Programmatic Deals 101: What Every Marketer Needs to Know

<!doctype html><html lang="en"><head> <meta charset="utf-8"> <title>Programmatic Deals 101: What Every Marketer Needs to Know</title> <link rel="shortcut icon" href="https://blog.bidswitch.com/hubfs/BidSwitch%20Favicon%202.png"> <meta name="description" content="Join BidSwitch to learn the different types of programmatic deals and when to use each one to optimize your digital ad campaigns effectively."> <link type="text/css" rel="stylesheet" href="https://blog.bidswitch.com/hs-fs/hub/27149722/hub_generated/template_assets/64813222349/1680181992031/BidSwitch_January2022/css/main.min.css"> <link type="text/css" rel="stylesheet" href="https://blog.bidswitch.com/hs-fs/hub/27149722/hub_generated/template_assets/64813222354/1680181990951/BidSwitch_January2022/css/templates/_blog.min.css"> <link href="https://fonts.googleapis.com/css2?family=Arvo:ital,wght@0,400;0,700;1,400;1,700&display=swap" rel="stylesheet"> <link href="https://fonts.googleapis.com/css2?family=Open+Sans:ital,wght@0,300;0,400;0,500;0,600;0,700;0,800;1,300;1,400;1,500;1,600;1,700;1,800&display=swap" rel="stylesheet"> <meta name="viewport" content="width=device-width, initial-scale=1"> <meta property="og:description" content="Join BidSwitch to learn the different types of programmatic deals and when to use each one to optimize your digital ad campaigns effectively."> <meta property="og:title" content="Programmatic Deals 101: What Every Marketer Needs to Know"> <meta name="twitter:description" content="Join BidSwitch to learn the different types of programmatic deals and when to use each one to optimize your digital ad campaigns effectively."> <meta name="twitter:title" content="Programmatic Deals 101: What Every Marketer Needs to Know"> <style> a.cta_button{-moz-box-sizing:content-box !important;-webkit-box-sizing:content-box !important;box-sizing:content-box !important;vertical-align:middle}.hs-breadcrumb-menu{list-style-type:none;margin:0px 0px 0px 0px;padding:0px 0px 0px 0px}.hs-breadcrumb-menu-item{float:left;padding:10px 0px 10px 10px}.hs-breadcrumb-menu-divider:before{content:'›';padding-left:10px}.hs-featured-image-link{border:0}.hs-featured-image{float:right;margin:0 0 20px 20px;max-width:50%}@media (max-width: 568px){.hs-featured-image{float:none;margin:0;width:100%;max-width:100%}}.hs-screen-reader-text{clip:rect(1px, 1px, 1px, 1px);height:1px;overflow:hidden;position:absolute !important;width:1px} </style> <link rel="stylesheet" href="https://blog.bidswitch.com/hs-fs/hub/27149722/hub_generated/template_assets/64813130469/1680281010732/BidSwitch_January2022/css/theme-overrides.css"> <link rel="stylesheet" href="/hs/hsstatic/AsyncSupport/static-1.122/sass/comments_listing_asset.css"> <link rel="stylesheet" href="https://blog.bidswitch.com/hs-fs/hub/27149722/hub_generated/module_assets/64813707505/1680181983337/module_64813707505_social-share.min.css"> <script type="application/ld+json"> { "mainEntityOfPage" : { "@type" : "WebPage", "@id" : "https://blog.bidswitch.com/programmatic-deals-101-what-every-marketer-needs-to-know" }, "author" : { "name" : "Rob Taylor", "url" : "https://blog.bidswitch.com/author/rob-taylor", "@type" : "Person" }, "headline" : "Programmatic Deals 101: What Every Marketer Needs to Know", "datePublished" : "2024-09-06T14:03:33.000Z", "dateModified" : "2024-12-18T17:05:07.928Z", "publisher" : { "name" : "BidSwitch GmbH", "logo" : { "url" : "https://27149722.fs1.hubspotusercontent-eu1.net/hubfs/27149722/BidSwitch_Black_WhiteBackground-01.png", "@type" : "ImageObject" }, "@type" : "Organization" }, "@context" : "https://schema.org", "@type" : "BlogPosting", "image" : [ "https://27149722.fs1.hubspotusercontent-eu1.net/hubfs/27149722/bsw_deals101.png" ] } </script>  <script> var _hsp = window._hsp = window._hsp || []; window.dataLayer = window.dataLayer || []; function gtag(){dataLayer.push(arguments);} var useGoogleConsentModeV2 = true; var waitForUpdateMillis = 1000; if (!window._hsGoogleConsentRunOnce) { window._hsGoogleConsentRunOnce = true; gtag('consent', 'default', { 'ad_storage': 'denied', 'analytics_storage': 'denied', 'ad_user_data': 'denied', 'ad_personalization': 'denied', 'wait_for_update': waitForUpdateMillis }); if (useGoogleConsentModeV2) { _hsp.push(['useGoogleConsentModeV2']) } else { _hsp.push(['addPrivacyConsentListener', function(consent){ var hasAnalyticsConsent = consent && (consent.allowed || (consent.categories && consent.categories.analytics)); var hasAdsConsent = consent && (consent.allowed || (consent.categories && consent.categories.advertisement)); gtag('consent', 'update', { 'ad_storage': hasAdsConsent ? 