Pubmatic chief sees ad network opportunities

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manyadnetworks_small.jpgADOTAS — Despite the gloomy numbers released by Pubmatic recently, co-founder and CEO Rajeev Goel says there are still opportunities for ad networks.

Goel admits that the number of networks, more than 350, is likely unsustainable, and with the economic downturn there will be fewer media buyers and dollars to spend. But he says that networks, even ones that are launching this year, should be looking for overlooked markets, for example in crafts, do-it-yourself areas. Though he added that it has to be a market large enough to entice advertisers.

“You can get talent that you couldn’t before,” he said. “You can get office space, ad servers, etc., at half the

cost.”

PubMatic’s fourth quarter AdPrice Index, showed that all sizes of websites (small, medium, and large) were down
dramatically from Q4 2007; small, medium, and large sites dropped 52%, 23%, and 54%, respectively, from the previous year. All sizes of websites were down from Q3 2008 to Q4 2008, but the drops leveled-off, bucking the trend of larger drops from quarter to quarter throughout 2008; this may be an indicator that the online ad sector received enough of a boost from holiday advertising to keep ad rates steady.

Goel said the business and financials didn’t do well. He thinks networks specializing in geography or verticals, niche players, will be the ones that will have problems as opposed to the ones with a larger portfolio. He says that the ad networks that will survive are the ones that have advanced proprietory technology to better target ads and ones built out with deep access in a particular area.

He also noted that with few encouraged with the performance of social media marketing, “it means everyone is trying to figure it out. There will be a deep targeting involved.”

— Express your opinion, comment below.

5 COMMENTS

  1. Is it possible the PubMatic unintentionally lowers the CPM floor when their optimization tool/process contradicts the tools in place by every other network? If the networks are set to optimize based on static placement of their tags, then how does it react when their ads are now called dynamically? And how can PM optimize honestly when it is based on a price that is not accurate with the type of inventory that is being served? Quite simply, it seems that PM ( and every other Rubicon et al) is trying to feed pubs the highest price at any given moment but the bids that are under consideration in that split second of ad serving are not actually the best available price since the networks are optimizing to an environment that doesn’t exist: a static one, not a dynamic one.

    Food for thought.

  2. I used pubmatic and they raised havoc in my monetization. In the 7 days I ran them I lost almost $5,000 due to their poor technology. Small wonder they see a drop in revenues.

  3. Hi Mike L (comment above),
    This is Rajeev Goel, CEO of PubMatic. I checked our records and did not find any account corresponding to a “Mike L”. We also don’t have any record of a customer of that size who ran with us for 7 days. If your post is genuine, would be happy to discuss with you and see what the issue is and how to make things right.

    Rajeev Goel

  4. It’s ironic to hear an ad network complain about the state of the industry, since they are to blame for it…they are media amateurs that commoditized an industry that relied on the “scarcity” of inventory…there are no IT solutions to a business that relies on common sense and experience…thanks for nothing…

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