Before the dawn of digital, buying and selling TV advertising required paper spreadsheets, fax machines, and a rolodex of publishers. In more recent years, progress has been made, and the industry is undergoing a shift from IO-based buying to real-time bidding.
Programmatic advertising technology enables advertisers to leverage their ad-buying transaction type of choice, whether it’s an open exchange, private marketplace, or programmatic guaranteed, to purchase ad inventory. Each type has unique benefits to meet the various needs of different advertisers. As programmatic deals continue to evolve, they have helped to unify digital audiences, inventory, data, and measurement into more streamlined workflows.
However, it’s important to understand not only the benefits of each transaction type but when and how they should be integrated into your digital advertising strategy. In this blog post, we break down the key terms you need to know and explain how you can use programmatic buying for your next CTV advertising campaign.
Understanding Types of Programmatic Transactions
Programmatic buying and selling of CTV ad inventory continue to grow as both advertisers and publishers lean into the digital transformation sweeping the ad industry. To avoid any confusion, below we’ve defined a few key terms.
- Open Exchange – Open exchange buying via real-time bidding (RTB) is the process of programmatic buying through an auction process. During this auction, multiple advertisers are bidding on the same inventory, and the highest bidder, based on CPM (cost per impression), wins the inventory.
- Private Marketplace (PMP) – PMPs are a programmatic buying mechanism that aggregates supply so a limited number of advertisers can buy targeted ad inventory from an individual or a select group of publishers. Advertisers access PMPs through a deal ID which is used to identify the marketplace that meets the advertiser’s specified criteria, often based on audience and CPM. There is also typically a floor price – the minimum price a publisher has agreed to receive for its inventory.
- Programmatic Guaranteed (PG) – PG deals are a type of buying that combines the benefits of programmatic with guaranteed inventory. Unlike PMPs, these 1:1 transactions occur when an advertiser agrees to a fixed CPM and a publisher commits to delivering a set number of impressions. Unlike a manual insertion order (IO), an automated system enables the transaction through a DSP.
Interested in learning more about CTV? Here’s what you must know before investing in this advertising medium.
The Benefits of PMP Deals
Now that you understand the basics, let’s do a deeper dive into PMPs. If you’re an advertiser, PMP deals allow brand marketers to combine the efficiency of automated buying with the ability to negotiate custom deals with publishers. Additional benefits include:
- Increased Transparency
Brand safety is of the utmost importance for most marketers, making CTV feel like a risky medium for programmatic advertising. Yet with PMPs activated through a trusted partner, ad fraud is eliminated because you know what you’re buying and from whom.
- Access to Premium Inventory
When you use a PMP through a trusted partner, the deal IDs are built from direct publisher connections. This means you have more inventory control and fewer hops between buyer and seller. However, not all PMPs are alike – some marketplaces will include resellers.
- More Efficient
Programmatic buying is inherently more efficient than manual transactions, but PMPs in particular are efficient because you are removing inapplicable inventory. By using a PMP, the deal ID powers faster transactions therefore increasing your chances of winning bids. It also improves the likelihood of achieving your desired business outcomes.
Publishers also benefit from PMPs. Increased transparency for advertisers also means greater control for publishers, as this transparency allows them additional insight into who bought their inventory. Further, PMPs mean access to new demand while simplified workflows automate the buying process, lessening the need for a direct sales investment.
How Cadent Aperture Platform Can Help Advertisers
Ready to try PMPs for your next CTV campaign? Get to know the Cadept Aperture media exchange – Aperture MX. The new Aperture MX team curates custom inventory packages for our advertiser customers. Our customers can then select the PMPs that meet their specific campaign goals at pre-negotiated rates.
Aperture MX PMPs provide:
- Brand Safety
Increase transparency, reduce guesswork, and simplify your buying process. In an open marketplace, you may not know what publisher you’re buying inventory from, which can lead to a brand safety crisis – if your ad appears alongside inappropriate content, it can affect your brand reputation. Aperture MX PMPs allow you to avoid mystery inventory from unsuitable publishers by only offering inventory procured through our direct relationships with premium publishers
- Curated Inventory
With Aperture MX, tap into our curated inventory to meet your unique campaign objectives, from audience targeting to KPIs such as video completion rate (VCR). Using Aperture Platform also means you can activate true, omnichannel advertising across cable, broadcast, OTT/CTV, FAST channels, and digital extension, including display and online video (OLV).
- Control & Transparency
Optimize your supply path and increase data fidelity by directly connecting to publishers – not resellers – within Aperture MX. Our PMP solution means you have greater control and can execute faster transactions. Filters in the Platform offer a simplified approach to identifying your KPIs, so you can bid against those goals.
- Targeting & Performance
By activating your PMP deals through the Aperture Converged TV DSP (a managed service solution), you can tap into first- and third-party data. Cadent Aperture Viewer Graph, our proprietary IP-to-Household matching technology, helps boost the targeting power of your campaign, while Measurement Marketplace, our catalog of best-in-class measurement partners, provides comprehensive campaign reporting and closed-loop measurement to validate your business outcomes.
Interested in learning more about PMPs through Aperture MX?
Get in touch with the Cadent sales team to get started today.