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4 Questions with iSocket's Jalichandra
Programmatic is fast becoming a favorite for online ad buyers. The layer of automation in creating and serving ads and the guaranteed pricing are big pluses for brands with an eye on their ad investment. But which programmatic area is right for your business? One expert offers his thoughts.
Kristina: What are the different ways publishers can sell their inventory?
Richard Jalichandra, iSocket CEO: 1. Traditional, manual direct sales
2. Automated Fixed-Price Reserved (or Guaranteed)
3. Fixed-Price Unreserved (via Deal ID)
4. Private Exchanges
5. Open Exchanges
Kristina: Why so many? What's the difference?
Richard: Of the 5 methods, only method one (traditional direct sales) is totally manual. The other methods use technology to automate the execution of a sale, but each one of the four does so in a different way.
Kristina: I know how direct sales are usually done, but what's automated guaranteed?
Richard: Automated fixed-price reserved (also known as automated guaranteed) is actually very similar to traditional direct sales. Sales are executed directly between a single buyer and seller, prices are agreed upon and fixed, and inventory is reserved in advance. An automated reserved deal could actually be negotiated over the phone between a publisher's sales rep and a media buyer (just like traditional direct sales), but here's the difference: the actual ad serving is executed programmatically.
Kristina: How is automated guaranteed different than the other automated sales methods?
Richard: The key difference between automated guaranteed and other programmatic sales methods is that the buy is actually reserved in the ad server. That's made possible because automated guaranteed tech uses a direct integration into your ad server. This means that no inventory pre-allocation is necessary, and you always have full control over who buys and at what price. Once a sale is made, the inventory is reserved just as it would be with any direct sale. With that control, there is no risk of channel conflict, and much of this technology is being purpose-built for publisher sales and ad operations people to use it to automate their workflows.
Kristina: Should Publishers Use All Five Strategies?
Richard: Maybe. There's no one right answer. Most publishers use some combination of the 5, but the right balance completely depends on individual strategies
More from Richard and iSocket next week - including when Deal ID options might be right for the brand.
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