A sponsorship is a fixed placement that you sell to one advertiser for a set time. Programmatic advertising is software that fills your ad space automatically with ads from many advertisers.
The first gives you control and asks you to do the selling. The second takes less effort and gives you less say. Neither is better for every site. This guide explains the difference and helps you decide.
What a sponsorship is
You choose a spot on your site, set the size, the duration and the price, and sell it to an advertiser you pick. In the advertising trade this is often called a direct ad, because the deal is between you and the advertiser.
With a sponsorship:
- You choose who advertises.
- You set the terms, such as a fixed price, a price tied to traffic, or both.
- You usually see the banner before it goes live and can say no.
- The ad runs for the period you agreed.
- You do the selling, or something does it on your behalf.
What programmatic is
Programmatic advertising uses software to buy and sell ad space automatically. You make your ad space available, and the software fills it with ads from many advertisers, usually without you dealing with any of them.
With programmatic ads:
- The software usually decides which ad appears, based on its own rules.
- The price is usually set by the system, not by you. It usually pays by views or clicks, so your income follows your traffic.
- You do not do the selling.
- What you control depends on the system you use and its terms.
Systems differ, so read the terms of any you consider. Check out a comparison of ad networks here.
Side by side
| Fixed sponsorship | Programmatic | |
|---|---|---|
| What it is | One placement sold to one advertiser for a set time | Ad space filled by software from many advertisers |
| Who chooses the advertiser | You | Usually the software, based on its rules |
| Who sets the price | You | Usually the system |
| How you earn | Terms you negotiate, such as a fixed price or a price tied to traffic | Usually by views or clicks, so income follows traffic |
| Who does the selling | You | The software |
| What you control | Which advertiser, which banner, how long it runs | Less, and it depends on the system's terms |
| What you need from your site | Readers an advertiser wants to reach | Depends on the system. Read its terms |
Which suits which site
Ask yourself:
- Do you want to choose who appears on your site? A sponsorship gives you that choice. Programmatic usually does not.
- Is your audience specific? A narrow, well-defined audience can matter to a particular advertiser. A sponsorship lets you offer exactly that.
- How much selling will you do? A sponsorship means finding advertisers and agreeing terms. Programmatic avoids that.
- Are you comfortable with ads you did not pick? If not, a sponsorship keeps the decision with you.
- Do you want to set your own terms? A sponsorship gives you that. Programmatic income usually follows your traffic.
There is no right answer for every site. The trade-off is control against effort.
Using both
A site can sell one slot as a sponsorship and use something else elsewhere on the page. Whether that is allowed depends on the terms of each, so read both before you combine them.
With SponsorZone
SponsorZone is a tool for selling one fixed slot on your own site. It gives you the embed, the storefront, the review step and the payment. It is free to start, with no subscription, and takes 10% of each sale.
Check out a step-by-step guide to selling ad space here.
Frequently asked questions
What is the difference between sponsorship and programmatic advertising?
A sponsorship is a fixed placement you sell to one advertiser for a set time. Programmatic advertising is software that fills your ad space with ads from many advertisers. In a sponsorship you choose the advertiser and set the price. In programmatic, the software usually does both.
What is a direct ad?
A direct ad is a placement sold straight to a specific advertiser, with no software auction between you. A fixed sponsorship is a direct ad.
Which is better for a small or niche site?
It depends. If your audience is narrow and specific, an advertiser may value it, and a sponsorship lets you offer it directly. If you would rather not do any selling, an automated system takes that work off you. Compare them using the questions above.
Can I use both on the same site?
Possibly. It depends on the terms of each. Read both before you combine them.