Programmatic Bidding: How to Safely Scale Your Ads
- Exverus Staff
- Aug 12, 2024
- 3 min read
Some marketers feel uncertain about programmatic bidding -- we'll put you at ease.
Programmatic advertising is quickly becoming the preferred modus operandi for digital media buying. In fact, EMARKETER predicts that 91.3% of US digital display advertising will be bought programmatically in 2024!
But recent third-party reports suggest ads from major brands are appearing next to harmful content, even with AI-powered brand safety tools in place. That's got some people feeling concerned about the safety of programmatic display advertising more generally, which is understandable!
Brand safety, brand suitability, and ad-budget stewardship are the highest priorities at Exverus.
Here are a few ways we're reaping the benefits of two common types of programmatic auctions while avoiding the risks.
First, let's level-set on some definitions of how programmatic buying works:
What are the 4 types of programmatic advertising exchanges?
Open exchanges (OE), or open marketplace
Private marketplace (PMP) deals
Preferred deals (PD)
Programmatic guarantee deals (PG)
Let’s zero in on the pros and cons of private marketplace (PMP) vs. open exchange (OE) deals and clear up some of the misconceptions about each.
What is the difference between PMP and OE?
A private marketplace (PMP) is a digital marketplace where publishers can connect directly with a select audience of media buyers for premium ad inventory and set up individual, guaranteed deals...
...whereas open exchange (OE) bids are public, automated real-time bidding (RTB) auctions open to all buyers and sellers through display-side platforms (DSPs) for ad buyers and supply-side platforms (SSPs) for ad sellers.
As with all media planning decisions, choosing the right inventory and exchange type depends upon your campaign goals. Here are some considerations to weigh:
What are the pros and cons of the open exchange?
The benefits of open-exchange bids include wider reach and scale, more robust data collection, optimization levers, more audiences, and cost-effectiveness.
Concerns around the open-exchange include limited transparency, privacy compliance, and brand safety.
What are the pros and cons of private marketplace deals?
PMP deals offer access to higher quality ad inventory, more transparency, and more precise targeting.
On the other hand, private marketplaces have limited inventory and thus less audience data to collect, fewer optimization levers and higher costs.
So, which is better?
"There is no one-size-fits-all solution for how to transact and activate programmatic media", says Hillary Kupferberg, Exverus VP of performance media.
"It is essential to have strong knowledge and a strategic approach to programmatic inventory and supply paths. Each exchange type has nuances but the goal is to maximize transparency and efficiency in brand suitable environments."
How we safely navigate programmatic bidding:
Publisher inclusion & exclusion lists created by us in DoubleVerify supersede any automated content partners.
Avoiding user-generated content (UGC) and made-for-advertising (MFA) sites, which are unmoderated and ripe for questionable content.
Continuous monitoring of ad placements for factors like viewability, fraud, contextual relevance, and quality of environment.
In-house, hands-on-keyboard trading. We don't leave programmatic trading up to managed services; our own buying experts personally oversee every transaction.
To learn more about programmatic buying and other digital advertising tips, subscribe to our weekly Paid Media Insights newsletter here.
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