PubMatic Transforms Online Publisher Ad Sales with Ad Price Prediction

Business Wire, June 25, 2009

Enables Real-Time Comparison of Ad Network and Ad Exchange Pricing on Behalf of Publishers; Lifts Online Publisher Ad Revenue up to 70%

PALO ALTO, Calif. -- PubMatic (www.pubmatic.com), the pioneer of ad revenue optimization technology and full-service ad operations support for large online publishers, today unveiled Ad Price Prediction as a key component to its second generation optimization platform. Ad Price Prediction is the world’s only real-time publisher optimization solution and includes dynamic pricing from ad networks. Online publishers can now match the optimal ad network or exchange with every single ad impression in real-time with increased precision. This has enabled PubMatic Premier customers – global publishers with more than $5 million in annual online revenue – to lift revenue by up to an additional 70%.

Ad Price Prediction lifts publisher revenue by optimizing how each impression is sold through secondary ad channels such as ad networks and exchanges. Publishers now have deeper insight into how much their non-guaranteed ad inventory is valued by the different targeting technology and tactics used by secondary channels. For example, PubMatic can compare the price difference between behavioral targeting and contextual targeting on a single ad impression, and then serve the higher paying ad. A new white paper detailing the technology is now available for download at www.pubmatic.com/technology/whitepapers.

“PubMatic’s real-time optimization means that more ad networks are competing for every impression,” said Joe Luna, Director of Digital Advertising Operations at Mansueto Ventures (publisher of Inc.com, Fast Company). “In this climate, with a limited ad operations staff, getting the most money for every ad impression vs. daily optimization makes a big difference.”

Ad Price Prediction is a culmination of various learnings and innovations at PubMatic in the past three years. The company processes more than 100,000 data transactions per second through ads served for 6,000 publishing customers, and applies the data points through a machine learning process to significantly improve its algorithms. Furthermore, PubMatic’s APIs, released in January 2009, have enabled ad networks and exchanges to enter precise real-time bids on non-guaranteed inventory from publisher customers.

“Similar to how Google has developed a technology algorithm to predict clicks, PubMatic’s algorithm predicts ad pricing in real-time on behalf of the publisher,” said Rajeev Goel, co-founder and CEO of PubMatic. “Our technology can optimize every single ad impression automatically, which is a significant improvement over manual optimization that relies simply on best practices.”

About PubMatic:

PubMatic is a global Ad Revenue Optimization company that provides online publishers with a full service solution to manage and monetize non-guaranteed ad inventory. PubMatic’s real-time ad price prediction technology ensures that online publishers get the most money from their advertising space by deciding in real-time which ad network or exchange can best monetize each impression.

There are currently over 6,000 large and medium publishers working with PubMatic. PubMatic is venture backed by Draper Fisher Jurvetson, Nexus India Capital, and Helion Ventures.