Programmatic Guaranteed vs Preferred Deals: Key Differences

Last Updated: March 21, 2023
Category: Advertising
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Programmatic is a broad umbrella that holds various kinds of advertising like open auctions, private marketplaces, real-time bidding, programmatic guaranteed, and more. Programmatic direct is the fastest-growing sector in online advertising, and these connect publishers direct with buyers. There are two kinds of direct programmatic deals: Programmatic guaranteed and preferred deals.


Programmatic Guaranteed vs Preferred Deals: Inventory Difference

A deal with Programmatic Guaranteed allows you to offer an inventory that is reserved or guaranteed to buyers for a specifically negotiated price. In such deals, the buyer and seller come to an agreement, and you can offer them standard CPM or sponsorship CPD (cost per day). 

A Preferred Deal helps you to offer buyers inventory at a price and terms that have been specifically negotiated for the inventory. But, there is no contract in terms of an agreement in a preferred Deal, so there are no contractual obligations for you to reserve the inventory for the buyer, so if you get a better price from another buyer, you can sell it off, and there is no obligation on the buyer’s side to purchase the entire inventory.  

Programmatic Guaranteed v Preferred Deal: System Differences 

The entire process in a Programmatic Direct deal occurs in one system of the Ad Manager, so the sales are simple, and there is minimal potential for error caused by humans. Publishers and buyers can negotiate on the terms and settle on campaign details with the Programmatic Direct feature. The details of the campaign, like the price and the terms are more, are finalized and stored directly in the Ad Manager.

Ad Manager also takes care of the billing and payments and terminates the possibility of discrepancies, and lowers the overhead in managing reconciliation. The funds are distributed by Google on a net-30 days basis, so publishers are paid for their campaigns every 30 days. 

Programmatic Guaranteed vs. Preferred Deals: Line Item

Line item type decides on the rate type and the campaign kind that you would want to negotiate. The numbers vary in accordance with the campaign type that you negotiate. 

Your proposals can either be inclusive of Programmatic Guaranteed proposal line items, standard or sponsorship, or preferred deals that are non-guaranteed but not both.

In cases where there is more than one Preferred Deal that targets the same inventory at the same CPM rat


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Frequently Asked Questions

The specific metrics set for programmatic guaranteed deals are positions, quantities, dates, impressions, and prices.

Programmatic guaranteed deals offer less flexibility, which means that prices are fixed, and there is no room for negotiation.

The deals are not guaranteed here, so the buyer might have to compete with other buyers for the same deals.

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