What Is Programmatic Guaranteed?

Programmatic Guaranteed is a term from online marketing, or more precisely from the field of Real-Time Advertising (RTA) and therefore also from Programmatic Advertising (PA). In addition to the term Programmatic Guaranteed, synonyms such as Automated Guaranteed or Programmatic Direct are often used.

In terms of content, Programmatic Guaranteed describes a type of deal for the purchase of online advertising space, for example, web banners using a programmatic procedure. Specific parameters are defined in advance. These include, for example, impressions, volume, creative formats and the start and end date of the respective campaign. In short, Programmatic Guaranteed is the fixing of quantity, price and duration between the purchase and the sales side.

Advantages and Disadvantages of Programmatic Guaranteed

With Programmatic Guaranteed, the advantage for the customer is that it is no longer necessary to book each order individually. A programmatic system with a sell-side platform (SSP) and demand-side platform (DSP) handles the booking of advertising spaces in the ad server. Besides, all figures and data flow into a single reporting, so that it is quickly apparent which advertising spaces have performed how. The measurement of success thus becomes much more tangible.

Another advantage of Programmatic Guaranteed using DSP and SSP platforms is that the advertiser, i.e. the customer, is saved much time. Also, the advertiser always has the guarantee that a fixed inventory for a fixed budget will be purchased within a previously defined period.

One disadvantage of Programmatic Guaranteed is that once the previously fixed data has been set and has come into effect, it is no longer possible to change further data. It should also be noted that costs are often incurred for exchange platforms. Standard models here are revenue or spend share models.

Also, Programmatic Guaranteed is not an auction procedure like Real-Time Bidding (RTB), but fixed prices. This can be both advantageous and disadvantageous.

How do you set up a Programmatic Guaranteed Deal?

Compared to a Private Auction or Preferred Deals, advertisers need to be aware of a few things when setting up Guaranteed Deals. These include, for example, that publishers should preferably be addressed directly. If no publisher has been found yet, online marketplaces are particularly suitable for finding publishers. Such marketplaces include Amazon DSP or Google Display & Video 360. Here a filter function allows you to select the geographical area and the transaction type, in this case, Programmatic Guaranteed, and contact the publisher.

As soon as the contact is established, it is only a matter of agreeing on the general conditions. This includes, as mentioned before, the budget, the time frame, the thousand-contact price (CPM), or “cost per mille” (CPM) and the resulting impression volume and original format. Once both parties, advertiser and advertiser, have reached an agreement, the deal becomes productive and cannot be changed subsequently.

Amazon and the DSP Network

In recent years, the entire area of Programmatic Advertising, including Programmatic Guaranteed, has grown significantly in size and relevance. With the help of Programmatic Advertising, target groups can now be found and addressed online in an automated, data-dependent manner. It is no longer a question of accepting a high reach at low prices but with a higher loss of coverage, but rather of addressing one’s own target group. With Programmatic Advertising, campaigns can be continuously and, above all, automatically optimised by obtaining data records.

This is precisely what happens in the Amazon marketplace. With its DSP network, Amazon has created a demand-side platform where marketers can programmatically buy ads – both from Amazon itself and from third-party publishers. This means that both display ads and video ads can now be placed automatically. Retargeting of a specific ASIN or product group is also possible using the Amazon DSP. Also, essential insights and reports are available via the Amazon DSP network.

However, the whole subject of Programmatic Advertising and the Amazon DSP network is relatively complex, which requires a certain amount of specialist knowledge. The Amazon agency intomarkets has specialised in the Amazon Marketplace and has the necessary know-how in Amazon Advertising, Programmatic Advertising and Programmatic Guaranteed as well as keywords and optimisations.

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