Premium Publishers Give Private Marketplaces Another Look

After a burst of initial announcements of private exchanges, followed by a lull in activity, private marketplaces are getting another look by premium publishers as the technology has improved and programmatic buying gains traction. The aim of the private exchanges is to leverage publishers’ most valuable online ad inventory, typically with a select number of VIP advertisers, that would lose value if sold through open, real-time bidding exchanges. As Hearst Digital Media’s CRO Kristine Welker put it, a private marketplace means “we can monetize our inventory more efficiently.” Hearst opened its exchange in Q4 2012. In that period, its private business accounted for 19 percent of revenue from all the ads it sells through real-time biddable exchanges, open and private, per supply-side platform PubMatic, which manages the marketplaces of Hearst, Business Insider, Rodale and Scripps. While Hearst manages access to its premium audience through the exchange, other publishers put a velvet rope around their most choice content. “The inventory we’re seeing is premium inventory that the publisher would have sold on a direct basis,” said PubMatic CEO Rajeev Goel. Sources say NBCNews.com is selling homepage ads through private marketplaces, and tags on the site suggest PubMatic is managing that inventory (Goel wouldn’t confirm). Akin to private exchanges are private-order systems that plug orders directly into a programmatic platform to process direct sales. Supply-side platform... Continue reading at 'AdWeek'

[ AdWeek | 2013-04-01 00:00:00 UTC ]

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