What are Preferred Deals
I. Introduction to Preferred Deals
Preferred Deals in programmatic advertising also known as programmatic non-guaranteed, unreserved fixed rate, or spot buying, offer a way for advertisers and publishers to strike mutually beneficial agreements. Preferred Deals involve a fixed CPM. Yet, the advertiser doesn’t have to bid on the space. Thus, the inventory isn’t guaranteed. By setting up automated processes and leveraging data, both parties can benefit from increased efficiencies and better targeting. In this article, we will explore what Preferred Deals are, how they work, and best practices for creating and managing them. By following these guidelines, advertisers and publishers can effectively use Preferred Deals to optimize their programmatic advertising campaigns.
A. What are Preferred Deals?
Preferred Deals in programmatic advertising are agreements between advertisers and publishers that offer specific terms and conditions for the buying and selling of advertising inventory. These deals typically involve the use of automation to streamline the process, allowing for more efficient and targeted advertising.
B. Benefits of Preferred Deals for advertisers and for publishers
Preferred Deals offer a number of benefits for both advertisers and publishers. For advertisers, Preferred Deals allow for more control and flexibility in terms of the ad inventory that is purchased. This can help to ensure that ads are shown on the most relevant and valuable publishers’ sites, which can help to improve ad performance and drive better results.
Additionally, Preferred Deals can help advertisers to save time and effort by streamlining the ad buying process. Rather than having to constantly search for and negotiate with individual publishers, advertisers can simply use the Preferred Deal to automatically deliver ads to the desired publishers’ sites. This can help to save time and resources, allowing advertisers to focus on other aspects of their business.
For publishers, Preferred Deals offer the opportunity to build long-term, mutually beneficial relationships with advertisers. By agreeing on the terms of the deal in advance, publishers can ensure that they are getting a fair price for their ad inventory and that they are working with reputable and reliable advertisers. This can help to increase revenue and build trust with advertisers, which can lead to increased ad spend and a more stable advertising ecosystem.
C. Disadvantages of Preferred Deals for publishers and Advertisers
One of the potential disadvantages of Preferred Deals for publishers is that they may be required to offer discounts or other concessions to advertisers in order to secure the deal. This can lead to reduced revenues for the publisher, which can be a disadvantage if the deal does not result in increased ad spend from the advertiser.
Preferred Deals can limit a publisher’s flexibility and control over the ad inventory that is sold. Once the deal is in place, the publisher may be required to provide a certain amount of ad inventory to the advertiser, regardless of market conditions or other factors. This can be a disadvantage if the publisher is unable to sell all of the ad inventory or if market conditions change, resulting in reduced revenues.
While these deals offer a number of benefits, they may also come with a few drawbacks.
For publishers, the most significant disadvantage of preferred deals is the risk of unfulfilled inventory. If an advertiser decides to pass on the opportunity, the inventory will move to a private auction and, subsequently, to the open market. There is a chance that the inventory will remain unfulfilled throughout these transfers, which could impact the publisher’s revenue. Preferred deals may not also be the best option for newer or smaller publishers, who may struggle to grab the attention of advertisers with these deals.
For advertisers, one of the disadvantages of preferred deals is that they are not set exclusively. This means that advertisers may have to compete with other buyers for a particular inventory.
Early access to premium inventory may come at a higher cost than they would get in an open market. Unlike an open auction, preferred deals do not give advertisers a benchmark for the price of an inventory, which means that it is crucial to assess the publisher’s credibility and trustworthiness before negotiating the price.
Advertisers are responsible for finding the right publisher whose audience aligns with their target demographic, which can make the process more complex and time-consuming.
II. How do Preferred Deals work?
Preferred Deals in programmatic advertising typically involve the use of RTB technology, which allows for the real-time buying and selling of advertising inventory. When a user visits a publisher’s site, the RTB technology will automatically scan the available ad inventory and send information about the available ad space to the advertiser’s bidding platform. The advertiser can then use their own algorithms and data to determine the value of the available ad space and place a bid in real-time.
