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How do we choose the different buying models when it comes to programmatic buying?

Preferred Deals, Private Auctions or Open Auctions?

With the ever-increasing inventory base - in line with the users spending much more time online every day and the expansion of the traffic, publishers try harder to sell every bit of their impressions.

Let’s look what are the options for accessing valuable inventories and then we will discuss the selection for the most viable choice.

1. Preferred Deals. One of the longest preferred conventional methods is where advertisers approach the publishers directly, request for proposals, review the proposed plans, confirm them manually via emails, secure their bookings in advance and then wait for their turns to have their digital marketing campaigns go live at a pre-determined date, time, and webpages or applications. The relationship between the buyer and seller is direct. No auction is necessary for most cases and the inventory may not be guaranteed as well. The pricing is pre-negotiated and agreed upon. In summary, a deal is an exclusive trade between the buyer and seller, price is pretty much firm, it is limited or no competition with other buyers and the delivery of the advertisement has a higher priority. There is absolute transparency to the deal details, where exactly the campaign will run when it will run, and which creative will deliver the campaign.

2. Private Auctions. This is an exclusive, closed doors arena for auction. A group of premium publishers often appear here with a portion of their finest inventories and a select group of advertisers compete to win it with the highest bid. The advantage of such auctions for the buyer is that their campaigns have delivery priority before publishers open their remnant inventories to ad exchanges for monetization. The arrangement is between a few sellers and a restricted number of buyers and, requires competing bids. It awards the winning deals priority in campaign delivery. Transparency in this deal method is partial, and the inventory is not guaranteed. Sellers may host the campaigns at a range of defined inventories but not necessarily on specific ones.

3. Open Auctions. Any buyer and seller can take part in such a setup. Sellers typically set a minimum acceptable CPM rate and all buyers submit their bids within a highly dynamic and competitive environment. Bidding, pricing, winning, delivery, reporting, optimization, and others are all in real time. However, it is not possible to guarantee complete delivery within any time frame, portal, website, or application. There is no exclusivity in the arrangement and the highest bid rules. This method is one of the most cost-efficient ways of running a campaign for buyers. Transparency is mostly non-existent, and the inventory is not guaranteed. If the sellers’ (publishers’) pre-defined minimum pricing thresholds are met, the advertiser and the product categories are good to run on the media properties with the use of acceptable ad formats, deal flies on the go. In most cases, the buyer comes to know where their campaign has run only when evaluating the post-campaign reports.

The above summarizes three types of programmatic advertising purchase methods. Each of them has its unique selling points, meeting the objectives of the advertising campaign ensuring successful executions and could be extremely instrumental when chosen carefully.

In preferred deals, campaign placements are predictable, and advertisers have some idea and expectations for the delivery performance. This method works the best for brand alignments.

For exclusive and transparent ad placements, private auctions suit the best. It not only offers quality inventory but also seamlessly integrates with programmatic technologies allowing excellent control over the media. For great user experiences with the use of premium inventory and reaching out to relevant marketers, private auctions do the job well.

Scalability, efficiency, simplicity, and affordability are identifiers of an open auction. While its focus is high-fill rate, it is performance-driven but lacks transparency for the ad placements. Ideal option for cost-effective performance campaigns.

Any of the above listed programmatic buying methods allows advertisers to focus on their impressions in greater depths. Therefore, programmatic advertising is, most of the time, commercially more viable when compared to bulk buys. Happenings are instant in programmatic advertising and process work back-to-back from targeting algorithms to campaign delivery optimizations and frequency caps to advertisement creative sizes, analytics, and reporting. Social Video Lab, your trusted digital media agency and independent trading desk will assist you in your campaign journey the most workable way and ensure client delight. This time and every time.

We hope this article will help you decide on your Digital Marketing plan, and for more enquiry on anything Digital head over to our enquiry form "Click Here" and we will be happy to consult you.


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