GDPR is giving new life to programmatic guaranteed deals

GDPR is giving new life to programmatic guaranteed deals
July 04 11:00 2018 Print This Article

Much as contextual targeting is experiencing a rebirth due to the arrival of the General Data Protection Regulation, ad-buyer demand for programmatic guaranteed deals is also increasing for some publishers.

This method of ad buying, in which an advertiser can match its first-party data with relevant publisher audience data on an automated basis but pre-agree terms at a fixed price, has been slow to gain traction because the technology is still relatively nascent among demand-side platforms and supply-side platforms. But the pressure some advertisers still feel around GDPR-compliant ad buying is spurring an increased interest in programmatic guaranteed deals, according to ad tech executives. Some DSPs and SSPs are also pushing their own development of the tech, in order to meet the increasing demand, they say.

One major U.K. publisher has seen more programmatic guaranteed deals in the first quarter of this year, compared to the previous two years.

“That’s because of GDPR pressure,” said an executive at the same publisher. “Agencies that are a little bit nervous [about GDPR compliance] and clients that aren’t sure what their agencies are doing are asking for programmatic guaranteed buys. In general, the pressure is coming from clients rather than the agencies.”

Another digital publisher has also seen an influx of programmatic guaranteed deals, particularly for video. In the last six months of 2017, the publisher sold just over 40 percent of its video inventory via programmatic guaranteed deals. From January to June this year, that has spiked to more than 70 percent, according to the publisher.

“We’ve seen an uplift of over 1,000 percent from January to today in our pipeline — put into context, we’ve gone from £80,000 ($105,000) in our pipeline to over seven figures,” said an executive from the publisher. It has also seen a decent uplift for display-bought programmatic guaranteed deals, though less noticeable than video, according to the publisher.

Programmatic guaranteed deals have often been reserved for scarce inventory because advertisers are willing to pay more to target a very specific audience.

“GDPR has clearly increased that scarcity, and as the market matures with programmatic guaranteed, we’re clearly seeing an increase of such deals,” said Guillaume Périé, head of programmatic for Europe at Reuters.

The original article (and image) was originally posted here: https://digiday.com/media/gdpr-giving-new-life-programmatic-guaranteed-deals/

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GDPR Associates
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