Brands and agencies on the pros and cons of private marketplaces

November 18, 2016 | Share this article

At the Digiday Programmatic Summit in Palm Beach, Florida, this week, top marketers and publishers are on hand to discuss the trends, themes, challenges and opportunities posed by programmatic advertising.

We asked four executives — two from brands and two from agencies — the same question: Are you moving from an open exchange to a private marketplace? Why or why not? Their answers, edited for length and clarity, run the gamut from feeling gung-ho about private marketplaces to being confused.

Jon Mansell, VP of Marketing Innovation, Magna Global

From a negotiation perspective, the ad spend flowing on open exchanges doesn’t have intrinsic value for us as an agency. For instance, if Hearst wants to do a programmatic deal with us, the money that goes into an open exchange appears to come from the demand-side platform — it doesn’t appear to come from an actual holding company. So the vendor looks like a buyer, which leads to a transparency issue.

From the client perspective, when they buy from private marketplaces they are in a better position from a priority standpoint and their inventory performs better. So our position is to maximize private marketplaces. Our goal is likely to spend more than 50 percent of Cadreon’s programmatic ad budget on private marketplaces by the end of 2017.

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