Tag Archives: pubmatic

Pubmatic well positioned to take advantage of the growth of digital advertising

Business Standard has a good overview of Pune-based Pubmatic which sells products and services targeted towards the online advertising market.

Here are some excerpts:


In less than the time it took to type the first word of this sentence, advertisers are bidding for and placing advertisements on websites, thanks to the power of real-time bidding, or RTB. The technology, part of programmatic function or workflow automation, has also powered the rise of PubMatic, an enterprise software platform for large digital publishers such as NBC, Fox, eBay and Kayak.

“We help these large publishers price, package and sell all their ad space in a digital manner, using real-time bidding technology, which has become the backbone of internet advertising,” explains Rajeev Goel, co-founder and chief executive of PubMatic.

Pubmatic is technically a US based company, but all its software development happens out of Pune. Here is a profile of the company’s market:

PubMatic has about 500 clients globally. Their definition of a publisher is anyone who builds a relationship with consumers. Goel estimates of the global advertising market of a little more than half a trillion dollars, about $133 billion goes into digital advertising, while RTB accounts for about $30 billion.

He says digital advertising is growing 50-70 per cent annually, and steadily increasing its share in the advertising market. “More and more radio is consumed via digital services such as Spotify and Pandora, more and more billboard advertising is digital billboards and, of course, you have all types of internet advertising, on a computer screen, on mobile devices, video ads, etc. Our focus is on that entire digital portfolio, which will eventually be 100 per cent of advertising,” Goel says.

The US is PubMatic’s largest market, followed by Europe and Asia-Pacific. The company has clients in 30 countries and significant footprints in New York and Pune, where its development team is based. PubMatic has 275 employees in Pune, and plans to hire 80 more this year. It has expanded its Pune hub to a 60,000-sq-ft facility. India is not yet a major market, but with around 100 million internet users and growing, Goel says PubMatic aims to be the top player in India through the next couple of years. He doesn’t disclose the company’s clients in India, but brands such as Snapdeal or Rediff seem to be typical examples, going by their profiles.

Read the full article

Pune’s Pubmatic gets $13MM funding; preparing for a $1B IPO?

Pubmatic, a software product company with solutions in the cloud and mobile advertising space, which is fully developed out of Pune, has just received $13 million in funding from Nokia Growth Partners, along with existing investors. This takes the total amount of funding raised by Pubmatic to $76 million.


The company plans to use the investment raised to improve its platform and for International expansion. PubMatic CEO and co-founder Rajeev Goel is also quoted in the press release as saying this investment will improve its ”direct market access by plugging into the global NGP (Nokia Growth Partners) and Nokia presence.”

The more interesting, and speculative, report comes from the Wall Street Journal article, which claims that Pubmatic is getting ready for an IPO, and are hoping for a valuation in excess of $1 billion.

We have been hoping for a Pubmatic IPO for a couple of years now ever since they hired a CFO who specializes in IPOs. However, it appears to be taking a little longer than expected.

Let’s hope that Pubmatic soon becomes Pune’s first software product IPO.

Wall Street Journal

Will Pubmatic be Pune’s First Software Product Company IPO?

Online ad optimization platform maker, PubMatic, which is developed wholly out of Pune, has just hired Steve Pantelick, a CFO who specializes in preparing companies for an IPO, reports VC Circle.

Earlier, Business Insider ran a story claiming that Pubmatic had gotten an offer of $300 million from Amazon, but turned it down in favor of going for an IPO.

Pubmatic is doing extremely well, as seen in this excerpt from the VC Circle article:

PubMatic acquired ReviNet, a US-based advertising optimisation company in May this year. It recently expanded to Europe and launched more data management and mobile products. Its GAAP revenue has risen 33 times in the past two years and by 51 per cent between the second and the third quarter of this fiscal year.

While Pubmatic is technically US-based, it has two co-founders who are in Pune (Mukul Kumar and Anand Das), and all of its development happens in Pune (with the exception of the ReviNet acquisition).

If Pubmatic does indeed go for an IPO, it will the first mostly-Pune-based software product company to do so. While last year’s Persistent IPO was many years in the making, Pubmatic is just 5 years old, and will be a great source for inspiration for technology startups in Pune.

Pubmatic has been one of PuneTech’s favorite Pune startup companies, and we’ve been covering it (see here and here) since our first month of operation in 2008. We wish it good look, and hope that this is just a first in the series of Pune IPOs

Update: Reader V. Krishna points out Kale Consultants was probably Pune’s first software product IPO. Kale Consultants provides solutions to the airline and travel industry, and has a mix of products and services, so it is indeed, arguably, Pune’s first Software Product Company IPO.)

Top 5 things to worry about when designing a Cloud Based SaaS

(This article on things you need to be careful when designing the architecture of a cloud based Software-as-a-Service offering is a guest post by Mukul Kumar, who, as SVP of Engineering at Pubmatic has a lot of hands-on experience with having designing, building and maintaining a very high performance, high scalability cloud-based service.)

