According to the recently published Webinar presented by
Adobe entitled “The Future of Programmatic Ad Buying” $21B was spent on
Programmatic Media purchases worldwide in 2015 with $11B alone occurring in the
US. Adobe is predicting that by 2018,
$53B of media acquisition will be through Programmatic transactions. Therefore, as media buying continues to
evolve including more and more programmatic buying, advertisers need to be more
aware of how to capture transparency around how the money is spent and what is
actually being purchased.
Let’s look at three different ways in which Programmatic
transactions are currently being performed: Open Auction, Private Exchange, and
Guaranteed Direct. Each of these options
have positives and negatives that we will explore and become more informed on
this accelerating media purchasing option.
Open Auction
Open Auction or Open Exchange is the traditional
programmatic option. Open Auction is a
Real Time Bidding (RTB) public auction in which any buyer or seller can
participate. The biggest advantage for
buyers is efficiency and the elimination of the need to work directly with
publishers or ad networks to negotiate the pricing and buy inventory.
However, within RTB auctions, there are different levels of
transparency that are available for inventory; fully transparent, semi-blind
and blind inventory. Fully transparent
is true to its name and allows for the buyer to have full view to the
publishers inventory including domain names and allows for full-scale domain
optimization. In a semi-blind auction
the domains are masked with a single URL and do not allow for the buyer to
optimize on a single domain. Though, the
semi-blind auction will allow for the ability to optimize the networks
URL’s. Finally, a blind inventory
auction is where publishers will remain anonymous to the market. Here domain optimization is not possible and
as a buyer you are unable to determine where you are buying from.
Private Exchange
Private Exchange or Private Auction is an invitation-only
RTB auction. During this Private Auction
a publisher must invite a specific number of buyers to bid on the
inventory. Inventory purchased through a
private exchange tends to have a high level of transparency and
visibility. This will successfully allow
for a more advanced audience targeting model.
However, the ability to scale may be limited and competitors may be
participating in the same auction.
Guaranteed Direct
A guaranteed direct programmatic buy is a non-auction based
approach. Here publishers will grant
access to premium inventory with fixed prices.
Through guaranteed direct programmatic purchases, a buyer may also
receive guaranteed impressions from the publisher. Additionally, with a direct purchase buyers
may receive full transparency, precise audience targeting with high
visibility. This, in turn, allows for
exclusive participation. On the flip
side, the purchase price for a guaranteed direct buy is the most expensive and
has the least amount of scalability.
As the trend continues and programmatic media buying
continues to grow significantly over the next few years, it is imperative that buyers
and advertisers understand the different channels in which inventory is now able
to be purchased. By learning about and
understanding how each Media Agency is playing in the programmatic space, your
ability to choose the best Media partner become less of challenge and allows
for a more aligned partnership with your chosen agency.
Just keep in mind what the intended outcome of the purchase is and how
much transparency you need to have and you will make the right purchasing decision
for your media.
Source One's Programmatic Media Buying experts will be at ISM2016, where Source One is the exclusive sponsor of the Exec IN forum. Want to save on registration costs to attend this landmark event? Learn more over at SourceOneInc.Com.
Source One's Programmatic Media Buying experts will be at ISM2016, where Source One is the exclusive sponsor of the Exec IN forum. Want to save on registration costs to attend this landmark event? Learn more over at SourceOneInc.Com.
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