Deal Id is a most common term in digital advertising. Deal Id is one of ad buying method that allows the advertisers to negotiate with the publishers in terms of the inventory and the price. Using this method advertisers can run their ads on premium websites or apps. Here, You will learn about the deal id and its types.
SRIDARAN BASKARAN
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What are the types of Deal Id?
What is Deal Id?
A deal id is a Unique Identifier generated by the publisher after the negotiation between buyer and publisher gets over. Publishers create the deal id on the supply side platform and share the deal id with the buyer. Buyers traffic this deal id in the demand side platform and associate this deal id to a ad campaign. Buyers ad campaign identify the incoming bids using this deal id identifier and participate in the auction.
How does the deal id work?
- The publisher and buyer make an agreement about the required inventories, price, etc.
- Once the agreement is over, the publisher needs to setup the deal id in their server or supply side platform and generate the unique identifier id.
- Publisher needs to share the unique id with the buyers.
- Then, buyer or advertiser setup the deal with the given unique id in demand side platform where they run their ad campaigns. Assign the deal id to the line item or package or adgroup of the ad campaign.
- Publisher sends the bid request along with the unique identifier of the deal id.
- The ad campaign identify the bid request based on the deal id and responds to the bid request.
- If the targeting and bid price matches, the advertiser wins the bid and shows their ad.
In DSP, the advertisers can use audience data, demo data, brand safety concept to target a particular audience group.
What are the types of Deal Id?
Based on the inventory allocation, price type we can classify the deals into different types as below,
> Private Auction Deals
> Preferred Deals
> Programmatic Guaranteed Deals
Private Auction
Private Auction also comes under the RTB system. But, publishers invite a small group of trusted buyers to participate in the ad auction. So, other buyers can’t participate in the ad auction. Private Auction is good for both publishers and advertisers. Using this method, publishers can sell their premium ad inventory to a certain group of known buyers. Likely, advertisers can show their ads on premium inventories.
Publishers allocate a certain percentage of the premium ad inventories for the selected advertisers. After the completion of agreement, publishers share the deal id with the selected advertisers. Then, advertisers setup their ad campaign with the given deal id. The same deal id is shared with multiple advertisers. So, advertisers who bid more will win the ad auction and can show their advertisement.
Normally, publishers share the below information about the corresponding deal id’s,
> Floor Price
> Type of ad unit
> Total impressions
Advertisers need to consider the floor price and type of ad unit when setup their ad campaign. The particular ad campaign should have the ad that matches the type of ad unit for the deal. Also, advertisers should keep the bid price higher than the floor price. Because, some percent of the amount will be deducted from the bid price before participating in the ad auction. For example, if your deal floor price is $4 and you kept the bid price $4. Here, the platform deduct some amount for platform fee, data cost fee, etc based on your campaign setting. So, your final bid price will be $3. In this situation, you can’t win in the ad auction. So, you should set the bid CPM price as just higher than the floor price. [Some platforms suggest the bid CPM price]
- Like you, many buyers bid for the same deal. In this situation, you should monitor the ad campaign performance and increase the bid CPM price if you lose the bids due to low bid.
- Transparency is higher than an open RTB system. Buyers know about the publishers and Publishers know about the Buyers.
- Buyers compete with a low number of buyers. So, they can show their advertisement on premium sites for a low price. Other side, publisher set a floor price for their ad inventory and allow more buyers to participate in the auction. So, publisher always get the price higher than the floor price.
Preferred Deals
The preferred deal allows the publishers to sell their certain part of ad inventory to buyers at a negotiated price. Major difference in preferred deal is, here the buyers have “First Look” access for the particular ad inventory. So, when a bid request comes from the particular deal, the allowed buyers will get the first chance to bid for the inventory. If no one purchases the bid then it will go to the open market for an auction.
Difference between Private Auction Deal vs Preferred Deal
Price :
In the Private Auction method, the highest bidder from the invited buyer wins the bid. [Floor Price]
In the Preferred method, the price is already negotiated. So, buyers always win the bid. [Fixed Price]
Priority :
In the Private Auction method, there is no priority during the bidding
In the Preferred Deal method, first preference is always given to the selected buyers.
Targeting :
Both deals can be targeted in many packages or adgroups. Also, buyers can apply further restrictions on their ad campaigns.
Programmatic Guaranteed Deals
In programmatic guaranteed deals, publishers choose only one buyer and guarantee the amount of impressions for a fixed price. This is how publishers sell their premium inventories.
In this method, publishers exactly know about the buyer and it eliminates the fraud. Publishers can review the ad during the agreement process. This one to one deal ensures the transparency between the buyer and seller.
- In Guaranteed Deal, the price is fixed and amount of impressions also fixed
- In auction, very first priority is provided for this deal type
- It can be targeted in only one lineitem or one adgroup
- Mostly not allowed to set further targeting in DSP
Conclusion
The main goal for every publisher is to make good money by selling their ad inventory. In today’s technology world there are many methods available to sell the ad inventory. Open auction is one of the common methods for selling the ad slots. But, premium inventory holding publishers face some issues like low eCPM price, less transparency, malicious ads,etc. So, they adopt the Direct Deal method to sell their ad slots. This method of selling ad slots provides them high revenue, high transparency and more advantages to the publisher. Advertisers also get opportunities to show their ads on premium ad inventories to develop their business.
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