Designing a SaaS software stack poses challenges that are very different from the considerations for host-based software design. The design aspects for performance, scalability, reliability of SaaS with lots of servers and lots of data is very different and interesting from designing a software that is installed on a host and is used by that host.

Here I list the top 5 design elements for Cloud Based SaaS.

High availability

SaaS software stack is built on top of several disparate elements. Most of the times these elements are hosted by different software vendors, such as Rackspace, Amazon, Akamai, etc. The software stack consists of several layers, such as – application server, database server, data-mining server, DNS, CDN, ISP, load-balancer, firewall, router, etc. Highly availability of SaaS actually means thinking about the high availability of all or most of these components. Designing high availability of each of these components is a non-trivial exercise and the cost shoots up as you keep on adding layers of HA. Such design requires thinking deeply about the software architecture and each component of the architecture. Two years back I wrote an article on Cloud High Availability, where I described some of these issues, you can read it here.

Centralized Manageability

As you keep on adding more and more servers to your application cluster the manageability gets hugely complex. This means:

  • you have to employ more people to do the management,
  • human errors would increase, and
  • the rate at which you can deploy more servers goes down.

And, don’t just think of managing the OS on these servers, or these virtual machines. You have to manage the entire application and all the services that the application depends on. The only way to get around this problem is to have centralized management of your cluster. Centralized management is not an easy thing to do, since every application is different, making a generalized management software is oversimplifying the problem and is not a full solution.

Online Upgradability

This is probably the most complex problem after high availability. When you have a cluster of thousands of hosts, live upgradability is a key requirements. When you release a new software revision, you need to be able to upgrade is across the servers in a controlled way, with the ability of rolling it back whenever you want – at the instant that you want, across the exact number of servers that you want. You would also need to control database and cache coherency and invalidation across the cluster is a controlled way. Again, this cannot be solved in a very generic way; every software stack has its own specificity, which needs to be solved in its own specific ways.

Live testability

Testing your application in a controlled way with real traffic and data is another key aspect of SaaS design. You should be able to sample real traffic and use it for testing your application without compromising on user experience or data integrity. Lab testing has severe limitations, especially when you are testing performance and scalability of your application. Real traffic patterns and seasonality of data can only be tested with real traffic. Don’t start your beta until you have tested on real traffic.


The more servers and applications that you add to your cluster the more things can fail and in very different ways. For example – network (NIC), memory, disk and many other things. It is extremely important to monitor each of these, and many more, constantly, with alarms using different communication formats (email, SMS, etc.). There are many online services that can be used for monitoring services, and they provide a host of difference services and have widely varying pricing. Amazon too recently introduced CloudWatch, which can monitor various aspects of a host such as CPU Utilization, Disk I/O, Network I/O etc.

As you grown your cluster of server you will need to think of these design aspects and keep on tuning your system. And, like the guys at YouTube said:

Recipe for handling rapid growth

    while (true)

About the Author – Mukul Kumar

Mukul Kumar is the Co-Founder & Senior Vice President Engineering at PubMatic. PubMatic, an online advertising company that helps premium publishers maximize their revenue and protect their brands online, has its Research & Development center in Pune.

Mukul is responsible for PubMatic’s Engineering team and resides in Pune, India. Mukul was previously the Director of Engineering at PANTA Systems, a high-performance computing startup. Before that he was at VERITAS India, where he joined as the 13th employee and helped it grow to over 2,000 individuals. Mukul has filed for 14 patents in systems software, storage software, and application software. Mukul is a graduate of IIT Kharagpur with a degree in Electrical Engineering.

Mukul is very passionate about technology, and building world-class teams. His interests include architecting scalable and high-performance web-applications, handling and mining massive amounts of data and system & storage architecture.

Mukul’s email address is mukul at pubmatic.com.

Interview with Mukul Kumar, Co-founder & VP at Pubmatic

Yesterday, Pubmatic.com announced that it had raised $7.5 million in funding from Helion Venture Partners, Draper Fisher Jurvetson and Nexus Venture Partners. This is the third round of funding, and in all they have raised $18 million.

Pubmatic, whose development team is entirely in Pune, is an Ad Optimization Platform that helps websites increase their ad revenues. We interviewed Mukul Kumar, the Pune-based Co-founder and Vice President of Engineering of Pubmatic to understand better what exactly Pubmatic does, and how it does it.


Click on the “Play” button above to listen to the interview. If you don’t see a play button, or are unable to hear the interview for some reason, click here.

(This is an experiment. Audio interviews are much easier for us to do than full-fledged text interviews. So, if you like this, please let us know, and we can do many more such interviews. If you don’t, then we’ll assume that nobody is interested in listening to audio interviews, and we’ll go back to doing our (few, rare) text interviews. If any reader is willing to spend the time to transcribe (or ever write a text summary) of the interview, please let us know. You can get attribution a link from PuneTech in return for this social service! Thanks.)

