List out the deal types used in Programmatic Advertising?

There is an assumption about Programmatic Advertising that real-time bidding is the only media buying and selling method, but it’s not true. They are one of the media buying and selling protocols of Programmatic Advertising. Marketers buy the inventory broadly with two methods from the supplier in the programmatic ecosystem:

  1. Auction
  2. Guaranteed Deals

In the Auction model, the marketer buys the inventory by bidding competitive pricing compared to the competitor. The supply-side platform passes bid requests to the ad exchanges. The ad exchanges collect the interested demand source bid response, select the highest bidder, and sell the ad inventory to that demand source. We have three types of auction models in programmatic advertising, which have been chosen based on the requirements.

Open Auction: The commonly used auction type, it’s also called OpenRTB. As the name suggests, bids are collected from space where all the interested advertisers can bid.

Private Auction

A Private Auction is similar to an open auction, but only the invited demand partners can participate in the bidding on the ad inventory. If the Ad space is not sold in it, then the Ad space places their bid on open auction.

Preferred Deal: A fixed CPM deal is made between Publisher and Advertiser if the advertiser is not displaying the ad, then the inventory goes to open market

Guaranteed Deal

As the name suggests, the inventory is sold in ‘guarantee’ as per the contract made. Guaranteed deals are the agreement made between the publisher and advertiser on honoring the impression goal and its price.

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