PubMatic predicts ad prices in real time

"Similar to how Google has developed a technology algorithm to predict clicks, PubMatic's algorithm predicts ad pricing in real-time on behalf of the publisher," said Rajeev Goel, co-founder and CEO of PubMatic. "Our technology can optimize every single ad impression automatically, which is a significant improvement over manual optimization that relies simply on best practices."

The new tool bases the predictions on real time API pricing as well as machined algorithms; according to company information, the tool has already created a 70% increase on ad inventory for ten large publishers who participated in a beta trial of the unit. The increase was based on prices generated from PubMatic's older platform.

As one example, PubMatic could determine for a publisher what should be the price difference for ads based on behavioral targeting and ads based on contextual targeting and then serve the higher paying ad to the consumer.

PubMatic says they process more than 100,000 data transactions for 6,000 publishing customers and then applies the data collected through 'machine learning' to improve the algorithm.

Tags: ad price prediction, advertising prediction, online advertising, online publisher, PubMatic