How Premium is Going Programmatic: The New Evolution in Packaged Inventory - Mohamed Ben Hiba,...

How Premium is Going Programmatic:The New Evolution of Packaged Inventory

Mohamed Ben Hiba – Director of Supply Partnerships EMEA, Smaato

Version: 122015Copyright © 2015 Smaato Inc. All Rights Reserved Smaato® is a registered trademark of Smaato Inc. | The names of actual companies and products mentioned here may be the trademarks of their respective owners.

www.smaato.com

New York City, NY Hamburg, Germany Singapore, SGSan Francisco, CA

www.smaato.com

Company OverviewThe Global Real-Time Advertising Platform for Mobile Publishers & App Developers

+117% YoY Growth

90,000+ Publishers & App Developers

430+ Ad Networks & DSPs

91 of Top 100 Ad Age Advertisers

900+ Million Mobile Users/Month

180+ Billion Impressions/Month

Founded 2005

RTB Ad Exchange & SSP

$42 Million in Venture Capital Raised

Funded by Aeris Capital, EDBI, SPH

200+ Employees, 30 Languages

50 Product & Engineering


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Private Marketplaces (PMPs) – A Definition

•An invitation-only marketplace in which premium publishers make their inventory available only to a select group of buyers

•Not a direct buy – advertisers use programmatic controls to purchase inventory from publishers

•Retains many of the characteristics of a direct deal, but introduces new efficiencies

•Transacted through the use of a Deal ID

•Publishers not only get to take advantage of programmatic buying, you know exactly which ads you’re going to get


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Private Marketplace BuyingWhere does PMP fit in your workflow?


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Private Marketplace: Types and Terms

Type of Inventory(Reserved1, Unreserved)

Pricing(Fixed2, Auction)

Participation(One Seller-One Buyer, One Seller-Few Buyers, One Seller-All Buyers)

Other Terms Used in Market

Other Considerations

Automated Guaranteed

Reserved Fixed One-One Programmatic guaranteedProgrammatic premiumProgrammatic directProgrammatic reserved

• Prioritization in the ad server

• Deal ID• Data usage• Transparency

to buyer• Price floors

Unreserved Fixed Rate

Unreserved Fixed One-One Preferred dealsPrivate accessFirst right of refusal

Invitation-Only Auction

Unreserved Auction One-Few Private marketplacePrivate auctionClosed auctionPrivate access

Open Auction Unreserved Auction One-All Real-time bidding (RTB)Open exchangeOpen marketplace


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Private Marketplace Industry TrendAn increasing Portion will be PMP


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Buyers can reach out directly to ask publishers for specific inventory they want to buy. Buying conditions (volumes, target groups, prices, etc.) are negotiated directly between buyer and seller. Preferred Deals usually run with fixed prices.

•One Buyer / Advertiser

•Unreserved Inventory for a Fixed Price (CPM Rate)

•Bid request is identified with the Deal ID

Private Marketplace – What is a Preferred Deal?


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Private Marketplace (PMP): Preferred Deal

• Publisher and DSP/Advertiser establish a fixed price deal for specific inventory

• Pre Auction, First Look, First Right of Refusal

• Usually runs Prioritized

• Communicated via Deal ID

Publishers Can Take Control of Their Exchange Setup in platforms like Smaato’s


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Private Marketplace – What is a Private Exchange Deal?

Private Auctions are open to several buyers who can bid on the available negotiated inventory. Depending on the floor price set by the publisher, they have to bid accordingly in order to buy the offered inventory.

•A few invited Buyers

•2nd price auction

•Bid request is identified with the Deal ID


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Private Marketplace (PMP): Private ExchangePublishers Can Take Control of Their Exchange Setup in platforms like Smaato’s

• Publisher invites a limited amount of DSPs to compete against specific inventory

• Private auction with negotiated floor price

• Runs Prioritized or in Open Competition

• Communicated through a designated Deal ID


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Why Sell in a Private Marketplace (PMP): Publisher Benefits

• Sellers can hand pick which buyers are invited into the exchange, giving them control over which buyers have access to their premium inventory.

• PMPs also afford publishers the opportunity to sell complete inventory packages priced at a fair value.

• Both publisher and advertiser get to leverage programmatic media controls to govern the trading relationship, as is typical in a Real-Time-Bidding (RTB) environment, improving the efficiency for everyone involved.

Why Buy in a Private Marketplace: Advertiser Benefits• Buyers get access to premium/differentiated inventory.• Buyers get the first look they don’t get in open competition.• Integrated buying allows for campaign data to be in one location.• Buyers get increased transparency and control. Preferred buyers may even have the

opportunity to leverage valuable additional information, like a publisher’s first party data and the right of first refusal over impressions.

• Buyers get a known relationship (fewer unknowns) which increases trust.


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Private Marketplace – What is an Open Auction?

The Open Auction environment allows publishers to sell their inventory publically to everyone who is using a DSP (demand side platform) that is connected to a SSP (supply side platform) or an ad exchange on which the publisher is offering its inventory.

•No limit for Buyers

•2nd price Auction

Smaato Exchange is the Smaato Open Auction including our Ad Network Demand.


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Smaato Adds Private Marketplace to Smaato Publisher Platform (SPX)

Dynamic Demand now expands from 3 components to 4 from which to maximize yield and revenue:

•Smaato RTB Exchange and Ad Network Mediation•Direct Campaigns•New! Private Marketplace•Publisher-Owned Ad Networks

More Control for Publishers and Advertisers of their inventory and adsMore deal structure capability means higher revenue for Publishers


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Preferred Deal & Private Exchange on the Smaato Publisher Platform (SPX)Reporting Data from All Demand Sources on One Unified Platform

Copyright © 2015 Smaato Inc. All Rights Reserved Smaato® is a registered trademark of Smaato Inc. | The names of actual companies and products mentioned here may be the trademarks of their respective owners.

New York City, NYTel: +1 (646) [email protected]

Hamburg, GermanyT: +49 (40) 3480 [email protected]

Singapore, SGT: +65 3157 [email protected]

San Francisco, CAT: +1 (650) [email protected]

Thank you

Director of Supply Partnerships EMEAMohamed Ben Hiba

[email protected]

How Premium is Going Programmatic: The New Evolution in Packaged Inventory - Mohamed Ben Hiba,...

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