Halfway through 2019 and we are continuing to see trends that support eMarketer’s predictions of private marketplace (PMP) growth. It is, as anticipated, becoming the preferred method of programmatic transaction. In fact, PubMatic’s Q1 2019 Quarterly Mobile Index (QMI) shows PMP growth for in-app over 50 percent YOY.
The growth in PMPs is no surprise, given their known benefits of improved assurance as to inventory quality, deal prioritization and, ultimately, brand safety. While the industry as a whole has made great strides toward cleaning up the programmatic ecosystem, PMPs are still addressing felt needs over data and targeting concerns that impact campaign efficiency and effectiveness. So, what are the other current drivers of growth and will they still remain relevant as existing concerns are addressed?
Current Drivers of PMP Growth
Currently, we are seeing movement towards PMPs due to overarching concerns about access to quality first-party data to more effectively hit campaign goals. Data is still the competitive differentiator to get your brand in front of the audiences who are most likely to act thus accurate data will allow brands to stand out in a crowded marketplace with improved targeting. Moreover, the threat of data leakage and fraud is still driving brands to look for brand-safe alternatives to the open market.
Next, we are seeing that the removal of third-party cookies, such as Chrome’s recent update or Apple’s move from hashed emails, is influencing the turn to PMPs. Private marketplaces are again coming to the rescue as they can help brands and advertisers access valuable data to reach their desired audiences in a curated environment. Additionally, through PMPs, some publishers are opening up even more exclusive inventory to buyers thus the unparalleled access ultimately improves campaign efficiency.
Future Contributors to PMP Usage
However, things can change quickly in the industry. Similar to when header bidding became ubiquitous and ad impressions purchased from a non-direct channel were no longer relegated to the bottom of a waterfall, changes to auction dynamics will impact PMP growth. Google’s recent unified auction update, for instance, where a single auction will now take place within Google Ad Manager, will make deal priority more important and require more informed bidding and direct paths to coveted inventory.
Overall, it will be important to advertisers that PMPs continue to improve campaign efficiency, access to premium inventory, increase transparency and allow for real-time optimizations. Further, and on the publisher side, PMPs will need to continue to aid audience monetization, allow them control of their premium inventory and increase automation.
Both sides of the programmatic marketplace are turning to PMPs to solve for these challenges today. With the evolution of the industry, improved tools and access to premium inventory at scale will define what each will gravitate towards in the coming months. To learn more about how PubMatic can help you with your PMP strategy, check out our solutions or contact us.