By Angela Ortiz
Audience buying started about 10 years ago with the concept of behavioral targeting. Technology has advanced in such a way that advertisers now have the ability to control what specific audience they reach out to on the Internet.
There are two types of ad exchanges in the world of programmatic advertising: an open marketplace or real-time bidding exchange. An open exchange is an advertiser’s ability to gather data from either his or her own site or actually purchasing the data to help define their audience that way. The ads are then served through this data on an impression-by-impression basis.
Open exchange has a type of superpower in that it has the unique ability to create audiences in real time. It learns to understand who is responding to what type of ad and when they are responding to it.
In contrast, a Private Marketplace gives advertisers a distinct opportunity to predefine the audiences they are seeking to reach. It allows advertisers to reserve inventory or pre-buy and access them in a premium environment. As you could have guessed big brand advertisers prefer to buy in a private marketplace rather than an open exchange.
I’ve put together three tips for deciding which avenue to choose:
Is it worth it? Since private exchanges offer more premium inventory and focus on brand safety, the issue of cost arises. This means that the ad placements are simply not offered in an open exchange. Though exposure on a premium site with high-quality placement sounds like a dream come true, the advertiser will have to evaluate whether the placements are worth the investment.
Relationships. Does the advertiser crave one-on-one human interaction? With both open and private exchanges using machines to automate buying and selling only a private marketplace gives advertisers the option of a relationship. Though an open exchange has proven successful, it’s undeniable that a relationship can be beneficial over time.
Dibs! How important is it to the advertiser to have the first look? Private exchanges give advertisers a literal first look at all premium placements before going to the public auctions; however, privilege proves to be costly.
Conclusion: In short; only big brands have the funds to go all in with a private marketplace. Having a PMP accessible to any open or real-time bidding campaign would be ideal and should be every advertiser’s preference.
Angela Ortiz, a Colombia native was born into a large family. She learned English once her family relocated to Texas at the age of 5. In college, she wrote for the Collegian; the newspaper for Tarrant County College and later received her bachelor’s in communications/public relations with a minor in Spanish from the University of Texas at Arlington.
After interning as the social media coordinator for Starr Tincup (now Starr Conspiracy), she realized that marketing, advertising and media was an exciting industry she would want to work in permanently. In the past couple of years at MultiView; the Jeopardy-obsessed and avid reader has enjoyed soaking in all the knowledge given to her by colleagues and continuing education classes, especially in the realm of programmatic marketing.