How Programmatic takes over Direct Deals

16 March 2017

Programmatic’s victory march goes on. This time, it’s all thanks to Programmatic Direct. The new link in the ad server chain allows for programmatic advertising to get even bigger revenue. And upcoming trends promise a continuing rise.

Programmatic Direct on its way to the top

In order to optimize the revenue, publishers can use multiple options of selling their ad space: direct deal, programmatic auction and house/affiliate ads. In the past, the top priority was given to direct deals. It soon came to publishers’ understanding that this way won’t bring the highest revenue. This is how programmatic started getting more investments.

In their efforts to maximize the revenue, publishers went further towards setting control over automatic selling. It led to programmatic splitting into private and open auction. Adding manual negotiations to the automatized process has become the foundation for what we call now Programmatic Direct.

Basically, Programmatic Direct is the channel for selling the inventory by means of programmatic tools, yet with the direct communication between a buyer and a trading floor. Programmatic Direct was recognized as a missing link on the way to successful realization of programmatic technology.

The perks of using Programmatic Direct

Here we talk about simple math. Giving the top priority to a direct deal with a set price cannot create the highest yield.  As an alternative, setting a CPM floor price with an auction tied to it allows for a more profitable buy. If the direct auction brings no plus to the floor price, next goes direct deal or open auction with house or affiliate ads at the end of the line. Thus, the reason for placing Programmatic Direct over other selling option is the possibility of gaining more.

Programmatic direct vs direct deals

The popularity of Programmatic Direct is enhanced by the fact of its all-around advantages. While publishers maximize their revenue, buyers get better visibility of publishers. At the same time, advertisers can generate improved ROI.

With all these benefits brought by programmatic private auctions, direct deals seem like an outdated variant. In such context, it is important to recognize the steady rise of programmatic as early as it’s possible.

Want to learn more?

    Select
    Demand
    Brand
    Agency
    DSP
    Supply
    Web Publisher
    App Developer
    SSP
    Media House
    Others
    Ad Network Owner
    Tech Vendor
    Other/Not Sure
    You Might Also Like
    How Life-Extension of 3P Cookies Will Affect the Industry? - Admixer blog

    On 24 June 2021, Google once again grabbed the spotlight to announce that it has delayed a major privacy change to its Chrome browser. Google is postponing a plan to block third-party cookies until late 2023.   The official reasoning behind the decision — is the need to test sustainable alternatives that do not violate user […]

    How the delay in 3p cookies phase out will affect adtech industry? - Admixer blog
    Die Another Day: How Life-Extension of 3P Cookies Will Affect the Industry?

    On 24 June 2021, Google once again grabbed the spotlight to announce that it has delayed a major privacy change to its Chrome browser. Google is postponing a plan to block third-party cookies until late 2023.   The official reasoning behind the decision — is the need to test sustainable alternatives that do not violate user […]

    Read more
    Device fingerprinting - Admixer Blog

    Device fingerprinting, or you may have heard of it as web fingerprinting, mobile device fingerprinting, browser fingerprinting, or machine fingerprinting, has a concept similar to collecting human fingerprints by a detective, but not so obvious. With 3rd-party cookies soon becoming obsolete, fingerprinting will be one of the cookie alternatives that will help marketers target users […]

    Device fingerprint - hover image - Admixer Blog
    Device Fingerprinting: Pros and Cons of the Controversial Method

    Device fingerprinting, or you may have heard of it as web fingerprinting, mobile device fingerprinting, browser fingerprinting, or machine fingerprinting, has a concept similar to collecting human fingerprints by a detective, but not so obvious. With 3rd-party cookies soon becoming obsolete, fingerprinting will be one of the cookie alternatives that will help marketers target users […]

    Read more
    Identity Graph - Admixer Blog

    Marketers are facing an identity crisis propelled by cookies turning obsolete and Apple’s ATT coming into force. In light of the fading addressability, the identity graph provides time-honored stability as well as new exciting opportunities.  With the rise of people-oriented marketing, identity graphs have become the foundation of identifying people across channels and devices. They […]

    User Identity Graph - Admixer Blog
    Identity Graph: What Is in It for Marketing?

    Marketers are facing an identity crisis propelled by cookies turning obsolete and Apple’s ATT coming into force. In light of the fading addressability, the identity graph provides time-honored stability as well as new exciting opportunities.  With the rise of people-oriented marketing, identity graphs have become the foundation of identifying people across channels and devices. They […]

    Read more

      Stay updated with Admixer
      Privacy Policy