Things to Know About Programmatic Advertising, Types and Benefits

The use of technology to buy and sell advertising inventory using an automated and data-driven process is known as programmatic advertising. It is also the most common type of advertising spaces across all screens, including native, mobile, video and display ads.

Programmatic advertising is widely used in the field of digital marketing and is often linked to areas like real-time bidding (RTB) and open auctions and remnant inventory.

The objective of an advertiser usually was to reach their intended audience or market and convince them to take a specific or other action. This could mean buying something, creating the brand’s reputation, or promoting an event, etc. The objective of a Publisher was to create a website that had interesting information, interesting and useful material to attract a target audience that the advertiser may wish to reach through their advertising campaigns.

Types of programmatic advertising

Before we discuss the various kinds of programmatic advertising we’ll take a quick review of the benchmarks set for the (IAB) that is also called the Interactive Advertising Bureau.

Reserved inventory

This happens when a specific part of a website is allocated to a publisher at an agreed upon price. This may include an agreed upon ad-size as well as the frequency of display and the time frame.

Unreserved inventory

It is the opposite to reserved inventory in which publishers make a specific space on their website accessible to advertisers since inventory is sold only directly. Restricted inventory is sold via third-party ad networks as well as other ad exchanges through real-time bidding (RTB).

Fixed price

Fixed price was originally the method of human interaction and negotiations. Despite the fact that programmatic rules govern the industry of online media buying, fixed price agreements are still in place.

Auction pricing

This is where RTB is involved and the inventory of ads of a website is categorised and then made available to advertisers.

Once you have a basic understanding of the industry standard, we can look into the various kinds:

Programmatic direct

This is also referred to as automated guarantees. It occurs when a buyer is able to get access to a publisher’s inventory at a predetermined price. This inventory may also be reserved and is similar to the previous method to trade inventory when an individual sales representative is involved. Third-party businesses and a certain group of systems are needed to control the process and guarantee the delivery.

Preferred deals

Preferred deals are often known as fixed unreserved rates. They refer to advertising inventory not being reserved, but rather the price was agreed to beforehand. Like programmatic direct, there has to be a clear link of communications between advertisers as well as the publisher. Learn more about the classification of programmatic ads on the Private Marketplace page or Preferred Deals explained.

Exclusive Auctions

It is also known as auctions with invitation only and is a private marketplace deals in which inventories are offered by a group or a single premium publisher. Auctions are conducted between exclusive advertisers who are able to access the auction through invitation.

Open auction RTB environment

It is when a tech-driven bidding system is set up to allow marketers to place bids on the remnant inventory of ads from publishers. This gives agencies and advertisers access to an extensive range of inventories from publishers globally.

Know the benefits of Programmatic Advertising

Programmatic advertisements offer an infinite number of benefits to sellers and buyers alike. Making decisions based on data eliminates the guesswork that advertisers used to have before the introduction of programmatic trading. Below are some important advantages you should know about:

Budget friendly:

Programmatic advertising uses data to provide impressions to the targeted audience. This improves the chances of conversions and results in less loss of money on unproductive advertising.

Improved targeting:

A variety of information points and performance indicators can be utilized to determine the audience that helps in reaching the right people much easier.

Manageable Advertising campaigns:

Campaigns are modified and monitored with minimal energy and time.

Quick access to inventories:

In the programmatic display advertising marketplace, buyers and sellers seamlessly communicate with each other. Advertisers are able to reach their audiences through the websites of publishers more quickly than ever before, and across various platforms and devices.

Time saving approach:

The goal of dsp programmatic advertising is to remove the human component as much as possible, this means that you spend less time in negotiating deals and brokering certain price points.

More better reach:

Programmatic software allows you to connect with potential customers across the globe by placing your ads across various partner networks, ad networks channels and geographical areas.


In light of recent trends and changes in the industry it’s becoming clear that publishers and advertisers who don’t use programmatic strategies are or are not putting money in the right place or are wasting their time with ineffective methods. Since the online advertising market is becoming more tech-driven, it is essential to implement these methods and move ahead of the curve or your company could fall behind, slow down or be unable to survive due to it.

If you have any questions, please ask below!