If you’re someone who is getting started with programmatic, there is a lot to experiment, and even a lot to digest. The fundamental objective of this post is to make you understand the very basics of preferred deals and to help you with one of the most controversial topics, i.e. setting up pricing for your preferred or PMP deals (the key points to keep in mind). So, let us go ahead and see how we can create preferred deals in Google Ad Manager.
How to Get Started with Preferred Deals in Google Ad Manager?
Both, the programmatic guaranteed and non-guaranteed proposals negotiate the same way. Both parties need to first agree upon the campaign details, following which you request acceptance of the proposal from the buyer. Once accepted, the proposal is finalized and Ad Manager creates corresponding delivery line items.
In order to Set up a Preferred Deal:
- Go ahead and create a proposal.
- Add a proposal line item.
- Select Preferred deal as the line item type.
- Ensure you enter a value for “Estimated quantity” that reflects a realistic expectation for delivery. This value can later be used to monitor and troubleshoot the campaigns.
- You can negotiate the same way as guaranteed campaigns:
- Request acceptance to finalize the deal
- Send for review you still want to negotiate terms and aren’t ready to close the deal
Preferred Deals: Pricing, Tips, and More for Publishers
One of the most sought after topics in relation to preferred deals is to understand the optimal pricing which publishers should ask from buyers. There is no fixed formula to this, and thus both parties have to finalize a mutually agreed price which benefits them in the long term. Some of the tips to ensure that your preferred deal pricing is taken care of includes:-
Setting up a minimum CPM floor price: It is always advised to set up a minimum floor price even for your preferred deals campaign. You can set the base price depending on the bidding rates of your other demand partners.
Ask for a minimum spend commitment: You can always ask your buyer to commit for a minimum spend on your preferred deals inventory. By doing so you will have an approximate forecast of your revenue projections and can further optimise your preferred dealer campaigns.
Optimise your pricing based on location: if you have good traffic Inventory of the European market; you should try to set preferred deals with DSPs like Adform who are pretty strong in that market. Your pricing should be optimised for the highest CPM but it should also ensure that the overall fill rates are hundred per cent.
Hire Salespeople: One of your best bet should be to hire salespeople who are good at both programmatic guaranteed and PMPs. Both, PMP’s and PG’s essentially require some sort of direct interactions and meeting with a salesperson and buying dinners, drinks, sports tickets, etc to actually perform well.
Keep an eye in the open market: One of the best possible ways to generate high revenue-generating PMP deals is to keep a continuous eye in the open market and see which advertisers are massively buying your inventory over a period of 3 to 6 months. Your sales team should target these advertisers and try to convince them for preferred and programmatic guaranteed deals.
Depending on your site, quality of conversions, advertiser demand and rates, PMPs should generally be priced at 1.5-2.5X higher than open auction CPMs. However, it is you who is the best judge of your inventory, so just experiment with what works and what buyers are willing to pay. A piece of good advice is to always on board and SSP that is strong in your region.
While setting up Preferred deals, one of the crucial aspects is to understand the priority and line items of preferred deals which are illustrated in this article. To know more about sourcing PG and PMP deals subscribe to our network’s weekly newsletter: Pub Digest.