmatic auction where select advertisers bid on premium publisher inventory.
What is a Private Marketplace?
A Private Marketplace (PMP) is an invitation-only programmatic auction where a publisher offers select advertisers exclusive access to their premium ad inventory. Unlike open auctions where any qualified advertiser can bid, PMPs restrict participation to a curated group of buyers, creating a more controlled and premium trading environment. PMPs use Deal IDs to identify the specific arrangement between publisher and advertiser.
PMPs sit between open auctions and programmatic direct in the programmatic hierarchy. They offer more exclusivity and control than open auctions but more flexibility than programmatic direct deals (which have fixed prices and guaranteed volumes). In a PMP, bids are still competitive, but the floor prices are typically higher and the advertiser pool is curated.
Why It Matters for Publishers
PMPs allow publishers to earn premium CPMs by creating exclusive trading environments for brand-safe, high-quality inventory. Advertisers are willing to pay more in PMPs because they know they're buying verified, premium inventory with brand safety guarantees. CPMs in PMPs are typically 20-80% higher than open auction prices for equivalent inventory.
PMPs also give publishers more control over which advertisers appear on their site. By inviting only brand-appropriate advertisers, publishers can maintain editorial standards while maximizing revenue from their best inventory.
Tips for Optimization
- Curate your inventory: Don't offer your entire site through PMPs. Package your most viewable, brand-safe, and high-performing placements to command the best prices.
- Set appropriate floor prices: PMP floors should be higher than your open auction average eCPM. Start at 50% above open auction prices and adjust based on demand.
- Work with your SSP account manager: SSPs can help connect you with advertisers looking for PMP inventory in your vertical. Leverage their relationships to fill your PMPs.
- Provide transparency: Share your traffic quality metrics, audience demographics, and viewability scores with PMP buyers. Transparency builds trust and justifies premium pricing.
- Monitor deal health: Track bid rates, win rates, and spend pacing for each PMP deal. Underperforming deals may need floor price adjustments or new buyer invitations.