REDWOOD CITY, Calif. - PubMatic, Inc. (NASDAQ: PUBM), a digital advertising technology firm, has announced a partnership with DISH Media, the advertising sales division of DISH Network (NASDAQ:DISH) (NASDAQ: SATS), to enhance ad targeting on SLING TV. The collaboration aims to leverage PubMatic's supply path optimization partnerships, allowing SLING TV to access premium demand through private marketplace deals.
This move comes as ad-supported streaming services are increasingly becoming a primary source for TV content consumption. Insider Intelligence forecasts a 40% increase in virtual multichannel video programming distributor (vMVPD) viewership since 2020, reaching 42 million U.S. viewers in 2024. Conversely, traditional pay TV viewership has seen a decline of over 30% during the same period.
DISH Media intends to provide content signals within the bid stream, such as genre or network information, to enable advertisers to improve campaign targeting and return on investment (ROI). This partnership grants DISH Media access to over 45% of all activity on PubMatic's platform through its supply path optimization partners.
Andrew Tint, head of programmatic partnerships at DISH Media, emphasized the strategic expansion of partnerships to enhance scale and flexibility for buyers, focusing on transparency. Brad Stockton, senior vice president of video innovation at dentsu, noted that the partnership would create more opportunities for advertisers, especially during major advertising periods, by offering valuable targeting signals.
PubMatic's buyers will now have access to premium SLING TV programming, including live sports content from channels like ESPN, NFL Network, FS1, TBS, and TNT. The partnership is timely, considering the Paris Summer Olympic Games and Copa America in the U.S., events expected to significantly boost ad spending in 2024.
Nicole Scaglione, VP of CTV/OTT and Online Video at PubMatic, expressed enthusiasm for the partnership, highlighting the importance of programmatic CTV advertising in the current market, where targeting signals are disappearing from other digital channels.
The information in this article is based on a press release statement from PubMatic, Inc.
InvestingPro Insights
PubMatic, Inc. (NASDAQ: PUBM) has recently made headlines with its strategic partnership with DISH Media, a move that underscores the company's commitment to enhancing programmatic advertising capabilities. As investors consider the implications of this partnership, here are some key InvestingPro Insights to provide a deeper understanding of PubMatic's financial health and market performance:
InvestingPro Data highlights PubMatic's market capitalization as a moderate $807.63M, which suggests a company with stable footing in the market yet with potential room for growth. The company's P/E ratio stands at a high 271.23, indicating that investors may be expecting higher earnings growth in the future. Despite a slight decline in revenue growth over the last twelve months as of Q3 2023 (-0.36%), PubMatic's gross profit margin remains robust at 59.52%, reflecting efficient operations and a strong ability to convert sales into profit.
Delving into the InvestingPro Tips, it's notable that PubMatic's management has been actively repurchasing shares, signaling confidence in the company's value and a commitment to shareholder returns. Additionally, holding more cash than debt on its balance sheet is a reassuring sign of financial stability and flexibility. It's also worth mentioning that PubMatic has been profitable over the last twelve months and is expected to maintain profitability this year, according to analysts.
Investors seeking to leverage these insights can explore additional InvestingPro Tips tailored to PubMatic at https://www.investing.com/pro/PUBM. With a total of 9 InvestingPro Tips available, including insights on valuation multiples and earnings revisions, investors can make well-informed decisions. To access this wealth of information, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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