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TechnologyWhite Paper 
Technical Level of White Paper:Technology Outlined:
Ad Price Prediction
Technology Benefits:
• Improve monetization of every single publisher 
 
ad impression• Solves ad network defaulting problem for publishers•
T
wo new technologies improves algorithm accuracy•
 
Works with ad networks, ad exchanges, andnon-guaranteed insertion orders
Ad Price Prediction: 2nd GenerationAd Revenue Optimization for Publishers
 
Table of Contents
Executive Summary.......................................................................................................... 3The Need for Real-Time Ad Revenue Optimization.......................................................... 4Three Levels of Ad Optimization....................................................................................... 6Ad Price Prediction: How It Works.....................................................................................8Ad Price Prediction Publisher Case Studies....................................................................12Conclusion.......................................................................................................................12
Published by PubMatic, 2009
2
TechnologyWhite Paper 
 
Ad Price Prediction: 2nd GenerationAd Revenue Optimization for Publishers
 
Executive Summary 
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 signicantly 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 specic ad impression while ad network
“Y” might be better able to monetize another impression than ad network “X.” Publishers can
benet from this diversication, 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 signicantly 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
3
Ad Price Prediction: 2nd GenerationAd Revenue Optimization for Publishers
TechnologyWhite Paper 
 
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