Preferred Deals overview
Preferred Deals allow you, the Ad Exchange seller, to offer inventory to a single advertiser via a single or various buyers.
Buyers that participate in a Preferred Deal have an initial or "preferred" opportunity to bid on inventory before it becomes available on the open auction. A buyer gains access to the inventory by bidding at or above the CPM price and, if there are multiple buyers, having the winning bid.
Preferred Deals can also be used if you want to pre-negotiate a CPM price with an advertiser or buyer representing the advertiser. In this case, you want to give the buyer an opportunity to win the inventory before it goes to an open auction. The buyer knows the "fixed" CPM price at which to bid and secure exclusive access to the inventory by bidding at that price.
If buyers do not bid, or bids are below the CPM price, the inventory goes to the open auction. Buyers that are part of a Preferred Deal are excluded from bidding in the open auction.
Sellers can report on impressions, revenue, and core metrics, and leverage Ad Exchange billing, filters and controls, as well as creative review for Preferred Deal transactions.
Preferred Deals are useful for negotiating terms with a single buyer to whom you want to make specific inventory available and a predetermined CPM price. If the buyer fails to bid, or fails to bid at the negotiated CPM price, the inventory can still compete in the general auction.
Keep in mind when you set up a Preferred Deal
- Unlike the open auction, you should enter the gross CPM in the interface. This is the amount that is sent to real-time bidders, and is the amount that buyers have to bid to win. You earn the net (e.g., 90%) for each impression transacted for the preferred deal.
- If a buyer bids below the fixed price, it skips the auction entirely for this transaction.
- If multiple buyers bid at the fixed price set for them, the highest fixed price wins; if the fixed prices are the same, then one buyer is chosen at random from that set.
- If a buyer bids above its fixed price, the transaction still occurs at the fixed price specified for that buyer.
- Confirm that your account settings do not prevent the buyer from accessing your inventory.
Some key features to review:
- Many trading desks work with verification companies, so verify you have their technology partners enabled.
- If using advertiser, domain or category blocking, confirm the buyer's clients are allowed.
- If using Creative review, ensure you have approved the buyer's campaigns. There may be new campaigns, so confirm with the buyer that you’ve approved the appropriate campaigns.
You can also download the buyers' checklist (PDF).
Learn more about the differences between the Open Auction, Private Auctions, and Preferred Deals.