Private Marketplace (PMP)

A Private Marketplace (PMP) is a type of programmatic advertising environment where premium ad inventory is offered to a limited group of pre-approved buyers. Unlike the open exchange, a PMP operates as an invitation-only auction, allowing publishers and advertisers to engage in more controlled, transparent transactions while benefiting from real-time bidding (RTB) technology.

In the context of Connected TV (CTV) and streaming platforms such as FAST (Free Ad-Supported Streaming TV) and AVOD (Ad-Supported Video on Demand), PMPs enable content owners to maintain oversight of who advertises on their inventory while still leveraging the automation and efficiency of programmatic ad delivery.

What is a Private Marketplace in Streaming Advertising?

A Private Marketplace exists between traditional direct deals and fully open programmatic exchanges. It allows publishers to offer ad placements to a select group of buyers, often based on strategic relationships or brand safety requirements. These deals are executed programmatically, typically using Deal IDs—a key technical mechanism that powers PMP transactions.

Through PMPs, publishers define the inventory being made available, set minimum bid prices (also known as floor prices), and invite advertisers to participate. Advertisers, in turn, gain access to curated, high-quality inventory with increased transparency and often the right of first refusal on ad impressions.

How Do Private Marketplaces Work?

1. Publisher setup: The publisher identifies the inventory to offer in the PMP, sets pricing rules, and configures targeting parameters.
2. Buyer invitation: A limited number of advertisers or Demand Side Platforms (DSPs) are granted access to the inventory.
3. Deal ID assignment: Each deal is executed using a unique Deal ID, which encodes the terms of the transaction, such as bid floor, ad formats, and campaign criteria.
4. Real-time bidding: Ads are served through RTB technology, with only invited buyers participating in the auction.
5. Ad delivery: The winning creative is served to viewers in the streaming environment, often via server-side ad insertion (SSAI).

What is a Deal ID?

A Deal ID is a unique identifier that links a specific ad transaction to the terms agreed upon between a publisher and buyer in a private deal. It ensures that only approved buyers can access the inventory and enables automation of the ad selection process.
Each Deal ID includes encrypted details such as:

• Minimum bid requirements
• Auction type (fixed or dynamic pricing)
• Ad formats (e.g., 15s or 30s video spots)
• Campaign delivery windows
• User frequency caps

These IDs are generated on SSPs and recognized by DSPs, ensuring that only eligible advertisers can bid according to the negotiated terms.

Benefits of PMPs in CTV and Streaming

For publishers:

• Control over buyers: Only approved advertisers can access inventory.
• Brand safety: Avoid potentially harmful or misaligned ads.
• Premium pricing: Higher CPMs compared to open auctions due to exclusivity.
• Data sharing: Easier exchange of first-party audience data for enhanced targeting.
• Automated workflows: Less need for manual negotiation or traditional sales teams.

For advertisers:

• Exclusive inventory access: Reach viewers in premium, brand-safe environments.
• Transparency: Clear insight into where ads will appear and what content they will accompany.
• Audience targeting: Leverage publisher first-party data for better campaign performance.
• Efficiency: Programmatic execution with the benefits of a curated buying environment.

Role of PMPs in the Streaming Ecosystem

As streaming audiences grow, PMPs have become increasingly important for both CTV publishers and advertisers seeking high-quality inventory and performance transparency. According to industry reports, PMP transactions now account for a significant share of programmatic CTV ad spend.

PMPs also support hybrid monetization strategies, where publishers may prioritize premium buyers through private deals and allocate remaining inventory to open marketplaces or direct sales.