Direct deals between media owners and buyers are the norm, and the use of programmatic guaranteed is more appealing than ever. With programmatic guaranteed, both sides agree upon the deal terms for the campaign pre-launch. For example, target audience, impressions, price, and start/end date are all pre-determined before the campaign’s launch. This allows for more control by both parties and ensures advertisers receive the outcome they’re expecting with their media spend.
Programmatic guaranteed: What’s in it for media owners?
For media owners, programmatic guaranteed helps them simplify their strategy and creative management tactics. By setting up the details of a campaign before it goes live, media owners have a level of confidence knowing they’re doing business with better advertisers, showing better ads, and ultimately providing a better user experience for the end user. Programmatic guaranteed provides media owners a strong platform to negotiate a higher CPM, helping them realize their income potential while minimizing their risk.
Programmatic guaranteed: What’s in it for buyers?
With programmatic guaranteed, buyers and DSPs generally have a better return on ad spend investment. DSPs save money on processing time since they’ll only compete the programmatic guaranteed campaign when a bid request is flagged with the matching deal ID, leaving them with less work to complete during an auction. Buyers are given the ability to lock how many impressions their ad campaigns will serve, at a set price, before their campaign even starts.
So what’s the catch?
With all the benefits outlined above there are still a few downfalls to keep in mind when choosing programmatic guaranteed. For example, there is still potential to encounter some ad spend waste, the time required to negotiate and activate a campaign can result in missed opportunities, and there’s always the possibility of encountering human or technical errors during the setup of a campaign. Let’s dive into these errors a bit more.
Wasted ad spend
Though audience targeting has come a long way, there is still potential for mistargeting an audience. This includes the potential for excessive targeting, or simply targeting inaccurate or out-of-date audience segments. These risks can be mitigated by truly understanding your audience and your data provider, but one issue that will always remain is wasting ad spend by targeting the right audience at the wrong time. As with all advertising campaigns, just because an ad appears doesn’t mean the audience is paying attention or ready to consume the information.
Activation and missed spend
Setting up a campaign takes time. When you’re creating a programmatic deal, each participant in the chain contributes to time lag: the media owner (using an SSP), the buyer (using a DSP), and the time it takes to coordinate between these four entities. For example, it takes an account manager working at an SSP about 10 minutes to set up all the details of a campaign in their platform. This person then has to create an email with all of the campaign details and send these details to their counterpart at a DSP — it’s safe to assume this step takes an additional 10 minutes. Once the email lands in the DSP account manager’s inbox, someone at that company takes an additional 10 minutes to get the campaign set up on their end. In total, this means a campaign takes about 30 minutes to set up, assuming every step goes according to plan.
But all parties involved in this process have other tasks throughout their day. Things come up that might make any one of these steps take more time to complete. While these steps are being completed, the campaign isn’t delivering.
Like all things, there can always be human error when setting up programmatic campaigns. Whether the error happens on the supply or demand side, there are many opportunities for someone to enter a field incorrectly and therefore make the campaign fail to run according to plan. Human error can’t ever be 100% avoided, which is why it’s important to double and triple check all fields before setting a campaign live. It’s equally important for both the DSP and SSP to monitor campaigns after they’ve launched so account managers can catch and troubleshoot any errors that may have accidentally made it through the cracks.
The above issues aren’t exclusive to programmatic guaranteed campaigns, and the benefits of programmatic are well worth these minor hurdles. The good news is, there are ways to combat all of these issues and SpotX, with its years of experience and excellent support team, can help you address these issues and create an effective campaign. To confidently run a programmatic guaranteed campaign, be sure to:
- Set goals and expectations before campaign launch
- Take advantage of audience data
- Utilize forecasting tools to reach your audience at scale
SpotX will dive deeper into these tips in future blog posts. Subscribe to our content to stay informed about programmatic guaranteed best practices, market trends to help improve programmatic guaranteed, and so much more.