APAC > DSP

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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Established in 2008, Vizury is a privately-held CRM company headquartered in Bangalore, India with operations in China, Australia, South East Asia, Japan and South America. The company has recently raised almost USD $9 million in its Series B round of funding. With its flagship product, VRM, Vizury has witnessed 450% growth over the past year. ExchangeWire caught up with Chetan Kulkarni, Co-founder and CEO, Vizury Interactive, to discuss their strategy.

For those unfamiliar with the Vizury offering, can you give us a quick overview?

Vizury is a Digital CRM company. We are all familiar with Customer Relationship Management (CRM) and how companies use their customer/prospect data to engage their customers/prospects throughout their purchase cycle. For example, an automotive company would use a walk-in prospect’s data to convert him/her from prospect, to customer, to repeat customer through a variety of marketing activities.

We do the same in the digital world by empowering businesses to use their digital data to engage in a marketing dialogue with their customers and prospects in a 1:1 fashion throughout the online purchase cycle. We call this Visitor Relationship Management (VRM), similar to CRM.

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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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Big publishers have generally been a bit slow to the mobile party, hence mobile has grown out in a distinct and rather fragmented manner. Media consumption has been fractured across all sorts of smaller social networks and mobile sites that sprung up and did well. Then we saw the app ecosystem explode — and that took a large share of media consumption and associated mobile ad spend. So these small sites and apps, which did not have ad sales forces of their own, began to work with what became known as mediation platforms.

These platforms are basically aggregators of lots of sites and apps, and they powered the early mobile ad networks that arose. What you effectively had in the early days of mobile was different mobile ad networks competing to secure inventory. This model, where a buyer goes to a supplier who aggregates lots of sites and apps, has been very important in mobile. StrikeAd spotted a problem here, and in 2010 we aimed to solve it by creating a DSP specifically for mobile.

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Cindy Deng is MD APAC for Turn. Here she discusses Turn’s recent launch in Hong Kong and the roll out of the solution across the APAC region.

Is there significance behind Turn choosing Hong Kong for their APAC launch?

Hong Kong is ideally situated geographically, giving us easy access to all of our major markets including Japan, China, Australia and Southeast Asia. In addition, Turn’s state-of-the-art data centre was already located in Hong Kong, so it made sense to establish our regional headquarters here as well. Ultimately, these advantages combined with an excellent pool of talented, passionate people and the dynamic nature of the city that complements Turn’s forward-thinking culture, made Hong Kong a perfect choice.

Having come from Yahoo!, what motivated you to jump on board with Turn for their APAC launch?

While at Yahoo!, I looked at various DSP and DMP technologies to use internally to further strengthen their performance advertising business. I’ve come to know various offerings in the market, and therefore understand the challenges faced by both the publisher and the advertiser.

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Ross McNab is Co-Founder and Chief Revenue Officer of Kinected, a company whose stated purpose is to launch and operate world-class ad technologies in the Australian and wider APAC region, with partners, Unified, BlueKai and TagMan. To these existing companies, Kinected can now list MediaMath as its newest partner. ExchangeWire is curious to know what Kinected brings to the table and what MediaMath and Kinected plan to accomplish together in APAC.

Why was Kinected chosen by MediaMath as a local partner?

Clients of MediaMath’s TerminalOne demand side platform require outstanding results from the technology. MediaMath and Kinected have created the structure that enables this for the Australian market: MediaMath provide the technology and software; Kinected ensure best path to scalable adoption via local expert support, hastening success for clients.

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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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