Pubmatic moves into automated guaranteed and programmatic direct to increase revenues
What: Advertising platform PubMatic is building its´programmatic direct to increase revenues, for which it has hired Evan Simeone as Vice President of Programmatic Direct, Engineering to lead PubMatic's move into automated guaranteed and programmatic direct.
Why it matters: The company aims to respond to the growing market demand and provide a full stack covering all publisher ad revenue, despite of strong competitors like Criteo and Xaxis.
The programmatic advertising platform company for publishers PubMatic is seeing greater opportunity to innovate ways to maximize returns for publishers, value for advertisers, and relevance for consumers through programmatic solutions.
As Programmatic direct presents significant opportunities for innovation and additional revenue, the company has put its product initiatives by hiring new staff. Evan Simeone has joined the company in the newly created position of Vice President of Programmatic Direct, Engineering to lead PubMatic's move into automated guaranteed and programmatic direct, a complement to the company's ongoing focus on the automation of advertising transactions via real-time bidding (RTB). Simeone’s new role represents what may be the first executive level position dedicated specifically to programmatic direct innovation in the ad tech industry.
With this new hiring, the company aims to respond to the growing market demand and provide a full stack covering all publisher ad revenue, according to CEO Rajeev Goel . This means guaranteed as well as RTB, direct and indirect, plus all digital channels including video, mobile and display media.Altough it has strong competitors like Rubicon Project, AppNexus and Google in all these areas PubMatic expects to differentiate from the rest by focusing directly on the publisher.
“We're very large from a private marketplace perspective, which is publishers selling direct to advertisers and agencies while transacting over RTB. The next flavor of that is programmatic direct, which I think the IAB is calling "automated guaranteed." This is truly focused on workflow automation as opposed to transaction automation. That is the next big area of focus within the ecosystem and we're driving that over the course of this year,”says Goel.
The platform has also built out fee-based solutions for agency trading desks, ad networks and DSPs as it also sees an opportunity to earn fees from media buyers. There has been a shift around the workflow component. Efforts are being driven by both publisher and the agency.
Digital advertising dollars continue to flow to programmatic solutions, with direct sales over RTB growing annually by an average 176% to US $6.3 billion globally between 2012 and 2017 according to the IDC.
It is all about programmatic
Other ad tech companies , like Criteo and Xaxis are in search of direct inventory relationships with publishers. Criteo added 600 new publishers in Q1 alone and they are now at 7,000 direct publisher relationships. However, to PubMatic this doesn’t mean a threat as to them they do not have the platform and capabilities in place to really value their inventory.
“What publishers are starting to realize is they need to think about their programmatic strategy in the context of direct sales. They should be thinking about it in a context of all six or seven channels.” added Goel.
PubMatic is already positioned In this regard, as it has a capability called “Decision Manager” that plugs into a publisher's traditional ad server and gives them visibility and optimization across direct-sold, traditional, non-programmatic as well as what's coming in on a programmatic basis.