What Is Preferred Deals?
Preferred deals are fixed-price ad inventory agreements negotiated between publishers and advertisers outside the RTB auction. In preferred deals, advertisers agree to purchase ad impressions at a pre-negotiated price directly from publishers, bypassing the open auction and gaining access to premium inventory with guaranteed impressions.
The Importance Of Preferred Deals
Preferred deals offer benefits for both publishers and advertisers. Publishers can secure revenue by selling premium ad inventory at fixed prices, providing stability and predictability in their advertising revenue streams. Advertisers, on the other hand, gain access to high-quality ad placements and audiences, allowing them to reach target audiences effectively and control campaign performance.
Key Aspects Of Preferred Deals
Negotiated Pricing: Preferred deals involve direct negotiations between publishers and advertisers to agree on fixed prices for ad impressions. These prices are typically higher than those in the open auction, reflecting the premium nature of the inventory and the guaranteed impressions offered.
Premium Inventory: Preferred deals provide advertisers with access to premium ad inventory, including high-impact placements, exclusive audiences, and desirable ad formats. This inventory is often reserved for preferred partners and may not be available in the open auction.
Guaranteed Impressions: Unlike the open auction, where ad impressions are sold on a per-impression basis, preferred deals offer advertisers guaranteed impressions at fixed prices. This guarantees ad delivery and allows advertisers to plan and forecast campaign performance more accurately.
Transparency and Control: Preferred deals offer advertisers greater transparency and control over ad placements, targeting criteria, and pricing compared to the open auction. Advertisers can select specific publishers, placements, and audience segments to optimize campaign performance and achieve their advertising goals.
Examples Of Preferred Deals
- A publisher negotiates a preferred deal with an automotive advertiser to sell premium ad placements on its automotive section at a fixed CPM (cost per thousand impressions) rate.
- An advertiser enters into a preferred deal with a popular news website to secure exclusive ad placements on its homepage for a specified duration at a fixed price.
Best Practices For Preferred Deals
- Establish clear communication and collaboration between publishers and advertisers to negotiate favorable terms and pricing for preferred deals.
- Utilize data and audience insights to identify high-performing ad placements and audience segments for preferred deals.
- Monitor and optimize preferred deal performance regularly to ensure campaign objectives are met and maximize ROI for both parties.
- Consider using preferred deals in conjunction with other programmatic buying methods, such as private marketplaces (PMPs) or direct deals, to diversify ad inventory access and maximize campaign reach and effectiveness.
Relevant Metrics
- Impressions Guaranteed
- Revenue
Conclusion
Preferred deals offer publishers and advertisers a valuable opportunity to transact premium ad inventory at fixed prices, providing stability, predictability, and control in programmatic advertising transactions. By negotiating favorable terms and leveraging premium inventory and guaranteed impressions, preferred deals enable advertisers to reach target audiences effectively and publishers to monetize their inventory more efficiently. As programmatic advertising continues to evolve, preferred deals remain a strategic option for advertisers and publishers looking to optimize campaign performance and achieve their advertising objectives in a dynamic and competitive digital advertising landscape.
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