Looking At The Real-Time Bidding Numbers With PubMatic’s Goel

PubMatic In MediaweekAdExchanger.com asked PubMatic’s CEO Rajeev Goel about their recent estimate for total RTB (real-time bidding) spend this year and last which he offered in a MediaWeek byline this week.  Goel emphasized that this is an estimate.

RG: Our estimate is based on our own methodology. Here is an overview of how we came up with it:

  1. We took an estimate of revenue made from the DSP’s in 2009, which we gathered as less than $100MM total based on a number of things including conversations we’ve had w/ CEOs, etc.
  2. We expressed $100MM as a percentage of the $15B online ad market – which is .70%, or roughly 2/3 of 1%.
  3. Then, we added the latest players in the space, and looked at how things are ramping up on our side. We see aggressive growth in in 2010… So, 3-5% is our best estimate.

To be clear, this is NOT reflective of the percentage of RTB transactions that PubMatic facilitates.

By John Ebbert

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  1. This makes sense, except that it does not consider the amount of RTB that does not involve DSPs. There is a material amount of RTB going on between platforms other than DSPs to make additional inventory available to their advertisers without having to use a DSP.

    • Good point, Jason. Care to put a number on that – non-DSP inventory that is using RTB? Also, can you give a real-world example of a couple of platforms that are doing this today? I take it FAN is one, of course.

      • Thanks John. I can’t name other platforms due to confidentiality agreements, but they are major players and FAN is one. We’ve transacted about 1 trillion bids over the last two years, and we consistently see a several fold increase in eCPMs on impressions sold via RTB vs. those sold to networks and exchanges in the traditional manner.