The document provides an overview of programmatic ad buying, which utilizes software for digital advertising purchases versus traditional manual methods. It details types of programmatic transactions, including programmatic guaranteed, unreserved fixed rate, invitation-only auctions, and open auctions, each with unique characteristics and pricing structures. Additionally, it explains the real-time bidding (RTB) process where various buyers submit their bids for ad impressions.

1. OVERVIEW OF PROGRAMMATIC BUYING

2. APPENDIX A
HOW PROGRAMMATIC WORKS

3. Programmatic Media Buying
Programmatic ad buying typically refers to the use of software to purchase digital advertising, as
opposed to the traditional process that involves RFPs, human negotiations, and manual insertion
orders.
- Digiday
It’s using machines to buy ads, basically.
What machines? How machines buy?
Who?

4. Programmatic Jargons
JARGON LAY MAN
DSP (Demand Side Platform) Buy Side
SSP (Supply Side Platform) Sell Side
Ad Exchange Where the buyer and seller meet
RTB Bidding right when the impression happens!
2nd Price Auction Winner takes it all - but pays the loser’s price!!
Bids Bids!!

5. Programmatic Flow

6. Agency Trading Desks
Group Agency Trading Desk

7. TYPES OF PROGRAMMATIC TRANSACTIONS
• Programmatic Guaranteed
• Unreserved Fixed Rate
• Invitation-Only Auction (PMP)
• Open Auction

8. Programmatic Guaranteed
As agreed, we’ll
need (x) inventory
from 0901-0930 @
$1/CPM.
Noted. We’ll
reserve the
inventory for your
campaign.
OTHER TERMS
• Automated guaranteed
• Programmatic premium
• Programmatic direct
• Programmatic reserved
This type of transaction most closely mirrors
a traditional digital direct sale. The deal is
negotiated between buyer and seller, the
inventory and pricing are guaranteed, and
the campaign runs at the same priority as
other direct deals in the ad server.

9. Unreserved Fixed Rate
OTHER TERMS
• Preferred deals
• First right of refusal
As agreed, for this
package that you
created for us, we’ll be
able to buy @ $1/CPM.
Exactly! Our
inventory will be
available for you any
time you need it.
Transactions fall into this category when the
buyer and seller have pre-negotiated, fixed
pricing, but with an indefinite inventory
requirement. This type is typically
necessitated when the advertiser demands
for a more predictable, flexible exchange.

10. Invitation-Only Auction
OTHER TERMS
• Private marketplace
• Private auction
• Closed Auction
• Private access
We are offering
our inventory to
pre-selected
buyers only!
Awesome! Less
competition gives
us more of your
quality inventory.
This auction type is very similar to an Open
Auction except a publisher restricts
participation to select buyers/advertisers via
Whitelist/Blocklist.

11. Open Auction
OTHER TERMS
• Real-time Bidding (RTB)
• Open exchange
• Open marketplace Our inventory is
accessible through
the open auction.
We’ll have the system
link to your inventory
while we bid our
preferred price.
Publishers usually have no direct
agreements with the buyer on an open
auction. The publisher generally open their
inventory to all buyers to participate in
accessing their inventory through open
auction, from which the winner of the
inventory will be the highest bidders.

12. Types of Programmatic Transactions
Type of
Inventory
[Reserved,
Unreserved]
Pricing
[Fixed,
Auction]
Participation
[Seller-Buyer]
Other Terms Used In
Market
Programmatic
Guaranteed
Reserved Fixed One-One Automated guaranteed
Programmatic premium
Programmatic direct
Programmatic reserved
Unreserved Fixed
Rate
Unreserved Fixed One-One Preferred deals
Invitation-Only
Auction
Unreserved Auction One-Few Private marketplace
Private auction
Closed auction
Private access
Open Auction Unreserved Auction One-All Real-time Bidding (RTB)
Open exchange
Open marketplace

13. How RTB works
Impression
occurs
1
SSP
Real time
auction
feature
2
0.05 sec
User visit site How much will you pay
for this impression?
For this imp…
I’ll pay CPM @ $1.50
DSP
For this imp…
I’ll pay CPM @ $0.50
DSP
For this imp…
I’ll pay CPM @ $1.00
DSP
RTB
Real time
bidding
feature
3
Winner
4

14. Inventory Priority
Inventory
Priority
Demand
PG
Unreserved
Fixed Rate
Invitation-Only
Auction
Open
Auction

15. WHERE DOES INNITY PLAY
IN THE PROGRAMMATIC SPACE?

16. Inventory Priority
Invitation-only
Auction
Reserved Unreserved
Open Auction
Programmatic
Guaranteed
Unreserved
Fixed Rate
Auction-based
Fixed
Powered by:
TYPES OF INVENTORY
HOW PRICE
IS SET

17. LET’S COLLABORATE.
ph.marketing@innity.com