Programmatic advertising uses automated technology to buy and sell digital advertising inventory, helping advertisers manage when and where campaigns are delivered.
The four main types of programmatic advertising are open auctions, private marketplaces, preferred deals and programmatic guaranteed. Each offers a different approach to inventory access, pricing and delivery, giving advertisers options based on the requirements of their campaign.
Let’s look at each type of programmatic advertising and how the different buying methods work.
1. Open Auction
An open auction is a programmatic marketplace where advertising inventory is generally made available to a broad range of eligible buyers.
Advertisers compete for available inventory through an automated auction, often using real time bidding, where bids are evaluated as an advertising opportunity becomes available.
For advertisers, open auctions can provide broad access to available digital inventory without requiring an individual private agreement for each placement.
2. Private Marketplace
A private marketplace, often shortened to PMP, restricts access to selected advertisers rather than opening the auction to the wider marketplace.
Eligible advertisers are invited to bid on the available inventory, giving media owners greater control over who can access it.
For programmatic OOH, private deals can be used to provide selected buyers with access to particular digital inventory, locations or groups of screens.
Terminology can differ between platforms, with PMP sometimes used more broadly to describe different forms of private, non-guaranteed programmatic deals.
3. Preferred Deals
A preferred deal is a non-guaranteed arrangement where an advertiser receives priority access to specified inventory at a pre-agreed fixed price.
The inventory is not reserved. Instead, the advertiser receives an opportunity to buy eligible inventory under the agreed terms before it becomes available through other buying routes.
This can suit advertisers that want more predictable pricing and priority access while retaining flexibility over whether available inventory is purchased.
4. Programmatic Guaranteed
Programmatic guaranteed combines automated buying with inventory that has been agreed and reserved in advance.
The buyer and seller agree terms such as price and inventory commitment, and the agreed inventory is designated for that buyer. The advertiser is not competing for the reserved inventory each time it becomes available.
This approach can be useful when a campaign requires greater certainty around access to particular inventory or campaign delivery.
Key Differences Between Programmatic Buying Types
The main differences between programmatic buying methods are access, pricing, competition and inventory certainty.
- Open auctions provide broad marketplace access through competitive bidding.
- Private marketplaces restrict auction access to selected buyers.
- Preferred deals provide priority access at an agreed fixed price without reserving the inventory.
- Programmatic guaranteed uses agreed terms with reserved inventory.
These distinctions help advertisers choose a buying approach according to the level of flexibility and certainty required for a campaign.
Programmatic OOH and Traditional OOH Buying
Programmatic OOH changes how eligible digital outdoor inventory can be bought and delivered.
Traditional out of home advertising campaigns typically involve agreeing locations, formats and campaign periods in advance. Programmatic DOOH uses technology to automate parts of the buying and delivery process, providing additional flexibility over eligible digital inventory.
Both approaches ultimately place advertising within physical public environments. The difference lies primarily in how the media is purchased, managed and delivered.
Choosing the Right Programmatic Buying Method
The right programmatic buying method depends on the inventory, audience and level of certainty required for the campaign.
An open auction can provide broad access to available inventory, while a private marketplace creates a restricted buying environment. Preferred deals provide priority access at an agreed price, while programmatic guaranteed provides reserved inventory under agreed terms.
UK advertisers should also consider campaign locations, timing, budget, available digital inventory and the capabilities of the platforms being used before deciding on a buying approach.
Making Programmatic OOH Part of Your Campaign
Programmatic OOH gives brands greater flexibility in how digital outdoor advertising campaigns are planned, bought and delivered. With different buying methods available, advertisers can choose an approach based on their preferred inventory, locations and campaign requirements.
It can also help brands make use of digital screens across real world environments while using technology to manage campaign delivery more efficiently.
Planning a programmatic OOH campaign? Get in touch with OOH UK to discuss your goals and find the right digital formats, locations and programmatic buying approach for your campaign.