PubMatic and Klarna join forces to enhance advertiser reach among high-intent shoppers

PubMatic, a technology company specializing in programmatic advertising, today announced a new partnership with Klarna, a leading global payments and shopping service provider.

This collaboration aims to improve advertiser access to Klarna's network of highly engaged shoppers, offering brands a powerful tool to drive conversions.

Programmatic advertising utilizes automated technology to buy and sell online ad space. This method streamlines the process for both advertisers and publishers, allowing for more efficient ad targeting and campaign management.

Klarna boasts a rapidly growing global community of 150 million shoppers, including 37 million active users in the US alone. The company also collaborates with over 550,000 retailers, facilitating millions of daily transactions. Klarna offers advertisers a unique opportunity to connect with these high-intent shoppers directly at the point of purchase, a critical stage in the buying journey.

The PubMatic and Klarna partnership offers several advantages for advertisers:

• Reaching Engaged Audiences: Advertisers gain access to Klarna's network of active shoppers, a valuable demographic known for their purchase intent.
• Enhanced Campaign Performance: According to the press release, click-through rates for ads displayed within the Klarna network are three times higher than the industry average, indicating a strong potential for campaign success.
• Improved Targeting: PubMatic's platform allows for programmatic buying, enabling advertisers to target their campaigns based on specific demographics and shopping behaviors within the Klarna user base.
• Efficiency and Reach: The integration between PubMatic and Klarna leverages existing demand-side platforms (DSPs) commonly used by advertisers, streamlining the campaign management process. This partnership also facilitates broader campaign reach across the US market, with planned expansion into European markets soon after.

The partnership announcement aligns with the increasing importance of commerce media, a sector within digital advertising focused on reaching consumers at key points along the purchase journey. According to Magna Global, the commerce media market is expected to reach $158 billion globally in 2024, with projections for continued growth to $220 billion by 2027.

David Sandstrom, Klarna's Chief Marketing Officer, emphasizes the partnership's potential to benefit all parties involved: “Our aim is to offer consumers a relevant, personalized and smooth shopping experience, while being a growth partner to retailers. By partnering with PubMatic, we are excited to leverage the power of programmatic advertising to connect brands with the world’s most engaged shoppers at scale and create efficiencies in their media buys.”

Hashim Mian, Vice President of Commerce Media at PubMatic, highlights the value proposition for advertisers seeking to connect with specific demographics: “Our partnership with Klarna unlocks tremendous opportunity for advertisers seeking to drive high-performance campaigns at a time of disruption in the digital advertising ecosystem. Buyers now have the opportunity to engage active shoppers, particularly valuable millennial and Gen Z audiences, directly at the coveted point of purchase. We look forward to growing our partnership with Klarna and creating meaningful connections between advertisers and consumers.”

The PubMatic and Klarna partnership signifies a strategic move within the evolving digital advertising landscape. By offering advertisers access to a highly engaged audience of potential buyers directly at the point of purchase, this collaboration provides a valuable tool for driving conversions and campaign success. As the commerce media market continues to expand, such partnerships are likely to play a significant role in connecting brands with consumers throughout the purchase journey.