As we get close to the end of 2021 and inch closer to the new year ahead, the topics we anticipate will remain top of the agenda for both our publishers and buyside partners are Addressability, Supply Path Optimisation and Video/CTV…
The demise of the third-party cookie by Google is a topic that hasn’t lacked coverage in 2021 and, although Google pushed back the timeline, 2022 will be the year for those who haven’t yet finalised their addressability strategies to take action and carve a clear path.
We believe the path to audience addressability is not a one-size-fits-all approach and the most efficient way forward is one where the advertising ecosystem, delivers superior monetization for publishers, increased ROI for buyers and strong privacy-centric data policy and protection for all parties.
PubMatic is investing heavily in building for the future of audience addressability and as of our last earnings call, over two-thirds of our revenue has alternative identifiers to the third-party cookie and Apple’s IDFA in place. As we enter 2022, we will continue to focus on building out our Addressability Suite products to deliver better ROI for buyers and improved revenue for publishers.
On Supply Path Optimisation
Supply Path Optimisation (SPO) is not a new topic, but one that continues to be highly relevant today. The implementation of header bidding and the flattening of the waterfall made all inventory broadly available through multiple SSPs simultaneously, giving buyers a choice about how to access that supply. By choosing the tech partners they want to work with, buyers have begun to reclaim control of the supply chain.
As programmatic continues to become a larger share of media spend, advertisers are taking more ownership of the programmatic buying process. In conjunction with the agencies that work on their behalf, they’ve worked together towards bespoke supply path optimisation strategies to drive greater campaign performance, improved ROI and more economic control.
The process of advertisers and agencies implementing SPO strategies isn’t going away, and we anticipate seeing more, larger-scale partnerships as we enter 2022.
On Video and CTV
2020 and 2021 saw steep increases in video consumption, especially across connected TV (CTV) and over-the-top (OTT) channels. Consumption can most likely be correlated to the on again, off again periods of being stuck indoors, driving consumers appetite for hours and hours of content. In 2021 there are $2.3 billion OTT viewers globally with the trend set to continue – the number will rise to $2.7 billion by 2025. Closer to home, in APAC are $1billion subscription OTT video viewers in 2021.
In addition to the predicted increases in consumption and ad spend, we believe 2022 will be the year the industry continues to transition to a header bidding solution for CTV. Benefits to the publisher and advertiser are extensive. Flattening of the waterfall will enable all demands to compete simultaneously. Again, providing the opportunity for the buyer to choose the tech partner they want to work with; no more reliance is needed on those partners at the top of the waterfall. Simultaneously, publishers gain an automated solution that opens up greater demand opportunities to maximise yield and fill the entire ad pod, solving for complex ad pod challenges and, crucially, improving the overall viewing experience for consumers.
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