There are four main types of programmatic advertising: real-time bidding (RTB), private marketplace (PMP), programmatic direct, and programmatic guaranteed.
RTB is the most common type of programmatic advertising. It is an auction-based system where ad space is bought and sold in real-time. Publishers make their ad space available through an ad exchange, and advertisers bid on that space in real-time. The highest bidder wins the ad space and their ad is served to the user.
PMP is similar to RTB, but it is a private auction where only selected advertisers can participate. Publishers invite specific advertisers to participate in the auction and set a minimum price for the ad space. This ensures that the publisher gets a higher price for their ad space and the advertiser is guaranteed to win the auction.
Programmatic direct is a direct deal between a publisher and advertiser where the price is agreed upon upfront. The advertiser buys a specific ad space on the publisher’s website for a set period of time. This type of programmatic advertising is less common as it does not offer the same flexibility as RTB or PMP.
Programmatic guaranteed is a guaranteed deal between a publisher and advertiser. The advertiser pays a fixed price for the ad space and the ad is guaranteed to run on the publisher’s website. This type of programmatic advertising is often used by brands that want to secure a specific ad space on a website.