We looked at a case study for a successful gaming network and analyzed the relationship between the number of ad sources connecting to its private marketplace and the average CPM. It seems that opening up your inventory to the power of competitive bidding provides some key advantages.

Increased Competition = Increased CPMs. Private marketplaces work best for sellers who have scale and brand recognition. Coupled with the functionality of an exchange they prove to be powerful source of income. A private marketplace is the only place sellers can get multiple ad sources competing for inventory in an auction-based environment.

Improved Efficiency = Improved Margins. Private marketplaces are efficient because the connections to demand sources and the listing of inventory are automated – no paper IOs and fewer hours spent negotiating RFPs. Eliminating operational inefficiencies can be a direct improvement to the bottom line.

Tags: ad source, ad sources, advertising, CPM, CPMs, data, network, private marketplace, publishers, video