Like many marketers, you may be considering adding private exchange to your programmatic marketing mix. A private exchange, also known as a private marketplace, is used by publishers to more carefully control who can buy their inventory at a specific price.
Purchasing inventory through a private exchange enables marketers to gain a much higher level of control over the inventory in their campaign. It offers both priority access above the open exchange as well as the ability to apply impression-level decisioning to premium inventory.
Interested in taking advantage of the benefits offered by private exchanges? Here are five easy steps to get started with implementing private exchange into your programmatic marketing mix:
1. Identify Several Publishers You Would Like To Work With Programmatically
Get deeper and understand the inventory quality of your chosen publishers from a consumer’s perspective. Spend time on the sites or apps that you want to be on – if you dislike the ad experience (e.g. too many obnoxious pop-ups, un-muted auto-play videos), chances are that your potential customers are going to hate it too and respond poorly to your ads.
Note: Not all publishers are available programmatically, so always check before committing!
2. Begin Publisher Outreach
If you are consistently buying with certain publishers, it might be good to start negotiating deals depending on how much you are currently, consistently spending.
3. Choose The Right Deal Structure(s)
Consider your ultimate campaign KPIs and ask what the publisher can offer. Some advanced publishers can create high viewability deals, high completion rate deals or audience targeted deals, among others. Have an open conversation with the publisher on what you are looking to achieve, and keep in mind that there is always a trade-off incurred depending on the goal.
4. Implementing Your Selected Private Exchanges Into Your Campaigns
By separating each publisher into a different tactic, or flight group, in your campaign, you have easier control over budget allocation and can shift budgets easily to the higher performing publishers. This also helps you better track performance and ROI across publishers and other tactics within the campaign.
We understand the constant struggle between cost and performance. If a publisher has open exchange inventory available, it’s a good idea to run both a whitelist as well as a private exchange deal so you get the best of both worlds. It’s also important to understand how a certain publisher is monetizing their inventory. Some publishers, especially those with little remnant inventory, have committed to enabling all buyers to have access to each impression at a high floor rate.
As we shift into a fully programmatic driven environment, the dynamics of the digital advertising ecosystem are changing. When purchasing inventory on the open exchange, keep in mind that if a deal is too good to be true, it probably is. Ads.txt will ideally resolve this issue. However, in the meantime, private exchanges give you a direct connection to the source of your inventory with no middleman.
Interested in learning more about private exchange? Send me an email, and we can help get you started.