Digital Advertising

PubMatic and Sizmek ink SPO pact to answer advertisers' transparency call

By Ronan Shields | Digital Editor

April 10, 2018 | 4 min read

Adtech outfits PubMatic, and Sizmek have today (April 10) announced a global supply path optimization (SPO) partnership with Sizmek, as research suggests that the programmatic market will top $46bn in the US this year.

The pact will also see the two adtech companies offer PMP and programmatic guaranteed deals

The partnership means that Sizmek now includes sell-side platform (SSP) PubMatic in its network of preferred publisher platforms in a pairing they hope will consolidate programmatic ad spend, providing advertisers with more transparency.

It means that Sizmek will also work with PubMatic to provide advertisers prioritized access to premium inventory across the SSP’s portfolio of publishers via programmatic direct channels via its PMP-Guaranteed and Targeted PMP products.

The pact will also see the two adtech companies offer PMP and programmatic guaranteed deals

Mike Caprio, Sizmek, chief growth officer said PubMatic was a preferred partner based on its inventory quality (including its fraud-free guarantee) match rates, and technology stack, which will, in turn, enable it to receive additional impression opportunities, and then monetized by clients.

Rajeev Goel, PubMatic, chief executive, added that such consolidation of supply and demand was inevitable given the current trend towards scrutiny in the adtech sector’s supply chain, particularly as advertisers insist upon better efficiencies.

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A press release announcing the tie-up also contains a quote accredited to Mike Kisseberth, chief revenue officer at online web title Purch. It reads: “We are always seeking a means to capture more revenue by accessing demand as efficiently as possible. We have a long-standing relationship with PubMatic, and this partnership with Sizmek will be valuable for both of us.”

This announcement comes as eMarketer research indicates that the US programmatic advertising market will top $46bn in 2018 – a $10bn increase from the year beforehand.

Per eMarketer, the number means that 82.5% of all US display ads will be bought using programmatic technologies this year with eMarketer principal analyst Lauren Fisher claiming that an additional $19bn will enter the programmatic display space between 2018 and 2020.

“Buyers have come to rely on programmatic as the primary way to infuse their ad campaigns with first-, second- or third-party data insights,” added Fisher.

Meanwhile, the majority will go to private setups, such as private marketplaces (PMPs) and programmatic direct transactions, as buyers continue to be wary of the open markets’ transparency and quality issues, according to the study.

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