4 Types of Programmatic Advertising + How to Use Them

Advertising

Programmatic advertising has come a long way from “set a bid, cross your fingers, refresh the dashboard.” Today, it’s the engine behind much of modern digital media buying, helping advertisers reach specific audiences, control where ads appear, and optimize toward outcomes in real time. And the channel is not exactly small potatoes: U.S. digital ad revenue reached nearly $300 billion in 2025, up 13.9% year over year. EMARKETER also projects U.S. programmatic ad spending will top $200 billion in 2026.

But there’s more than one way to go about it. In this article, we’ll discuss the different types of programmatic advertising, how they work, and when to use each.

What Is Programmatic Advertising?

Programmatic advertising is the automated buying and selling of digital ad inventory. Instead of manually negotiating every placement, advertisers use software to set targeting, pricing, budget, and campaign rules. Then the system helps decide which impressions to buy, how much to bid, and which ad to serve.

You’ll find programmatic buying across display, mobile, online video, audio, and Connected TV (CTV). Real-time bidding (RTB) is the most familiar version, but it is not the whole programmatic universe. Programmatic can also include private auctions, direct deals, fixed-price arrangements, and guaranteed inventory.

Why It’s Important

Programmatic matters because marketers need more than reach. They need relevance, control, and measurable outcomes.

A strong programmatic strategy helps advertisers:

• Reach precise audience segments
• Optimize spend while campaigns are live
• Access premium inventory more efficiently
• Test creative, audiences, and channels faster
• Connect media buying to performance goals

That last point is critical. Programmatic is no longer just a display-ad workhorse. Digital video ad spend is projected to surpass $80 billion in 2026, accounting for more than 60% of total TV/video ad spend for the first time. In other words: the biggest screen in the house is now part of the programmatic performance conversation, too.

With that said, here are the most common types of programmatic advertising.

1. Real-Time Bidding (RTB)

Real-time bidding (RTB) is the open-auction side of programmatic advertising. When an ad impression becomes available, multiple advertisers can bid on it instantly. The winning bid gets the placement, and the ad is served in milliseconds.

How It Works

A user visits a website, opens an app, or starts streaming content. The available impression is sent to an ad exchange. Advertisers bid based on the user, placement, campaign goals, and other signals.

Pros

RTB offers scale, flexibility, and efficient testing. It’s useful when advertisers want to reach broad qualified audiences, gather performance data, and optimize quickly without negotiating direct relationships with every publisher.

Cons

The open nature of RTB can create more variability in inventory quality, pricing, and brand suitability. Without strong controls, advertisers may deal with wasted impressions, inconsistent placement transparency, or less premium supply.

How to Use It (Step-by-Step)

1. Define your campaign goal, such as site visits, conversions, app installs, or awareness.
2. Build your audience using first-party data, contextual signals, third-party segments, or behavioral indicators.
3. Set bid rules, budget caps, frequency caps, and brand safety controls.
4. Launch with multiple creative variations.
5. Monitor performance by audience, placement, creative, and cost.
6. Shift spend toward the impressions driving the strongest results.

Best For

RTB is best for scalable prospecting, campaign testing, audience discovery, and performance marketing, if you want flexibility without locking in inventory upfront.

2. Private Marketplace (PMP)

A private marketplace is an invite-only programmatic auction. Think of it as RTB with a velvet rope. Publishers make select inventory available to approved buyers, often with floor prices and more transparency than open exchanges.

How It Works

Publishers package inventory and invite specific advertisers or demand-side platforms (DSPs) to bid. Buyers still compete, but within a smaller, more controlled environment. Google Ad Manager describes Private Marketplace deals as non-guaranteed programmatic deals, including Preferred Deals and Private Auctions.

Pros

PMPs give advertisers more control over supply quality, brand safety, and publisher relationships. They can also unlock premium placements that may not be as easily available in the open auction.

Cons

PMPs can cost more than open-auction inventory and may offer less scale. They also require more setup, deal evaluation, and supply-path management. Translation: better inventory, but don’t set it and forget it.

How to Use It (Step-by-Step)

1. Identify the publishers, apps, platforms, or CTV platforms that match your audience.
2. Review inventory quality, pricing floors, audience fit, and available data.
3. Negotiate or accept deal terms through your buying platform.
4. Apply audience targeting, frequency, creative, and measurement settings.
5. Track performance against open-auction benchmarks.
6. Keep the deals that outperform, and cut the ones coasting on vibes.

