01.06.2020
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BUZZWORDS simply explained: Programmatic Online Video

Programmatic is the latest growth driver and engine of advertising today, moreover THE buzz word of modern online marketing, but what does programmatic actually mean and above all: what does it bring? In this article we explain the most important terms and advantages of Programmatic Advertsing in online video.

What exactly is…?

Programmatic Advertising 
Programmatic advertising is the automated buying and selling of digital advertising space through algorithms; some people also use the term "real-time advertising" instead. To be more precise, it involves the automated targeting of individual advertising exposure opportunities in real time. The entire process takes place within platforms provided for programmatic advertising.

Realtime Bidding (RTB)
This is the term used for the process of programmatic bidding. Advertisers have the opportunity to bid for the available advertising space, but are in competition with other advertisers at the same time. The advertising placement is then evaluated and the bid is submitted in real time.

Programmatic Buying/Selling
Programmatic buying/selling refers to the automated selling/buying process that can be handled exclusively by DSP and SSP systems. An SSP, such as PubMatic, provides all kinds of advertising opportunities and offers them for auction via its site, while DSP providers like Active Agent and Splicky, on the other hand, scan these auctions, so to speak, and automatically bid along with the budget available to them.

Data Management Platform (DMP)
User data is collected, managed and activated in the DMP. Media agencies, publishers and demand side platforms use this profile data to serve users the right ads.

Ad server
Ad servers are database-based management systems for maintaining and managing advertising space. They control the delivery of advertising, measure the response and evaluate it directly.

And how does that actually work...?

Open Auction
In principle, the publisher/marketer allows all bidders connected to the respective SSP to access the offered inventory. Here, the classic eye-for-eye principle counts; there are no direct relationships or pre-negotiated conditions.

Private Auction 
In contrast, this is much more intimate. The publisher can sell the inventory to one or more selected customers, who then have to outbid each other.

Preferred Deal
This is a kind of one-seller-to-one-buyer relationship based on a pre-negotiated fixed price. In such a deal, however, the inventory is not reserved despite pre-negotiation, so the buyer can still be outbid by a higher bidder. With a Preferred Deal the delivery is NOT GUARANTEED! One receives with such a deal only an advantage in the final auction.

Automated Guaranteed = Programmatic Direct = Programmatic Guaranteed
This purchase option is traded under a total of three different terms. It corresponds most closely to classic digital direct sales. The transaction offered here is the only one in the programmatic universe to offer the possibility of delivering terms negotiated directly between marketers and advertisers via the infrastructure provided by Programmatic Advertising. Prices and inventory are guaranteed and the campaign runs with the same priority as other direct sales. No auction mechanism takes place here.

All purchase options are autonomous options, so they cannot be combined. This means that it is not possible to combine the advantages of the Automated Guaranteed model and a Private Deal to create a new option. That is because they are individually programmed options, which can be booked separately and at the same time, but they are not able to interact or create a hybrid.

What are the advantages of Programmatic Advertising?

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Hubert Hattowski, Unit Director Online Video at Goldbach:Programmatic advertising leads to more data-driven, more interesting and more relevant advertising for the consumer as well as to more effectiveness for the advertiser. The targeted and user-specific control of advertising leads to lower wastage and a more efficient use of budgets. In short: performance increases!

Questions about this article or our online video portfolio are welcomed by: [email protected]


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As a technology-oriented marketer, we at Goldbach not only offer our online portfolio via an automated buying process. CTV and digital out of home contacts can also be bought programmatically.  While the mechanics for CTV are the same as for online video, there are a few differences in what we offer in the DOOH space.
You can find out what these are in our article BUZZWORDS simply explained: Programmatic DOOH.