Publishers are gravitating towards private advertising at a remarkable a rate. According to predictions made by eMarketer in 2019, the spend on PMP advertising went up by 2.3 billion over the course of 2020 and 2021, while the spend on open exchange was estimated to merely sustain publishers’ level of investment. But why would this occur? Surely open exchange is a fantastic system that publishers would want to keep using? Is private marketplace advertising a superior port of call? In this article, we will look at 3 of the pros and cons of private marketplace advertising, starting with the pros.
Publishers have more authority
The exclusive nature of the private marketplace advertising format allows publishers to pick their buyers and set the criteria for their suitability. What’s more, deal IDs are used to automate much of the selection process. For instance, the algorithm will gather criteria and line them up with the buyers. This saves publishers hours as well as giving them the pick of the litter, and the litter has been refined to their specifications.
When data is passed privately, it is more secure. This is an irrefutable fact, and it applies both to publishers and advertisers. You can not put a price on top-notch security, and PMP advertising delivers. With open marketplaces, a company’s data is open season for anybody viewing, whereas private advertising is much more watertight.
Publishers have more control over their brand
Despite the control that open markets provide in terms of categorical filters and the blacklisting of certain URLs, it is limited in regards to which ads will ultimately end up in their spaces. Due to the selective nature of a private marketplace, publishers can choose which adverts will feature in their advertising spaces, giving them ultimate control over their brand and how they present themselves to clients and future advertisers.
The upsides of PMP advertising revolve around its selectivity and exclusivity. If this is preferable to you, then it could be the way to go. However, there are other factors worth considering. Open markets hold perks that are not found in private marketplaces. So, let’s counterbalance the pros with the cons.
It doesn’t allow for a global reach
One thing about the open markets that will never change is that they allow publishers to reach out globally to potentially hundreds of thousands of clients. When using PMP in marketing, a lot more time is spent researching and targeting clients. The downside to the open market programmatic is that time is lost sifting through advertisers to find the ones that fit the criteria.
Deals are never guaranteed
Time gained on picking buyers is lost again when publishers are aiming to strike deals. Just because a particular advertiser fits a publisher’s criteria does not mean that that particular advertiser will agree to the publisher’s terms. Time must be spent negotiating and making deals with any and every client, and this process can result in additional spend for the publisher.
Private marketplace advertising requires maintenance
Despite the many automated conveniences of PMP systems, publishers are still burdened with modifying their criteria and bracket specifications to meet the incessantly evolving trends of the market. Supply and demand are constantly changing, as well as the needs of advertisers. Furthermore, the publisher is responsible for getting their advertising space to the right people and then selling it to them. In short, it requires them to sell their product on an entrepreneurial level, which is one more large task involved in the process.
PMP advertising is a directed, exclusive, and packaged method of advertising that gives publishers secure control over their advertising spaces. For advertisers, it is a privilege to be specifically targeted by publishers, but always remember, as a publisher, it is still your job to sell the product to them. On the one hand, an open market will make it so that advertisers find publishers automatically and in droves. What is gained in control is lost in terms of convenience and reach. But in these ways and many others, PMP advertising carries reciprocated advantages for publishers and advertisers.