PubMatic and GroupM Expand Partnership to Boost Latin America Market Impact

Rhea-AI Summary

PubMatic and GroupM are expanding their global partnership to enhance GroupM Premium Marketplace (GPM) in the Latin America region. The expansion will provide GroupM clients with direct access to PubMatic's publisher inventory, offering a unified approach to programmatic buying of connected TV, digital video, and display advertising.

The partnership aims to centralize GroupM's media investments across LATAM, providing competitive bidding, top-tier technology, and supply chain transparency. The initiative will launch alongside PubMatic's Activate product, bringing Supply Path Optimization (SPO) to the region. According to OnAudience, programmatic ad spending in LATAM has grown from $5.2 billion in 2017 to $16.77 billion in 2023, with projections reaching $23.6 billion by 2028.

Positive

• Expansion into growing LATAM market with programmatic ad spending projected to reach $23.6B by 2028
• Strategic partnership with GroupM provides access to premium publisher inventory
• Launch of PubMatic's Activate product in LATAM region

Negative

• None.

Insights

Market Research Analyst

The expanded partnership into LATAM represents a strategic move in a rapidly growing programmatic advertising market. With regional programmatic spending projected to reach $23.6 billion by 2028 from $16.77 billion in 2023, this expansion positions PubMatic to capture a larger share of this growth trajectory. The collaboration strengthens PubMatic's competitive position against other supply-side platforms while providing a scalable revenue stream through GroupM's extensive client network.

The partnership's focus on transparency and efficiency addresses key market concerns while potentially increasing PubMatic's publisher inventory monetization rates. The integration with GroupM's Premium Marketplace could lead to higher fill rates and CPMs for PubMatic's publisher partners, ultimately driving revenue growth in the LATAM region.

Tech Expert

The technical integration of PubMatic's sell-side targeting capabilities with GroupM Premium Marketplace creates a compelling unified programmatic infrastructure. The implementation of supply path optimization (SPO) through PubMatic's Activate product is particularly significant, as it streamlines the advertising supply chain and reduces intermediary costs. This technological framework positions both companies to efficiently scale their LATAM operations while maintaining quality control and transparency.

The platform's ability to support multiple formats including CTV, digital video and display advertising through a unified interface demonstrates strong technical versatility. This comprehensive solution should drive adoption among both established programmatic advertisers and newcomers to the space.

NO-HEADQUARTERS/REDWOOD CITY, Calif., Dec. 12, 2024 (GLOBE NEWSWIRE) -- GroupM, WPP’s media investment group, and PubMatic, an independent technology company delivering digital advertising’s supply chain of the future, are expanding their global partnership to enhance GroupM Premium Marketplace (GPM), a unified programmatic market aimed at increasing media buying transparency and efficiency, in the LATAM region. This move will provide GroupM clients with direct and advantaged access to PubMatic’s high-quality publisher inventory.

First launched by GroupM in 2022 across EMEA and North America, GroupM Premium Marketplace will now offer GroupM clients in the LATAM region a unified approach to programmatically buying connected TV, digital video and display. The partnership will centralize GroupM’s media investments across the area, offering competitive bidding, top-tier technology, and total supply chain transparency. Utilizing PubMatic’s sell-side targeting and a unified interface for buyers and publishers, GPM will streamline buying for LATAM clients, including newcomers to programmatic advertising.

This initiative underscores GroupM’s commitment to transparency in media supply and media investments that reduce fraud and inventory misrepresentation. This commitment aligns strongly with PubMatic, who has driven significant supply path optimization (SPO) partnerships that continue to deliver trust, efficiency and value to advertisers while bringing unique, premium brand spend to publishers. This partnership will launch in tandem with PubMatic’s Activate product, bringing SPO for brands and advertisers to the region.

“Delivering transparency in the programmatic ecosystem is not optional. For us at GroupM, it is a priority to provide our clients with quality solutions in a trusted and efficient ecosystem,” stated Maricarmen Flores, Digital Investment Manager for GroupM LATAM. “Through this partnership with PubMatic, we seek to accomplish our goal of designing responsible, scalable and innovative solutions, by offering clients advantageous access to local premium supply.”

Alan Fontevecchia, VP of LATAM for PubMatic, added, “We are thrilled to expand with GroupM to the LATAM market. A proud partner since its launch across North America, Europe, the Middle East and Africa, this marketplace expansion will bridge gaps between publishers and buyers, fostering strong and mutually beneficial collaborations.”

This partnership unlocks the immense potential of programmatic advertising as the capability soars in the area. Programmatic ad spending in the region surged from $5.2 billion in 2017 to $16.77 billion in 2023, with projections reaching $23.6 billion by 2028, per data provider OnAudience. Through GPM, GroupM and PubMatic will not only meet this rising demand but also drive the industry towards a more transparent, efficient, and valuable supply chain.

About PubMatic:
PubMatic (Nasdaq: PUBM) is an independent technology company maximizing customer value by delivering digital advertising’s supply chain of the future. PubMatic’s sell-side platform empowers the world’s leading digital content creators across the open internet to control access to their inventory and increase monetization by enabling marketers to drive return on investment and reach addressable audiences across ad formats and devices. Since 2006, our infrastructure-driven approach has allowed for the efficient processing and utilization of data in real time. By delivering scalable and flexible programmatic innovation, we improve outcomes for our customers while championing a vibrant and transparent digital advertising supply chain.

About GroupM:
GroupM is WPP’s media investment group and the world’s leading media investment company with a mission to shape the next era of media where advertising works better for people. The company is responsible for more than $60 billion in annual media investment, as measured by the independent research bureau COMvergence. Through its global agencies Mindshare, Wavemaker, EssenceMediacom, and T&Pm, and cross-channel performance (GroupM Nexus), data (Choreograph), entertainment (GroupM Motion Entertainment) and investment solutions, GroupM leverages a unique combination of global scale, expertise, and innovation to generate sustained value for clients wherever they do business. Discover more at www.groupm.com.

Press Contacts:
Ashley Jacobson, Director of Corporate Marketing
press@pubmatic.com

Broadsheet Communications for PubMatic
pubmaticteam@broadsheetcomms.com
(917) 826-1103

FAQ

What is the projected programmatic ad spending in LATAM by 2028 for PUBM's market?

According to OnAudience data, programmatic ad spending in LATAM is projected to reach $23.6 billion by 2028.

How will the GroupM and PUBM partnership benefit advertisers in LATAM?

The partnership will provide unified programmatic buying for connected TV, digital video and display, competitive bidding, top-tier technology, and total supply chain transparency.

What is the current programmatic ad spending in LATAM for PUBM's market?

Current programmatic ad spending in LATAM reached $16.77 billion in 2023, up from $5.2 billion in 2017.

What new product is PUBM launching alongside the GroupM partnership in LATAM?

PubMatic is launching its Activate product, which brings Supply Path Optimization (SPO) for brands and advertisers to the LATAM region.