PubMatic, the digital media platform company for publishers, today announced its analysis of publisher monetization for 2012 which attests to a shift in how media sellers use the company’s programmatic platform for selling ad inventory. By Q4 2012, Real-Time Bidding (RTB) had come to represent nearly 31% of all paid impressions — nearly doubling its share year-over-year — and 48% of all revenue. Revenue from RTB is now experiencing 57% annual growth, and nearly equals the value of all inventory sold via ad networks (which comprises 50% of revenue). RTB eCPMs are double (+114% in Q4) that of ad networks which likely accounts for the shift in selling methods.
The data also shows that Private Marketplaces (PMPs) offer even greater promise for increasing inventory value than RTB selling. Usage of PMPs, which allow publishers to offer guaranteed inventory for select buyers in a transparent negotiation environment, more than doubled (+133% in paid impressions), while revenue grew 120% from the third to the fourth quarters. eCPMS generated by PMPs in the fourth quarter were 10 times (962%) higher than those generated through ad networks and nearly five times (396%) higher than those generated from RTB.
Mobile paid impressions experienced unprecedented growth of 1425% between Q1 and Q4, emphasizing that programmatic selling is becoming an increasingly viable way for publishers to monetize their mobile inventory.
PubMatic’s data analysis on monetization was based on a quantitative review of premium publishers and demand-side ad networks utilizing its Strategic Selling Platform (SSP) from Q1 of 2011 through Q4 of 2012. Thousands of buyers and sellers of media are represented in the data.
“PubMatic’s data analysis demonstrates increasing sophistication in how publishers use a strategic selling platform to sell their inventory. They are moving from the fixed priced sales of ad networks to dynamically traded inventory,” said Kirk McDonald, President of PubMatic. “They’ve found that RTB can consistently generate higher CPMs and allow them to react to in-the-moment market opportunities.
“While still an emerging mode of selling, it’s also important to underscore the growth in usage and strong results for implementing Private Marketplace sales. We’re moving from an era of blind inventory to one where buyer and seller use programmatic as a tool to increase efficiencies but also build long-term sales relationships in a transparent manner.”
“Our mobile sales growth shows how we are committed to cross platform monetization solutions and continually adapt our technology to meet the changing dynamics of the media world,” McDonald continued.
“PubMatic is a key partner in Business Insider’s ability to maximize the value of our ad inventory via programmatic trading,” according to Bridget Williams, SVP, Business and Audience Development at Business Insider. “We are achieving tangible ROI through the platform with Real-Time Bidding and Private Marketplace.”
According to a recent IDC report, ‘Real-Time Bidding in the United States and Worldwide, 2011–2016, spending on RTB is projected to grow to $13.9 billion by 2016, with PMPs providing a no-risk means of gaining RTB experience — enabling premium inventory to be increasingly exposed to public RTB platforms going forward.
This data release comes during a period of dramatic growth in terms of product development and international expansion for PubMatic. In an October 2012 commissioned Forrester Consulting Total Economic Impact Study of select PubMatic clients, the analyst company reported a three-year risk-adjusted ROI of 334% for publishers using the company’s Strategic Selling Platform. Additionally, in November, PubMatic was ranked the Fastest Growing Online Advertising Company in US Internet Sector, 20th Fastest Overall in North America, on Deloitte’s 2012 Technology Fast 500™.
Since 2006, PubMatic has been at the forefront of developing innovative technology to help publishers automate the process of evaluating and selling their advertising inventory. PubMatic gives premium publishers a real-time media-selling platform for managing revenue and brand strategy. PubMatic’s platform combines Real-Time Bidding (RTB), the most comprehensive brand protection tools, unified optimization, and audience insights as well as hands-on support to serve the world’s leading publishers. PubMatic is privately held, backed by funding from August Capital, Draper Fisher Jurvetson, Nexus Venture Partners, and Helion Ventures, and has offices around the world in the U.S., Europe and Asia.