Best For

PMPs are best for advertisers who want premium inventory, stronger brand suitability, more transparent supply, and enough flexibility to keep optimizing mid-campaign.

3. Preferred Deals

Preferred deals give one buyer priority access to specific inventory at a negotiated price. Unlike a guaranteed buy, the advertiser is not required to purchase every impression. They simply get the first look before the inventory moves elsewhere.

How It Works

The publisher and buyer agree on terms, including price. When eligible inventory becomes available, the buyer gets the option to bid at the negotiated rate. Google notes that Preferred Deals are non-guaranteed because inventory is not reserved for the buyer, and buyers are not required to purchase it.

Pros

Preferred deals give advertisers predictable pricing and priority access without the commitment of a guaranteed buy. They’re a useful middle ground between auction flexibility and direct-deal control.

Cons

Because inventory is not guaranteed, delivery can fluctuate. If the audience pool is small or demand is high, advertisers may not get enough impressions to meet campaign goals.

How to Use It (Step-by-Step)

1. Choose inventory that is valuable enough to justify preferred access.
2. Negotiate fixed pricing and targeting parameters with the publisher.
3. Confirm how the deal will compete against other demand.
4. Set clear campaign pacing and performance benchmarks.
5. Monitor available impressions and win rates.
6. Adjust creative, targeting, or deal terms if scale falls short.

Best For

Preferred deals are best for advertisers who want first access to premium inventory, but still want the choice to buy only the impressions that fit their strategy.

4. Programmatic Guaranteed

Programmatic guaranteed is the closest programmatic gets to a traditional direct media buy, just with more automation. The buyer and publisher agree on reserved inventory, fixed pricing, and guaranteed delivery.

How It Works

The advertiser commits to buying a set amount of inventory at a negotiated price. The publisher reserves that inventory for the buyer with negotiated price and terms.

Pros

Programmatic guaranteed offers delivery certainty, premium access, and stronger planning control. It’s especially valuable when timing, placement, or audience access is mission-critical.

Cons

Less flexibility. Since inventory and spend are committed upfront, advertisers have fewer chances to shift budget quickly if performance lags. It also typically requires stronger forecasting and a clear business case.

How to Use It (Step-by-Step)

1. Define the campaign moment: launch, seasonal push, tentpole event, or evergreen commitment.
2. Identify premium publishers or platforms that reach your audience.
3. Negotiate inventory volume, pricing, timing, targeting, and measurement.
4. Confirm creative specs and approval timelines early.
5. Track delivery, pacing, and performance while live.
6. Use post-campaign insights to decide whether to renew, expand, or refine.

Best For

Programmatic guaranteed is best for major launches, high-priority campaigns, premium video buys, streaming advertising campaigns, and advertisers who need predictable delivery more than maximum flexibility.

Why You Need Performance TV

Programmatic advertising comes in a few different forms, but the goal is the same: make media buying smarter, faster, and more performance-focused. MNTN helps marketers bring that approach to premium OTT advertising, combining automated campaign execution with audience precision and measurement tools built around real business outcomes.

Here’s how MNTN Performance TV helps marketers make programmatic advertising more effective.

• Automated Optimization — MNTN continuously adjusts campaign delivery based on performance signals, helping advertisers improve efficiency while campaigns are still live.
• MNTN Matched — Advanced audience targeting helps brands reach households more likely to engage, convert, and drive stronger campaign performance.
• Premium CTV Inventory — MNTN gives advertisers access to premium streaming inventory across top networks and apps, helping campaigns run in high-quality, brand-safe TV environments.
• Reporting Suite — Real-time reporting helps marketers evaluate performance, monitor trends, and understand how different programmatic strategies support broader goals.
• Integrations and APIs — Flexible integrations help teams connect CTV campaign data with the rest of their marketing stack, making insights easier to analyze and activate.

Turn programmatic strategy into measurable TV advertising performance—sign up today with MNTN’s self-serve software.

Programmatic Advertising Benefits: Final Thoughts

The best type of programmatic advertising depends on what you need most.

RTB gives you scale. PMPs give you more control. Preferred deals give you first-look access without a hard commitment. Programmatic guaranteed gives you reserved inventory and predictable delivery.

Most advertisers won’t rely on just one. A smart strategy blends deal types based on campaign goals, funnel stage, budget, timing, and inventory needs. Use open auctions to test and scale. Use PMPs to improve quality. Use preferred deals when access matters. Use programmatic guaranteed when the campaign cannot afford to miss.