What is Programmatic Guaranteed Deal? Evolution and its Benefits

Programmatic Guaranteed deals allow buyers and sellers to trade using an automated process. While the programmatic deals don’t require much human intervention, it takes a significant amount of human effort to make things work and generate the ROI.

On the other side, the programmatic advertising changed using various technologies. The automated process of finding the right advertisers and publishers, setting up the ad campaigns, and lesser advertising costs have made it easy for everyone to participate.

What is Programmatic Guaranteed?

The programmatic guaranteed is one-to-one direct deal where publisher offers a fixed number of impressions for a guaranteed price to the advertiser. Programmatic guaranteed is a kind of programmatic direct deal.

Both the advertisers and publishers can initiate a programmatic guaranteed deal using their ad serving platforms. Publisher can create proposal deal and send it to interested buyers to accept and complete the deal. Similarly, advertiser can directly contact publishers to and ask for a guaranteed deal.

In order to initiate programmatic guaranteed, the advertiser or advertiser-side agency needs to sync its data management platform (DMP) to publisher’s DMP. Once the information is exchanged by both parties, they can have exact targeting in both the side to initiate the deal. Advertiser can get the forecast of number of impressions available and plan the campaigns accordingly.

Evolution of Programmatic Guaranteed in the Programmatic Ad Industry

Programmatic guaranteed introduced to the advertising world in 2015 by making it fairly new programmatic method.

During the early days of programmatic deals, RTB was the revolutionary to sell and purchase the ad inventory which is still available. RTB enabled publishers to sell their ad inventory to the advertisers which matches to the publisher’s targeting, however, it never guaranteed impressions and price.

The programmatic advertising led the days where publishers were selling their inventory to higher value and rest of the inventories to normal pricing. Likewise, advertiser had slight or no idea about their bids and creative. RTB introduced mediator as demand side platform (DSP) and supply side platform (SSP) making the process chaotic and extensive. The introduction of many parties and auctions being open to all bidders put forth concerns related to security of user data.  

Ad tech has introduced private auction to get a better deal for the high value inventory. In this method, only invited advertisers are able to bid on the publisher’s inventory. However, publishers were still unable to monetize their premium inventory at the fixed price.

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The programmatic direct introduced where the publishers and advertisers communicate directly and negotiate a deal based on fixed impressions and price.

You might have heard about programmatic premium, premium direct, automated guaranteed, and programmatic reserved. They all come under the umbrella of programmatic direct with a slight difference in their execution.

Programmatic Guaranteed Benefits:

There are many benefits of using programmatic guaranteed from both the advertiser and publisher side. Here are a few benefits to understand the programmatic guaranteed.

Programmatic Guaranteed Benefits

Save time: It takes 57% lesser time compared to direct selling according to a research conducted by Boston Consulting Group in 2018. The programmatic guaranteed model eliminates creating the insertion order, manual entry of evaluation, waiting for an approval, and follow up for the payment.

Efficient and Secure: The programmatic guaranteed advertising charges a fixed price and number of impression, both the advertisers and publishers set up an effective deal. Also, eliminating other parties such as DSP and SSP ensures the security from the ad frauds.

Transparency and Trust: There is a higher transparency between the advertiser and publishers as they both will transact one-to-one. Also, the publisher can approve or disapprove the advertisers before selling their ad inventory which brings out the trust factor from the publisher’s side.  

Effective utilization of premium inventory: The publishers are able to sell their premium inventory at a fair price to the desired advertisers without risking the security. Additionally, the advertisers allowed to get a fixed number of impressions by accessing the premium inventories.  

Here’s an article to understand different Types of Programmatic Media Buying and it impacts the buyers and sellers in programmatic advertising.

Conclusion: Programmatic guaranteed model creates an easy and frustration free advertising compared to other programmatic models. The publishers and advertisers and trade the inventories with fixed price and guaranteed buying limits the inventory selling and buying issues to both the parties.

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