eMarketer was pleased to moderate a Tech-Talk Webinar featuring Koddi's Connor VanDaveer, senior program manager, Koddi Ads. He will discuss why PMPs are beneficial for sellers, buyers, and operators.

Multipublisher PMPs are possible through supply-side platforms (SSPs), but they haven’t scaled revenues, Bannister said. That could be because buyers can already reach users across multiple sites through audience buys in their demand-side platform (DSP).

Private Marketplace (PMP): Auction owned by a single publisher or a small group of publishers and open only to an invite select number of buyers; also called a private exchange, private auction, or PMP.

On mobile—where, again, real-time bidding (RTB) as a whole accounts for an even smaller share of the total—PMP spending will surpass open market spending this year.

The remainder of programmatic transactions will be done via real-time bidding (RTB), by using private marketplaces (PMPs) or open exchanges to manage auctions. PMP’s share of RTB has traditionally been higher in Canada than in the US—this year, it will be 56.0% in Canada.

Next year, for the first time, programmatic ad spending on private marketplaces (PMP) will surpass that on open exchanges. PMPs—a subset of real-time bidding (RTB) in which some sort of private deal exists between a publisher or a small group of publishers and select ad buyers—will see double-digit growth throughout the forecast period. Growth in PMP ad spending will outpace that of the open markets by about 3 to 1 in 2020 and beyond.

We estimate US advertisers will spend $12.22 billion on open exchanges and $11.56 billion on PMPs this year. By 2021, $15.97 billion will be spent on PMPs, and $13.77 billion will be spent on open exchanges.

Private marketplace (PMP) is an auction owned by a single publisher or a small group of publishers and open only to an invited select number of buyers; also called a private exchange or private auction.

Ad fraud rates are highest on open marketplaces, but fraud can happen within PMPs too, according to John Ross, associate director of CTV products at DoubleVerify. “Anyone can kind of setup a PMP,” Ross said. “It doesn’t necessarily require a real-life relationship between two companies.”. According to Ross, it isn’t unusual for so-called premium CTV publishers to use extension networks.

This initiative complements efforts by GroupM unit Mindshare, which launched “inclusion” private marketplaces (PMPs) this year for media owned by and/or focused on the LGBTQ and Black communities. Both PMPs provide brand safety while combatting keyword exclusion lists in programmatic ad buying.

More recently, private marketplaces (PMPs) have gained share as publishers often form their own marketplace or join a consortium. On the PubMatic platform, for instance, PMP app spending grew 391% between late February and late June this year.

However, that power dynamic flipped in 2020, with PMP ad spending surpassing open exchange ad spending in the UK for the first time. A 2.4% decline in open exchange spending, combined with a strong showing for PMPs, hastened this trend—12.2% UK PMP ad spending growth in 2020 represented the largest increase for all the transaction types we track.

Next year, spending in PMPs will surpass the open markets for the first time. In 2020 and 2021, PMP growth will outstrip open exchange growth 3-to-1.

This summer, Amazon announced it would be opening up its private marketplace (PMP) of video inventory to third-party DSPs The Trade Desk and dataxu. Included in this PMP is coveted Amazon Fire inventory. The Trade Desk CEO and founder Jeff Green hailed the deal in an internal memo as “a victory for the open internet,” in an implicit contrast with how Google sells YouTube inventory.

In 2021, US advertisers will spend more than $15 billion on the fees that underpin programmatic display transactions across the open markets, PMPs and nonsocial direct. Behind the Numbers.

PMP investment is on the rise, as is programmatic direct spending. For each country, programmatic direct will gain market share between 2019 and 2021:.

While PMPs cost more, they also pose fewer risks. PMPs require clear, strategic planning. To maximize returns from PMPs, advertisers need a very clear idea of whether their ads are best seen in fewer, more premium environments and how long that might be the case. Brands that can reach their target audiences via just a few media owners are prime candidates for PMP arrangements.

PMP Ad Spending. Investment in PMPs will continue to exhibit far stronger growth through our forecast than that in open exchanges. Growth of 16.0% this year will be followed by a further rise of 18.3% next year and 14.1% in 2021. The upshot of this will be a tilt toward PMPs as the preferred method of RTB transacting from 2020 onward.

Within RTB, private marketplace (PMP) spending outpaces open exchange ad investment in Canada, unlike the US where PMP holds a smaller share of RTB. How programmatic is mobile display? Mobile programmatic display spending will reach CA$2.60 billion ($2.01 billion) this year, up 28.9% over 2018.

Our November 2019 update, “UK Programmatic Digital Display Ad Spending: Growth Underpinned by Social Spend and Programmatic Direct,” noted that GDPR hadn’t been much of a growth inhibitor in terms of programmatic display ad spending, once the initial disruption was past—though it had helped steer more euros to private marketplaces (PMPs) and programmatic direct deals.

As such, PMPs are being eyed as ideal ways to leverage audience data and optimize campaigns in a more real-time fashion. “Transparency and brand safety will drive advertisers to use PMP instead of open markets,” Cai of Yoyi Digital said. “In the meantime, PMPs are more cost-efficient than programmatic direct buys.

Still, growth in spending on PMPs will outpace growth in open markets 7-to-1 in 2021. These factors will influence PMP investment in Germany over the next 12 to 24 months:. PMPs need more time and effort. PMPs require more time and effort to set up and maintain than other programmatic methods, such as programmatic direct.