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Oct 27, 2015 6:02:00 AM

A General Overview of Programmatic Selling Channels

(This is Chapter 3 of the Adomik Programmatic Yield Management Handbook)

Programmatic selling encompasses multiple channels that need to be navigated, mastered, and orchestrated in order to maximize yield.


Now that we know who is involved in  programmatic transactions, let's look at the different programmatic selling channels where sales occur:

For the sake of clarity, lets use these names for the differernt programmatic sales channels:

  • Premium sales (aka "I/O" or "Direct")
  • Programmatic premium (aka programmatic direct)
  • Deals / Deal ID / Private Marketplaces (PMP)
  • Open Auction - RTB
  • Open Auction - Performance

adomik-sitescout-ProgChannels

(the original image comes from sitescout.com. We noted our clarifications)

Premium sales: traditional online advertising business, based on Insertion Orders (I/O) and booked in the media seller's ad server - comes with volume and budget commitments

Programmatic premium: premium sales operated through the programmatic pipes, benefiting from their efficiency, automation and targeting features, while respecting volume and budget commitments - still at an early stage when writing this post

Deals / PMP: programmatic ad product enabling media sellers to offer additional options on top of the "classic" open auction transaction (audience information, transparency, exclusivity) - without any hard volume or budget commitment. This channel helps rebuild the relationship between buyers and sellers that was originally lost in RTB commerce

Open Auction:  RTB: the original programmatic ad product, enabling buyers to bid, in real-time and for each impression, in a 2nd price auction - the unit used for bidding is the CPM

Open Auction: Performance: ability for ROI-focused buyers to compete in auctions using CPC or CPA bids

As with any challenge, the more variables you have the more complex the challenge becomes. And so it is with managing yield in a programmatic world. To master each channel and appropriately balance each within the inventory portfolio is not unlike conducting a symphony. Each instrument needs to be made "louder" for different effects. As we progress through the syllabus, we will drill into each channel and how they can be related to others for different strategic portfolio management outcomes.

This list is in constant evolution and more and more sophisticated ad products are appearing (or bound to appear) in the marketplace, addressing more and more specific needs from both the sell and the buy-side.
(Note that we'll detail the auction mechanics, benefits and best practices of each one of these ad products in future posts)

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If you are a programmatic seller looking to:

  • Have a unified understanding of your stack
  • Increase your revenue by up to 30%+
  • Better leverage private marketplaces
  • Maximize your header bidding channel

Reach out to us, we can help. Click below to get in touch. We look forward to hearing from you.

Schedule Your Demo

If you are a programmatic seller looking to:

  • Have a unified understanding of your stack
  • Increase your revenue by up to 30%+
  • Better leverage private marketplaces
  • Maximize your header bidding channel

Reach out to us, we can help. Click below to get in touch. We look forward to hearing from you.

Schedule Your Demo