With the emergence of programmatic sales, terms like SSP (Supply Side Platform), Trading Desk, Networks, and RTB (Real-Time Bidding) were often associated with selling remnant inventory or at low prices. However, thanks to increasingly sophisticated platforms and better audience understanding by media and agencies, this perception has changed. Private Marketplaces (PMPs) now enable advanced negotiations that benefit both media outlets and agencies/clients.
The Complexity of PMPs: While PMPs may seem technically straightforward in theory, they require a high level of sales expertise and technical proficiency in practice. Several factors need to be considered:
International Agency Demand Side Platforms (DSPs):
-
- MediaMath (Now in bankruptcy)
- Google Bid Manager (Now DV360)
- TTD ( The Trading Desk)
- Firstly, selling through the SSP’s Open Market Place (OMP) to obtain lower prices.
- Secondly, facilitating competition among networks and exchanges to optimize revenue.
- Thirdly, closing deals with DSPs. This involves defining target audiences, setting minimum prices, and specifying purchase conditions and characteristics.
These DSPs represent the buyers, consolidating client demand. Each international agency has developed its own programmatic agency to handle programmatic buying, acting as their programmatic arm.
Independent Agency DSPs: Agencies not affiliated with the major six groups mentioned earlier typically rely on tree options:
Supply Side Platforms (SSPs): SSPs serve three key functions:
The Market’s Leading SSPs: Three prominent SSPs exist in the market:
- Rubicon (Now Magnite)
- Google Ad Exchange (Now ADX)
- PubMatic
Representatives or Networks: If a media outlet is not among the major players in the market, it is often advantageous to join an association or network that can represent them. This allows buyers to view the entire audience as a cohesive entity. Negotiating with less than 100 million monthly impressions in the US Hispanic or even on a regional scale in Latin America is nearly impossible. Higher volume leads to increased unit value or CPM.
Conclusion: Programmatic advertising continues to dominate the digital advertising landscape year after year. Its penetration is growing in both the USA and Europe, with leading SSPs now establishing a presence in Latin America. However, it remains a technologically advanced sales approach that demands meticulous attention to detail and tracking of technological advancements.