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

AdExchanger.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:

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.
We expressed $100MM as a percentage of the $15B online ad market – which is .70%, or roughly 2/3 of 1%.
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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