If the advertiser’s bid is successful, the ad will be delivered to the publisher’s site and displayed to the user. The entire process typically takes just a few milliseconds, allowing for a seamless and efficient ad buying and selling experience.
III. How to Create a Preferred Deal
If you want to setup a Preferred Deal on Google Ad Manager, then simply refer to the Google’s GAM guide for Preferred Deals.
Creating a Preferred Deal in programmatic advertising involves several key steps, including identifying the right sellers, setting up an automated process, and setting up your targeting parameters. Here is a more detailed look at each of these steps:
A. Identifying the Right Sellers
The first step in creating a Preferred Deal is to identify the right sellers for your ad campaign. This will typically involve researching and comparing different publishers to find those that offer the right mix of ad inventory, audience, and pricing for your campaign. You may want to consider factors such as the publishers’ traffic and engagement levels, the types of content they offer, and the ad formats and sizes they support.
Once you have identified a few potential sellers, you can begin the process of negotiating the terms of the Preferred Deal. This will typically involve discussing details such as the types of ads that will be shown, the pricing and payment terms, and any special requirements or limitations. It is important to ensure that the terms of the Preferred Deal are fair and mutually beneficial for both parties.
B. Setting Up an Automated Process
Once the Preferred Deal has been agreed upon, the next step is to set up an automated process for delivering the ads to the publisher’s site. This will typically involve integrating the publisher’s ad inventory with your own ad buying platform, using RTB technology to facilitate the real-time bidding process. This can help to streamline the ad buying process and ensure that ads are delivered and displayed in a timely and efficient manner.
C. Setting Up Your Targeting Parameters
The final step in creating a Preferred Deal is to set up your targeting parameters. This will typically involve defining the target audience for your ads, based on factors such as demographics, interests, and behavior. This will help to ensure that your ads are shown to the most relevant and valuable users on the publisher’s site, which can help to improve ad performance and drive better results.
IV. Best Practices for Creating and Managing Preferred Deals
Preferred Deals in programmatic advertising can be a powerful and effective way for advertisers to streamline the ad buying process and improve ad performance. However, there are several best practices that advertisers can follow to ensure that their Preferred Deals are successful and deliver the best possible results.
A. Establishing KPIs
One of the key best practices for creating and managing Preferred Deals is to establish clear and measurable KPIs (key performance indicators) for the campaign. This can include metrics such as impressions, clicks, conversions, and revenue, as well as more specific goals such as brand awareness or engagement. By setting clear KPIs, advertisers can track the performance of their Preferred Deals and make any necessary adjustments to optimize results.
B. Optimizing Performance
An important best practice is to regularly monitor and optimize the performance of your Preferred Deals. This can involve using data and analytics tools to track the performance of your ads and identify any areas where they are not meeting your KPIs. By regularly reviewing and analyzing your data, you can identify opportunities to improve ad performance and make adjustments to your targeting, bidding, and other aspects of your campaign.
C. Leveraging Data
Finally, leveraging data is a crucial best practice for creating and managing Preferred Deals. By collecting and analyzing data about your target audience, your ad performance, and your competitors, you can gain valuable insights that can help to improve your campaign. This can include using data to identify new opportunities for growth, to optimize your targeting and bidding strategies, and to gain a competitive advantage in the marketplace.
Overall, by following best practices such as establishing KPIs, optimizing performance, and leveraging data, advertisers can create and manage Preferred Deals that are successful and deliver the best possible results. These best practices can help to ensure that Preferred Deals are a valuable and effective part of your programmatic advertising strategy.
Preferred Deals in programmatic advertising are pre-negotiated arrangements between advertisers and publishers that allow for the buying and selling of advertising space in a streamlined and efficient manner. These deals offer a number of benefits for both advertisers and publishers, including improved ad performance, streamlined ad buying, and long-term, mutually beneficial relationships. To create and manage successful Preferred Deals, advertisers should follow best practices, such as establishing clear KPIs, optimizing performance, and leveraging data. Overall, Preferred Deals can be a valuable and effective part of any programmatic advertising strategy.