APAC > Ad Network

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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Much is spoken and written about the growing economic strengths of the BRIC markets, it is one reason why ExchangeWire has a growing presence in these markets. However, when it comes to ad tech, India often is left in the shadows for some reason. When commentators future gaze about the APAC market, the focus is predominantly around Japan, China, South East Asia and Australia; but India is a sleeping giant of ad tech that is about to awaken.

The opportunity in India is sizeable, with over 100 million people online and a fast-growing e-commerce industry. Whilst it is still one of the smallest e-commerce industries in APAC, its growth is predicted to increase at the fastest pace over the next five years, according to Forrester. In 2011 alone it took on an estimated $1 billion of investment, and the economy as a whole is the 10th largest in the world, with an ever-increasing GDP — but what is the opportunity around ad tech specifically?

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Mediabrands Audience Platform (MAP) is expanding multidirectionally in the APAC region into China, India, Japan, Australia and Southeast Asia. Here Arun Kumar, President of MAP G14, discusses with ExchangeWire the state of the region and what to expect for 2013.

Can you give some overview on the MAP solution in the APAC region in terms of trading approach, technology and staffing resource?

We have expanded rapidly in the region in 2012, especially in the bigger markets like China, India, Japan and Australia. In Southeast Asia, we have developed centers of excellence to help drive product adoption. We have extended our technology solutions wherever appropriate to APAC markets, but have been conscious to include local solutions from partners.

SE Asia has pretty high mobile use in terms of internet access, can you give some insight into the mobile strategy being deployed by Cadreon and MAP?

Yes, SE Asia is high on the radar when it comes to mobile, but our focus extends beyond mobile RTB which is currently limited in terms of available inventory. For us, and for our clients, the bigger play is to ensure that communications are designed from the beginning to take advantage of the third and fourth screens, and the role they each play in our consumers’ media and purchase patterns.

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James Robertson, Founder & Senior VP Market Development at Effective Measure International. Here he gives some insight into adoption of digital measurement in the region, its effect on the digital space and the role played by Effective Measure.

The pace of change in the digital sphere is accelerating in the APAC region, is digital measurement keeping up?

There is no doubt globally that digital measurement has challenges that it has to overcome and keep working at. The proliferation of people having multiple devices to access the internet with, including the rise of tablet computing and increased smartphone usage certainly adds to that challenge of being able to measure a digital individual. The multiplicity of digital environments that a consumer engages with at any one time will constantly shift and measurement needs to be agile enough to keep pace.

As an industry I believe we are certainly keeping up, but digital measurement is a constantly moving target. I would like to say that as an industry we are innovating to stay ahead of the game, but I feel the current status quo is that we keep up with what is becoming mainstream today, not necessarily looking at what that will be in the next 6 – 18 months.

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Rocket Fuel, a next generation ad network, who recently discussed their big data infrastructure at ATS London, today announced it will expand into Japan via an alliance with cyber communications inc. (cci), Japan’s largest digital marketing company and a wholly-owned subsidiary of Dentsu.

Rocket Fuel moving into Japan is not unexpected. The Japanese marketplace is beginning to see the impact of data-driven advertising and Criteo’s recent investment from Yahoo! Japan underlines the future significance of real time ad buying. Whilst still nascent (it is claimed that programmatic, real-time buying currently accounts for less than two per cent of media buys in Japan), advertisers have expressed strong demand for smarter ways to buy digital media through innovative technology. As Japan’s largest digital marketing service provider, cci’s decision to work with Rocket Fuel is a move to fuel the rapid uptake of programmatic buying among the country’s largest brands and agencies.

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Brandscreen announced this morning that it is raising a further eleven million dollars in a new round of funding. The Series B round was led by Macquarie Capital Group Limited (“Macquarie Capital”), and was joined by new co investors including SingTel Innov8 (Singapore) and existing investor Southern Cross Venture Partners (Palo Alto and Sydney). The new funding comes amid signs that the data-driven ad market is picking up serious momentum across the APAC region. Japan, the second largest display market globally, is seeing significant growth with the three big agencies investing considerable resource into the data-driven opportunity locally. China is also undergoing a big shift there. A number of key players have set up exchanges over the past twelve months, including Alibaba who runs the Taobao exchange. Google’s Adx is also heavily active in the Chinese market. While Korea and Singapore remain at an early stage of development, the signs that the market in APAC is going to move significantly in 2013 are there. Brandscreen’s new fund raise will doubtless be used to expand into these growing markets, and position it as the leading DSP in the APAC region. It will be interesting to see how Brandscreen will compete with the US and domestic players operating in the multiple markets.

Criteo has announced that it is entering into an advertising partnership with Yahoo Japan. In a deal that reflects other international agreements, Criteo Japan appears to be buying ad space from Yahoo Japan. A piece in the Nikkei today states that Criteo will be running third party tags across the Yahoo Japan domain, allowing Criteo to retarget for its advertising clients.

This is significant move as Yahoo Japan remains a first party ad serving publisher. Is this a sign of a change of strategy at Yahoo Japan? Will agencies soon be able to 3rd party ad serve across the Yahoo Japan domain? Could we see Yahoo Japan building out an exchange proposition for unsold inventory, with a third party vendor?

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