Top 4 Types of Programmatic Advertising

By 2026, programmatically sold advertising will be worth USD 725 billion globally. Programmatic advertising has become one of the most effective digital marketing tactics.

There are many different types of programmatic advertising to choose from based on your campaign goals and methods.

Programmatic advertising is sometimes referred to as programmatic marketing or programmatic media. It is one of the most popular techniques for publishers and advertisers to buy and sell ad space. The method employs technology to automate inventory purchasing, reducing the work of traditional direct sales.

Although most people associate programmatic advertising with display advertising, it supports many types of media buying from display advertisements to native ads, video, and so on. As a result, it’s more than a trend in digital advertising; it’s the future. Read on to learn about the types of programmatic advertising.

Different Types of Programmatic Advertising

1. Real-Time Bidding (RTB)

The most used type of programmatic ad buying is real-time bidding (RTB). It allows the purchasing and selling of ads based on ad impressions in an instantaneous auction. The ad exchange platform allows an ad network to bid on any website, as the auction is open to the public. Additionally, RTB serves as an open marketplace, auction, and exchange.

How it works- A Supply-Side Platform (SSP) makes ad spots from publishers available to users. Advertisers submit bids, and the highest bidder wins the auction. The site displays the winner’s ad in the ad spot to the viewer. It is entirely optimized by property technology and occurs in real-time.

RTB allows for greater pricing precision. Bloggers also have a higher fill rate because a visitor’s entrance triggers the auction.

2. Private Marketplace (PMP)

Private marketplace bidding (PMP) is comparable to RTB as it is also a bidding process. However, only a few marketers can participate in the auction. As a result, PMP can also be obtained through a private auction, a private exchange, or an invitation-only auction.

How it works- A real-time auction is launched when visitors visit a webpage with ad units. Following that, a DSP will organize a private auction that only a few pre-selected advertisers can enter using a time-sensitive deal ID. Because publishers set a floor price for ad space, bidding begins there. Once again, the highest bidder wins, and the ad is shown to the user.

PMP addresses the lack of transparency marketers and bloggers encounter in an open auction. Because it is by invitation only, advertisers know who the publishers are and vice versa. As a result, advertisers may reach their target demographic more effectively, and publishers can increase ad relevancy.

Publishers receive substantial rewards and relevant advertisements for their viewers. Furthermore, they can be selective about who they collaborate with.

3. Preferred Deals

A preferred arrangement is when a publisher reserves ad placements for a specific advertiser. An advertiser and publisher will enter an agreement that benefits both parties using audience data and website metrics. In other words, advertisers get ‘first dibs’ on high-performing inventory and a relevant audience. Publishers also collaborate with advertising of their choice and earn more money! The agreements include a predetermined price/CPM rate.

This form of programmatic arrangement, unlike others, does not guarantee that the advertiser will bid on the ad unit. Preferred transactions are also known as non-guaranteed programmatic, unreserved fixed rate, or spot buying.

How it works- When a person visits a website, an ad request is sent to the advertising network. The network gets a first look at the ad space and can purchase it for the agreed-upon set amount or decline the request. If advertisers refuse the request, the ad unit will be placed in an open auction for bidding.

Publishers can earn high rates by collaborating with reputable marketers.

4. Programmatic Guaranteed

Since advertisers and publishers engage one-on-one to establish deals, programmatic guaranteeing is akin to traditional media purchasing. However, AI technology is utilized to automate the request for proposal (RFP) and the serving and tracking of advertisements.

Advertisers can benefit from premium ad inventories, fixed pricing, and more precise audience targeting. Furthermore, publishers can count on filling premium inventory at some of the industry’s top rates. Automated guaranteed or programmatic direct are other terms for programmatic guaranteed.

How it works- Bloggers and marketers agree to set a price for a specific amount of inventory. The blogger then reserves the premium inventory they’ve chosen and receives the advertiser’s advertising as agreed upon.

A blogger can find high-quality ads at low prices.

Top Programmatic Advertising Formats

Now that we’ve discussed the different types of programmatic marketing, let’s look at common programmatic ad formats.

When creating your programmatic ad, you can choose from various formats. They include the following:

1. Display Ads

Display advertising includes the visual advertisements that appear in a website’s header, footer, or sidebar. These ads are created via display networks such as Google and Microsoft. This programmatic ad style is one of the most popular ways businesses can contact leads on third-party websites.

2. Video Ads

Then there is video advertising, which are programmatic ads that, as the name implies, incorporate video material. These advertisements can appear in three places:

  • Instream- A video ad will appear before a viewer sees a YouTube video. These advertisements can be found in the video player.
  • Outstream- The video ad might appear between two articles or in the middle of one. These videos can also be seen as pop-ups or drop-down menus.
  • In-display advertising- It appears in video search results or YouTube’s recommended videos sidebar.

3. Native Ads

Native ads are advertisements that can show anywhere on a third-party website. Advertisers decide which impressions to purchase and how much to spend.

Advertisers purchase these advertisements through a demand-side platform (DSP). On the other hand, publishers offer their supply of ad spaces through a supply-side platform.

4. Voice Ads

Voice ads, often known as audio ads, play over audio material. Among these audio platforms are:

  • Podcasts
  • Digital radio
  • Music streaming services

Spotify, Pandora, Amazon audio advertisements, and the BBC are some of the most noteworthy platforms for this content.

Programmatic Advertising for Small Businesses

Programmatic advertising is a powerful tool that small businesses can leverage to boost their online presence and drive meaningful results. With programmatic ads, businesses can efficiently reach their target audience, optimize ad campaigns in real-time, and maximize their return on investment.

By harnessing the power of data-driven insights and automated technologies, programmatic advertising allows small businesses to deliver highly targeted and personalized ads across various digital channels. It enables businesses to reach potential customers at the right time and in the proper context, increasing the chances of conversion and customer engagement.

Moreover, programmatic advertising levels the playing field for small businesses by providing access to the same sophisticated targeting capabilities that were once exclusive to large enterprises. Businesses can optimize their ad spend through programmatic platforms, ensuring that their budgets are allocated toward the most impactful ad placements and strategies.

In this digital age, programmatic advertising empowers small businesses to compete and succeed in the ever-evolving online landscape. By embracing programmatic, businesses can achieve cost-effective, efficient, and engaging campaigns that help them grow and thrive in their respective industries.

Harnessing the Power of Programmatic Advertising for Your Brand

The advantages of programmatic advertising are numerous, making it the advertising medium of the future. A successful programmatic ad campaign may offer promising results whether you are a tiny firm just getting set to debut or have been in the business for years and want to keep up with the newest trends.

If you need help with your business, New Path Digital can guide you through it.

New Path Digital is a digital marketing and advertising agency dedicated to making meaningful relationships. It connects clients with cutting-edge talent, tools, and tactics to help their organization develop. We create and implement consumer-centric marketing and advertising strategies influencing consumer purchasing decisions. Contact us today to discuss your path forward.

Blog Last Updated on 3 months by New Path Digital

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