Definition
A Private Marketplace (PMP) is a programmatic advertising buying method where a publisher (or a group of publishers) offers pre-packaged or negotiated inventory access to a limited set of invited advertisers through a deal ID, typically executed via a DSP. PMP transactions run through programmatic infrastructure (SSPs, exchanges, DSPs), but access is restricted compared to open auction buying.
From a marketing perspective, PMPs are used to combine the automation and targeting of programmatic buying with greater control over inventory quality, context, and pricing than open RTB, often supporting brand objectives, regulated categories, or high-value audiences.
How to calculate (the term)
PMP is a deal type, not a single metric. Measurement focuses on deal delivery health, cost, and outcomes:
- Deal win rate =
Impressions won on deal / Bid requests eligible for deal - Deal spend share =
Spend on deal / Total programmatic spend - Deal CPM =
(Media cost on deal / Impressions on deal) * 1000 - Pacing rate =
Delivered impressions (or spend) / Planned impressions (or spend)over time - Viewability rate (deal) =
Viewable impressions / Measurable impressions - IVT rate (deal) =
Invalid impressions / Total measured impressions(where measurable) - On-target rate =
Impressions delivered to intended audience / Total impressions(based on audience definition) - Outcome metrics (as applicable): CPA, ROAS, VTR, incremental lift using the same formulas as other programmatic media
How to utilize (the term)
Common PMP use cases include:
- Premium inventory access with controls
- Secure placements and environments aligned to brand suitability requirements (content categories, site/app lists).
- Audience access
- Activate publisher first-party audiences (registered users, subscribers) and publisher contextual packages.
- Predictable performance and reduced volatility
- Use negotiated floors or preferred access to stabilize delivery and pricing compared to open auctions.
- Regulated and sensitive categories
- Improve compliance posture by using approved publishers and contextual controls.
- High-impact formats
- Access video, CTV, rich media, and sponsorship-like placements that may be limited or unavailable in open exchange.
- Agency–publisher workflows
- Scale publisher relationships without managing a separate insertion order for every activation.
Typical setup steps:
- Define what you need beyond open auction (quality, context, audience, format, compliance)
- Select publisher(s) or curated marketplace partner
- Negotiate deal terms (pricing model, floors, targeting, formats, supply volume expectations)
- Receive and configure deal ID(s) in the DSP
- Apply frequency caps, brand suitability, geo/device rules, and measurement tags
- Monitor delivery and optimize (bid strategy, creative rotation, deal prioritization, audience refinement)
Compare to similar approaches, tactics, etc.
| Topic | Open Auction (RTB) | Private Marketplace (PMP) | Preferred Deal | Programmatic Guaranteed (PG) | Direct IO |
|---|---|---|---|---|---|
| Access | Open to many buyers | Invite-only | Invite-only | One-to-one | One-to-one |
| Pricing | Auction-based | Often fixed floor or negotiated dynamics | Negotiated fixed CPM (no guarantee) | Fixed CPM with reservation | Negotiated |
| Inventory guarantee | No | No (but typically more predictable) | No | Yes | Yes |
| Automation | High | High | High | High | Medium (more manual ops) |
| Best fit | Scaled reach, efficiency | Quality + control with programmatic flexibility | High-quality access without reservation | Predictable delivery and premium placements | Sponsorships, custom integrations |
Best practices
- Be explicit about what “better inventory” means
- Define quality criteria (viewability thresholds, fraud tolerance, content adjacency rules) before negotiating.
- Use PMPs to solve specific problems
- Avoid moving spend “because it feels premium.” Tie deals to measurable goals: reach in a segment, safer context, higher completion rates, etc.
- Validate supply expectations
- Confirm projected scale, device mix, geo availability, and format support to avoid under-delivery surprises.
- Standardize deal governance
- Maintain naming conventions, documentation, and ownership; PMPs multiply quickly and become an archaeological site without controls.
- Watch for price inflation without performance lift
- Compare deal CPM and outcomes vs a controlled open-auction baseline using consistent attribution and measurement.
- Use frequency and creative rotation deliberately
- Premium inventory can hit the same users repeatedly; manage frequency caps and refresh creatives to reduce fatigue.
- Confirm measurement feasibility
- Align on viewability, IVT, and conversion measurement methods—especially for video/CTV environments.
Future trends
- Growth of curated marketplaces
- More “PMP-like” access through curated supply packages that combine data, brand suitability, and pre-filtered inventory paths.
- Publisher first-party data activation
- Expanded use of publisher authenticated audiences and contextual packages as identity options evolve.
- Tighter transparency and fee scrutiny
- More focus on supply-chain clarity, deal-level fee reporting, and working media calculations.
- Cross-channel PMP maturation
- Increased use of PMPs in CTV, audio, and DOOH with improved standards for verification and measurement.
- Privacy-driven measurement changes
- Greater reliance on aggregated reporting, modeled outcomes, and clean-room workflows for publisher data use.
Related Terms
- Ad Exchange
- Demand-Side Platform (DSP)
- Supply-Side Platform (SSP)
- Real-Time Bidding (RTB)
- Open Auction
- Deal ID
- Preferred Deal
- Programmatic Guaranteed (PG)
- Supply-Path Optimization (SPO)
- Brand Suitability
- Viewability