What is a private deal?

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What is Private Deal?

At the same time that Programmatic Media came to make life easier for those who buy and sell advertising space, it has also come full of different names and new concepts that sometimes get a knot in the minds of many people. The Private Deal is part of this series of new strategies that can be used to strengthen your brand on the internet or create a good relationship with the target audience. But do you know what that term means?

Private Deal means Private Trading. That is, an agreement to purchase online media is done directly between an advertiser or Trading Desk and the publishers (owners of the sites) for the display of a campaign.

The model works as if it were a traditional purchase, but the advantage is that the media is delivered and operated via the DSP platform, which allows for much more segmentation and optimization options. Private Deal agreements allow the advertiser to have priority access to the channel inventory as the agreed media is delivered before the positions become available in the open auction (RTB). Private strategies also enable the advertiser to choose the sessions, banner formats, and premium positions the campaign will appear within the site, blending the advantages of direct purchase with programmatic media differentials.

The tip of the Digital Marketing Manager of Publya – Programmatic Media, Artur Pereira, is to use this model as an opportunity to combine sites with good results, with all the potential of optimization of the programmatic purchase. “The advertiser continues to serve on the pages they are already accustomed working with and the negotiations that already agreed upon. But, this purchase can be enriched/optimized with data, retargeting, viewability, frequency capping by user, among many other alternatives for improvement, “says Arthur.

Private Deal agreements can follow in two ways:

1) Programmatic Direct:

This modality does not involve any type of auction, but guaranteed purchases. Based on the number of impressions and the specifications desired by the advertiser, the publisher determines a fixed CPM that must be paid by the media. The campaign is then set up on the DSP with the agreed amount, and the advertiser is guaranteed delivery of the contracted prints.

2) Private Marketplace:

The publisher makes their inventory available in a private auction for selected advertisers, which occurs before the open auction (RTB) and has a minimum CPM for bids set by the publisher itself. It is through a DSP that these private marketplace participating advertisers can bid on the inventory. However, in this case, delivery is not guaranteed since other advertisers also participate in the auction and may be willing to pay more for the space. Even so, it’s a good fit for brands that want to increase the frequency of display on a particular site and in better positions.

In addition to improving the efficiency of the direct media purchase process, with the Private Deal everyone wins: the vehicle has more control over the price of its space, and advertisers and start-up agencies in the Programmatic Media universe feel more secure in knowing exactly where and how the campaigns will appear.

For more experienced brands, the great advantage is the ability to choose specific sites and negotiate sections, positions above the fold, formats and at the same time rely on all the optimization and targeting capabilities of a DSP: contextual, audience, pixels and retargeting creating yet another way to meet brand goals in an automated way.

Despite the advantages, you need to be aware of the objectives of your campaign and evaluate whether it is worth investing or not. Private Deals CPMs are pre-defined by vehicles and give the advertiser some advantages, but they will always be more expensive than the open auction purchase. In addition, this type of strategy does not usually bring good conversion results, since the purchase of media is centered on the channel and not on the profile of the audience, as in other programmatic models. That’s why Private Deals are best suited to complement branding goals such as product launches and campaigns that want to be associated with certain types of content that your brand understands as very relevant to the business.

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