Programmatic Guaranteed is a term from online marketing, more precisely from the field of Real-Time Advertising (RTA) and therefore also Programmatic Advertising (PA). In addition to the term Programmatic Guaranteed, synonyms such as Automated Guaranteed or Programmatic Direct are often used.
Programmatic Guaranteed describes a type of deal for the purchase of online advertising space, such as web banners, using a programmatic process. Certain parameters are defined in advance. These include impressions, volume, creative formats and the start and end time of the respective campaign. In short, programmatic guaranteed means that the quantity, price and duration between the buy and sell side are determined.
Advantages and disadvantages of Programmatic Guaranteed
A decisive advantage for customers with Programmatic Guaranteed is that each booking no longer has to be made individually. A programmatic system with a sell-side platform (SSP) and a demand-side platform (DSP) handles the booking of advertising space in the ad server. In addition, all relevant figures and data flow into a central reporting system. This makes it easy to see which advertising spaces have performed particularly well. This makes measuring success more transparent and comprehensible.
Another advantage of using DSP and SSP platforms is the enormous time savings for advertisers. Advertisers also have the security of knowing that a guaranteed inventory placement will be purchased for a set budget within a predetermined period of time.
However, Programmatic Guaranteed also has disadvantages. Once the previously agreed parameters are active, no more changes can be made. In addition, fees are often charged for access to the platforms. Common pricing models are the revenue or spend share model.
Another difference to Real-Time Bidding (RTB) is that Programmatic Guaranteed is not an auction, but a fixed-price process. Depending on the campaign strategy, this can have both advantages and disadvantages.
How is a Programmatic Guaranteed Deal set up?
Compared to a Private Auction or a Preferred Deal, there are some aspects that advertisers should consider when setting up a Guaranteed Deal. First and foremost, publishers are best approached directly. If a suitable publisher has not yet been found, online marketplaces are particularly suitable for the search. The best-known platforms include Amazon DSP or Google Display & Video 360, where a filter function can be used to select geographical regions and transaction types such as Programmatic Guaranteed and contact suitable publishers.
As soon as the contact has been established, the framework conditions must be agreed. These include the budget, the time frame, the price per thousand contacts (CPM), the planned impression volume and the advertising format. Once both parties, i.e. advertisers and publishers, have reached an agreement, the deal becomes active and cannot be changed afterwards.
Amazon and the DSP network
In recent years, programmatic advertising, including programmatic guaranteed, has become considerably more important. With the help of programmatic advertising, target groups can be addressed online in an automated and data-based manner. The aim is not to achieve a high reach at low cost with high wastage, but rather to address your own target group precisely. Programmatic advertising allows campaigns to be continuously and automatically optimized by analysing and using new data sets.
This principle is also applied on the Amazon marketplace. With its DSP network, Amazon has created a demand-side platform through which advertisers can programmatically buy ads – both directly on Amazon and on third-party websites. This enables not only the placement of display and video ads, but also the targeted retargeting of specific ASINs or product groups within the Amazon DSP network. In addition, Amazon offers comprehensive analyses and reports that provide deeper insights into the performance of advertising campaigns.
However, the entire area of programmatic advertising and the Amazon DSP network is comparatively complex and requires a certain level of expertise. The Amazon agency Intomarkets specializes in the Amazon marketplace and has the necessary expertise in the areas of Amazon Advertising, Programmatic Advertising and Programmatic Guaranteed. In addition to targeted campaign optimization, its range of services also includes keyword strategies and comprehensive analyses for effective advertising placement.
Conclusion
Programmatic Guaranteed offers many advantages for advertisers, particularly in terms of automation, efficiency and guaranteed placements. However, this model requires careful planning and can be associated with fixed costs. Amazon DSP offers a powerful platform in this area to effectively reach target groups.