The non-guaranteed segment of online advertising is the highest-growth online advertising cat-egory and will reach $11 billion by 2013, according to a recent in-depth report by ThinkEquity.Rapid innovation by companies within the ecosystem, particularly ad networks and ad exchang-
es, is enabling publishers to signicantly increase the ad revenue made from their non-guaran
-teed inventory. Nonetheless, challenges exist to maintain sustainable growth.Along with the growth of non-guaranteed ad inventory, the rise in the number of ad networksand ad exchanges over the past few years has created a need for them to diversify themselvesby focusing on different audiences and targeting capabilities. For example ad network “X” might
be better suited than ad network “Y” to monetize a specic ad impression while ad network
“Y” might be better able to monetize another impression than ad network “X.” Publishers can
benet from this diversication, and maximize the value of each ad impression, if they have the
ability to match the optimal ad network or ad exchange to each impression in real-time. Over the last three years with a team of over 40 engineers and statisticians, PubMatic has developedoptimization technology and invented a whole new category of service provider that enablespublishers to do this.
PubMatic developed the rst and only real-time optimization solution in 2006. Since then, Pub
-Matic has collected hundreds of billions of data points through a machine learning approachand has introduced two new technologies in 2009 that have enabled the technology to enter into a new, more precise phase of real-time optimization: Ad Price Prediction.Ad Price Prediction matches the optimal ad network or ad exchange with every ad impression,
on behalf of the publisher, in real-time. It enables the publisher to signicantly grow their ad
revenue as they also manage increasing amounts of non-guaranteed inventory.For large online publishers with millions of ads shown per day, this means that millions moreof their advertisements are optimized than otherwise would be if they used a manual adoperations approach to working with ad networks.This white paper describes in detail why PubMatic developed the sophisticated algorithms thatpower the Ad Price Prediction technology, how it increases publisher ad revenue, and severalpublisher case studies.
Published by PubMatic, 2009
Ad Price Prediction: 2nd GenerationAd Revenue Optimization for Publishers