As the year comes to a close, I wanted to highlight some of the amazing achievements of PubMatic that have made it the leading strategic selling platform globally. From our engineers who created great products, to our salespeople who sold them, and the client services people who made them hum, PubMatic is a company of people and technology committed to making every ad, every sales channel, every screen more profitable.
When I think of our advances this year, first and foremost is the fact that some of the leading media companies chose us in 2012. Hearst, Rodale, Martha Stewart, The Weather Network and Belo Interactive all became clients. These comScore-100 publishers were attracted to PubMatic because of our independence and our legacy of innovation. Here are just a few of the developments I am most proud of this year:
Product Innovation: PubMatic continued to innovate in marketing technology throughout 2012. In February, we introduced PubDirect, a suite of management tools including a milestone in product development that delivered on our holistic vision of inventory management. Included in the suite is a Unified Optimization Engine – and accompanying reporting tool Unified Insights – which allows publishers to maximize revenue of guaranteed and non-guaranteed inventory against multiple demand sources.
Audience Direct – which is also part of the PubDirect suite — gives publishers the ability to meet the demand for audience buying by helping them to create and manage the variable value of their audiences in real time.
In March, we introduced PubLink, an enterprise app marketplace for publishers. This set of open APIs enables publishers to use PubMatic’s strategic selling platform as a single point of integration to access partners and services in real time. Our current partners include Evidon, comScore, ShinyAds and MobStac.
Mobile Innovation: Between Q1 and Q3 mobile paid ad impressions grew 700% and mobile development was a priority for us throughout the year. In March we acquired MobiPrimo, a leading mobile development technology firm. The capabilities of MobStac, a company that optimizes mobile content for any wireless device, were integrated into PubLink in December. We also announced version two of an MRAID SDK which enables publishers to seamlessly work with the leading networks and all rich media formats through the PubMatic platform. It includes an auction algorithm which speeds delivery and reduces latency.
Rounding out our mobile innovation is a custom iPad app to make reporting even more accessible for clients. MyReports was accepted into the Apple App store in December.
Thought Leadership: In addition to ground-breaking new products, PubMatic continued to lead the industry through the sponsorship of research about market sizing and effectiveness of programmatic buying and selling. We sponsored the second edition of an IDC report on the use of Real Time Bidding globally, that is perhaps the most cited source of information on this advertising sector. The study showed that RTB is the fastest growing digital ad segment and is predicted to increase to $13.9 billion in spending worldwide in 2016 or 27% of the display market. We also sponsored a total economic impact report from Forrester which showed that use of our platform could result in a three-year risk-adjusted ROI of 334% and 50% incremental lift by leveraging a Private Marketplace strategy. Both of these reports were highlighted at Ad Revenue 5, our 5th annual industry leadership conference which was attended by over 250 of the top advertisers, agency and media executives in New York in October.
Awards & Accolades: In November, PubMatic was ranked the Fastest Growing Online Advertising Company in the US Internet Sector, 20th Fastest Overall in North America, on Deloitte’s 2012 Technology Fast 500™. PubMatic was also named a leading sell-side platform in The Forrester Wave: Sell-Side Platforms report, which was released in January. We’re honored to be included in both.
International Expansion: PubMatic started the year with offices in the US, UK and India, and added offices in Germany, France and Australia. In November we opened a new data center in Singapore. We continue to expand internationally as the market dictates and Real Time Bidding goes global for publishers.
People: PubMatic hired some of the best in the business and added a Chief Counsel, a CMO, a Head of HR, and VPs of Mobile, Engineering, Publishing Sales and Product Management. Our total number of employees is now over 350.
Funding: We took on an additional $45 million in funding in June. New investor August Capital lead the financing, with participation from all existing investors including Draper Fisher Jurvetson, Nexus Venture Partners, Helion Ventures and Silicon Valley Bank.
As we Iook back over 2012, it was a pivotal year in terms of the growth of the company. We welcomed some of the most prestigious names in media as clients. We put the right people and products in place all over the world. We truly continued on the path of what we started when we created RTB from the publisher perspective back in 2009. Our publishers are growing in their sophistication of the platform. They may have started with simple yield optimization, but since have adopted Real Time Bidding and now many are engaging in Private Marketplaces where they are maintaining and growing their best relationships in an open and transparent way – all while increasing CPMs.
Unified Optimization is where the growth will be in 2013, as publishers think holistically and evaluate guaranteed and non-guaranteed inventory side by side to best determine where and how to sell it. The IDC research showed just how much potential there is for the automation of direct sales. We are helping our publisher clients realize that opportunity and raise their CPMs as programmatic premium becomes a reality. A platform like PubMatic provides more control and select access to the inventory that drives impact. We predict that 2013 will be the year of total value creation for the publishers and buyers across our platform.