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Know</span></h1> <div class="blog-post__meta"> <div class="publish-date"> September 6, 2024 </div> </div> </div> <div class="body-post-content-all-wrapper"> <div class="blog-post__body"> <span id="hs_cos_wrapper_post_body" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_rich_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="rich_text"><p><strong><span data-contrast="auto"><span style="font-size: 16px;">Programmatic advertising is widely accepted to refer to the automated buying and selling of digital ads. But within the umbrella term there are a variety of ways to transact. Here we delve into the detail of the four types of programmatic deals and look at when it’s optimum to use each one</span>.</span></strong><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p>  <p><span data-ccp-props="{"201341983":0,"335559740":360}"><img src="https://blog.bidswitch.com/hs-fs/hubfs/bsw1.webp?width=1792&height=1024&name=bsw1.webp" width="1792" height="1024" loading="lazy" alt="bsw1" style="height: auto; max-width: 100%; width: 1792px;" srcset="https://blog.bidswitch.com/hs-fs/hubfs/bsw1.webp?width=896&height=512&name=bsw1.webp 896w, https://blog.bidswitch.com/hs-fs/hubfs/bsw1.webp?width=1792&height=1024&name=bsw1.webp 1792w, https://blog.bidswitch.com/hs-fs/hubfs/bsw1.webp?width=2688&height=1536&name=bsw1.webp 2688w, https://blog.bidswitch.com/hs-fs/hubfs/bsw1.webp?width=3584&height=2048&name=bsw1.webp 3584w, https://blog.bidswitch.com/hs-fs/hubfs/bsw1.webp?width=4480&height=2560&name=bsw1.webp 4480w, https://blog.bidswitch.com/hs-fs/hubfs/bsw1.webp?width=5376&height=3072&name=bsw1.webp 5376w" sizes="(max-width: 1792px) 100vw, 1792px"></span></p> <h3 style="font-size: 24px; font-weight: bold;">Programmatic advertising: What’s the deal? </h3> <p style="font-size: 16px;"><span data-contrast="auto">It’s estimated that </span><a href="https://www.statista.com/forecasts/1316147/programmatic-share-digital-ad-spend-worldwide" rel="noopener" target="_blank"><span data-contrast="none">82.21% of all digital advertising will be programmatic</span></a><span data-contrast="none"> in 2024</span><span data-contrast="auto">, while </span><a href="https://www.statista.com/statistics/275806/programmatic-spending-worldwide/" rel="noopener" target="_blank"><span data-contrast="none">2026 will see $726 billion spent on programmatic advertising, with this rising to $779 by 2028</span></a><span data-contrast="auto">.</span></p> <p style="font-size: 16px;"><span data-contrast="auto">Clearly programmatic is, well, a big deal.</span><span data-ccp-props="{"201341983":0,"335559740":360}">  </span></p> <p style="font-size: 16px;"><span data-contrast="auto">As well as automation streamlining the digital ad trading process to make it more efficient, programmatic introduces a layer of intelligence. Targeting is more effective thanks to demographic and behavioral data, while data-driven decision-making optimizes campaigns in real time, thereby improving performance. Overall transparency is enhanced because buyers and sellers can see which inventory is bought and sold and for how much. </span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Initially, there was only one option for the transaction and advertisers wanting to purchase their ads programmatically had to buy in bulk. But the blanket value that this assumes for ad space didn’t account for the different values and functions of different inventory.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Programmatic deals were developed to introduce more flexibility and control into the media trading process. Advertisers can tailor it to better meet the objectives of a campaign and publishers can ensure they are maximizing returns on their inventory.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <h3 style="font-size: 24px; font-weight: bold;">Programmatic deals: Four ways of trading </h3> <p><span></span><span style="font-size: 16px;">Within the programmatic ecosystem, there are now four main types of programmatic transactions: the open auction, Private Marketplace (PMP), Preferred Deals (PD), and Programmatic Guaranteed (PG).  </span></p> <span style="color: #e82323; font-size: 18px;"><strong>1. Open Auction</strong></span><br> <p style="font-size: 16px;"><span data-contrast="auto"><span style="font-weight: bold;">Open auction</span> is also referred to as real-time bidding (RTB), open exchange (OX), and open marketplace. The backbone of programmatic advertising, open auction—as the name implies—involves an auction process that is accessible to all advertisers. And while it’s not technically a pre-negotiated deal like Preferred Deals or Programmatic Guaranteed, it remains a core element of the programmatic supply chain.