What is the key difference between a Private Auction (PA) deal and a Preferred Deal (PD) on Amazon DSP?

Private auctions offer preferred placement and custom execution, while Preferred Deals offer competition among diverse buyers

Private Auctions have a varied CPM, while Preferred Deals have a fixed price

Private Auctions have a fixed price, while Preferred Deals have a floor price


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What is the key difference between a Private Auction (PA) deal and a Preferred Deal (PD) on Amazon DSP?


Explanation: The correct answer is **Private Auctions have a varied CPM, while Preferred Deals have a fixed price** because the key distinction between these two types of deals is how pricing is structured. In a Private Auction (PA), multiple advertisers can bid for the available inventory, resulting in a varied CPM (Cost Per Thousand Impressions), depending on the competition and bids placed during the auction. On the other hand, in a Preferred Deal (PD), the price is fixed between the advertiser and the publisher before the campaign starts, ensuring a predetermined cost for the inventory, regardless of the auction dynamics. This makes the pricing more predictable for advertisers in a Preferred Deal, whereas the cost in a Private Auction is influenced by real-time bidding. The other options incorrectly describe the pricing structures or benefits associated with these deal types.

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