In the field of Real-Time-Bidding and Ad Exchanges, a Preferred Deal enables publishers to offer their inventory to one or more advertisers at a fixed price before it is auctioned.
The model of Preferred Deals makes it possible for publishers to sell their premium media inventory at a negotiated fixed CPM (cost-per-mille) to selected advertisers. The deal is then transacted in real-time and advertisers will win the impressions by bidding at or above the fixed CPM price set by the publishers.
Preferred Deals are especially beneficial to publishers as they give them the
- ability to establish and control the Cost Per Impression
- power to establish a market price and generate higher revenue through the selling of premium inventory
- capacity to sell premium inventory directly to premium advertisers programmatically
- efficiency to distribute unsold inventory to be acquired elsewhere
Meanwhile, advertisers benefit from this model as it enables them to access more exclusive inventory with stable volume and no surprises in pricing. However, advertisers have to be aware of the fact that they are not able to bid for an ad impression in an open auction after they have bid for this impression on a preferred deal.