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Programmatic advertising

What is programmatic advertising?

Programmatic advertising is an Artificial Intelligence (AI) and Machine Learning (ML)-based approach to enable advertisers and publishers to buy and sell advertising space in real-time. The automated and streamlined process eliminates human intervention to negotiate deals completely.

Types of programmatic deals

Programmatic deals are the different ways publishers can sell their inventory through a programmatic setup. There are four types of programmatic deals.

Programmatic guaranteed: Programmatic guaranteed is a programmatic setup where select advertisers can buy a fixed number of impressions from the publisher at a fixed price, timeline, and other terms. This implies that a sale is guaranteed.
Preferred deal or non-guaranteed: Preferred deal is a type of programmatic advertising setup where an advertiser can optionally buy ad space at the negotiated price. The inventory is not reserved for a specific advertiser, even though publishers prefer them to bid on it. Hence, it is also called non-guaranteed.
Private marketplaces or private auctions: Private marketplaces (PMP) are a form of programmatic advertising that work on an invitation-only basis with floor pricing. Publishers can invite advertisers to participate in the auction, giving them priority over the others to bid on the inventory.
Real-time bidding or open auctions: With real-time bidding (RTB), ad spaces can be bought and sold through real-time auctions. Transactions are made when an app/web page is loading, the time taken for which is approximately 200ms.