PubMatic Launches Ad Default Optimization Service To Boost Revenues

Advertising optimization service PubMatic has launched a new service today that will help site publishers maximize their revenue even more than what PubMatic could do previously. The new service is a default optimization service. Most ad networks will run some level of "default" ads — these are the ads that are displayed when the ad network has no paid ad to show. These default ads are sometimes referred to as "house" ads as well.

Most publishers will "chain" networks together so that when network A has no ad to show, it will move down the chain to network B and then network C and so on. PubMatic is changing this model by removing the chain and creating an instant on-the-fly auction for the ad slot and will show the best ad network they can based on the ad networks your site or blog are part of. I’ve been part of ad chain discussions for 10+ years and on one of the private ad boards I am on, it’s a daily discussion. The bottom line is that as a publisher you want to get every bit of juice out of the orange you can, too many publishers leave half of the juice in the orange.

Frankly, I’ve never seen this type of ad maximization and it will be interesting to see how it works over the next few months. For this to work effectively, a publisher must be signed up to enough ad networks to allow PubMatic to find the best price in the auction possible. PubMatic claims in their trials they have seen a boost of over 50% in revenue and their top client Flixster saw a "significant increase in incremental revenue." There’s more info on the new program on the PubMatic blog.