1. Introduction: Why Programmatic Buying Types Matter
Programmatic advertising is not just about automating media buying. Choosing the right buying type determines how efficiently you spend your budget, access premium inventory, and achieve campaign goals. This guide explains the four major buying types and how to use them at different funnel stages.
2. The Four Programmatic Buying Types Explained
| Buying Type | Auction Type | Inventory Access | Negotiation | Pricing Type |
|---|---|---|---|---|
| Open Auction (RTB) | Open Auction | Public | No | Dynamic CPM |
| Private Marketplace (PMP) | Invite-only Auction | Selective | Yes | Dynamic CPM |
| Preferred Deal | 1:1 Pre-negotiated | Reserved Priority | Yes | Fixed CPM |
| Programmatic Guaranteed | 1:1 Direct | Reserved | Yes | Fixed CPM |
3. Mapping Buying Types to Funnel Stages, Goals & KPIs
| Funnel Stage | Recommended Buying Types | Campaign Goal | Primary KPIs |
|---|---|---|---|
| Awareness | Open Auction, PMP | Maximize visibility | Impressions, Reach, CPM |
| Consideration | PMP, Preferred Deal | Drive engagement | CTR, Viewability, Time on Site |
| Conversion | Preferred Deal, Programmatic Guaranteed | Maximize conversions | CPA, ROAS, Conversion Rate |
4. Buying Type Flowchart
Programmatic Buying Types - Open Auction (wide scale) - Private Deals - PMP (Auction, selective) - Preferred Deal (Fixed price, non-guaranteed) - Programmatic Guaranteed (Fixed price, guaranteed)
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5. Deep Dive into Each Buying Type: Strategies, KPIs, Optimization Tips
5.1 Open Auction (RTB)
Best For:
Awareness campaigns needing scale.
Key KPIs:
- Impressions
- Reach
- CPM
- Win Rate
Optimization Tips:
- Use brand safety filters & viewability thresholds.
- Test bid floors by SSP to balance scale vs. cost.
- Use frequency caps to avoid waste.
5.2 Private Marketplace (PMP)
Best For:
High-quality inventory with selective targeting.
Key KPIs:
- Viewability Rate
- CTR
- CPM
Optimization Tips:
- Negotiate publisher whitelist access.
- Prioritize high-performing SSPs.
- Monitor win rates to optimize bidding.
5.3 Preferred Deal
Best For:
Priority access without guaranteed delivery.
Key KPIs:
- CTR
- CPA
- CPM
Optimization Tips:
- Optimize creatives for specific publisher audiences.
- Monitor first-look usage vs. fallback impressions.
5.4 Programmatic Guaranteed (PG)
Best For:
Guaranteed campaigns like launches.
Key KPIs:
- Delivery %
- CPA
- ROAS
Optimization Tips:
- Set guaranteed delivery timelines.
- Align budgets with guaranteed impressions.
6. Real-World Use Cases
| Vertical | Funnel Stage | Buying Type | Example Scenario |
|---|---|---|---|
| FMCG Brand | Awareness | Open Auction | Brand video ads on mass sites |
| Tech SaaS | Consideration | PMP | Native ads on tech blogs targeting IT decision makers |
| Retail eCommerce | Conversion | PG | Guaranteed display ads during holiday sales |
7. Troubleshooting Cheat Sheet
| Issue | Likely Cause | Recommended Fix |
|---|---|---|
| Low Spend on PG | Low priority / pacing issues | Reconfirm priority & extend flight |
| High CPM in Open Auction | Excessive competition | Narrow audience or lower bid floors |
| Low win rate in PMP | Overly restrictive targeting | Expand geo / time / device filters |
| Poor delivery in Preferred Deal | Publisher inventory fluctuations | Check first-look % & adjust bid |
8. Recommended Bidding Strategies by Deal Type
| Buying Type | Recommended Bidding Approach |
|---|---|
| Open Auction | Dynamic bidding with max CPM caps |
| PMP | Dynamic CPM with tighter targeting |
| Preferred Deal | Fixed CPM aligned to publisher rate |
| Programmatic Guaranteed | Fixed CPM negotiated upfront |
9. Visual Flow: Funnel + Buying Types Mapping
Funnel Stages Awareness ---> Open Auction / PMP ↓ Consideration ---> PMP / Preferred Deal ↓ Conversion ---> Preferred Deal / PG
10. Key Takeaways
- ✔ Match your buying type with your funnel stage and campaign objective.
- ✔ Use Open Auction for scale, PMP for premium access, Preferred Deals for priority, and PG for guaranteed delivery.
- ✔ Optimize based on KPIs relevant to each buying type and funnel stage.