With programmatic ad spend due to reach 97 billion in 2021 in the US alone, publishers and website owners selling ad space on their sites should be looking to leverage this technology for maximum return on their digital ad spend.
When it comes to programmatic digital advertising, there are several different types of programmatic deals that can be employed.
These include open auctions, private auctions, preferred deals, programmatic direct, and perhaps the most lucrative of them all, programmatic guaranteed (PG).
This article covers the ins and outs of guaranteed deals, including the benefits to publishers and how they can get started.
What Is Programmatic Guaranteed?
A PG deal is an arrangement where a buyer negotiates to buy ad inventory directly from the publisher ‘while eliminating manual processes such as exchanging tags, troubleshooting discrepancies, and handling multiple invoices’.
The buyer agrees to purchase a fixed number of impressions, with publishers agreeing to a fixed price to deliver that exact number of impressions.
Both the publisher(seller) and the buyer bring a guarantee to the table in this transaction, hence the term for the arrangement.
As independent tech consultant Paul Gubbins states:
‘Programmatic guaranteed is a new model that enables a programmatic buyer to device ID or cookie match an audience with a publisher and pre-agree to buy at a fixed price so long as the publisher sends the correct ID on their bid request via supply-side platform or exchange’.
Guaranteed deals work by allowing agencies to sync their data management platform(DMP) to a publisher DMP to match with an appropriate target audience. It enables ad buyers to access specific publisher audiences on a larger, more automated scale than that offered by private marketplaces.
This can greatly benefit an advertiser looking to protect their brand safety, as they have more control over where their ads are displayed.
Programmatic guaranteed deals are becoming increasingly favored by media buyers and premium publishers alike. Reports show that 58% of all display advertising purchased programmatically is done through a programmatic guaranteed deal.
What Are the Benefits of Programmatic Guaranteed?
There is no doubt that the digital revolution has changed the face of advertising forever.
The rise of ad tech means advertisers can now deliver relevant ads to consumers while tracking their responses in real-time. These analytics can then be used to inform future campaign details and further hone in on the target audience.
However, programmatic advertising is by no means perfect. While real-time bidding systems have a high efficiency when it comes to delivering relevant ads, publishers and advertisers have little control over each individual ad unit.
Moreover, traditional direct-reservation-based orders, while they are great at ensuring only ads from select brands appear on premium publisher’s sites, are costly and time-consuming.
Further to this, with over 40 manual steps required to set up a reservation-based order, these orders are susceptible to human error.
Programmatic guaranteed deals aim to combine the best of these approaches while mitigating the associated drawbacks.
A recent study found that PG deals took 57% less time for publishers to set up and manage than traditional direct ads.
PGs have partly evolved due to publishers’ frustration with private marketplaces.
Benefits for Publishers
While getting started with guaranteed deals can take some extra effort for publishers- they will need need to take time building connections and relationships- ultimately, the effort is worth it, with PG delivering predictable revenue and a reduction in the time and effort necessary to sell ad inventory.
This is due to several factors.
Firstly, once the initial setup phase is complete, guaranteed deals are remarkably efficient. There is no need to create insertion orders, scan them, manually enter data, correct errors, generate confirmation reports, or chase down invoices.
Guaranteed deals are also financially efficient. While most reservation deals payout after 60 or 9o days, guaranteed deals payout on a 30-day basis.
Guaranteed deals also increase revenue for publishers. They reduce overheads by streamlining payment while offering publishers access to advertisers who are usually happy to pay a premium for high ad inventory volumes and refined audience targeting.
Publishers looking to get started with guaranteed deals first need to negotiate a one-on-one agreement directly with an ad buyer.
This can be done in a variety of ways, including through Google Ad Manager.
Before getting the ball rolling, there are several factors publishers should consider to get the most out of their guaranteed deal.
Analyze your Workflow
Firstly, consider your current workflow. How many people in your business are currently involved in rolling out your ad campaigns?
Research shows programmatic transactions can reduce the time spent on these tasks by 30% to 60%. Think about how this will affect your bottom line and where you will redeploy these resources.
Consider the Financial Advantages
Think about how the 30-day payment reconciliation with benefit your business. How can this money be re-invested to benefit both you, the advertiser, and the consumer?
Assess Your Team
Before you launch into a guaranteed ad campaign, it is vital to ensure you have the necessary in-house support. A typical website publisher will have the majority of its sales staff assigned to traditional deals, so they may need to upskill in order to feel confident running a guaranteed account.
Automation in the ad tech industry is on the rise, with no sign of slowing down.
Programmatic guaranteed deals offer an excellent opportunity for publishers to increase their ad revenue, build better relationships with advertisers and buyers, and ultimately save valuable time, resources and money.
At Publift, our programmatic advertising experts can assist you in optimizing your ad campaigns to increase revenue and save time. Talk to our friendly team today to learn more.