Programmatic Guaranteed combines the efficiency of programmatic advertising with the certainty of traditional direct sales. It involves a pre-negotiated agreement between an advertiser and a publisher, where the advertiser agrees to buy a specific number of impressions or ad placements at a predetermined price.
This model guarantees the advertiser's ads will appear in the publisher's inventory, offering predictability and security in their digital advertising efforts, especially crucial in the mobile marketing landscape where user engagement can significantly fluctuate.
The whole process is quite simple following these 4 steps:
Negotiation: Publishers and advertisers negotiate the terms of the deal, including the price, the number of impressions, and the specific inventory.
Setup: Once agreed, the deal is set up through a Demand Side Platform (DSP) and a Supply Side Platform (SSP), using a unique deal ID.
Execution: The advertiser's ads are then programmatically served to the agreed-upon inventory, with the platform ensuring the delivery of the guaranteed number of impressions.
Reporting: Both parties have access to real-time reporting tools to monitor the performance and ensure the terms of the deal are being met.
There are 4 main types that you can refer to as below:
Programmatic Guaranteed is also not auction-based like Preferred Deal. However, unlike Preferred Deals where inventory is offered to an advertiser at a negotiated price but not guaranteed, Programmatic Guaranteed ensures inventory and impressions.
In contrast to Private Auctions, which involve bidding within a select group of advertisers for non-guaranteed inventory, Programmatic Guaranteed deals secure ad placements without the need for bidding. Programmatic Guaranteed deals provide more certainty and control compared to Open Auctions, where inventory is bought and sold in real-time bidding with no guaranteed placements.
Revenue Stability: One of the most compelling benefits for publishers is the financial predictability that Programmatic Guaranteed offers. By locking in deals at predetermined prices, publishers can accurately forecast their revenue streams. This stability is crucial in planning and budgeting for future content creation, platform enhancements, and overall business growth.
Efficiency and Time Savings: The direct negotiation process of Programmatic Guaranteed deals eliminates the need for publishers to manage numerous bids or navigate the complexities of auction-based sales. This efficiency not only saves time but also reduces the operational burden on sales teams, allowing them to focus on building relationships and strategizing for higher-value partnerships.
Control Over Inventory and Audience Data: Publishers have the luxury of choosing which inventory to offer through Programmatic Guaranteed deals, allowing them to reserve their most premium slots for high-value advertisers. This selective control helps maintain the quality and integrity of their advertising spaces. Furthermore, Programmatic Guaranteed deals minimize the risk of audience data leakage, as publishers share less data with advertisers compared to open auctions, safeguarding their valuable audience insights.
Guaranteed Visibility and Ad Placement: In the competitive mobile ecosystem, securing visibility for ads can be challenging. Programmatic Guaranteed ensures that advertisers' campaigns reach their audience by guaranteeing ad placements.
Access to Premium Inventory: Programmatic Guaranteed deals open the doors to high-quality inventory that might not be otherwise available, or only available at a premium in open auctions. Access to this premium inventory means advertisers can place their ads in more desirable contexts, enhancing brand perception and the likelihood of engagement from the target audience. This access is particularly beneficial in the mobile context, where user attention is highly fragmented.
Efficient Budget Allocation and Reduced Wastage: The fixed pricing model of Programmatic Guaranteed allows advertisers to allocate their budgets more effectively, with a clear understanding of costs upfront. This predictability helps in maximizing the return on investment (ROI) by reducing the wastage often associated with the variable costs of bidding in open auctions.
