Automated Guarantee – What it means for Digital Media Planning.
What is it?
Automated Guaranteed is a sort of hybrid of the two main types of media inventory purchase, i.e. Real Time Bidding and Guaranteed. Guaranteed inventory was premium inventory, usually available as ‘guaranteed’ for the advertiser who was willing to commit to a certain spend, while Real Time Bidding was out in the open market, driven by a platform where bids on impression were, as the name suggests, ‘real-time’. Automated Guaranteed brings the convenience and the technology platform of Real Time Bidding to the premium purchase model of Guaranteed.
Why is it important?
While Real Time Bidding was driven with extreme efficiencies thanks to the platforms that powered it, Guaranteed inventory remained a reminiscent of traditional media buying – involving conversations of publishers’ sales executives with buyers and a cumbersome process of RFP’s and paperwork. This was accepted as the premium buys justified cumbersome processed
Automated Guaranteed, brings the efficiency of a technology platform to premium inventory, while at the same ensuring that the premium of the inventory is not lost. The inventory is still ‘guaranteed’ to the buyer, as the purchase process is not based on aggressive bidding on impressions as was the case in Real Time Bidding, though being as efficient.
Oops… won’t that commoditise premium inventory?
It could and it couldn’t.
It could if publishers in specific industries get into price wars over similar premium inventory, due to the savings in the cost of sale by automation.
However, at the same time, publishers could make premium inventory even more valuable by virtue of the advanced reporting dashboards that can be provided directly to the advertiser with multiple metrics – bringing a kind of reporting that has never been seen before in premium inventory buys.
What does it mean for Digital Media Planning?
Automated Guaranteed could work positively for publishers and advertisers. The manpower freed up by this process could be utilised to work as partners with clients in developing innovative solutions that can improve and cement publisher-advertiser relationships even more than what exists currently.