With Programmatic Direct, the advertiser purchases a fixed CPM, meaning the advertiser agrees to paid a predetermined CPM. This is because deals are made on an individual basis, where a publisher’s sales rep negotiates the arrangement with the advertiser on a one-to-one basis.
#PMP STAND FOR MANUAL#
However, Programmatic Direct is actually a more manual process than PMP deals. Programmatic Direct is direct-sold, guaranteed inventory, that unlike PMP deals doesn’t require human intervention to run. Programmatic direct is slightly different to PMP deals. They basically want to find their target audience before their competitors. But in order to justify paying more, buyers want preferential access to the supply. Publishers are more aware of who is serving ads on their sites, and they can sell the space for more money. PMPs and Programmatic direct have a few different advantages for pubs and buyers. The CPM is usually not a fixed CPM, meaning the advertisers don’t pay a CPM agreed upon in advance. This is a contract that spells out how much the buyers are willing to pay for the inventory and how long the ads with run. PMPs are usually facilitated with an IO, or Insertion Order. The advertisers also know exactly which sites their ads will run on. Advertisers also get access to premium sites for cheaper than they would with programmatic direct. With PMP deals, the advertiser cuts out the middleman and skip over the exchanges and service-side platforms all together.
Private Marketplace Deals are invitation-only real-time bidding auctions where one or several publishers invite a select number of advertisers to buy their inventory. This is where most programmatic buying happens, because there are thousands and thousands of advertisers are competing for RTB inventory.
Out of all forms of programmatic advertising, RTB is the largest – billions and billions of impressions are served each day. However, it offers the least precision for both publishers and advertisers. Real-time bidding is typically the most cost-effective form of programmatic advertising. The URL, content category of the page, location of the ad space, and the user’s browser cookies all affect how much an advertiser is willing to pay to serve an ad. To make these bidding decisions, advertisers use technology that combines information about the webpage as well as the user. This helps advertisers target the audiences interested in their products. The ads are generated based off of the user’s cookies, based on the user’s cookie history.
Real-time bidding is a computer-run auction that allows advertisers to compete to serve targeted ads to their desired customers. So we wanted to break down the difference between the three main types of programmatic: Real-time bidding, Private Marketplace, and Programmatic Direct. ComparisonsShopping galleries and widgetsĪs we all know, programmatic advertising can make your head spin.
#PMP STAND FOR SOFTWARE#
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