What is programmatic guaranteed?

This post was most recently updated on September 28th, 2023

In the transformative sphere of digital advertising, Programmatic Guaranteed stands as a beacon of efficiency and precision, allowing publishers and advertisers to elevate their advertising game. Within the world of programmatic advertising, many different types of programmatic deals exist such as private auctions, preferred deals, and guaranteed deals. Here, we delve deeply into its intricacies, benefits, and implementation strategies, enriching your understanding of this revolutionary approach.

Looking at setting up programmatic guaranteed rules for your inventory? At MonetizeMore, we’re experts with Google Ad Manager and can help you set up your auctions correctly. Get in touch with us today for a free consultation!

What is programmatic guaranteed?

A programmatic guaranteed deal is where the buyer directly buys inventory from the publisher. The buyer agrees to buy a fixed number of impressions, and the publisher agrees to deliver the exact amount of impressions for a guaranteed price. Both the buyer and the seller (publisher) brings a guarantee to the table.

Find out how to set it up in Google Display & Video 360 here.

If you think that only a select few buyers and publishers deal in programmatic guaranteed (PG), think again. The Ad Exchanger report noted that 58% of all display advertising purchased programmatically goes through programmatic guaranteed deals. This totals over $27 billion and is only for the United States, not to mention other worldwide markets.

Characteristics of Programmatic Guaranteed:

Fixed Pricing: Predetermined pricing structures eliminate uncertainties.
Reserved Inventory: Advertisers have access to premium ad slots, ensuring visibility.
Efficiency: Automation streamlines the ad buying process, reducing manual workload.
Precision Targeting: Advanced algorithms enable precise targeting of the desired audience.
Enhanced Performance Metrics: Real-time analytics offer insights into ad performance and user engagement.

Reserved Inventory: A Strategic Advantage

Securing premium ad slots is paramount for advertisers. Programmatic Guaranteed offers reserved inventory, granting access to prime ad spaces that guarantee visibility and engagement.

Why Reserved Inventory is Crucial?

Visibility: Premium slots ensure that ads are seen by the target audience.
Engagement: High-quality placements increase the likelihood of user interaction.
Brand Association: Appearing alongside reputable content elevates brand perception.
Revenue Maximization: Premium placements often lead to higher conversion rates, maximizing ROI.

How Programmatic Guaranteed Streamlines Ad Buying

Step 1: Agreement on Terms

Advertisers and publishers agree on the price, volume, and terms of the ad deal. The agreed inventory and pricing are reserved for the advertiser, securing premium placements.

Step 2: Creation and Upload of Creatives

Advertisers create compelling ad creatives and upload them to the programmatic platform, where they are optimized for performance and visibility.

Step 3: Precise Targeting and Placement

Advanced algorithms and data analysis enable the precise targeting of audiences and optimal ad placement, ensuring engagement and conversion.

Step 4: Real-Time Analytics and Optimization

Advertisers receive immediate feedback on ad performance, allowing for real-time adjustments and optimizations to enhance campaign results.

What are the benefits for publishers?

Getting set up with PG often requires some work, connections and relationship building. It’s not as easy as putting your ad inventory on the open market through an exchange and getting advertisers to bid on it. However, the hard work is worth it.

With these guaranteed deals you’ll be able to increase your revenue as a publisher by getting access to premium advertisers who are looking for high ad inventory volumes while usually paying a premium.

It also brings security to your business as you’ll know for sure that your inventory is sold at an agreed upon price. This is because both you as a publisher and the buyer commit to the deal.

What are the benefits for advertisers?

For advertisers, the benefits are very much different sides of the same coin. As an advertiser, you get access to premium ad inventory that you previously might not have been able to buy via the open market.

Guaranteed delivery ensures that you know the exact amount of impressions you’ll receive instead of bidding on impressions hoping they’ll deliver.

Like publishers, advertisers also know for sure where their ads will be shown helping them pick and choose exactly which publishing sites. This helps with further brand safety and transparency concerns advertisers might have.

What is the difference between Programmatic guaranteed deals, Preferred deals (PMP) & more?

If you wondered how programmatic guarantee measures up to other types of programmatic deals such as an open auction, private auctions and preferred deals, take a look at the image below.

programmatic different types

Expanding Reach with Programmatic Guaranteed

Implementing Programmatic Guaranteed expands advertisers’ reach by enabling access to premium inventory and fostering connections with high-quality publishers. It provides a symbiotic platform where both parties can flourish, optimizing ad performance, and maximizing revenues.

Achieving Success with Programmatic Guaranteed:

Strategic Planning: Understanding campaign objectives and audience is crucial.
Creative Excellence: Designing compelling and engaging ad creatives is essential.
Performance Analysis: Regularly analyzing ad performance and optimizing campaigns ensures continued success.
Relationship Building: Fostering strong relationships with publishers enhances access to premium inventory.

Conclusion

Although programmatic guaranteed deals provide tons of benefits to publishers, it can require a lot of resources, contacts, and skills your team might not have. Why not let MonetizeMore help? Our team of ad optimization experts are fully versed in every form of programmatic and can advise you the best course forward for your publishing business.

Looking at setting up inventory rules to include programmatic guaranteed? At MonetizeMore, we’re experts with Google Ad Manager and can help you set up your delivery rules correctly. Sign up for a Premium account at MonetizeMore today!

Additional FAQ

What is programmatic guaranteed?

A programmatic guaranteed deal is where the buyer directly buys inventory from the publisher. Find out more in our blog post.

How does programmatic guaranteed work?

The buyer agrees to buy a fixed number of impressions. The publisher agrees to deliver the impressions for a guaranteed price. Both the publisher and advertiser guarantee something.

What is the difference between Programmatic guaranteed deals and preferred deals?

Both are very similar. However, with guaranteed deals, the publisher guarantees a certain amount of impressions. The advertiser guarantees to pay for them at a specific price. With preferred deals, these guarantees do not exist.

source https://www.monetizemore.com/blog/what-is-programmatic-guaranteed/