PubMatic » news

Ad Revenue Report

eric — Thu, 13 Oct 2011 08:00:31 +0000

The Ad Revenue Report, released at the Ad Revenue 4 conference, featured a study conducted with research firm IDC, showing that RTB will amount to $6.47 billion in ad spend in 2015 in the U.S. and major markets in Western Europe.

OFFICIAL PRESS RELEASE

Global Ad Spend on Real-Time Bidding (RTB) will Rise to $6.5 Billion by 2015

Research Unveiled at PubMatic’s Ad Revenue 4 Conference Today From IDC Forecasts Inevitable Transition of Premium Inventory to be Sold via RTB

New York (October 13, 2011) – PubMatic (www.PubMatic.com), a media technology company that provides a holistic inventory, data and advertising revenue optimization platform for digital publishers, today released a study conducted with research firm IDC showing that Real-Time Bidding (RTB) will amount to $6.47 billion in ad spend by 2015 in the U. S. and major markets in Western Europe. The IDC findings, led by Karsten Weide, Program Vice President, Digital Media and Entertainment, have been published in PubMatic’s Ad Revenue Report, which published in conjunction with the Ad Revenue 4 conference taking place today in New York City.

PubMatic’s Ad Revenue Report is available here: www.pubmatic.com/adrevenuereport

The IDC research analyzes the state of RTB across the United States and in Western European nations France, Germany and the United Kingdom. The report estimates the current and past spending on RTB-based display ad sales and forecasts yearly growth until 2015. Highlights from the research include:

RTB-Based Spending: By 2015, RTB-based spending will stand for 27% in the United States (up from 10% in 2011), 25% in the UK (up from 6%), 21% in France (up from 4%) and 20% in Germany (up from 4%). Total spending on RTB in the US will reach $5.1 billion; $680 MM for the UK; $219 MM for France; and $495 MM for Germany.
Expected Growth: Display advertising sales based on RTB will experience strong growth until 2015 in the US (71% from 2010-2015), the UK (114%), France (103%) and Germany (99%).
Direct vs. Indirect Sales Related to RTB: By 2015, the majority of indirect ad revenue volume will be traded using RTB in the US and the most developed European markets. By 2015, RTB-based direct sales will contribute to 15% of total RTB sales in the US, 7% in the UK, 14% in Germany, and 13% in France.

“Real-Time Bidding is rapidly penetrating the display ad market, with spending nearly doubling in 2011. Furthermore, we expect it to double again in 2012. The value it brings to both publishers and marketers is undeniable,” said Karsten Weide, Program Vice President, Digital Media and Entertainment, IDC.

“Spending on RTB will grow not just for indirectly sold inventory – premium inventory will also be sold via RTB on a much greater scale in the near future,” said Rajeev Goel, Co-Founder and CEO of PubMatic. “The benefits of automation are clear for all parties in the display ecosystem.”

Catalysts for RTB
RTB has been growing due to its promise of improving return on investment for publishers, agencies and advertisers. Through RTB, publishers stand to improve yield, automate sales processes, and reduce costs. Agencies and advertisers benefit because RTB trading improves campaign efficiency and return on ad spend.

The Future: Automating Direct Sales
The mounting pressure to improve profitability will compel more and more publishers to transition into RTB-based trading of directly sold inventory. As advertisers become more comfortable with the process for indirect ad sales, they will demand more ways of incorporating it with ad buys, which will include media bought directly from publishers.

Methodology
Information for the Ad Revenue Report was gathered by IDC through multiple sources including in depth interviews with senior online advertising industry executives in the US, UK, France and Germany as well as IDC’s own proprietary research. IDC uses a predictive model to forecast RTB data.

The full IDC report is available here: www.pubmatic.com/idc

About PubMatic
PubMatic’s (http://www.PubMatic.com) ad management and monetization technology combines an impression-level ad auction, the most comprehensive brand protection tools, and enterprise ad operations support to give the Web’s top publishers the most control over their revenue and brand. Some of the world’s most respected online publishers have chosen to work with PubMatic, including The Huffington Post, eBay, United Online, TV Guide, and the majority of the comScore Top 10.

PubMatic is privately held, backed by funding from Draper Fisher Jurvetson, Nexus Venture Partners, and Helion Ventures, and has seven offices around the world in the US, Europe, and Asia.

Private Marketplaces

eric — Mon, 04 Apr 2011 09:00:50 +0000

PubMatic + Digiday recently conducted a study of over 640 online advertising executives that reveal brand advertisers are ready for RTB.

