Programmatic advertising promised scale and automation, but open auctions quickly got messy. Ads started landing next to conspiracy content, bots drained budgets and clickbait sites hijacked impressions with zero real value. One brand pays $5 CPM and the publisher sees only $1.
That’s where private marketplace (PMP) deals come in: curated, invite-only environments that offer better placements, cleaner supply paths and more control.
But what actually is a private marketplace? In this article, we’ll explore PMPs purpose, their function and benefits.
Why PMPs Emerged and Where They Stand Today
PMPs didn’t show up just because someone thought “hey, let’s make media buying fancier.” They came out of necessity.
When programmatic first took off, everyone rushed into open auctions because it was easy and scalable. However, it didn’t take long before problems piled up: ads appearing next to conspiracy theories, bots burning through budgets and clickbait farms gaming the system. Suddenly, what was thought to be the future of advertising became risky.
That’s when publishers and advertisers started asking for more control, and PMPs emerged as the middle ground: real-time bidding but behind a velvet rope.
Fun fact: Back in 2016, The Guardian famously ran a test where they bought their own ad space through the open exchange and got less than 30% of the money back. The rest? Eaten by the supply chain.
Today, PMPs are less of a trend and more of a default for brands that prioritize quality. Especially as third-party cookies are eliminated and brand safety continues to stay top of mind, having a more curated buying environment just makes sense. And while PMPs are not replacing open auctions, they’re definitely stealing the spotlight.
The Programmatic Spectrum: Where PMPs Fit
To make sense of private marketplaces, you first need to see the bigger picture. Programmatic buying isn’t one thing. It’s a range of deals that vary in how open, controlled or committed they are.
Here’s the simplified lineup.
1. Open Auction
Anyone can bid. It’s fast, scalable and chaotic. You’re competing with everyone else in real time, and the highest bid wins. No prior relationships, no guarantees and often no idea where your ad will end up.
2. Private Marketplace (PMP)
This is still real-time bidding, but you need an invite. Publishers decide who has access. You’re bidding against a smaller, curated group of advertisers, usually with better inventory and more control over what you’re buying.
3. Preferred Deal
A direct deal between advertiser and publisher. You agree on a fixed CPM, but impressions aren’t guaranteed. You’re first in line to bid, but not locked in.
4. Programmatic Guaranteed
The most structured format. Fixed price, fixed volume, fixed placements. You’re essentially reserving inventory in advance through programmatic pipes.
As you can see, PMPs fall right in the middle of the programmatic buying schedule. They aren’t fully open but also not fully locked down. For a lot of advertisers, it’s a sweet spot: better quality without giving up the flexibility of auction-based buying. If you’ve ever felt like open auctions are too random, but guaranteed deals are too rigid, chances are you’re exactly the kind of buyer PMPs were made for.
How PMP Deals Work
At its core, a PMP deal is just a more controlled version of programmatic buying. Still automated, still real-time bidding, just with some rules and a smaller guest list.
Here’s how a PMP deal usually works, step by step.
- A publisher sets up a deal: They decide which placements to offer, set the floor price and define who they want to work with.
- Advertisers are invited: Only selected buyers can access the deal. No open-door policy here: the publisher controls who is invited.
- Advertisers get a deal ID: This is basically the key. Advertisers use the ID to target that deal inside their DSP.
- Bidding happens in real time: Instead of hundreds of random bidders, it’s a smaller group competing for better inventory.
- Ads are served: The winning bid shows up, and the usual delivery and tracking systems take over.
Here’s a quick example. Let’s say there’s a high-traffic news site that wants to reserve its best banner slot for finance-related campaigns. They don’t want it flooded with generic ads, so they create a PMP deal and share access with a few advertisers who align with their audience.
One of those advertisers plugs the deal ID into their platform, sets a bid range and starts competing only within that curated environment. No distractions, no clutter, no bidding war against unrelated campaigns — it’s as simple as that.
Most major SSPs and DSPs support PMP deals. Some of the most common names include:
- Google Ad Manager
- Magnite
- Xandr
- PubMatic
- Index Exchange
- OpenX
- Yahoo DSP
- The Trade Desk
So if you’re running through any of those, you’re already set up to access PMPs: it’s just a matter of asking for the invite.
Why Both Sides Like PMPs
For advertisers, PMPs offer:
- Access to premium placements that aren’t available in the open auction;
- More control over where ads appear;
- Better brand safety and contextual alignment;
- Cleaner supply paths with fewer unknown intermediaries;
- Opportunities to use publisher first-party data for smarter targeting;
- More consistent performance compared to open exchanges.
