4 Types of Deals in Programmatic Advertising
Somya Goswami
Media Performance Associate Manager | Publicis Groupe - Publicis Global Delivery (PGD)
Programmatic advertising involves the automated buying and selling of digital ad space in real time through an automated bidding system. There are various types of deals or transactions that take place in programmatic advertising. Here are some common ones:
Open Auction (Open Marketplace)/Real-Time Bidding:
An open auction is a real-time bidding process where ad inventory is made available to multiple advertisers simultaneously. Advertisers bid in real-time for the available impressions, and the highest bidder's ad is displayed.
Characteristics: Transparent, competitive, and often lower-cost inventory.
Private Auction:
Similar to an open auction, but this inventory is made available to a selected group of advertisers. Advertisers are invited to participate in a bidding process for premium inventory before it opens to all.
Characteristics: Limited access, more control for publishers, and potentially higher prices.
Preferred Deals (Unreserved Fixed Rate):
Advertisers agree to buy a certain amount of inventory at a fixed price before it is made available in the open auction. However, the deal doesn't guarantee that the impressions will be won; it just provides a first look.
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Characteristics: Fixed rates, priority access to inventory, but not guaranteed impressions.
Programmatic Direct (Direct Deal or Programmatic Guaranteed):
Advertisers and publishers negotiate and agree upon terms such as price, volume, and targeting beforehand. Advertisers are guaranteed a certain number of impressions.
Characteristics: Direct negotiations, guaranteed inventory, and fixed prices.
Programmatic TV and Video Deals:
Similar concepts as programmatic display advertising but applied to TV and video advertising. Advertisers can programmatically buy ad space on television or within online video content.
Characteristics: Targeted TV and video advertising with the efficiency of programmatic buying.
These deal types provide advertisers and publishers with flexibility, control, and various options for buying and selling ad inventory in the programmatic advertising ecosystem. The choice of the deal type depends on the specific goals, preferences, and strategies of the parties involved in programmatic advertising.
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Financial System Specialist @ Epsilon | Algorithmic Project Development
1 å¹´As professionals in the advertising industry, it's important to understand the different types of deals in programmatic advertising and how they can benefit both advertisers and publishers. With the use of automated bidding and real-time inventory availability, programmatic advertising offers transparency, efficiency, and flexibility. Whether it's through open auctions, private marketplaces, or direct deals, programmatic advertising allows for targeted and effective ad placement, ultimately leading to a more successful campaign for both parties involved. Stay informed and stay ahead in the ever-evolving world of digital advertising. Just my thoughts best regards