PubMatic Is Betting On Two Ad Tech Acronyms: CTV And SPO
PubMatic has its supply-path optimization initiative, its strategy to introduce direct deals for CTV and online video, to thank for its quarterly revenue growth.
PubMatic has its supply-path optimization initiative, its strategy to introduce direct deals for CTV and online video, to thank for its quarterly revenue growth.
Advertisers are turning the spigot back on. And PubMatic’s investments are paying off. The SSP reported 14% year over year revenue growth in Q4, powered by 9% growth in display.
With last year’s lingering slide in ad spend, PubMatic sees itself playing the long game by innovating in CTV and retail media, leaning into the SPO trend and adopting cookieless tech.
PubMatic reported meager YOY revenue growth in Q2, up just a smidge to $63.3 million from $63 million in Q2 of last year.
PubMatic’s end-to-end platform, Activate, lets advertisers buy CTV and online video inventory via direct deals, bypassing DSPs.
In its Q4 earnings report Tuesday, PubMatic highlighted how SSP consolidation is an opportunity for the company to pursue its goal of capturing a fifth of the SSP market.
PubMatic’s total Q3 revenue grew 11% to $64.5 million despite an industry-wide downturn, but the company doesn’t have high hopes for the rest of the year. It expects that ad spend will continue to trend down in Q4. But although spending is decelerating due to recession fears, PubMatic is planning to capitalize on the eventual rebound by focusing on video, retail media and particularly CTV, which continues to grow.
Magnite reported 20% year-over-year growth with $137.8 million in revenue for Q2. And its CTV business alone grew by more than double that number (52%). It’s a plateau compared with last quarter’s growth, but Magnite has strong hopes for CTV’s burgeoning programmatic ecosystem.
It’s chilly out there, but PubMatic had a decent quarter. Organic revenue for Q1 totaled $54.6 million, up 25% year-over-year, representing PubMatic’s seventh consecutive quarter of 20% revenue growth or more. PubMatic’s stock was up a smidge, about .5%, in after-hours trading.
The day has finally come – Netflix is considering ads after it lost 200,000 subscribers in Q1, the streamer’s first subscriber loss in a decade. It won’t be easy, but Netflix will need to find a way to keep customers (and their wallets) satisfied. Ads will be a slow rollout that Netflix hopes to phase in within a year or two, CEO Reed Hastings said on Tuesday’s earnings call.