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How PMPs are cultivating trust in Japan’s advertising market

With one of the highest growth rates of real-time bidding in the world, Japan is rapidly embracing innovation in programmatic advertising. This expansion of programmatic trading brings with it an increasing need for quality and control, as major advertising agencies and even publishers have been questioned on quality and brand safety issues.

These concerns on the sell and buy sides are driving the global advertising industry to explore a specific branch of programmatic: private marketplaces (PMPs). This year, PMP spending is set to top $2.86 billion worldwide. PMPs provide a solution to both these problems, delivering greater control for publishers and buyers and enhancing trust in the advertising industry.

What are PMPs?
PMPs are invite-only auctions where publishers are able to offer certain brands and agencies access to their premium inventory. By using unique deal IDs to give specific buyers access to auctions, PMPs offer publishers tighter regulation on which partners they trade with to ensure ads are of high quality. For the advertiser, these auctions allow them to know exactly which publishers will display their ads and give them access to unique inventory they might otherwise not have had access to on the open exchange.

So how are private marketplaces building trust in the advertising industry?

Knowing exactly what you’re getting
One of the primary reasons both sellers and buyers are adopting PMPs is because they reduce some of the uncertainties of the open exchange by offering more targeted, high-value opportunities. Publishers invite certain media buyers to the auction, and advertisers must decide if they wish to enter it and buy the specific set of inventory on offer.

Because publishers know exactly who will buy their inventory, PMPs are often where they choose to sell their premium space. Trading within a PMP can offer brands a great advantage over their competitors – placement alongside premium, targeted content means they can achieve precision targeting and increase their brand perception. For example, if a luxury watch manufacturer wants to reach a high-income audience, they may turn to PMPs to find a prominent news site that offers a package including their desired audience segment.

A means to build relationships, refine and reward
Due to the invite-only nature of PMPs, they can also be used as a channel for advertisers and publishers to build better relationships. PMPs encourage buyers to share their campaign goals with publishers so that the publishers can offer packages that better suit the preferences of their best clients.

Furthermore, their first-party insight means publishers can offer advertisers targeted campaigns based on audience behavior. This high quality data can be utilized to target specific audiences, assuring advertisers that their ads only appear next to audiences they know will be relevant – saving money and solidifying the reputation of the brand while enhancing impact.

With brands spending more on digital advertising than ever before, PMPs offer publishers the ability to reward partners who purchase large amounts of inventory, securing premium advertising next to premium content. Some partners may even be granted preferential treatment at the top of the waterfall if they have strong relationships with publishers.

Digital advertising is a field that is continually transforming and expanding. The open exchange provides unparalleled scale, but PMPs can offer more control and added value to meet more specific buyer and seller needs. PMPs are helping to cultivate better advertiser and publisher relationships in Japan’s burgeoning, yet ever-complex advertising market – offering brands the chance to develop trusted partnerships with publishers, gain access to premium inventory and get ahead of the competition.

Keisuke Meguro

Keisuke Meguro is the Publisher Development Director at OpenX.