Yahoo Finance·2025-10-10 09:47Core Insights - PubMatic is leveraging AI technology to enhance its programmatic advertising model, aiming to break down traditional barriers in the digital advertising space [3][6] - The integration of Nvidia's technology has led to significant improvements in processing speed and performance, making PubMatic's system competitive against those requiring substantial technology investments [3][7] Performance Improvements - The new system reduces inference latency from the industry standard of 5-10 milliseconds to approximately 1 millisecond, resulting in 85% fewer auction timeouts [4] - AI-powered decision-making algorithms allow for responses to programmatic opportunities in microseconds, significantly faster than traditional systems [5] - The system processes live campaign data twice as fast and delivers insights 60% more quickly, enabling real-time responses to advertising opportunities [5] Energy Efficiency - PubMatic's system claims to reduce energy consumption by 30%, contributing to more sustainable operations in the ad-tech industry [5] AI Integration and Innovations - The company has invested heavily in AI, launching an overhauled system that incorporates generative and agentic AI capabilities for deal simplification, forecasting, and optimization [6] - A new Live Sports Marketplace has been introduced to address the challenges of advertising during live events, accommodating rapid audience surges [6] Collaboration with Nvidia - The partnership with Nvidia has resulted in processing speeds that are up to five times faster than traditional systems, enhancing the overall efficiency of automated programmatic ad buying [7] - This collaboration aims to create AI-powered solutions that enable publishers to achieve performance levels previously only possible within walled gardens [7]