Mukul Kumar is VP Engineering at Pubmatic. Search PuneTech archives for more interesting articles about and by Mukul
Mukul Kumar is VP Engineering at Pubmatic. Search PuneTech archives for more interesting articles about and by Mukul

About the Interviewee – Mukul Kumar

Mukul Kumar, is a founding engineer and VP of Engineering at Pubmatic. He is based in Pune and responsible for PubMatic’s engineering team. Mukul was previously the Director of Engineering at PANTA Systems, a high performance computing startup. Previous to that he joined Veritas India as the 13th employee and was Director of Engineering for the NetBackup group, one of Veritas’ main products. He has filed for 14 patents in systems software, storage software, and application software and proudly proclaims his love of ? and can recite it to 60 digits. Mukul is a graduate of IIT Kharagpur with a degree in electrical engineering.

Mukul blogs at http://mukulblog.blogspot.com/

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PubMatic Launches Default Optimization Service to Recapture $1 Billion in Lost Advertising Revenue

A large number of websites rely on advertising as their primary source of income. Typically the ads are served by third party ad networks (for example Google’s adsense). When an ad network is unable to find an appropriate ad for a specific page being served to a specific reader, they put in default or public service ads (PSAs). This is not good because the website makes no money from PSAs.

Ad optimization service Pubmatic, says that more than half the ads that get shown at an average website are PSAs:

Over the past several months we’ve studied just how severely default ads are affect our publishers and the numbers are jaw dropping. We found that ad networks defaulted 56% of the time on average and as much as 87% of the time. We also found that that the traditional static daisy chain of ad networks may be effective at reducing blank ads but is highly ineffective at maximizing a publisher’s revenue. Between 20% and 30% of publishers’ ad inventory is going to waste.


This is of course terrible, if true.

Now Pubmatic has just launched the default optimization service that automates the process of contacting other ad networks whenever the ad being served by the primary network is a PSA

PubMatic’s default optimization service automates the reselling process, allowing publishers to instantly redirect unsold ad inventory back to PubMatic, which fills that inventory with the highest paying ad impression every time. PubMatic’s new service is an automated solution for the billion-dollar loss that plagues the industry.

For more details, see the press release.
Related articles:
Pubmatic and Komli to power all eBay.in ads
PubMatic releases AdPrice Index: Sensex for Online Ads
See also:  The PuneTech wiki profile of Pubmatic , and Mukul Kumar, head of engineering at Pubmatic (based in Pune).

PubMatic releases AdPrice Index: Sensex for Online Ads

Pune based online advertising optimization startup PubMatic has announced the availability of the PubMatic AdPrice Index – essentially a sort of an Sensex (or S&P 500 Index) for the online advertising world.

The AdPrice Index essentially reports on the average online advertising revenues earned by 3000 web publishers worldwide who are PubMatic’s customers. And it only counts the income earned through use of ad networks like Google’s Adsense, or Yahoo! Publisher Network. Specifically, it does not account for revenues earned through ad spots sold directly, or through other channels like TextLinkAds or Amazon’s Affiliate marketing program.

The index does give some breakup of the information – small niche websites earn more ($1.18 eCPM, i.e. earnings per 1000 pageviews) compared to large websites ($0.38 eCPM). However, variation across websites (based on the area, geography and other factors) is so large that I doubt that the actual numbers are directly useful to anybody. However, the main value I see is in the variation over time. PubMatic will release these numbers monthly, thus giving publishers a feel for the general state of the market – just like a stock market index for stocks.

I am sure PubMatic is also in a position to answer the question on most bloggers mind – “Is there an ad network for me that performs better than AdSense?” However, PubMatic is not releasing a breakup of earnings by ad network. Of course, they want you to not care about this question. Because, if PubMatic works as advertised, you wont need to answer that question – PubMatic will automatically only show the most lucrative ads and in fact, their claim is that by allowing PubMatic to broker the ads between different ad networks on a per impression basis, you will end up earning more than you could have earned through any single ad network.

Of course, this is not really guaranteed to work. The main problem is that information about earnings from individual ads is not directly available. Hence PubMatic has to guess. Here, it ends up using lots of complex mathematics (data-mining, machine learning, and I assume bayesian reasoning) to make those guesses. If all this guessing works in the case of your website, you will be richer (some websites report upto 90% increase in revenue), but it it does not, your revenues might actually drop a little bit. This can be especially true in the case of smaller websites in the early days of installing PubMatic – because its algorithms work better with more data. Smaller website + fewer days of operation = more chances of guessing wrong. The longer you keep PubMatic running, the better it should get. In theory.

See analysis of this news at TechCrunch and at Mashable.


Related news:

Pubmatic and Komli to power all eBay.in ads

eBay India), today announced an exclusive advertising relationship with Indian ad network Komli Media. Komli is now the exclusive seller of all of eBay India’s banner advertising inventory up to end March 2009.

In addition, eBay India will also use Komli’s Pubmatic ad optimization service to improve ad revenues. Pubmatic can estimate the revenues that a website can earn from any particular ad, and thus improve revenues by comparing ads from different ad networks (e.g. Google Adsense, Yaho! Publisher Network, or even Komli itself) and then only showing those ads that are likely to generate the most revenue. This service (which is available free of cost to any web publisher) will now get used on eBay India’s pages.

The Pubmatic service is developed in Komli’s engineering center in Pune.