Programmatic Guaranteed (PG) in Real-Time Bidding (RTB) is a method of programmatic advertising where an advertiser and a publisher agree on a fixed number of impressions that the buyer has committed to purchasing. The Cost Per Mille (CPM), ad sizes, and start/end date for the deal are all fixed.
Here’s how it works:
- The advertiser identifies specific websites and/or apps where they want to show their ads, sometimes also considering particular time slots.
- The advertiser uses a Demand Side Platform (DSP) to contact publishers and start the negotiation process.
- Both sides agree on specific ad placements, a fixed price (usually based on the placement of the ad, audience demographics, and time when you want to show your ads), guaranteed volumes, and particular time slots.
- Once the advertiser and publisher are on the same page, they are obliged to fulfill the agreement.
- Then, the advertiser creates an ad campaign and submits it to the publisher, and ads are displayed.
Programmatic Guaranteed deals offer a certain level of security regarding ad inventory. Advertisers can rest assured that their ads will be shown to their target audience, and publishers can celebrate filling their premium ad slots and reducing the chances that they will be left unsold. This process enables direct deals between advertisers and publishers but lets them avoid various manual processes, like exchanging tags or handling multiple invoices.