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Publishers put part of their inventory on the open market, where it becomes available for all buying partners to bid on.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Publishers can choose the ad units they want to put in the open auction, as well as the lowest amount (the floor price) they will accept for this inventory. Quick to set up, this type of trading is simple for both buyers and sellers. It’s an efficient way for publishers to fill their inventory—making it a good option for remnant—and cost-effective for marketers buying media.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">On the downside, there is a risk of data leakage because it is made widely available via the bidstream. Units can also remain unsold, while the large supply of impressions can result in low CPMs for publishers. The open nature of the marketplace also makes it vulnerable to fraud in the form of malicious ads.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Open auction trading is typically given the lowest priority when ad servers determine how to handle programmatic deals.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <span style="color: #e82323; font-size: 18px;"><strong>2. Private Marketplace (PMP)</strong></span><br> <p style="font-size: 16px;"><span data-contrast="auto"><span style="font-weight: bold;">PMPs</span>, a.k.a. closed auctions, private auctions, and invitation-only auctions, also adopt RTB but inventory is only available to buyers invited by publishers. The Deal ID, a unique identifier in the bidstream for both seller and buyer, is used to show that pre-agreed terms have been met, thereby ensuring transparency. Ad servers prioritize PMPs above open auctions.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">PMPs are safer than the open auction because inventory (which is labelled premium) is only made available to trusted demand partners. Publishers therefore have full control over who can buy their top-tier placements, while advertisers have access to premium ad slots, which they can leverage to align their brands and undertake contextual advertising, ultimately delivering a positive user experience, which works in favor of all parties.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">The premium nature of the inventory, along with publishers having control over auction floor prices, lead to higher CPMs. And the direct relationship between the publisher and advertiser means the terms of the programmatic deal can be more easily negotiated according to the requirements of each, as well as reduce the risk of fraud.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">However, on the minus side, there is a chance that, without adequate information about a buyer, the publisher may miss potentially suitable advertisers. And advertisers will only pay a good price if they perceive the inventory to be premium enough for their goals.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <span style="color: #e82323; font-size: 18px;"><strong>3. Preferred Deals</strong></span> <p style="font-size: 16px;"><span data-contrast="auto"><span style="font-weight: bold;">Preferred Deals (PD)</span>, also known as unreserved fixed rate, allow a buyer to review inventory which matches their criteria before deciding to purchase it at a pre-negotiated fixed price. In this setup, the buyer gets first-look access to a publisher’s placements before the inventory is made available to others in a Private Marketplace (PMP) auction or open auction, </span><i><span data-contrast="auto">but </span></i><span data-contrast="auto">the inventory is not exclusively reserved for them unless purchased.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Categorized as programmatic direct, Preferred Deals don’t operate on an auction basis and come above both PMPs and open auctions in the ad server priority list.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Unlike Programmatic Guaranteed (covered below), the number of impressions that will be bought or sold is not fixed. However, the audience is guaranteed. Ads are shown to specific target audiences which buyers can enrich with DSP data, along with the publisher’s prerogative to review and approve campaign creatives in advance. This makes ads highly relevant to the website’s visitors.