Programmatic deals allow automated buying and selling of ad inventory, making the process more efficient and cost-effective. But, what types of programmatic deals are the most profitable for publishers? By Unlocking the Power of Programmatic Deals publishers can take the right decision to maximize their revenue.

Let’s unlock the power of programmatic advertising & profitable publisher’s deals. Programmatic advertising is a method of buying and selling digital advertising inventory using an automated system. It has become increasingly popular over the years due to its efficiency and effectiveness in targeting the right audience with the right message at the right time. It has revolutionized the way digital advertising is conducted by streamlining the process and making it more efficient.

Programmatic advertising has its roots in real-time bidding (RTB), which emerged in the early 2000s. RTB allowed advertisers to bid on ad inventory in real-time, with the highest bidder winning the auction and having their ad displayed. This allowed advertisers to target their audience more precisely and made the process of buying and selling ads more efficient.

As programmatic advertising evolved, different types of programmatic deals emerged to suit different needs such as Programmatic guaranteed, Preferred deals, Private auctions, and Open auctions.

Profitable Programmatic Deals Publishers Need to Know

Programmatic Guaranteed Deals

In a programmatic guaranteed deal, the advertisers and publishers negotiate a contract that guarantees a specific number of ad impressions at a fixed price. This provides the advertisers with guaranteed ad placements and impressions on premium inventory. It also provides the publishers with a guaranteed revenue stream. Programmatic guaranteed deals are ideal for advertisers who want to secure premium inventory and reach a specific audience.

For example, a luxury car company may want to run a digital campaign to promote its latest model. They can negotiate with a premium publisher to secure a programmatic guaranteed deal. It guarantees a certain number of impressions on premium inventory, such as the homepage of the publisher’s website. The car company can also specify the audience they want to reach, such as affluent individuals with an interest in luxury cars. The programmatic guaranteed deal ensures that the car company’s ads will be displayed to the desired audience on premium inventory. This resulted in a more effective digital campaign.

Programmatic-guaranteed deals secure premium ad inventory, such as homepage takeovers or high-impact display ads. They can also use these deals to secure ad placements on specific websites or with specific publishers.

Some examples of ad formats that can be placed using programmatic guaranteed deals include display ads, video ads, and native ads.

According to a recent survey by the IAB, programmatic guaranteed deals accounted for 53% of all programmatic transactions in the US. Additionally, programmatic guaranteed deals generated the highest revenue for publishers. It has generated an average CPM (cost per thousand impressions) of $10.45.

Preferred Deals

In a preferred deal, the publishers offer selected advertisers priority access to their inventory at a fixed price. This allows advertisers to secure premium inventory at a lower price than they would in an open auction. Preferred deals are ideal for publishers who want to monetize their inventory while also providing selected advertisers with access to premium inventory.

For example, a sports publisher may want to offer a preferred deal to a sports equipment company that wants to reach sports fans. The publisher can offer the sports equipment company priority access to their inventory, such as the homepage and sports section of their website, at a fixed price. Now, that is lower than what the company would pay in an open auction.

The preferred deal ensures that the sports equipment company can reach its desired audience on premium inventory at a lower cost, while also ensuring that the publisher’s inventory is monetized at a higher rate than in an open auction.

Some examples of ad formats that can be placed using preferred deals include high-impact display ads, native ads, and video ads.

According to the same IAB survey, preferred deals accounted for 17% of all programmatic transactions in the US. Preferred deals generated an average CPM of $6.64, which is slightly lower than programmatic guaranteed deals.

Private Auctions

In a private auction, the publishers invite a selected group of advertisers to bid on ad inventory that is not available through other channels. This allows for greater control over the advertisers who can bid and the types of ads that are displayed. Private auctions are ideal for publishers who want to ensure that their inventory is sold to relevant advertisers and that relevant ads are displayed to their audience.

For example, a tech publisher may want to invite a selected group of tech companies to participate in a private auction. The publisher can specify the types of ads they want to display, such as ads for tech products and services, and invite only the tech companies that are relevant to their audience to bid on the inventory. The private auction ensures that only relevant ads are displayed to the audience, resulting in a more effective ad campaign.

Private auctions are used to secure unique ad placements to access ad inventory that is in high demand. Some examples of ad formats that can be placed using private auctions include display ads, video ads, and native ads.

Private auctions accounted for 15% of all programmatic transactions in the US, according to the IAB survey. Private auctions generated an average CPM of $5.31, which is lower than both programmatic guaranteed and preferred deals.

Open Auctions

In an open auction, ad inventory is made available to multiple advertisers through an auction process. The advertisers with the highest bid win the auction and their ad is displayed. This is the most common type of programmatic deal and is ideal for publishers who want to monetize their inventory while also providing a wide range of advertisers with access to their inventory.

For example, a news publisher may want to monetize their ad inventory through an open auction. The publisher can make their inventory available to multiple advertisers, such as news websites, blogs, and social media platforms, and allow them to bid on the inventory.

Ad formats that can be placed using open auctions include display ads, video ads, and native ads. However, open auctions are typically used for lower-cost ad placements and may not be suitable for premium ad inventory.

Open auctions accounted for 15% of all programmatic transactions in the US, according to the IAB survey. Open auctions generated the lowest average CPM of $0.63, which is significantly lower than other programmatic deals.

How can Auxo Ads as a Programmatic platform help publishers?

It helps you analyze, predict and monetize your content by powering up your data. With over 20+demand partners, your inventory will be available to premium advertisers. With increasing tech disruptions, a good platform like Auxo Ads can help you grow by increasing your revenue in the digital marketplace. This platform can help you get your profitable deal and make the programmatic process more efficient and cost-effective.

Conclusion

Based on the latest data we are unlocking the power of programmatic deals which says guaranteed deals are the most profitable, followed by preferred deals and private auctions. While open auctions are the most common type of programmatic deal. They generate the lowest revenue for publishers. According to GroupM’s 2023 research, advertising expenditures in India are predicted to increase by 15.5% in 2023 to reach Rs 1.46 lakh crore.

As programmatic advertising continues to grow, publishers should consider focusing on programmatic guaranteed and preferred deals to maximize their revenue potential.

Overall, programmatic deals have revolutionized the digital advertising industry by making the process of buying and selling ads more efficient and effective. They allow advertisers to target their audience more precisely. While publishers can generate more revenue by maximizing their ad inventory.

With the growing popularity of programmatic advertising, it is likely that programmatic deals will continue to evolve and shape the industry in the years to come.