Preferred Deals: The Pros, Cons, and How to Set Them Up
Preferred deals are a type of programmatic advertising agreement that allows publishers to sell their inventory to advertisers at a fixed price. This is in contrast to open auctions, where advertisers bid on ad space in real time.Preferred deals offer a number of benefits for both publishers and advertisers. For publishers, preferred deals can provide a guaranteed revenue stream and help to reduce inventory risk. For advertisers, preferred deals can ensure that their ads are seen by a high-quality audience and can help to control their advertising costs.
Pros of preferred deals
Here are some of the pros of preferred deals:
• Guaranteed revenue: Preferred deals can provide publishers with a guaranteed revenue stream. This is because publishers agree to sell their inventory to advertisers at a fixed price.
• Reduced inventory risk: Preferred deals can help to reduce inventory risk for publishers. This is because publishers do not have to worry about their inventory going unsold.
• More control over ad quality: Preferred deals can help publishers to maintain control over the quality of the ads that are displayed on their website. This is because publishers can choose which advertisers they want to work with.
• Better targeting options: Preferred deals can give advertisers access to better targeting options. This is because publishers can provide advertisers with data about their audience.
• Lower advertising costs: Preferred deals can help advertisers to reduce their advertising costs. This is because advertisers can negotiate a fixed price for their ads.
Cons of preferred deals
Here are some of the cons of preferred deals:
• Lower CPMs: Preferred deals can typically result in lower CPMs than open auctions. This is because publishers are willing to accept a lower CPM in exchange for the guaranteed revenue.
• Reduced flexibility: Preferred deals can reduce flexibility for both publishers and advertisers. This is because publishers and advertisers are locked into a contract for a period of time.
• Increased complexity: Preferred deals can be more complex to set up and manage than open auctions. This is because publishers and advertisers need to agree on a number of terms, such as the price, targeting, and duration of the deal.
Here are some tips for setting up preferred deals for success:
• Choose the right advertisers: It’s important to choose advertisers that are a good fit for your website and audience. You should also consider the advertiser’s budget and targeting goals.
• Negotiate a fair price: It’s important to negotiate a fair price for your preferred deals. You should consider the value of your inventory and the advertiser’s budget when negotiating the price.
• Define clear terms and conditions: The terms and conditions of your preferred deals should be clearly defined in a contract. This contract should include the price, targeting, duration, and any other relevant terms.
• Monitor and track your results: It’s important to monitor and track the results of your preferred deals. This will help you to identify what’s working well and what’s not.