‘A shift we’re participating in’: Reflections on the quarter with PubMatic CEO Rajeev Goel

By Seb Joseph

Being an ad tech CEO is a tough gig in normal times, let alone a period of upheaval. Overheated valuations in ad tech are on the wane. Private equity buyers are replacing strategic ones as the dominant investors. The threat of disintermediation is greater than ever. Not to mention the precarious state of the economy.

It’s a dire situation, of course, but it’s not the end of the world. After all, economic activity doesn’t stop when the economy shrinks. It slows. And in those moments, there are chances to assess weaknesses and reassess expansion plans, said PubMatic’s CEO Rajeev Goel. Comments like this are cliche for a reason — time and again it’s proven true for CEOs. Good opportunities always exist in the ad market — even when it’s down.

Digiday caught up with Goel to probe further into his outlook for the remainder of the year, disintermediation, ad tech in a post-privacy world, and more.

This conversation has been edited and condensed for clarity.

On how the ad market will weather the economic storm this year and the subsequent fallout on PubMatic

We own our infrastructure, from the hardware and software to the network, which allows us to innovate as well as create efficiencies in how we operate and for our customers.

Rajeev Goel, CEO, PubMatic

He’s trying to maintain some degree of perspective. Yes, the economy is on the skits but its downturn is largely driven by supply issues that should eventually resolve themselves. Moreover, the largest advertisers have yet to give him cause for concern. A cursory look at the latest earnings updates from the likes of Coca-Cola, L’Oreal and Unilever explains why. In the main, they anticipate significant revenue growth this year. Normally, when this happens the money tends to flow through advertising given its managed at relatively fixed percentage levels of those newly swelled revenues. Granted, growth in a world of high inflation is never as strong as it would be in a world with low inflation, but it’s still growth by any measure — especially when compared with the inflated levels of spending throughout 2021.

“We’re agile and nimble in our thinking and the way we operate around the situation in a couple of ways,” said Goel. First, is the fact the business has a “high degree of profitability” he continued, which allows the business to think long-term about where the opportunities may be once the economy improves rather than getting too wrapped up in trying to stay afloat amid the turmoil. The second point revolves around the state of the company’s infrastructure. “We own our infrastructure, from the hardware and software to the network, which allows us to innovate as well as create efficiencies in how we operate and for our customers,” said Goel.

On the current climate and PubMatic’s sizable cash reserves will tempt it onto the acquisition trail

Goel is open to getting his checkbook out, but he’s never been one to cut a deal for the sake of it.

“We have a …read more

Source:: Digiday