How is Digital Advertising Purchased?
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Digital Advertising can be purchased a few different ways, and the buying method all depends on what type of content you are looking to purchase, and how much you are willing to spend on the campaign. There are generally 3 ways that you can purchase Digital Advertising:
Publisher or Content Provider Direct
Programmatically (PMP, Preferred, or PG)
Digital Advertising Self Service Platform
Publisher or Content Provider Direct
When you think about the largest digital content providers- YouTube, Amazon, Disney/Hulu, Netflix, Peacock, Paramount+, Warner Brothers Discovery, Spotify, or Pandora for example—many of them have the option to purchase their inventory as a “Direct Buy”. This isn’t to say that those providers ONLY do Direct buys, many also have the option to buy programmatically and via self-serve as well. Direct buys are typically reserved for larger budget buys (more than $100k) and Sponsorships. When you are buying Digital Advertising for The Superbowl, The Olympics, The Grammy Awards, or the BET Awards-- it’s typically done via a Direct Buy Sponsorship. A direct buy usually involves a media buying process, which starts with sending the content provider an RFP, or “Request for proposal”. The RFP usually includes the budget, the campaign goals, objectives, KPIs, target audience, creative, and any other relevant campaign details. The content provider will then respond to the RFP, presenting media plan options along with supporting presentation decks to sell through the deal. Once the deal is sold, the campaign usually is executed via an Insertion Order or IO, which is a contract between the advertiser and the content provider outlining the terms of the agreement. Within the IO are typically payment terms which are agreed upon, and the content publisher for example will bill the client monthly for delivered inventory.
Programmatically (PMP, Preferred, or PG)
I gave a general detailed overview of Programmatic Advertising in “WTF is Programmatic Advertising?”, so check out that post for more details about Programmatic Advertising. Many content providers have the option to buy their inventory via programmatic buying.
Below is an overview of the Programmatic Buy types:
*Programmatic Guaranteed (PG)- A programmatic deal where the Seller and the Buyer negotiate a price and terms for inventory that's reserved (guaranteed) for that buyer. Inventory is designated only for that buyer at that price.
Source: (Google 360 Ad Manager Help - Programmatic Guaranteed vs. Preferred Deals)
* Preferred Deal: A programmatic deal where the Seller and the Buyer negotiate a price and terms for inventory that the buyer can optionally buy. The buyer has an initial, or "preferred," opportunity to bid at the negotiated price when there's an ad request for the inventory. Preferred Deals are non-guaranteed because:
The inventory negotiated isn't reserved for the buyer—you can opt to reserve it in a guaranteed campaign for a better price.
Buyers aren't required to buy the inventory.
Source: (Google 360 Ad Manager Help - Programmatic Guaranteed vs. Preferred Deals)
*PMP (Private Marketplace)- An exclusive programmatic deal which only certain advertisers are invited. It functions like an open RTB auction, but it’s exclusive to select ad buyers. With PMP programmatic deals, publishers can hand-pick trusted brands and advertisers gain premium access to high-quality inventory.
(*Source: Taboola Blog Guaranteed, PMP and Direct: Types of Programmatic Advertising Deals Explained)
Digital Advertising Self Service Platform
Digital Advertising Self Service Platforms are used to buy advertising without the use of a salesperson at the content provider. Self-service platforms offer advertisers the option to buy and manage their campaigns, create ads, and more. Below are some of the largest Digital Advertising Self Services:
Facebook- (Meta Ads Manager)
Amazon (Amazon Ads Manager)
Google (Google Ads)
If you are a small business, starting with self-serve platforms may be your best bet, as Direct and Programmatic Campaigns typically provide larger budgets. If you are a large advertiser, buy options are typically dependent on budgets, campaign goals/objectives, and what is most efficient for the advertiser.
