The 6 core types of programmatic advertising explained
Programmatic advertising has transformed how brands connect with people online. It’s fast, data-driven, and capable of delivering hyper-targeted ads in milliseconds. But not all programmatic ads are bought in the same way.
There are different manners to buy media programmatically, and each comes with its own pros, challenges, and best-use scenarios. Whether you’re managing campaigns yourself or working with an agency, understanding these core buying types can help you make smarter, more strategic decisions.
Let’s break it down in simple terms.
1. Real-Time Bidding (RTB): The open marketplace
Think of RTB like the stock exchange of advertising. Every time a webpage loads, an auction happens behind the scenes. Advertisers bid for that one ad impression in real-time, and the best bidder wins the impression.
This is what most people picture when they hear “programmatic.” It’s powerful because it gives you scale. You can reach massive audiences quickly and efficiently, across thousands of websites and apps.
But it also comes with risk, especially around brand safety and ad placement quality. You get quantity, but must include in your campaign settings brand safety and viewability to also guarantee quality.
In other words, RTB is best when you need reach, speed, and efficiency.
2. Private Marketplace (PMP): The VIP auction
A Private Marketplace is like a more exclusive version of RTB. The mechanics are similar: it’s still an auction, but only a select group of advertisers are invited to bid on a publisher’s premium inventory.
This means you get access to better-quality placements and more transparency. Publishers often reserve their top-tier ad slots for PMP deals, so your ads are less likely to appear on random, low-quality sites.
To summarize, use PMP when you want more control, but still want the flexibility of auction-based buying.
3. Preferred Deals: First dibs, no bidding
Preferred Deals are where the auction disappears altogether. Instead of bidding, you negotiate a fixed price with the publisher ahead of time. You then get “first look” access to the inventory, and if you want it, you buy it.
This model gives advertisers predictability without the pressure of real-time auctions. You’re not competing with others, but you also don’t get guaranteed volume. It’s a good middle ground.
This kind of deal is great for brands that want high-value placements without the unpredictability of auctions.
4. Programmatic Guaranteed: Premium + Predictable
If you want full control and guaranteed outcomes, Programmatic Guaranteed is the way to go. Here, both the price and number of impressions are locked in advance. Just like a traditional media buy, but powered by automation.
This type of deal is usually done directly between advertiser and publisher, and it gives you guaranteed delivery in premium environments. It’s often used by big brands launching major campaigns, where timing, placement, and quality are non-negotiable.
This deal is perfect when you need premium exposure with zero surprises.
5. Programmatic Direct: The Automation-First Hybrid
Programmatic Direct it’s an umbrella term that includes both Programmatic Guaranteed and Preferred Deals. The key idea here is automation. You still make direct deals with publishers, but everything runs through programmatic platforms rather than manual insertion orders.
This approach gives you the best of both worlds: the efficiency of programmatic and the security of direct buys.
6. Header Bidding: The publisher’s power tool
Header bidding isn’t a buying type, but it’s essential to understand. It’s a technique publishers use to give every demand source (you, the advertiser) an equal chance to bid on their inventory all at the same time.
This means more competition for the publisher’s ad space, but also a more fair and transparent buying process for advertisers. It opens access to premium placements you might otherwise miss through standard auctions.
Understanding the types of Programmatic Advertising and when to use them
Programmatic advertising isn’t just one thing, but it’s a layered, evolving ecosystem. The way you buy ad inventory matters just as much as where and when your ads show up.
The smartest advertisers mix and match — using different buying types depending on their campaign goals, budget, risk aversion.
So, whether you’re launching a product, retargeting past visitors, or planning a nationwide brand push, knowing how the programmatic engine works behind the scenes gives you an edge.
