Ad Tech Analogies: Simple is the New Smart (The Coupon Code Analogy)
Next up in our ad tech analogies series: The Coupon Code Analogy, which explains how Deal IDs facilitate private marketplaces.
Before we dive into this analogy, let’s quickly overview what private marketplaces (PMPs) are. Private marketplaces are customized marketplaces where publishers make their inventory available to select buyers. Usually a negotiation takes place between the buyer and seller to create and agree on a deal.
So, what are Deal IDs and how could they possibly relate to store coupons?
Think about how coupon codes are used. Every retailer offers and issues coupons at different times and for different reasons. A coupon code from a retailer can be unique to each individual (like a savings coupon for your birthday) or they can be universal and work for anyone who’s got the coupon (like 20% off all store merchandise for anyone who comes into the store). They can be for specific items, or a general discount on all inventory. They can be valid for short, specific windows of time or valid for long, extended periods of use.
It’s not unlike how Deal IDs are used to facilitate access to private marketplaces for buyers and sellers. Deal IDs act as a key to the private marketplace. While private marketplace transactions are still subject to an auction, the competition is limited to advertisers with the Deal ID. In simpler terms: You can’t get 20% off all store merchandise if you never got the coupon or savings offer.
Next week we’ll dive into The Online Shopping Cart Analogy, which explains how programmatic direct buying works.
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