Programmatic Premium Driving the Growth of Programmatic Advertising

Programmatic has become a prominent buzzword in the marketing industry and in many cases, is equated with real-time bidding (RTB), a method of buying and selling online ad impressions. However, though all RTB is programmatic, not all programmatic is RTB. Another branch of programmatic advertising, programmatic premium, is gaining momentum in the digital space.

“Programmatic buying for premium inventory is a new wave in advertising technology,” said ViralGains CEO Jay Singh. According to Singh, ViralGains has incorporated this technology into its platform in order to optimize client campaigns. “At ViralGains, we are supporting this trend by making premium native video inventory available through programmatic buying that maximizes views, shares, and conversations for online video ad campaigns.”

Due to the rise of programmatic premium, advertisers and brands that had previously disregarded programmatic buying are taking another look. Simply put, programmatic premium offers access to premium ad placements and provides more value to advertisers in terms of viewability and efficiency. It bridges the gap between super-premium ad inventory that’s only accessible via a publishers’ direct sales team and RTB. For a more comprehensive definition, we look to AdExchanger.

When it comes to programmatic premium, “premium buyers define their desired audiences and the system then helps them find premium publishers to reach those audiences. Buyers and sellers negotiate through the platform, which suggests an optimal media plan to the buyers. Buys are then executed like a direct buy, with delivery monitored against the desired audience in the desired frequency.”

Programmatic advertising has seen tremendous growth over the last few years. In fact, MAGNA GLOBAL estimates US programmatic display ad spending will reach $7.5 billion this year. By 2017, the company predicts spending to hit $17 billion which may, in part, be due to the significant benefits of programmatic premium. This forecast includes both RTB-based and non-RTB programmatic digital display ad spending on video, banner, social and mobile.

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As programmatic premium display ad spending increases, so too will RTB. Research from MAGNA GLOBAL indicates simultaneous growth in both categories.

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The efficiency of automating the negotiation and fulfillment of display ad campaigns is driving more and more publishers and media buyers to invest in programmatic advertising. Programmatic premium is predicted to generate additional programmatic display ad spending as hesitant brands and advertisers adopt this form of advertising. It is, after all, the best of both worlds as it provides an accurate balance between machine-based decisions and human intervention.

AdExchanger broke down programmatic premium advertising, listing the elements both buyers and sellers should include for optimal transactions. We’ve included the lists below as a reference:

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