This post was most recently updated on May 20th, 2021
Google recently announced a new development in Google Ad Manager (GAM) that will enable publishers to sell programmatic guaranteed sponsorship differently.
Not sure what programmatic guaranteed is? Here’s a quick rundown:
Programmatic guaranteed is a programmatic deal between the buyer and seller. The buyer agrees on purchasing a fixed number of impressions, where, the publisher agrees to deliver those impressions for a guaranteed price. Both bring guarantees to the deal.
Publishers will be able to sell programmatic guaranteed sponsorships on a CPM basis to Display & Video 360 buyers. The difference is that publishers can move to sell CPM sponsorships programmatically as previously only a cost per day (CPD) rate was only available.
Keep in mind that the release is still in beta and might only be available to a select group of publishers. You can read more about the product release and setting it up here, but we’ll also quickly cover that below.
Programmatic Guaranteed starts with an external conversation with a buyer to set up a guaranteed deal. Once ready to set up the deal on GAM, follow these steps:
#1 – Go to Google Ad Manager > Sales > Proposals > Click Add proposal line item
#2 – Under “Rate” you need to select CPM and set the CPM agreed with the buyer
#3 – For impression limit, enter the maximum impressions the buyer will pay for
In CPD Sponsorship, the publisher won’t earn anything unless the Billing Threshold (minimum impressions) is exceeded by at least 1 impression for a given day. Imagine going home with nothing just because you only delivered 499,999 impressions versus the 500,000 minimum you have set.
With CPM Sponsorship, you are not obliged to deliver a minimum volume. The limit is a cap that safeguards delivery to make sure you don’t charge the buyer more than their allocated budget. It’s more flexible and ensures you still get paid for every impression.
Many advertisers are used to the CPM model and feel more comfortable running deals based on CPM rates. Additionally, for advertisers that don’t want to run campaigns leading to a specific conversion point/action from the user and instead want to build brand awareness, CPM has always been their chosen metric.
With the simplicity of this additional rate available, publishers will find it a lot easier to set up programmatic guaranteed deals with advertisers looking to build brand awareness and run campaigns on a CPM basis for the specific audience offered by publishers.
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