• by Ben Frederick  @mp_benfred, September 17, 2015

PubMatic’s mobile business grew 200% YOY in first half of 2015.

PubMatic, a Redwood City, CA-based programmatic supply-side platform, released a white paper yesterday, the second of three focusing on mobile video. The company also announced that the mobile section of their business, in keeping with recent trends, grew 200% year-over-year from 1H 2014 to 1H 2015.

The white paper gives an overview of the challenges the mobile video space faces in trying to reach customers on mobile devices, including the ad tolerance of users, video ad standardization, “walled garden” marketplaces, cross-device targeting and accurate measurements.

Video advertising gets higher CPMs than other forms of digital advertising, due to its perceived value and the accuracy of measurement available to marketers.

“Another contributing factor to these high CPM rates is a simple imbalance of supply and demand – there just isn’t enough quality video inventory to go around,” states PubMatic. “At the same time, accurate and effective measurement of mobile video is still in its infancy, with providers like Nielsen and comScore just beginning to focus on this channel this year.”

To address these challenges, PubMatic recommends that marketers invest more in quality production and supplement that content with greater data. Better and more accurate content helps to address the concerns around low ad tolerance on mobile, as well as increase CPMs and ROI on every dollar invested in video.

With regards to programmatic buying and selling, PubMatic recommends that marketers and advertisers adopt effective yield management and bidding tools.

“Moving from manual direct sales to programmatic open marketplaces for direct and RTB selling can not only clear the ideal price for buyers and sellers alike, but also extract the greatest value from each piece of inventory,” states Pubmatic.

If all parties involved in the purchase and sale of mobile video ads can address these challenges, the space will be on a more solid foundation and finally be able to reach its full potential.