3 Key Updates you missed on Private Auctions & Preferred Deals

This year has brought significant changes to how publishers and advertisers connect through Private Auctions (PMPs) and Preferred Deals. These programmatic buying methods offer a more controlled and premium environment compared to the open auction, but staying ahead of the curve requires awareness of the latest updates.

Google Ad Manager has introduced key changes to its Private Auction functionalities, impacting how publishers create and manage these deals. Simultaneously, broader industry trends are shaping the way PMPs and Preferred Deals are being utilized. From a growing emphasis on transparency and efficiency to the rise of take-private deals, both publishers and advertisers need to adapt their strategies to maximize returns.

This overview will equip you with the knowledge to navigate these shifts, covering crucial Google Ad Manager updates, emerging industry trends, and best practices for success in the evolving world of Private Auctions and Preferred Deals.

Key Updates to Private Auctions (PMPs) and Preferred Deals in 2024

Deprecation of Legacy Features in Google Ad Manager:

 

Google Ad Manager is phasing out certain features in Private Auctions. As of September 1, 2024, you can no longer create new Private Auctions with these features:

Creative restrictions: These have been removed.

Inventory URL targeting: This has been replaced by more versatile targeting options like Ad Unit, KeyValue, and Custom Targeting.

Support for “game” type inventory: You now need to create these as video-type Private Auctions.

Deadline for Updating Existing Auctions:

 

Existing Private Auctions using the deprecated features will stop working on January 15, 2025. Ensure you update them before this date to maintain functionality.

Before the deadline, review all your existing PMPs. If any are using the features being retired, you’ll need to update them. This might involve:

• Removing creative restrictions.
• Switching to alternative targeting options like Ad Unit, KeyValue, or Custom Targeting.
• Recreating “game” type PMPs as video-type auctions.

Discontinuation of Inactive Auctions:

 

Private Auctions created before January 1, 2024, with no spending since that date, will be discontinued on January 15, 2025.

Don’t forget to review your PMPs created before 2024. If you have any that are no longer needed, you can simply leave them as they are – they’ll be automatically removed.

Essentially, Google is encouraging publishers to actively manage their PMPs, ensuring they are up-to-date and optimized for performance. By taking action before the deadlines, you can avoid potential disruptions to your advertising revenue and keep your Ad Manager account streamlined.

Industry Trends

Emphasis on Efficiency and Transparency

Advertisers are increasingly favoring second-price auctions in Private Auctions and Preferred Deals due to their inherent fairness and efficiency, which help prevent overpayment. This model allows advertisers to bid competitively while ensuring they pay only slightly more than the next highest bid, enhancing trust and satisfaction in the bidding process.

Rise of Take-Private Deals

In 2024, there has been a significant increase in take-private deals, with private equity firms actively seeking investment opportunities in the ad tech space. This trend indicates a growing interest in acquiring companies that can offer innovative solutions and access to premium inventory, reflecting the industry’s shift towards consolidation and strategic partnerships.

Focus on Premium Inventory

Publishers are strategically leveraging Private Auctions and Preferred Deals to offer premium inventory to select buyers. This approach not only drives higher CPMs but also maximizes revenue potential by ensuring that high-quality ad placements are reserved for advertisers willing to pay a premium for exclusivity.

Flexibility in Auction Strategies

Platforms like PubGuru are empowering publishers with enhanced control over their auction strategies. This flexibility allows publishers to tailor their approaches for different ad units, optimizing for effective eCPMs while adapting to market demands. By customizing auction settings, publishers can improve their overall yield and better meet advertiser needs.

Best Practices

Stay Informed: Keep abreast of the latest updates and changes from platforms like Google Ad Manager to ensure your Private Auctions and Preferred Deals remain effective.

Prioritize Second-Price Auctions: Consider adopting second-price auctions to promote fair competition and attract advertisers.

Optimize Targeting: Utilize the expanded targeting options in Google Ad Manager to precisely reach your desired audience within Private Auctions.

Focus on Value: Clearly communicate the value proposition of your premium inventory to attract buyers in Private Auctions and Preferred Deals.

What’s staying the same?

Existing deals will continue to function. Prior to having it on open auction, Preferred Deals and Private Auctions inventory can be accessed only by invited buyers — this is the same behavior as before. Publishers do not need to change anything if they want to give buyers a second chance to purchase their inventory.

For help managing your ad inventory and improving your sell-through rates, contact us today. We’d love to help you increase your ad monetization rates by 25-50%, as we have with other clients.

source https://www.monetizemore.com/blog/private-auctions-and-preferred-deals-updates/