Automated Guaranteed vs Programmatic Guaranteed

Wed, February 15, 2017

Automated Guaranteed vs Programmatic Guaranteed Adslot

Wed, February 15, 2017

Why they’re not the same thing.

Last year I spoke about the growth of ad tech, the onslaught of new terminology used to describe what the industry does, and specifically how “Automated Guaranteed” (AG) and “Programmatic” are often confused.

The confusion still reigns (unsurprisingly) and today I want to address the differences between AG and “Programmatic Guaranteed” (PG) in particular.

The primary purpose of both programmatic guaranteed and automated guaranteed is to automate a media buy and guarantee that trade. But it is how they automate the media buy that makes them so different.

Automated Guaranteed is the process of automating what has traditionally been manual direct deal.

– The deal is negotiated directly between between a buyer and seller (using a platform such as Adslot).

– The inventory and pricing are guaranteed

– Once the deal is signed off it is injected straight into the publisher’s ad server via the ad server’s API.

Programmatic Guaranteed is the buying of inventory impressions with a guaranteed delivery (reserved traffic) or spend (fixed price) using a RTB platform

– The buyer chooses which audience and which impressions to bid on

– The inventory is guaranteed to win (the guaranteed portion)

– The deal is executed using deal ID and delivered programmatically

So what’s the difference between executing a trade using a ‘deal ID’ or an ‘API’?

With PG and “deal ID” the inventory is processed via an RTB platform – it generally doesn’t have immediate priority in the ad server. The control of the inventory no longer in the hands of the seller (or their ad server), but with the buyer and a RTB platform. The buyer makes all the decisions (selects the audience targeting and decides which impressions to buy), and the platform executes this. This can make forecasting delivery and determining the “guarantee” aspect a bit more tricky than a traditional standard deal. What this can often lead to is an over or under delivery on impressions. Not ideal in a guaranteed world.

In a direct deal the publisher has control and knows when the ad server should deliver an impression. The buyer knows they can rely on that. Everything is transparent in this relationship. This is why AG is such an attractive proposition. Not only does it have priority in the ad server (the same level as a standard direct deal), AG automates the manual and frustrating process of a direct deal. And it keeps all of the benefits – control, transparency and live optimisations – in a way that programmatic guaranteed just can’t do.