Many advertisers complain that there is not enough premium inventory available programmatically. They claim that most of the inventory available is remnant and not the type of inventory they would want to display their ads on. They also claim that there is not enough transparency into the inventory they are buying in order to properly identify if it is premium inventory or not.
Private Marketplace direct deals can help to solve some of these issues. An advertiser can setup a direct deal with a publisher to provide them with first look at specific inventory. This can allow them to identify specific inventory where they want to display their ads and they can have confidence that is being displayed on sections or within content they have specifically identified. Of course buying through a private marketplace can result in higher prices, but there is typically less competition, if any at all, and they can be assured it is not remnant inventory.
Publishers also benefit because they can offer their premium inventory at higher prices and can assure the quality of the advertisers displaying ads on their sites or apps. Many times publishers complain about low quality ads being displayed on their site delivered programmatically. If a publisher sets a low bid floor price for their inventory and does not restrict the advertisers who can bid, they may receive low quality ads that can result in a poor user experience. This can reflect poorly on the publisher, so by establishing as many direct deals as possible they can gain more control over the quality of ads being displayed on their site and app. If a publisher is aware of the advertisers advertising on their properties it can also help them to prevent malware ads since the advertisers are known.
Private Marketplace direct deals will not solve all of the challenges within the programmatic mobile ad industry, but they can help to provide more quality control for both advertisers and publishers and help to remove some of the unknown from the process.