PubMatic, the sell-side platform (SSP), today announced that Otavamedia, one of Finland’s largest media companies, has signed a contract to license PubMatic’s platform on a subscription basis. By licensing the technology rather than paying a percentage of revenue, Otavamedia is able to gain greater control over how it operates and streamline its approach to doing business.
Otavamedia had been using several PubMatic products since 2015, including OpenWrap, the industry’s first hybrid client- and server-side wrapper. This new deal allows the company to expand this portfolio without worrying about incremental cost implications to the business.
“Adopting a monthly fee structure, more similar to a SaaS deal, simplifies our planning. Removing the traditional revenue share model means removing uncertainty. This results in a predictable cost base that brings us greater control and accountability, providing benefits to our advertisers as well as the business,” explains Antti Ellonen, digital business development & programmatic manager at Otavamedia.
PubMatic began offering its products on a subscription basis in order to increase transparency of the technology procurement process, lower overall costs for publishers, and promote healthy relationships across the supply chain. The subscription cost structure provides publishers with predictability, liquidity and ultimately freedom to reinvest savings in innovation.
“Introducing a subscription model is part of our commitment to developing a simplified and transparent programmatic marketplace. Otavamedia realises the business benefits this model will bring, and we look forward to continuing to support them going forward,” commented Bill Swanson, chief revenue officer, EMEA at PubMatic.