Direct vs Programmatic: Which Advertising Model Wins Today?

Today’s advertisers face a fundamental choice: how to buy media. Do you negotiate one‑to‑one with the publishers? Digital video advertising already almost 60% of all TV/ video ad spend, and going to keep picking up momentum. Behind that expansion lies a bigger trend: Programmatic revenue hit $134.8 billion in 2024 and represents about 61% of U.S. digital ad revenues, and the rest comes through direct deals.

Knowing direct vs programmatic advertising has stopped being optional and has become crucial for you to choose the right buying model for your campaign’s objectives.

What Are Direct and Programmatic Buys?

Direct buys involve a personal handshake (often literally) between an advertiser and a publisher. Deals are negotiated manually or through automated guaranteed contracts, and placements are pre‑arranged. Programmatic buys, on the other hand, use software, algorithms, and real‑time auctions to match ads to available impressions.

According to industry research, programmatic technology “automates the buying of ad inventory in real time, replacing the traditional process that involves R.F.P.s, human negotiations and manual insertion orders.” This reduces human intervention and allows marketers to focus on strategy and creative, the research said. In direct buying, a negotiation is loosely arranged via insertion orders, while in programmatic buying, data and machine learning decide which impressions to bid on and at what price. The distinction is further made between open exchanges (real‑time bidding), private marketplaces (invitation‑only auctions), preferred deals (fixed price but not guaranteed), and automated guaranteed (programmatic direct).

Overview

Direct deals:

• One‑to‑one negotiations between advertiser and publisher.
• Guaranteed placements, often with fixed pricing and specific dates.
• High degree of control over ad context and creative approval.
• Manual setup through insertion orders or automated guaranteed systems.

Programmatic deals:

• Automated bidding across multiple publishers and exchanges.
• Dynamic pricing based on supply and demand.
• Uses audience data (demographics, behaviour, location) and machine learning to decide which impressions to buy.
• Includes open real‑time bidding, private marketplaces, preferred deals, and programmatic guaranteed.

Why the Lines Blur

Many campaigns blend both approaches. Private marketplaces and programmatic direct offer guaranteed placements with programmatic efficiency, while automated guaranteed uses programmatic tools for a single publisher. Although they sit somewhere between the two extremes, they share the transparency and automation of programmatic while retaining the relationship and control of direct. These hybrid options make programmatic advertising vs direct buying less of a binary choice and more of a continuum.

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Comparison Table: Programmatic vs Direct Advertising at a Glance

Each buying model has its own strengths. The following table summarises key differences. Keep your campaign objectives in mind as you read; your choice should be driven by what you need to achieve.

This overview provides a high‑level view of programmatic vs direct advertising, emphasising that each buying model serves different objectives.

When Direct Buying Still Makes Sense

The efficiency of programmatic can be seductive, yet there are still scenarios where direct buying is the smarter choice. In a 2023 ad‑buyer survey, the majority of agencies said they currently buy most of their CTV ads directly; rates tipped slightly 60/40 in direct buying’s favour. Yet almost half of the survey respondents said they would be doing less direct purchasing in two years, a change in the making. Understanding where direct excels helps you deploy it strategically.

Control and Context

• Premium inventory. Through direct deals, acquire access to premium placements including homepage takeovers, priority CTV slots, and live event integrations. Such high‑impact opportunities are typically not offered in open exchanges.
• Brand safety. Advertisers who worry about being associated with being placed next to controversial content, however, favor direct deals, which include ads running only on licensed and approved sites or streaming services.
• Transparency. Publishers offer transparent reporting on where ads appear and who is viewing them, which means less doubt about where exactly they are being shown and the ability to check on compliance.
• Negotiation. Direct deals enable custom creative approvals, ad formats, and pricing structures, including sponsorships and share‑of‑voice arrangements.

When Budgets Are Steady

Buying straight up reserves inventory and pricing up front, ideal for campaigns with limited budgets or seasonal spikes. It works especially well for branding campaigns, sponsored event attendees, or highly regulated businesses where context is key. For instance, most CTV buyers still want direct when they need broadcast-quality controls, de‑duplicated reach, and tight frequency management.

Use It as a Benchmark

For programmatic campaigns, direct deals can be a source of inspiration for quality. Contrast direct performance against the performance of your programmatic campaigns and determine if your data strategy and bidding logic are bringing anything to the table. In this way, direct vs programmatic buying is most effective when you think of the two as allies, not enemies.

Why Programmatic Dominates Performance Marketing

Programmatic’s rise isn’t an accident. It delivers scale, precision, and measurable outcomes that direct deals struggle to match. The IAB’s 2024 report notes that programmatic advertising revenue increased 18% year over year, reaching $134.8 billion. By contrast, non‑programmatic revenues declined nearly 5% to $20.9 billion. This growth is underpinned by several advantages:

#1. Scale and Efficiency

• Massive reach. With access to multiple ad exchanges and supply‑side platforms, programmatic buyers can reach millions of websites and apps instantly. Open programmatic CTV alone can reach 94% of U.S. households.
• Real‑time optimisation. Algorithms adjust bids based on performance signals such as viewability, conversions, and frequency, ensuring every dollar works harder.
• Data‑driven targeting. Programmatic platforms combine first‑party CRM data, demographic segments, and behavioural insights to find high‑intent audiences. Day‑parting and frequency capping further refine delivery.
• Flexible formats: Programmatic now covers display, mobile, connected TV, audio, and digital out‑of‑home. CTV advertising is forecast to grow 16% in 2024, with self‑serve tools democratising access for small and mid‑sized businesses.

