Defining Deal ID; LiveRail Adds The Method For Private Marketplaces

Online video ad exchange LiveRail this morning announced the addition of Deal ID support for private marketplaces on their exchange. RTM Daily spoke with LiveRail CEO Mark Trefgarne about the upgrade, and he claimed that this is the first time that Deal ID support will be available for online video.

Trefgarne explained Deal ID as a method of programmatically trading that involves prior direct negotiation between the publisher and advertiser. "There are rules set up in advance," he said. "It enables a deal to be cut by two humans in advance. Then the deal is executed on these programmatic platforms and is called out in real-time."

Two of the examples Trefgarne gave on how a publisher and advertiser can use Deal ID on a private marketplace were:

      -If the advertiser bids within X% of the winning bid, they win the impression no matter what
      -Lowering the floor price for Deal ID bids

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Trefgarne noted that there are a number of other ways the publisher and advertiser can work out a priority deal, but the above are some of the more common methods. "Publishers like this because it allows the sales team to use some negotiation skills to get these programmatic deals to be more favorable," Trefgarne reasoned. "Advertisers like it because it opens up new access or preferential access."

LiveRail is only rolling out Deal ID support on their private exchanges, and RTM Daily asked why this was the case and if Deal ID was a possibility on open marketplaces. Trefgarne said, "…it is primarily for private exchanges." He added, "It's a tool useful for premium publishers. They want to make sure they know who is buying." On an open marketplace, you are dealing with more of the reserved inventory, which means the advertisers (in theory) aren't as premium either. Trefgarne also hopes that the addition of Deal ID at LiveRail will help more publishers "get comfortable with more premium inventory."

RTM Daily also asked why publishers and advertisers would even bother with an exchange and auction if a deal has already been cut. Trefgarne said, "Retargeting. Maybe an advertiser would like to retarget all people that have seen their ad elsewhere. Real-time bidding (RTB) allows them to pick out individual users." Deal ID is also different than what is being called "Programmatic Direct" because when using Deal ID, the inventory is not reserved for the advertiser like it is in Programmatic Direct deals. 

For the time being, any publisher and advertiser looking to use Deal ID through LiveRail will still have to go through a manual process to strike deals, but Trefgarne hinted that upgrades to make the process more integrated could be somewhere down the road.

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