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Preferred Deals offer predictability for both sides, with publishers benefiting from more stable revenue and buyers locking in a fixed price. They also ensure relevancy, as publishers can select specific buyers and advertisers can target the exact ad slots that align with their goals. Beyond the transactional benefits, these deals provide a chance for publishers and advertisers to build stronger relationships by negotiating directly and ensuring they’re a good match—without any obligation to buy or sell.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">The case against Preferred Deals includes the scenario that inventory will end up in an open auction if the buyer cancels the deal, which they can do at any time. Also, less competition can result in impressions generating lower prices for publishers. </span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 18px;"><span style="color: #ff0201;"><strong>4. Programmatic Guaranteed</strong></span></p> <p style="font-size: 16px;"><span data-contrast="auto">Given the highest priority by ad servers, <span style="font-weight: bold;">Programmatic Guaranteed</span>, automated guaranteed, programmatic direct, programmatic premium and programmatic reserved all amount to the same thing. That is, the publisher sells a guaranteed number of impressions to one buyer, with the price negotiated and fixed in advance by the two parties. Essentially, manual insertion orders (IOs) are replaced with the efficiency of programmatic trading, which also removes human error.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">As with Preferred Deals, these fall into the programmatic direct category and don’t involve an auction. </span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Buyers see all the publisher’s placements and choose what they want to buy (in contrast to manual direct deals, when publishers only offer the select inventory they want to sell). </span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Programmatic Guaranteed is an effective way for a publisher to see good returns from premium inventory, negotiate better prices using insights on traffic data, and benefit from the impact of guaranteed revenue.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">In Programmatic Guaranteed deals, publishers can review creatives before the agreement is finalized to ensure they align with their brand. Marketers gain access to premium, restricted-supply inventory at a fixed rate—such as key tentpole events like the Olympics—or strategic formats like Connected TV (CTV), which are often sold primarily through Programmatic Guaranteed deals. This approach gives advertisers the certainty they need when targeting high-demand placements.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">Negatives include publishers underselling their inventory because it can be difficult to know in advance how accurately their premium placements meet the buyer’s targeting requirements. In addition, while automation is a core element of Programmatic Guaranteed, ad ops resources are typically needed to ensure campaigns run as intended.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <h3 style="font-size: 24px; font-weight: bold;">Simplifying programmatic deal management </h3> <p style="font-size: 16px;"><span data-contrast="auto">The types of deals described above provide publishers with different ways to trade impressions, based on the type of inventory and its value and availability. On the other side of the media trading net, programmatic deals offer advertisers a choice when it comes to buying the right placements at the right price for each element of their campaigns. </span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">But the growing popularity of programmatic deals—meaning more advertisers are trading this way and more supply packages being made available—can make the landscape time-consuming to navigate.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">BidSwitch enables all buyers and sellers connected to the platform to share, manage, discover, and optimize programmatic deals at scale, with the goal of ensuring that deal trading is as efficient as possible. This includes bulk management for mass uploading and downloading of deals, status monitoring to identify those that need troubleshooting, and reporting to track performance. The platform also offers the ability to discover new deals from connected partners, giving buyers and sellers broader access to relevant inventory opportunities.