In the previous section, we talked about one of the buying methods in Programmatic buying through a foreign DSP. So, in this article, Netlink would like to introduce you to another automatic buying method, which is Programmatic Preferred Deal (PD).
Preferred Deal is a transaction method that allows publishers to sell premium inventory to advertisers or agencies in need at a negotiated price. The deal will then be moved to real-time and bid at a fixed price. With this method, although online advertising resources are not reserved, the resale price is fixed, this way keeps advertisers participating in the auction, reducing competition in the open market or more. Another is to buy ad space without having to compete in the open market.
In this Preferred Deal, publishers will sell a set amount of online advertising resources to publishers before placing them at auction in the open market. There are also cases when the ad placements have not been successfully auctioned in the Programmatic Direct (also known as Automated Guaranteed) and Preferred Deal forms, then the publisher will bring those positions to the public auction.
Note: PD can not only be used on the website but also in the app with your ad placements.
The way Preferred Deal works, it all starts with an offer. The system then sends the proposal directly to the buyer. Buyers can request changes to the offer through the negotiation process. Once both parties have agreed to all the terms, the PD is officially sold and the system generates a corresponding line item. In most cases, this transaction is the result of external communication between the seller and the buyer, such as by phone or email, to agree to set up the transaction.
For publishers, PD helps to keep revenue stable and controlled through this closed transaction environment. Meanwhile, this form of transaction gives advertisers access to quality, exclusive inventory with stable volume. However, the weakness of Preferred Deal compared to Programmatic Guaranteed (PG) is that PD will not guarantee the number of impressions like PG.
Some benefits that can be easily noticed when using Preferred Deal are:
- Fixed CPM: CPM stands for cost per 1000 impressions and it allows publishers to generate their revenue based on the number of impressions per ad. That means advertisers pay publishers certain prices for a certain amount of impressions per ad. With preferred deals, you get the guarantee that your CPM price will be fixed in exchange for giving buyers an edge.
- Best price: Usually with the ad auction you’re typically getting a lower-than-expected price, but with priority deals, you’re providing premium inventory to select buyers, which means is that you can negotiate directly with them a better price. At the same time, the control of the price of the inventory will also be in your hands, you can set the high and low prices differently for each different location to be able to sell for the same or sometimes a little more than what you expect.
- Flexibility: With Preferred Deal, you won’t have to rely on a single buyer, even if you can’t sell your ad space with this type of transaction, you can still switch to the open market and sell on another type of auction. Assure publishers that the ad slot will definitely sell without fear of being left vacant and wasting resources.
- Quality Control: Before you agree to have any ad displayed on your site, you have the right to have your ad campaign checked and verified before it starts running.
- Transparent Process: The entire process, from the moment you start submitting the request to the completion of your ad display, you’ll be involved in and pre-check every step of the way.
This is one of the interesting forms of auction, and all of these forms of advertising are available in Google Ad Manager 360. In the next section, Netlink will continue to send you two other forms of programmatic buying: Private Market. Place and Real-time Bidding. Please contact Netlink via email: [email protected] or leave your information below this article so we can contact you if you need more information about methods to optimize revenue with both mobile and desktop devices.
