Last Updated: January, 2024
What is Programmatic Supply?
Programmatic advertising is the use of automated technology for buying and selling online advertising, allowing businesses to target specific audiences, optimize their ad campaigns in real time, and measure their results.
As such, Programmatic Supply referst to the ad inventory accessible through programmatic means.
What are the different methods of Programmatic Buying?
While Programmatic is a term usually associated exclusively to Real Time Bidding, RTB is actually just one of the many methods of programmatic buying.
Open Auction (RTB)
As the name suggests, open auctions are open to all. All marketers on the exchange/SSP/ad network have an opportunity to bid on all available publisher inventory. This is the most traditional form of programmatic auctions.
With real-time bidding, publishers can set the floor price for an ad, but the marketer demand still determines the final price, and the highest bid wins. Inventory is not guaranteed.
Many to All
Private Marketplace (PMP)
A private exchange is another form of real-time bidding, but instead of being open to all marketers and all publishers, a single publisher invites a mere handful of marketers to participate.
To access the auction, these hand-selected marketers will need a time-sensitive deal ID. Publishers set a floor price, and the bidding starts there. As in the open auction, the highest bid wins. Inventory is not guaranteed.
1 to Few
RTB with set Floor Price
A Preferred Deal is a private, 1:1 relationship between a publisher and a marketer. In a Preferred Deal, publishers offer premium inventory to the marketer at a pre-negotiated fixed eCPM price.
While eCPMs are a bit higher, marketers are paying to get what’s essentially “first dibs” on premium ad space. When an ad request comes through, a marketer with a preferred deal has an opportunity to bid at the pre-negotiated fixed eCPM price in real time, before the inventory heads to open auction. Inventory is not guaranteed.
1 to 1
With a guaranteed buy, a publisher offers specific, reserved inventory to a marketer at a fixed price. Publishers and marketers negotiate a price for a guaranteed volume of impressions, or flight date. This is similar to a direct sale/buy, but programmatic automation replaces the manual IO process, improving efficiency and reducing error.
1 to 1
Which Programmatic methods are supported on the Kayzen Platform?
The Kayzen platform has support for Open Auction (RTB), Private Marketplaces (PMP) and Preferred Deals.
In the case of Private Marketplaces and Preferred Deals, a Deal ID must be previously set up with a Publisher through a supporting Ad Exchange (not all ad exchanges support deals)
Programmatic Guaranteed is not supported on Kayzen.
How do publishers enable their inventory for programmatic buyers?
The main goal of a publisher's ad monetization strategy is to maximize their Ad Revenue. Ad revenue is calculated by multiplying the number of ad impressions served with the average CPM for those impressions.
In order to maximize both of these components, ad monetization managers integrate multiple demand sources. This approach minimizes the possibility of an ad impression left unserved, i.e. increases fill rate, and, by keeping demand high, CPMs also increase.
These demand partners usually range from Direct Buyers, Ad Networks and Ad Exchanges.
Direct Buyers - These are marketers buying directly from the publisher on a Programmatic Guaranteed basis.
Ad Networks - Platforms that buy ad inventory and sell to advertisers, usually on a CPI basis. Most commonly known networks are AppLovin, Unity, Google, IronSource, Liftoff Direct (formerly Vungle).
Ad Exchanges - Supply side platforms that allow publishers to offer their in-app inventory to buyers through real time auctions. Advertisers leverage DSPs like Kayzen to bid into Ad Exchanges' auctions. Most commonly known ad exchanges are AppLovin Exchange, Google Ad Exchange Liftoff Direct (formerly Vungle), Digital Turbine Exchange.
As the app user base grows, more demand sources are needed to maintain a high fill rate and ensure the highest CPM.
Managing such a complex monetization stack can be very taxing at an operational level, so publishers also integrate a mediation platform, which allows them to manage all their demand partners on a single platform, segment their monetization strategy as they see fit, while also getting access to consolidated reporting and ad quality capabilities.
While there are many mediation platforms in the market today, and some publishers even leverage their own mediation (MobilityWare, Miniclip, Rovio), the most commonly used mediations are AppLovin Max, Google AdMob and Unity LevelPlay.
What percentage of the mobile in-app inventory is accessible through programmatic means?
With the introduction of In-App Bidding a few years ago, programmatic has democratized access to mobile in-app inventory.
As such, almost every ad impression opportunity outside of walled gardens (Facebook, Instagram, TikTok, X) is accessible through programmatic means.
To learn more about In-App Bidding make sure to check out our Supply Path Optimization section.
Which Ad Exchanges is Kayzen integrated with?
In order to maximize our reach and ensure your campaigns run successfully in a brand-safe environment with engaging creative experiences, Kayzen has integrated with multiple top-level Ad Exchanges.
To learn more about each of these Ad Exchanges, make sure to visit our Ad Exchange Dossier article page.