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.

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With all these benefits brought by programmatic private auctions, direct deals seem like an outdated variant.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?

*
*
*

Your message has been sent successfully.

You Might Also Like
Data Monetization for Publishers - Admixer Blog

Recently, Ivan Fedorov, New Business Director at Admixer, conducted a webinar on how publishers can monetize their 1st party data. We are sharing the main takeaways from the lecture.  A crisis is the best time to rethink your approach to revenue. The slow-down in the advertising market pushes publishers to up their game, test new […]

Data monetization for publishers-Admixer.blog
Data Monetization for Publishers: How to Collect and Sell Data [Ultimate Guide]

Recently, Ivan Fedorov, New Business Director at Admixer, conducted a webinar on how publishers can monetize their 1st party data. We are sharing the main takeaways from the lecture.  A crisis is the best time to rethink your approach to revenue. The slow-down in the advertising market pushes publishers to up their game, test new […]

Read more
Millennials and native advertising- Admixer Blog

Author: Dominika Kozub, Content and Marketing Specialist at Voluum DSP. The term “Millennials” has become a buzzword in recent years. Why? The famous generation seems to be the hardest demographic to understand, rapidly altering the digital advertising landscape as we know it. Based on the research, the millennial population born between 1981 and 1996 is […]

Millenials and native advertising- Admixer Blog
Why Millennials Swipe Right for Native Advertising?

Native advertising is a perfect way to reach the maturing generation of millenials. Learn how to grasp and hold on to their attention with our tips.

Read more
Coronavirus Impact on App Industry - Admixer Blog

The app industry was one of the fastest-growing segments in the digital economy prior to the COVID-19 pandemic. In 2019, the app industry boasted 204 billion downloads and $120 billion in consumer spendings. Last year, users, on average, spent 3 hours and 40 minutes per day using apps, outperforming TV. Users are quickly transitioning to […]

App downloads during coronavirus - Admixer Blog
Coronavirus Impact on Mobile App Industry: Installs, Ad Spend, and Revenues

The app industry was one of the fastest-growing segments in the digital economy prior to the COVID-19 pandemic. In 2019, the app industry boasted 204 billion downloads and $120 billion in consumer spendings. Last year, users, on average, spent 3 hours and 40 minutes per day using apps, outperforming TV. Users are quickly transitioning to […]

Read more
Stay updated with Admixer