Preferred deals and private inventory

About private auctions

A private auction (also known as "private inventory") is a one-publisher-to-multiple-advertisers relationship. Private auctions give publishers more control over how they sell their inventory, while giving select buyers an advantage in auction buys.

Private auctions are second-price auctions with a CPM floor. With a private auction, the seller invites preferred buyers to participate and make a portion of their non-guaranteed inventory available for purchase at negotiated minimum prices for each buyer. The inventory goes to the highest bid from among the private buyers, provided the winning bid is above the minimum CPM. If none of the private auction buyers wins or bids on the inventory, it becomes available in a regular, "open" auction.

Can private auctions and preferred deals coexist?

Yes. Depending on how publishers have segmented their inventory, they might be participating in a preferred deal and a private auction, in which case the following priority flow takes place:

  1. Preferred deals take priority over private auctions.
  2. Private auctions take priority over the open auction.
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