Programmatic Buying Channels Demystified - part 2

Posted on June 05, 2015
By Niveditha Viswanathan, Product Marketing Manager, InMobi ExchangeProduct Marketing Manager, InMobi Exchange

The wave of programmatic buying on mobile is a bit like the giant Sequoia forest. It is fast growing, dense and always adding new branches. Everyone spending on mobile advertising today has a programmatic agenda. And yet, it is the story of The Blind Men and The Elephant - everyone understands and describes it a little differently from their neighbors.

Amidst all the names and nicknames in the world of mobile programmatic, how do we create a sense of simplicity and decode the complexity? Following the earlier blog where we covered the differences between PMP and Programmatic Direct deals, here is a deeper look at various auction types. The fundamental differentiator is this simple aspect - Is the inventory being auctioned? If it is, then it belongs to the world of Real Time Bid or RTB. If no is the answer, then it is what we call Programmatic Direct; the automation of direct sales

Now, the RTB world has preferences. It can either be an open-for-all auction; where all advertisers are welcome to bid. Or it can be exclusive, where only select advertisers get entry into the club. The nomenclature here is fairly straightforward - the former is called Open Exchange; and the Latter Private Marketplace (or PMP). Read more about this on our earlier blog here.

That brings us to the world of Programmatic Direct, where inventory is not being auctioned, but sold under certain deal specifications. Deals or Deal IDs are other popular terms to describe Programmatic Direct buying.

When it comes to Programmatic Direct, advertisers can choose from a menu of buying options, depending on their core objective. In most cases, buyers are looking for one of the following, via Programmatic Direct deals : 1) Access to specific inventory, 2) Prioritization or 3) Data.

Depending on the key buyer need, Programmatic Deals have varying pricing and inventory settings. A Guaranteed Deal is one where a certain inventory is earmarked for a particular buyer; ensuring volume and spend for a specific campaign. This is similar to a real life room reservation, where a room is held for the specific guest.

Preferred Deals are where a buyer gets preferential access over others, for specific inventory and access to data; similar to premium class frequent fliers who get to board the aircraft first.

A third in this category is what we call first look. In this set up, the buyer gets to take a look at the inventory; and proceed if they like what they see. This is akin to getting a trial of a product, which can be purchased if the buyer is happy.

Part 1 hyperlink.