The OpenX exchange offering in the APAC region is very much based around local partnerships. Here Jason Fairchild, Chief Revenue Officer at OpenX, discusses the Dentsu-cci deal and the potential for further growth in the region's exchange marketplace.

Can you give an overview of OpenX’s footprint in the APAC region – particularly the relationship with Dentsu in Japan?

JF: Our initial foray into the APAC region has been in Japan with OpenX Market Japan, a partnership with Cyber Communications Inc. (cci), Japan's leading media representative company and a wholly owned subsidiary of Dentsu Inc. Specifically, the new partnership will be a powerful combination of cci's market expertise and supply and demand relationships in the Japanese market and OpenX’s global technology platform and innovative marketplace design. In effect, cci will operate the exchange by bringing buyers and sellers into the exchange; OpenX will power the exchange with our breakthrough technology platform.

OpenX Market Japan is part of OpenX's new global approach to online advertising marketplaces that allows major online media companies in key regions to participate directly in building exchange value chains. We’re on track to launch in Japan in May 2011 and we’re really encouraged by the strong early reaction in that market from both publishers and advertisers.

You are now offering real-time inventory to a number of APAC markets? Are we seeing the growth of the exchange marketplace in the region?

JF: Based on both our experience and conversations with companies in the region, we think there is very definitely a trend toward the growth of the exchange marketplace there. For example Japan, which is the world’s second largest online ad market, is embracing the buying of automated technology very quickly. What’s also interesting is that in Japan there seems to be a trend to consolidation of traditional ad networks and a move towards automated trading platforms.

Although our initial focus is on Japan, it’s important to note that all of the inventory in the global OpenX Market can be accessed from any buyer in any country. Beyond Japan, we have also integrated with DSPs in other parts of the APAC region and are seeing RTB agency dollars from other countries, including Australia, moving through OpenX Market.

How do you see the Asian Pacific automated marketplace growing over the coming year?

JF: Again based on our experience in the Japan, we anticipate rapid growth of the marketplace in the region over the coming year.

It’s critical to understand that much of the APAC region has very localized needs. And OpenX’s unique global-local approach to building out the exchange, makes those needs a key consideration. In particular, we understand the importance of bringing sellers and buyers together at the local level, where much of the negotiating process actually takes place. In addition, local support and customization are fundamental precepts of OpenX Market around the world.

In terms of OpenX’s growth in the APAC region over the coming year, we’re launching OpenX Market Japan in May and the duration of the year will be spent on getting both buyers and sellers integrated into the platform. And we anticipate that activity to set the stage for explosive growth in 2011.

We are also developing relationships with the largest publishers in many of the other major APAC markets. In particular, we expect continued growth and activity within Australia.

How is OpenX helping publishers in the region to maximise yield across premium and unsold inventory?

JF: We help publishers in this region the same way we help publishers around the world. OpenX Enterprise, our new SaaS platform for large publishers, maximizes publisher revenue by optimizing all ad revenue channels in one place. This includes inventory sold through a direct sales force as well as inventory sold indirectly through the rapidly increasing number of demand sources such as ad networks and DSPs.

From our days at GoTo.com and Overture, the OpenX team are all true believers in an auction-based pricing yield mechanism and believe that this innovation, when applied to display, will generate significantly improved results over those currently being generated both in the APAC region and globally.

Are regional agencies becoming more active in the area of programmatic buying? How is OpenX helping these buyers access dynamic inventory?

JF: They are indeed. The largest agencies in Australia are spending via RTB. We are exposing premium inventory to the regional buyers via DSPs. And Dentsu’s move into this space, through cci, is a clear indicator of this regional trend.

Is OpenX likely to do more Dentsu-type partnerships in APAC?

JF: We’ve been very encouraged by the reaction to the Dentsu-cci partnership and we’re certainly open to other similar partnerships in other parts of the region. We’re looking forward to having more news for you on this front as it develops.