PMP (private marketplace) is basically a way of buying inventory via programmatic. In other words, audience buying by an automated process where the advertiser gets value due to reachability, top-drawer service or premium placement. Audience buying is determined by analyzing behavioral data, location data and device data which aids in targeting a specific group of audience. A private marketplace is an invite only exchange that allows publishers to whitelist specific advertisers based on mutual interests, reserve an inventory for them at relatively high valuation.
If premium is defined as well targeted, less crowded inventory, premium programmatic is a means of automating much of the ad exchange process, allowing advertisers to purchase impressions in real time (RTB, real time bidding) while maintaining the high cost and edge of premium inventory.
Factors that make PMP advatageous are
- PMPs can offer less competition for the advertisers as the inventory is usually open for premium clientele
- Helps reaching out to a targeted audience
- Targeted ads lead to higher conversions even if the CPM is high in some cases. It is however, essential to understand the pricing models – CPC, CPA, CPL etc. that maybe more appropriate in certain cases, based on the campaign type
To establish the automated buy/sell process in real time, a unique Deal ID takes care of the required correspondence between publisher and advertiser in order to replace the traditional IO (insertion order). The deal id allows an advertiser to recognize the seller/publisher and the accompaying pre-decided agreements that come with it and vice versa, in a real time automated exchange. The moment a user visits a site,the publisher sends a bid request to the ad exchange, after having determined the user’s location, online behaviour, previous browsing history and device. The advertisers bid on impressions and the highest bidder wins the impression. The deal id is the parameter being sent into bid requests and recieved from the bidders, which is then sent ahead to the DSP (Demand side platform). Deal IDs are very important from a measurement point of view, both for publishers and advertisers to measure the effectivenesss of inventories, campaigns, impressions and conversions.
Thus, the rise of PMP has lead to the media planners taking on more of an analyst role, analyzing data to find the source of traffic, understanding the ad tech eco system and geting innovative with the latest tools and products like native advertising, content sponsorship and targeted audience buying. Ultimately private marketplaces work the same way as traditional open exchanges, both requiring to evolve with time and technology!
Programmatic marketing involves data driven insights to convert prospects into customers. There is more than meets the eye in the case of conversion rate optimization. Some of the deciding factors for conversion are UX design, the landing page, the source of web traffic, content, competitive price of products, good will, social media marketing, effective campaigns and customer engagement. Programmatic marketing entails analsying data at every customer touch point and targeting the consumer with compelling, preferably personalised, offers. Conversion is not necessarily making a customer shell out money, it could be interpreted as winning customer loyalty by means of signing up for newsletter, downloading whitepapers or trial versions of the product or spending considerable time on the site. This loyalty, in the long run, could result in big wins through persuasion in the form of emails, SMSs, direct contact and targeted recommendations.
Channelizing data about prospects – online behaviour, previous shopping, socio-economic segmentation, online-search, products saved in the online basket, in other words getting to know the customer better to be able to suggest meaningful differences in people’s lives through the products on offer, results in higher conversion rates. It is here that digital convergence is of paramount importance. Digital convergence blends online and offline consumer tracking data over multiple channels to come up with targeted campaigns. Offline tracking through beacon technology is catching up. It is a win-win solution for both the retailer and the consumer providing each with useful information, the consumer, with an enabled smartphone app within a certain distance from the beacon, recieves useful and targeted information about products and campaigns and the retailer gathers data about consumer shopping habbit.
The online experience can be enhanced to reduce the bounce rate by incorporating some of the following design thoughts:
- Associative content targeting: The web content is modified based on information gathered about the visitor’s search criteria, demographic information, source of traffic, the more you know about the prospect, the better you can target.
- Predictive targeting: Using predictive analytics and machine learning, recommendations are pushed to consumers based on their previous purchase history, segment they belong to and search criteria.
- Consumer directed targeting: The consumer is presented with sales, promotions, reviews and ratings prior to purchase.
Programmatic offers the ability to constantly compare and optimize ROI and profitability across mulitple marketing channels. Data about consumer behaviour, both offline and online, cookie data, segmentation data are algorithmically analyzed, to re-evaluate the impact of all media strategies on the performance of consumer segments. Analyzing consumer insights, testing in iterations, using A/B testing contributes to a higher conversion rate. Using data driven methods to gain a higher conversion rate is programmatic conversion and it’s here to stay.