Looking At The Real-Time Bidding Numbers With PubMatic's Goel

PubMatic In MediaweekAdExchanger.com asked PubMatic's CEO Rajeev Goel about their recent estimate for total RTB (real-time bidding) spend this year and last which he offered in a MediaWeek byline this week.  Goel emphasized that this is an estimate.

RG: Our estimate is based on our own methodology. Here is an overview of how we came up with it:

  1. We took an estimate of revenue made from the DSP's in 2009, which we gathered as less than $100MM total based on a number of things including conversations we've had w/ CEOs, etc.
  2. We expressed $100MM as a percentage of the $15B online ad market - which is .70%, or roughly 2/3 of 1%.
  3. Then, we added the latest players in the space, and looked at how things are ramping up on our side. We see aggressive growth in in 2010... So, 3-5% is our best estimate.

To be clear, this is NOT reflective of the percentage of RTB transactions that PubMatic facilitates.

By John Ebbert


  1. This makes sense, except that it does not consider the amount of RTB that does not involve DSPs. There is a material amount of RTB going on between platforms other than DSPs to make additional inventory available to their advertisers without having to use a DSP.

    • Good point, Jason. Care to put a number on that - non-DSP inventory that is using RTB? Also, can you give a real-world example of a couple of platforms that are doing this today? I take it FAN is one, of course.

      • Thanks John. I can't name other platforms due to confidentiality agreements, but they are major players and FAN is one. We've transacted about 1 trillion bids over the last two years, and we consistently see a several fold increase in eCPMs on impressions sold via RTB vs. those sold to networks and exchanges in the traditional manner.

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