APAC

We are now one month away from the latest instalment of the ATS series – coming to Singapore on Wednesday June 12. A very limited number of tickets remain and registration is still available here: http://atssingapore2013.eventbrite.com/.

The objective of ATS Singapore 2013 is to map out the future of data driven advertising across APAC, aiming to bring the entire region together. We will be delivering expert analysis and commentary on the current landscape in South Asia, SEA, and North Asia; identifying how all these markets are beginning to shape the future of advertising as the first theme of discussions for the day.

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Mikko Kotila, Founder & CEO, STATSIT Discusses the Evolution of Their Proposition & Regional Differences in APAC.

Can you give an overview of the STATSIT proposition and how you have evolved in the data-driven display-buying space?

STATSIT started on the back of our previous company, which was providing automation and workflow management solutions for some of the biggest SEM players in Scandinavia. We used the money we made to start STATSIT in 2008. The first 18 months were funded out of our own pockets, so we were literally free to do whatever we wanted.

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The rumours of a publisher exchange in Australia is the worst kept secret in APAC right now. Four of the biggest Australian digital publishers have allegedly been spotted in New York, negotiating a deal with AppNexus. The “gang of four” in this new exchange proposition are some of the unlikeliest bedfellows you could think of. Mi9, Yahoo7, Fairfax and News couldn’t be more diametrically opposed – in terms of where they sit politically and who their owners are. But there is one consistent and motivating factor for a proposed Aussie publisher exchange: a collapse in traditional ad revenue.

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Having recently partnered with four major APAC mobile operators, Amobee’s presence in the region has been progressively getting stronger. ExchangeWire caught up with Amobee CEO Trevor Healy to discuss their strategy and how their platform PULSE for Publishers aids monetising publisher inventory.

Can you briefly provide background information on Amobee? What does the business fundamentally do/provide?

Amobee is the global leader defining mobile advertising, providing mobile advertising solutions to large mobile operators, publishers and brands worldwide. Amobee’s advanced, proprietary mobile advertising technology and expertise enables brands to reach target customers on a global scale with leading-edge mobile ad campaigns, from a simple text message to a rich media and 3D experience, to achieve guaranteed results. Mobile publishers and operators work with Amobee to monetise mobile inventory on a global scale and achieve the highest ROI by offering advertisers data-rich mobile inventory.

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Data has gotten heads spinning. It’s too many in kind and too much in quantity. Data is becoming a big problem. More data means more cost, and more inputs lead to more complexity. Complexity, in turn, leads to more cost.

The cause and effect of this relationship is relatively clear and predictable. However, the relationship between between data and value is not at all clear.

While we focus on soap-peddling innovation, the Big Data cartel has a bigger agenda. While consumer goods companies want consumers to buy more goods, armed with glossy brochures and catchy whitepaper titles, the IT companies want us to buy more IT. They call it Big Data.

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In recent years, Japanese ad technology firms have announced their business alliance in ASEAN markets one after another, revealing a trend of applying their know-how and technological edge, accumulated in the Japanese market, extensively on a global scale. Last year, D. A. Consortium Inc. (DAC) formed a capital and business alliance with Innity Corporation Bhd.(Innity), a Malaysian digital media network company, and announced that the two companies would jointly enter RTB markets in seven countries. We interviewed Mr. Yutaka Shimizu, DAC ASIA PTE. LTD.’s President & CEO, about their strategy in the Southeast Asian market and the background of tie-up with Innity.

What is the background on your company’s entrance into the Southeast Asian market?

The online advertising market in Southeast Asia is expected to grow significantly, with an increase in internet penetration in each country in the region, and a rapid expansion of smart devices, boosted by the high economic growth of recent years. Singapore, situated in the center of the region, is home to the Asian head-offices of Google, Yahoo!, MSN, Facebook and many other global media companies.

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With the Chinese display market now worth around 30 billion YUAN, most senior Chinese ad execs believe that programmatic buying and selling will grow substantially over the coming 12-24 months. The RTB market is estimated to be currently around 5% of the total display market, with industry insiders predicting that it will represent 30% of a display within two-to-three years.

Already, the Tabao ad exchange is handling around $160 million dollars, after just 12 months of trading – and that’s without opening up its own and operated inventory to RTB. In this series, China Ad Trade, we speak to a host of market leaders on the Chinese buy and sell side.

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China online advertising revenue reached 75.31 billion Yuan in 2012 and entered into a period of steady growth.

According to the latest data of Chinese online advertising in 2012 released by iResearch, China’s online advertising revenue reached 75.31 billion Yuan, up 46.8% over last year. The growth rate was comparatively slow and it indicates that the online advertising market has entered into a relatively steady period.

Along with the increasing number of internet users and the change of their behaviours, advertisers need to find a more effective way to reach more consumers. The online advertising industry still has room to improve and advertisers have started to pay more attention to the effects of marketing.

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Mikko Kotila is Founder & CEO at STATSIT.

The advertising industry is huge. Currently at half a trillion dollars it earns its place amongst world’s largest industries, with the likes of pharma.

People tend to overlook the magnitude when they’re evaluating the programmatic media trading opportunity. Google estimates that online display advertising will be an US$200 billion industry by 2020. I assume that includes all screens, social, apps, and the whole lot.

Let’s say we really are going to see an average 20% per annum increase in investment and the share of exchange trades out of the total investment grows 5% per year. In that scenario, there will be US$350 billion worth of online display exchange trading taking place in the next 8 years.

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