The Rise of Relationship-Based Ad Buying with Programmatic Direct

Let's face it, publishers. We all know the drill: sell premium ad inventory directly to advertisers for premium CPMs, then fill the gaps with programmatic – that's the conventional wisdom, right? 

But what if there was a way to combine the efficiency of programmatic buying with the relationship aspects of direct sales? Something like programmatic direct. You could ink some deals with advertisers who value your audience and streamline the process through programmatic automation. 

Understanding Programmatic Direct

Programmatic direct allows you to establish strong, committed relationships with select advertisers who value your premium audience. You negotiate preferred rates and guaranteed placements while programmatic automation handles the background tech-related tasks. This trend is driving the surge of programmatic direct – as it blends the efficiency of programmatic buying with the control and transparency of traditional direct deals.

This translates to reliable, high-quality partnerships for you and targeted and transparent access to your engaged audience for advertisers.

How Is It Different from Direct Deals?

Direct deals are the old-fashioned way of selling ads. You negotiate one-on-one with advertisers, picking who gets to display their ads on your site and hammering out a fixed price. It's great for control and potentially higher rates, but it's time-consuming and limits your reach. 

On the other hand, programmatic is the online auction house for ad space. It's faster, lets a wider range of advertisers compete, and offers advanced targeting options. The flip side? Less control and potentially lower prices compared to direct deals.

Even though programmatic ads may offer lower CPMs than direct deals, they are still on the rise because of programmatic direct deals. Let’s know why:

What are the Programmatic Direct Deal Types?

Programmatic direct deal is an umbrella term encompassing both Programmatic Guaranteed and Preferred Deals.

1. Programmatic Guaranteed acts like a middle ground between direct deals and programmatic ads. You negotiate a fixed price with a specific advertiser for a set amount of impressions. And the automation of a programmatic platform handles the ad serving and delivery whenever the guaranteed impression occurs.
2. Preferred Deals are another type of programmatic direct deal where you negotiate a price with an advertiser, but they aren't obligated to buy your inventory. They get first dibs at the agreed price, but you can still sell that space to others through the programmatic exchange if they pass.

So, programmatic direct deals offer control and potentially higher rates than direct deals with the efficiency and wider reach of programmatic advertising.

But, what’s with the sudden rise?

The programmatic direct surge is all about predictability and premium value. According to Statista, advertisers have spent about $558 billion in 2023 on negotiated deals, and this number is expected to reach $700 billion by 2026. Additionally, 90% of advertisers are seeking more control over their deals. This relationship-based buying and selling of ad inventory is on the rise for the mutual benefits it brings for both sides of the parties. You are happy because your ad inventory is sold upfront, no questions asked, and advertisers get the highly-engaged, premium ad inventory to show their ads.

However, programmatic direct benefits you more than it benefits the advertiser:

1. Guaranteed revenue: Lock in advertisers with guaranteed deals, securing a set number of impressions at a premium price. In certain cases, you’re not even obligated to let go of the impression if you are getting a much higher CPM.
2. Strategic inventory control: Fill your prime spots with high-value direct deals, then use programmatic direct to ensure the remaining impressions go to advertisers who value your audience. If they don't fill it, you can still sell it on the open web or through PMPs.
3. Streamlined and efficient automation: While direct deals require manual setup, programmatic direct doesn’t require all this heavy lifting. Automation via Google Ad Manager does it for you, freeing you to focus on creating high-quality content that attracts top advertisers. It also ensures that every impression, bid, and ad delivery is recorded for better visibility.
4. Building strong partnerships: Cultivate long-term relationships with high-value advertisers who appreciate your unique audience. You can offer them preferred rates and guaranteed placements through programmatic direct.

Programmatic direct eliminates the pain points of traditional methods, giving you certainty, speed, and confidence to maximize your revenue potential. Hence, the sudden rise.

Relationships Drive Revenue, Hence the Rise 

Remember the days of throwing your ad inventory into the open market, hoping for the best? Well, those are gone. Publishers, programmatic direct is here to transform your bottom line with its transparency.

It's like having a direct line to high-quality advertisers, allowing you to curate who gets access to your premium ad space. Advertisers can see exactly what they are getting, from audience insights to pricing, all while you maintain complete control. It's a win-win built on trust and clear goals.

Programmatic direct isn't just about one-off deals. It fosters long-lasting relationships with premium advertisers. And the best part? This approach is adapting to the ever-changing digital space. Mobile, video, and social media are taking center stage, and programmatic direct is right there with them.

It's time to rethink programmatic as a tool to build relationships, not just fill empty slots. After all, loyal, engaged advertisers are the heart of any sustainable ad revenue stream.

So, the next time you craft your media kit, highlight your programmatic direct offerings alongside your rate card. Showcase the value you bring as a partner, not just a seller of ad space. Realize, it's all about building trust and working together to achieve mutual goals. If you are looking for an ad monetization partner who can supercharge your programmatic direct deals without affecting your current monetization strategy, reach out to us, and we’ll take it from there.