Blog Layout

Free Guide of Different Types of Programmatic Ads

Danny White • August 31, 2024

Do you know the difference between PG, PMP, and more?

If you’re a business owner looking to maximize your advertising impact without breaking the bank, programmatic advertising is where you need to be. It’s a game-changer in the ad world, designed to make buying and selling ads as easy as pie. Imagine being able to purchase ad space across multiple platforms, in real time, and at scale—all while saving time and money. Sounds good, right?


In the U.S. alone, programmatic ad spending is projected to soar to around $127 billion in 2024, making up more than 91% of all digital display ad budgets. But with this huge leap in popularity comes a bit of complexity. You’ve probably heard terms like RTB, PMP, or programmatic guaranteed thrown around, and it’s easy to get lost in the jargon.


Don’t worry—we’ve got your back. In this guide, Smart Adz  will break down the types of programmatic advertising deals, so you can make informed decisions that align with your business goals.


Understanding the Types of Programmatic Advertising

At its core, programmatic advertising is about using technology to automate the buying and selling of digital ads. It’s all about matching your ad content with available space on publisher websites in real time, using customer data and smart algorithms.


Here are the four main types of programmatic inventory you need to know:

  1. Real-time Bidding (RTB) or Open Auction: This is the most common type of programmatic advertising. Advertisers upload their ads to a demand-side platform (DSP), set their highest bids, and let the system find the best match in a real-time auction. It’s cost-effective and scalable, making it a popular choice for businesses looking to get the most bang for their buck.
  2. Programmatic Direct: Think of this as buying ad space directly from publishers, but with the added benefits of programmatic technology. While it might be pricier than RTB, it offers more control, transparency, and brand safety since you’re hand-picking your partners.
  3. Programmatic Guaranteed: Here’s where things get interesting. With programmatic guaranteed, you lock in a deal with a publisher at a fixed cost-per-thousand-impressions (CPM). It’s like reserving premium ad space in advance—perfect for businesses that want to ensure their ads appear in specific spots without the uncertainty of an auction.
  4. Private Marketplace (PMP): A PMP is an exclusive auction where only selected advertisers can bid. It’s like RTB, but more private. Publishers invite trusted brands to participate, giving you access to high-quality inventory that’s not available in open auctions.


The Pros and Cons of Each Programmatic Option


Each of these programmatic methods has its own set of advantages and drawbacks. Here’s a quick rundown:

  • Programmatic Direct gives you the upper hand in transparency and brand safety, but it’s less scalable than RTB.
  • Programmatic Guaranteed offers premium inventory and greater control over where your ads run, but it locks you into specific deals that might be less flexible.
  • PMP offers automation and exclusive access, but the inventory might be limited compared to open auctions.


How to Set Up a Programmatic Guaranteed (PG) Deal


Setting up a PG deal is pretty straightforward. Here’s a basic roadmap:

  1. Upload your campaign details and customer data to your DSP.
  2. Send a request for proposal (RFP) to your chosen publisher.
  3. Negotiate the terms—this includes the number of ad impressions, audience segments, and the campaign’s runtime.
  4. Select your ad creatives and targeting options.


If you’re looking for premium publishers, third-party programmatic platforms like Taboola can connect you with top-tier partners. They provide access to exclusive inventory and invaluable readership data, helping you reach millions of users daily with targeted video and image ads.


Conclusion



Understanding these programmatic advertising options is key to crafting the right campaigns and partnerships for your business. Whether you’re dipping your toes into programmatic for the first time or refining your strategy, knowing the difference between RTB, PMP, and programmatic guaranteed deals will give you the confidence to make smarter ad buys.

Ready to take your advertising to the next level? Contact Smart Adz, LLC at https://www.thesmartadzpeople.com or give us a call at (501)501-ADZ1. Let’s talk about how we can help you reach your business goals through effective programmatic advertising.


Man and woman laying in bed watching a CTV ad placed by SmartAdz
By Danny White November 1, 2024
Revolutionizing B2B and B2C Marketing
By Danny White October 28, 2024
It's crucial to have the right data to build on, or you risk burning cash!
By Danny White October 28, 2024
CTV is here to stay, and you need to take advantage.
By Danny White July 11, 2024
Answering questions, and what you should know about the future of advertising.
By Danny White March 13, 2019
Everyone needs a digital media strategy, and not for the reasons you may expect. In fact, if you think digital strategies are just promotional, think again.
By Danny White March 13, 2019
If you think money is the only thing that matters in your campaign, think again. There are many more things to think about.
By Danny White March 13, 2019
Just because you have a snazzy Facebook, Instagram and Snapchat campaign doesn’t mean you’re covered.
Share by: