APAC > Mobile

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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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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The rate of growth in Southeast Asia at the moment is some of the strongest in APAC. ExchangeWire caught up with Jordan Khoo, Regional Vice President of APAC at MediaMind, to discuss the state of evolution in Southeast Asia and how MediaMind are navigating the diversity of the region.

Can you describe the MediaMind business across the Southeast Asia region? What is the current stage of evolution of ad server deployment across the region?

Southeast Asia, as a whole, still represents less than 5% of digital adspend, but it is growing very encouragingly, at double-digit percent growth, across the region. We set up shop in the region six years ago and have certainly seen very positive growth momentum, but it is still very much an investment market for us. Markets like Singapore will obviously be the most advanced markets in terms of usage, focusing on Direct Response campaigns, which utilise feature sets of conversion tracking, retargeting and Dynamic Creative Optimisation (DCO). The rest of the markets are a lot more brand-focused, which have many more rich media and video components into the mix.

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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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Damon Scarr is Commercial Director at Yahoo!7. Here he discusses the maturing mobile ad market in Australia and how publishers there can build a sustainable revenue model in the mobile channel.

Mobile advertising seems to have had several false starts over the last few years. How is the proliferation of mobile and tablet devices now kick-starting adoption for advertisers?

With 51 percent of Australians now owning a smartphone and almost 40 percent expected to own a tablet by the end of this year, mobile content and advertising is now essential to capture the eyeballs of consumers. The consumption habits of mobile users are also opening exciting possibilities for advertisers. 75 percent of Australians now regularly interact with two or more devices at once allowing advertisers to extend their contact with consumers across multiple platforms and boost the likelihood that their audiences will remember, recommend and act upon the brand messages they experience.

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A major new private advertising exchange specifically for Japanese mobile inventory, including smartphones and tablets, is announced today between CyberWing Corporation, a media representative for Japan’s leading internet service providers and a subsidiary of NEC BIGLOBE, Ltd., and OpenX Technologies, Inc., one of the world’s leading providers of digital and mobile advertising technology. This multi-year partnership is expected to launch in the second half of 2012.

The new exchange will enable approved advertisers worldwide to purchase mobile inventory from mobile developers within a closed marketplace environment. The exchange’s premium inventory will include owned and operated in-application inventory supplied by two of Japan’s leading internet service providers, BIGLOBE and Nifty Corporation, a subsidiary of Fujitsu Limited. The inventory will also include supply from Twipple, the leading Twitter mobile client in Japan, and the ten leading Japanese ad networks with which CyberWing has agreements. The companies expect that hundreds of millions of impressions will be in the exchange at launch.

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