Private Marketplaces combine the power of the publisher’s premium brand with the sophisticated audience targeting of Real-Time Bidding (RTB).

PubMatic & Digiday recently conducted an 640 online advertising executives - 71% online media buyers, 29% publishers. The study findings show that Private Marketplaces may be the tipping point that allows brand advertisers to embrace Real-Time Bidding (RTB) in the same way that Direct Response advertisers have for the past several years. Publishers have a unique opportunity to capitalize on high advertiser demand for RTB inventory sold directly by publishers through Private Marketplaces.

Download a copy of the PubMatic & Digiday State of the Industry presentation given March 28, 2011 at the Digital Publishing Summit in Park City, Utah.

Audience Selling For Publishers, Part 1

brandon — Mon, 28 Feb 2011 16:22:27 +0000

Part 1 of PubMatic’s 2-part white paper series, Audience Selling for Publishers is available now.

OFFICIAL PRESS RELEASE

PubMatic Study Finds Internet Users Are More Accepting of Anonymous Data Collection When They Understand How It Is Used

Half Who Object to Online Tracking Reconsider After Understanding Value Propositions in New PubMatic White Paper, Audience Selling For Publishers

Palo Alto, CA (February 28, 2011) PubMatic, which provides online publishers — including the majority of the comScore Top 10 — with the technology and services to significantly increase revenue and better manage their advertising inventory, today announced that a study contained in a new white paper, Audience Selling for Publishers reveals that when consumers are presented with a more comprehensive explanation of advertising-based data tracking, they are less concerned about targeted advertising using their anonymous data. The white paper, which is one of a two-part series, helps publishers better sell audience-based advertising.

After observing that other studies with user opinions about anonymous data being used for online advertising were incomplete at best and misleading at worst, PubMatic commissioned an independent online research firm, Knowledge Networks, to conduct a survey of 500 U.S. Internet users. The users were asked their opinions about audience-based online advertising in three key stages: Before understanding how anonymous data is collected, after understanding how anonymous data is collected, and after understanding the benefits for that anonymous data collection. The study was conducted in early 2011 and included a representative, random sample of individuals that categorized themselves as “Internet users.”

Among the study findings in the white paper, Audience Selling for Publishers:

Unless you tell them, users don’t understand that the 3rd party data used for interest-based advertising is anonymous. For example, when the survey participants were asked if they knew that some of their online behavior might be tracked about them for the purpose of advertising, 71%acknowledged they knew. But when asked if they knew the online data collected about them for the purpose of advertising was anonymous, only 40% understood it was anonymous.

Users are far more accepting of interest-based advertising when they understand that 3rd party data is anonymous. The more users understand the benefits associated with audience-based advertising, the more they are supportive of it. When asked without an understanding that only anonymous data is used for audience-based advertising, 64% disapproved. However, when asked after understanding that only anonymous data is used for interest-based advertising, 40% of those who had disapproved changed their mind and approved.

When the survey participants understood that the data collection was anonymous they understood the benefits included more relevant advertising AND that it helped subsidize free content, 53%changed their minds and approved.

According to the PubMatic / Knowledge Networks study, when U.S. Internet users understand the value trade-offs for anonymous browsing behavior tracking – specifically more relevant advertising and access to free content – they are much more supportive of it.

“The Internet user, the online publisher audience, is the center of our data-driven advertising ecosystem and their privacy is paramount. Whether it is through self-regulation or legislation, when given a choice about anonymous tracking, Internet users deserve to have all the facts about how it works and the benefits they derive from it before making a decision,” says PubMatic, CEO, Rajeev Goel. “Once they are appropriately armed with this information, they should have the means at their disposal to easily implement a ‘do-not-track’ option if they prefer to, or not to.”

The full study within Audience Selling for Publishers can be downloaded athttp://www.PubMatic.com/AudienceSelling.

PubMatic: (http://www.PubMatic.com) PubMatic’s Sell Side Platform provides premium publishers one platform with the technology and services needed to earn the most ad revenue possible while protecting their brands online. Some of the world’s most respected publishers have chosen to work with PubMatic, including The Huffington Post, eBay, United Online, MSNBC, TV Guide, and the majority of the comScore Top 10.

PubMatic is privately held, backed by funding from Draper Fisher Jurvetson, Nexus Venture Partners, and Helion Ventures, and has seven offices around the world in the US, Europe, and Asia.