What is the story about?
What's Happening?
PubMatic, a supply-side platform that assists publishers in selling ad space, has formed a partnership with MNTN, a self-service connected TV (CTV) advertising platform. This collaboration aims to facilitate smaller, performance-focused advertisers in purchasing ad space on major streaming platforms. Historically, smaller advertisers, such as direct-to-consumer and ecommerce brands, have faced challenges accessing premium streaming TV placements due to high costs per impression and large spend commitments required by streaming platforms. The partnership will integrate MNTN into PubMatic's extensive network of streaming services, including NBCUniversal, Paramount, Sling, and Philo. This move is expected to democratize access to premium inventory and stimulate market growth by bringing new advertisers into television.
Why It's Important?
The partnership between PubMatic and MNTN is significant as it addresses the barriers that smaller advertisers face in accessing premium streaming TV placements. By providing direct access to premium inventory, the collaboration is likely to attract new budgets and advertisers to the television market, thereby expanding the ecosystem. This development is crucial as CTV becomes an increasingly important channel for advertisers, with U.S. CTV display ad spend projected to exceed $33 billion this year. The partnership also highlights the growing demand for accurate cross-channel measurement and accountability in CTV advertising, which has historically been challenging for performance-driven advertisers.
What's Next?
The integration of MNTN's platform with PubMatic's inventory is expected to open up access to more advertisers, potentially leading to increased revenue for CTV publishers. In early testing, publishers whose ads were bought via MNTN's platform saw a 10% increase in revenue, indicating the potential for market growth. As the partnership progresses, it may lead to further democratization of access to premium streaming TV placements and stimulate the overall growth of the CTV market. Additionally, PubMatic's recent antitrust lawsuit against Google over alleged anti-competitive practices may influence future developments in the advertising industry.
Beyond the Headlines
The partnership between PubMatic and MNTN could have broader implications for the advertising industry, particularly in terms of competition and market dynamics. By catering to smaller advertisers, the collaboration may challenge existing industry norms and encourage other platforms to adopt similar strategies. Furthermore, the partnership may contribute to a shift towards more inclusive and diverse advertising practices, as smaller advertisers gain access to premium placements that were previously out of reach.
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