There are several benefits of a private auction over a preferred deal. These benefits include ad fraud protection and scalability. Let’s explore these benefits to understand whether this type of advertising is right for you. Private auctions are usually more profitable because of premium inventory and chosen advertisers who are willing to pay good money for placements. Direct deals also reduce fraud and protect the privacy of user data. Private auctions can be very beneficial for small businesses and startups that are not able to afford the high-cost of a preferred deal.

Advantages of private auctions over preferred deals

Private auctions and preferred deals both benefit publishers. Preferred deals give publishers more control over pricing. Unlike open market auctions, there is no single buyer who buys all of the inventory. In addition, preferred deals allow advertisers more flexibility to choose when and where they sell their inventory. Preferred deals also allow for better quality control and auditing of the campaign. Preferred deals are also more transparent, with direct contact between the buyer and seller.

Preferred deals are another form of advertising where the publishers sell their inventory to advertisers. Preferred deals are the best way to get the highest price for premium inventory. However, they come with their own set of challenges. First, they can result in unfilled impressions, which could then move to a private auction or the open market. While preferred deals are generally considered a better option, publishers should be aware of the risks and benefits involved in this type of advertising.

Protection against ad fraud

The difference between private auction and preferred deal protection against ad fraud lies in how the marketplaces work. Private auctions and preferred deals both involve the use of algorithms to identify fraudsters. However, the former is more effective at detecting fraudulent activity than the latter. For publishers, this difference is important in minimizing risk. Private auctions generally offer higher rates for inventory because advertisers can choose to pay a higher CPM for a desired audience. In addition, publishers can negotiate with multiple buyers for higher revenues.

The private auction process works by allowing publishers to invite certain advertisers to participate in a bidding process. They then invite advertisers to bid on their inventory, choosing a minimum CPM floor price. The winning bidder will be the one to receive the impressions. Often, these private auctions are labeled as premium and may only be available to selected advertisers or content types. Because of these advantages, private auctions are considered to be safer media selling methods because they eliminate the risk of ad fraud.


Private auctions offer a number of benefits. They are ideal for purchasing inventory that cannot be purchased on the open market, like in-app inventory, premium CTV placements, and other highly competitive spots. Moreover, they offer the advantage of being scalable. With private auctions, you can choose as many buyers as you want and are not bound by a pre-set number of offers. As a result, they allow you to achieve greater control over your in-app inventory.

PMP inventory comes with a deal ID, which helps you identify buyers and sellers. This deal ID is associated with a specific package of inventory. This package contains deal-specific attributes such as transparency, floor pricing, and data. Once the deal is complete, you can programmatically purchase the inventory through a DSP. The difference between a preferred deal and a private auction is often only in the name of price. But what makes a preferred deal better than a private auction?

Did you miss our previous article…

Damon Nelson
Damon Nelson

Entrepreneur, business consultant, software developer, and marketing professional. Many hats with one simple goal... help you make more money with simple automation, proven strategies, and a little common sense. Want to learn more? Check out what I've been reading lately.