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">The tools aim to reduce the complexity for DSPs so that it is easy to find new, relevant deals, and help SSPs showcase their supply packages by giving greater visibility, thereby maximizing the likelihood of them being seen and activated.</span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><span data-contrast="auto">More details on the <span style="font-weight: bold;">BidSwitch Deals Center </span>suite of tools, including <span style="font-weight: bold;">Deals Management </span>and <span style="font-weight: bold;">Deals Discovery</span> are available </span><a href="https://protocol.bidswitch.com/features/dc-overview.html"><span data-contrast="none">here</span></a><span data-contrast="auto">.  </span><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p> <p style="font-size: 16px;"><strong><span data-contrast="auto">To learn more about optimizing and managing deals so that they meet your objectives, contact your BidSwitch account manager or get in touch with the BidSwitch team today.</span></strong><span data-ccp-props="{"201341983":0,"335559740":360}"> </span></p></span> </div>  </div></article> </div> <section class="blog-related-posts"> <div class="content-wrapper"> <h3>Recent posts</h3> <div class="blog-related-posts__list"> <article class="blog-index__post blog-index__post--small" aria-label="Blog post summary: Supply-Side Spotlight: Outbrain & Teads"> <div class="blog-index__post-inner-card"> <div class="blog-index__post-content blog-index__post-content--small"> <p class="blog-related-posts__title"><a href="https://blog.bidswitch.com/supply-side-spotlight-outbrain-teads">Supply-Side Spotlight: Outbrain & Teads</a></p> </div> <div class="publish-date"> January 21, 2025 </div> </div> </article> <article class="blog-index__post blog-index__post--small" aria-label="Blog post summary: The A-Z of Ad Fraud"> <div class="blog-index__post-inner-card"> <div class="blog-index__post-content blog-index__post-content--small"> <p class="blog-related-posts__title"><a href="https://blog.bidswitch.com/the-a-z-of-ad-fraud">The A-Z of Ad Fraud</a></p> </div> <div class="publish-date"> January 07, 2025 </div> </div> </article> <article class="blog-index__post blog-index__post--small" aria-label="Blog post summary: WEBINAR: Navigating Addressability: ID Bridging"> <div class="blog-index__post-inner-card"> <div class="blog-index__post-content blog-index__post-content--small"> <p class="blog-related-posts__title"><a href="https://blog.bidswitch.com/webinar-navigating-addressability-id-bridging">WEBINAR: Navigating Addressability: ID Bridging</a></p> </div> <div class="publish-date"> December 04, 2024 </div> </div> </article> <article class="blog-index__post blog-index__post--small" aria-label="Blog post summary: Programmatic Deals 101: What Every Marketer Needs to Know"> <div class="blog-index__post-inner-card"> <div class="blog-index__post-content blog-index__post-content--small"> <p class="blog-related-posts__title"><a href="https://blog.bidswitch.com/programmatic-deals-101-what-every-marketer-needs-to-know">Programmatic Deals 101: What Every Marketer Needs to Know</a></p> </div> <div class="publish-date"> September 06, 2024 </div> </div> </article> <article class="blog-index__post blog-index__post--small" aria-label="Blog post summary: WEBINAR: SmartSwitch Refresher for SSPs"> <div class="blog-index__post-inner-card"> <div class="blog-index__post-content blog-index__post-content--small"> <p class="blog-related-posts__title"><a href="https://blog.bidswitch.com/webinar-smartswitch-refreshers-ssps">WEBINAR: SmartSwitch Refresher for SSPs</a></p> </div> <div class="publish-date"> June 05, 2024 </div> </div> </article> </div> </div> </section> </div> </div> </main> <div data-global-resource-path="BidSwitch_January2022/templates/partials/footer.html"><footer class="clearfix"> <div class="widgets_wrapper" style=""> <div class="container"> <div class="column two-third"> <aside class="widget_text widget widget_custom_html"> <div class="textwidget custom-html-widget"> <div class="footer-menu"> <span id="hs_cos_wrapper_navigation_primary" class="hs_cos_wrapper hs_cos_wrapper_widget hs_cos_wrapper_type_menu" style="" data-hs-cos-general-type="widget" data-hs-cos-type="menu"><div id="hs_menu_wrapper_navigation_primary" class="hs-menu-wrapper active-branch no-flyouts hs-menu-flow-horizontal" role="navigation" data-sitemap-name="default" data-menu-id="64872912071" aria-label="Navigation Menu"> <ul role="menu"> <li class="hs-menu-item hs-menu-depth-1" role="none"><a href="https://www.bidswitch.com/careers/" role="menuitem">Careers </a></li> <li 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Programmatic Deals 101: What Every Marketer Needs to Know