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The Types of Programmatic DOOH Deals in 2022 | Oongalee

After having covered what is programmatic DOOH in a previous blog, it only makes sense to expand on the topic. That’s why we decided to follow up with this post that is going to be about the types of programmatic DOOH deals you can go for in 2022. Stay tuned!

The Types of Programmatic DOOH Deals in 2022

The word programmatic is not new to the digital marketing world. It is another name for what is known as Real-Time Bidding (RTB). The key change, however, has been noticed in programmatic digital out of home advertising over the past few years. This makes it even more essential to differentiate between the methods using which you can buy and sell digital ads and the ever-increasing list of acronyms. In simple terms, RTB is the protocol and one of the multiple ways using which advertising is done programmatically, but it is not programmatic itself.

There are four main types of programmatic DOOH deals that advertisers can make to buy and sell ads. All of these types have their own advantages and disadvantages. Moreover, with the prevalence of General Data Protection Regulation (GDPR) and ongoing brand safety scandals, brand owners nowadays are going the extra length to maintain transparency and control. We will discuss all four types here to help you figure out which of these programmatic Digital OOH deals suits you the best.

1. Programmatic Guaranteed

This deal is also known as programmatic direct. Only one buyer can purchase it. It is basically a non-auction-based method in which the parties agree upon pricing and volumes upfront with the publishers. With the deal happening directly between the buyer and the seller, the price and volumes stay guaranteed from both ends. It is very similar to traditional media buying. However, a programmatic guaranteed deal also adds a streamlined process through automated RFPs on the platforms, at least to a specific extent.

The advantages of DOOH programmatic guaranteed are that it offers access to exclusive inventory, and provides control and transparency to brand owners. It also allows guaranteed volumes to both seller and buyer. However, it also has its disadvantages, such as high Cost Per Miles (CPMs), minimum commitment terms and budgets, and it also needs more resources to be set up.

2. Preferred Deal

Also known as spot buying, preferred deal is also made by a single buyer. It bypasses auctions and provides a fixed price to the buyer to buy the inventory. This exclusive “first look” access that this deal provides the buyer guarantees them a spot. The advantages of this deal is that the buyer enjoys guaranteed inventory if the floor price is met, you get transparency on what you are buying, and the prices are fixed. However, the CPMs are typically higher in this method, and the inventory volume is not guaranteed.

3. Private Auction

These are customized and invite-only marketplaces, where the buyer and seller can negotiate inventory packages. These packages are often more “premium” and can contain publishers’ 1st party data or additional page level targeting that is not applied in Open exchange.

Private auction also goes by the name of closed auction. Only a buyer who is invited is allowed to buy it. These are invite-only marketplaces that are customized in way that lets the buyer and seller negotiate the inventory packages. These packages are typically premium and may have the first-party publisher data or more page-level targeting that you will not find on an open exchange. On the upside, this type of deal offers transparency about what you purchase and also has a smaller number of brands competing to get a placement. On the downside, however, the CPMs are somewhat higher and you will still not be guaranteed to win the placement as a buyer.

4. Open Auction

Also called real-time bidding (RTB), an open auction is a protocol in which the selling and buying of digital ad inventory takes place through auctions. These auctions are held on Supply Side Platforms (SSPs) and Demand Side Platforms (DSPs). In an open marketplace RTB impressions can be accessed by all bidders. However, the floor prices remain controlled by publishers. The who/what categories of advertisers are allowed to bid on their inventory. On the upside, an open market auction has a higher ability to get scale, and it is readily available in DSPs to get targeted. It also offers better control to publishers. On its downside, it generally offers publishers a low Return On Investment (ROI) and there is no guarantee that you will be able to buy the placement you need.

The Final Word

To sum it up, the four popular types of programmatic DOOH advertising deals you can choose from include open auction, private auction, programmatic guaranteed and preferred deal. If you want to use an innovative tech assistant to display digital ads, contact Oongalee today!

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