For publishers, PMPs mean:
- Higher CPMs for quality inventory;
- Control over which advertisers can access their audience;
- Protection from irrelevant or low-quality ads;
- Stronger, more direct relationships with trusted buyers;
- A way to bundle inventory and audience segments into valuable packages;
- Easier integration of sponsorship-style deals within programmatic systems.
It’s a win on both sides: better placements for advertisers and better monetization for publishers, without all the noise of the open market.
MGID and Private Marketplace Opportunities
MGID doesn’t use the “PMP” label, but many elements of how MGID works deliver similar advantages. Here's how:
- Curated publisher network: All MGID publishers go through onboarding, approval and ongoing moderation. That means no made-for-ads junk or brand-risk inventory slipping through the cracks.
- Inventory segmentation: Advertisers can target specific verticals (e.g., finance, health, lifestyle), regional bundles and handpicked publisher lists (whitelist-based delivery).
- Controlled ad environments: Formats are designed to match publisher layouts. Content policies limit misleading or aggressive creatives. Combined, this gives advertisers brand-safe, contextually relevant placements.
- First-party data targeting: MGID supports contextual and behavioral targeting based on publisher-side signals, similar to what you’d get from PMP setups on SSPs.
- Direct setup with account managers: Larger advertisers can work with MGID teams to define targeting rules, preferred site lists, custom pacing and delivery strategies, effectively mimicking a managed PMP deal.
In practice, MGID gives you the benefits of PMP campaigns (control, transparency, quality) without requiring a formal deal ID or external SSP setup. It’s PMP logic, built into the platform.
How to Choose Between PMP and Other Types of Deals
Not sure which programmatic deal type fits your campaign best? Here’s a quick breakdown to help you decide based on goals, control and budget flexibility.
| Scenario | Best deal type | Why |
|---|---|---|
| You want maximum scale at the lowest cost. | Open Auction | Broad reach, real-time competition, no prior setup, but limited control and brand safety risks |
| You care about brand safety and contextual alignment, but you still desire flexibility. | Private Marketplace (PMP) | Curated inventory, vetted publishers, better control without locking into guaranteed volume |
| You need guaranteed impressions or placement (e.g., for product launches or sponsorships). | Programmatic Guaranteed | Reserved inventory, fixed CPM and delivery: ideal for high-priority campaigns where consistency matters |
| You have a strong relationship with a publisher and want to secure premium access before others. | Preferred Deal | Fixed CPM without guaranteed volume, first look at impressions before others in the auction |
| Your brand must avoid risky content or MFA sites. | PMP or Programmatic Guaranteed | Both offer curated environments and fewer intermediaries for safer, cleaner supply chains |
| You’re testing new markets or creatives and want low-commitment buying. | Open Auction or PMP | Open auction offers flexibility; PMP gives quality control without full commitment |
Pro tip: If you need flexibility and control, start with PMP. You get access to better inventory without locking yourself into high-volume commitments.
PMP Campaign Step-by-Step
If you're new to private marketplace deals, the setup might seem more complex than launching a typical open auction campaign, but it’s really just a few extra steps. Here’s a straightforward process to follow.
- Set your campaign goal: Know what you’re optimizing for, whether that’s brand-safe reach or better performance.
- Choose inventory: Pick target verticals, GEOs or publishers you trust. Quality beats volume.
- Request access: Contact your SSP or platform rep. Ask for existing deals or request a custom one.
- Get your deal ID: Once approved, use the deal ID to activate the PMP in your DSP.
- Launch and monitor: Run the campaign, track delivery, CPMs and performance. Optimize if needed.
Not sure where to begin when talking to a rep or SSP? We recommend asking the following questions:
- Do you have active PMP deals in my vertical or target region?
- Can I see a sample list of publishers included in the deal?
- Are there viewability, CTR or audience benchmarks for this inventory?
- Can we set frequency caps or control pacing?
- Is the deal set up programmatically or manually?
- Can I whitelist or exclude specific domains within the PMP?
These questions help you avoid vague deals and get exactly what you need from the start, with no surprises halfway through.
Conclusion: When to Choose a PMP
PMPs aren’t for every campaign, but when quality, control and brand safety matter, they’re hard to beat. You get cleaner inventory, stronger placements and fewer unknowns eating up your budget.
MGID offers a practical middle ground: curated publisher environments with scalable reach. It’s not PMP in name, but it delivers the same outcomes, and sometimes with less friction.
If you're looking to combine brand safety, contextual precision and premium placements without the hassle of deal IDs or external SSP setups, MGID is your next move. Launch your first campaign now or reach out to your MGID account manager to get started.