TV advertising has expanded from 5.9% of traditional broadcast TV ad spend in 2020 to 21.5% in 2024, with projections suggesting it will reach 44.7% by 2029. This trajectory underscores why programmatic video, especially in CTV, is attracting so much investment.

#2. Better Measurement

Programmatic campaigns provide rich log‑level data. The ANA benchmark study reports that 43.9% of ad spend now reaches consumers, up nearly eight percentage points. Advertisers are also reducing wasteful spend on Made‑for‑Advertising (MFA) sites, cutting MFA spend from 15% to 6.2%.

Accurate measurement improves ROI. For connected TV, metrics such as sales, installs, ROAS, frequency, completion rate, and view‑through conversions help marketers tie campaigns to business outcomes. Verification matters too: bot fraud in CTV grew 69% year over year, and 11% of all CTV inventory can be served while the TV is off. Using verified measurement and brand‑safety tools mitigates these risks.

#3. Dynamic Pricing and Lower Barriers

Programmatic auctions allow advertisers with modest budgets to compete for impressions previously reserved for big brands. The IAB notes that self‑service tools have empowered small and mid‑size businesses to participate in CTV buying. Dynamic pricing also means you pay only for impressions that meet your criteria, often at lower costs than fixed CPMs. However, the scale comes with complexity: Marketers must manage multiple partners, measure success carefully, and avoid hidden fees.

By delivering such benefits, programmatic has become the engine of programmatic vs direct performance marketing. Advertisers seeking efficiency and measurable ROI increasingly favour automated buying across channels.

The Hidden Costs & Risks in Both Models

The choice between direct and programmatic is not without pitfalls. Each method carries its own hidden costs and risks that advertisers must manage.

Programmatic Pitfalls

• Supply‑chain opacity. The ANA’s transparency benchmark shows that less than half of programmatic spend reaches the consumer. Fees to DSPs, SSPs, measurement vendors, and data providers can add up.
• Ad fraud and MFA sites. Bot fraud is rising on CTV, and traffic from websites designed solely to host ads still siphons budget. Although MFA spending has declined sharply, vigilance is necessary.
• Viewability and waste. Around 11 % of CTV inventory is served while the TV is turned off. Ads may also run in off‑screen environments or wrong geographies if controls are lax.
• Complexity. Managing multiple SSPs and negotiating data access rights requires expertise. Without log‑level data, it is hard to audit where every impression goes.

Direct Drawbacks

• Limited scale. Direct deals are confined to a publisher’s inventory; reaching audiences across multiple publishers requires negotiating separate contracts.
• Higher upfront commitments. Premium placements often require large minimum spends and long lead times. This restricts flexibility and may lock you into rates even if performance lags.
• Slower optimisation. Once terms are set, it is harder to pivot creatively, change targeting, or adjust budgets mid‑flight. Programmatic allows on‑the‑fly adjustments.
• Hidden opportunity cost. You may miss cheaper or more engaged audiences available through programmatic auctions.

Awareness of these risks will help you budget for verification services and build contingency plans. In short, direct buy vs programmatic is not a competition between a safe choice and a risky one; rather, both models require diligence.

Expert Insight: What Advertisers Are Getting Wrong

When evaluating buying models, marketers often assume that programmatic solves everything or that direct buying guarantees quality. In reality, success depends on how you wield the tools. David Cohen, CEO of the Interactive Advertising Bureau (IAB), notes that digital video channels have become foundational because they “allow brands to precisely target, measure performance across devices, and drive real business outcomes.”

According to Cohen, the combination of self‑service technology, accessible pricing, and outcome‑based measurement has brought small and mid‑sized businesses into the CTV market. Yet he warns that ongoing economic uncertainty demands agility and careful planning.

“Digital video, including connected TV and social video, is now a core pillar of a brand’s integrated media strategy. Consumer attention has already moved there, and advertisers are meeting them—precise targeting and measurement make it possible to link spend directly to business outcomes.” — David Cohen, CEO, Interactive Advertising Bureau.

This point of view is an important reminder to us that automation does not mean amputation of responsibility. Advertisers need to continue to have clear goals, to check placements, and to refresh creative. The right balance of direct and programmatic is strategic, not standard.

Decision Framework: What’s Right for You?

To help decide which buying model fits your needs, use the flowchart below. Begin by defining your campaign goals. For exact audience targeting and gigantic reach, programmatic buying is the need of the hour. If you need guaranteed premium placements and heavily enforced brand safety controls, direct buying might serve you better. For many advertisers, hybrid options such as private marketplaces or programmatic guaranteed provide the best of both worlds.

Key Questions

Do you need scale and real‑time optimisation?

If yes, go programmatic. For campaigns that demand dynamic allocation and cross‑channel integration, programmatic offers unmatched flexibility.

Do you need guaranteed inventory or event sponsorships?

Choose direct. Premium placements and exclusive deals are negotiated directly, ensuring brand safety and context.

Do you want a balance of control and automation?

Hybrid approaches, such as private marketplaces or programmatic direct offer guaranteed deals with programmatic efficiency.

Are you equipped to manage transparency and measurement?

Regardless of your choice, insist on log‑level data, viewability verification, and fraud prevention.

By answering these questions, you will determine the appropriate blend of buying models for your goals.

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Conclusion

Direct and programmatic are not enemies; they are complementary tools in a modern media plan. Programmatic dominates digital ad revenues and performance marketing because it delivers scale, precision, and measurable outcomes. Yet direct deals provide premium access, brand safety, and control that algorithms cannot replicate.

Recognising when to choose each, and how to combine them, allows marketers to build campaigns that deliver both reach and relevance. In today’s converging media landscape, the smartest advertisers do not pick sides; they orchestrate a balanced strategy.

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