Types of Programmatic Advertising: Deals & Formats Explained

As digital marketing evolves at lightning speed, relying solely on traditional advertising methods won’t keep you competitive. To optimize your marketing campaign and secure the best rates, it’s time to get started with programmatic advertising and make it a part of your advertising strategy.

This guide will walk you through the main types of programmatic ad deals and formats, helping you choose the right options for your business needs while navigating potential challenges.

What is Programmatic Advertising?

Programmatic advertising is a relatively new and popular digital advertising method that employs advanced technology to automate the process of advertising space buying and selling. By using AI and machine learning, it targets ads to relevant viewers in real-time, minimizing manual intervention and enhancing both the efficiency and cost-effectiveness of advertising campaigns.

Here’s how it works: When a user enters a website, an instant auction occurs to determine which advertiser gets to show their ad. This process analyzes visitor data and site traffic to optimize ad placements. For more detailed information check out our Guide to Programmatic Advertising Ecosystem.

4 Types of Programmatic Advertising Deals

There are four primary ways to buy and sell digital ad space, each with distinct benefits and considerations tailored to meet different advertising goals:

• Real-Time Bidding (RTB). RTB operates like an open auction, in which advertisers compete in real-time for ad inventory. Real-time bidding offers advertisers quicker execution, accurate targeting, bid optimization, and enhanced ROI.  

• Private Marketplace (PMP). PMP functions as an exclusive, invitation-only auction for premier ad space. It ensures higher quality placements and brand safety, though access is limited only to invited advertisers.

• Preferred Deals. In Preferred Deals, advertisers gain early access to premium ad inventories with set prices before they enter the auction. This approach guarantees ad placement quality but limits access to a single buyer.

• Programmatic Guaranteed. This deal type involves a fixed-rate contract for specific ad space, providing predictability and control over placements. It’s ideal for campaigns needing assured visibility but requires precise targeting to avoid underselling.

In addition to the main types of programmatic deals, there are other programmatic advertising options and strategies that advertisers may consider. These include Automated Guaranteed (AG), Programmatic Direct, First-Party Data Deals, and Dynamic Creative Optimization (DCO).

Popular Ad Formats in Programmatic

Programmatic advertising supports a variety of ad formats all designed to effectively engage audiences:

Display Advertising

Display ads are static images or interactive content you see on websites, mobile applications, and social media. 

Benefits:

• Versatility: Easily integrated into websites, mobile apps, and social media.
• Cost-Effective: Typically less expensive than other formats.
• Variety: Available in numerous sizes and styles, fitting diverse campaign needs.

Video Ads

Video clips that appear before, during, or after online videos, such as pre-roll or in-stream ads. Common on platforms like YouTube and within streaming services, these video ads require a higher initial investment but offer significant engagement returns.

Benefits:

• High Engagement: Captures attention and encourages higher interaction rates.
• Storytelling Capability: Perfect for conveying complex messages and brand narratives.
• Wide Reach: Popular on streaming services and platforms like YouTube.

Native Ads

These ads blend smoothly with the overall content, creating a more organic feel. Examples include sponsored articles, recommended content, and in-feed social media ads. Their cohesive style and format with the accompanying content lead to increased engagement rates.

Benefits:

• Seamless Integration: Blends naturally with content, thus providing a non-disruptive user experience.
• Higher Engagement: Matches the platform’s look and feel, leading to better user interaction.
• Trust: Often perceived as more credible than traditional ads.

Audio Ads

The rise of podcasts has led to a surge in the popularity of audio ads. These ads are an effective format for engaging listeners, smoothly integrated into audio content. They are a cost-efficient and convenient way to reach on-the-go audiences. 

Benefits:

• Growing Medium: Increasing popularity with podcasts and streaming services.
• Cost-Effective: Generally cheaper to produce than video advertising.
• On-the-Go Reach: Effectively targets listeners in various environments.

Digital Out-of-Home (DOOH) Ads 

These are digital versions of traditional outdoor ads like bus stop posters and billboards, offering enhanced targeting and real-time updates. 

Benefits:

• Dynamic Targeting: Can be updated in real-time according to location, weather, and demographics.
• High Visibility: Captures a broad audience in high-traffic areas.
• Innovation: Interactive and visually compelling, boosting user engagement.

How to Choose the Best Programmatic Deal for Your Campaign

So you’ve learned about different types of programmatic deals, but you’re not sure which is best for your business? Below are some criteria that can help you decide what deal will be the right choice:

Programmatic Deal Type Criteria

	Criteria	Description
	Campaign Goals	Identify your primary goals, such as lead generation, direct sales, or brand awareness, to determine the most suitable deal type. RTB is ideal for a broad promotion across a wide range of channels. While Preferred Deals offer to secure specific inventory before it goes to open auctions.
	Target Audience	Analyze your audience’s characteristics and preferred engagement platforms to refine targeting advertising strategies. PMP helps to access premium, targeted audiences through selective publishers. And Programmatic Guaranteed provides secure premium placements on high-quality sites.
	Inventory Quality	Decide between premium, brand-safe inventory, and broader reach. PMPs and programmatic guaranteed deals are ideal for high-quality placements.
	Transparency and Control	Assess your need for transparency and control. Programmatic guaranteed deals offer the most control, while open auctions provide less.
	Budget and Pricing	Align your budget with the pricing models of each deal type. RTBs can be cost-effective, while guaranteed deals offer fixed pricing.
	Scalability	Decide if rapid scalability is essential. Open auctions and PMPs generally offer greater scalability than guaranteed deals.

If you are considering integrating programmatic advertising into your marketing strategy but aren’t sure which deals or formats align best with your goals, consult the experts at Digital Ad Systems Company. We specialize in developing and customizing powerful demand-side and supply-side platforms, as well as other cutting-edge solutions to drive your business forward.

Optimizing Ad Formats for Better Performance

In mastering programmatic advertising, optimizing ad formats is paramount to achieving maximum campaign effectiveness. Here’s a road map to enhanced ad performance:

Align Formats with Campaign Objectives

The first step is to clearly define your campaign goals — whether it’s generating qualified leads, enhancing brand visibility, or nurturing customer relationships. For example, video ads are excellent for brand storytelling and demonstrating product capabilities, while display ads may be more effective for retargeting and lead generation.

Understand Your Target Group

Each audience has specific needs and behaviors. Use detailed audience segmentation and customer characteristics to customize your programmatic ad formats. If your target market values in-depth information, rich media formats such as infographics or detailed video demos can be very effective.

Use data and analysis

Use analytics to get an idea of how different ad formats perform across multiple platforms and devices. Monitor key performance indicators (KPIs) such as conversions, clicks, and engagement metrics.

Utilize A/B Testing

Continuously test various ad elements — images, calls-to-action, ad impression rates, headlines, and advertisement placements. A/B testing helps identify which combinations will perform best for the audience you want to reach.

Ensure Cross-Platform Compatibility

Optimize your ad formats to be adaptable across desktop, mobile, and tablet devices. Multi-device compatibility assures that your message is consistent and effective regardless of where your audience is interacting with it.

Conclusion

By understanding these programmatic advertising deals and formats, you can make well-informed decisions that match your business goals. Whether you’re looking to save on your budget, ensure brand safety, or achieve optimal scalability, programmatic advertising offers a plethora of solutions tailored to meet your specific needs. 

To best implement these strategies to advance your digital marketing efforts, contact Digital Ad Systems Company.