James Zipeure, Chief Operating Officer for VeNA (Video and Entertainment Network Asia) on how video and social gaming % growth in some APAC markets is outstripping all other digital channels. He talks about how VeNA’s business model actively embraces the evolving landscape allowing growth through both traditional sales and platform based channels. He also discusses the opportunity to harness new revenue channels like content development directly with publishers and advertisers.

Can you give an overview of VeNA, its offering and strategy across the APAC region?

VeNA (Video and Entertainment Network Asia), is one of the largest independent premium video and social gaming advertising and technology networks across the SEA and Pacific region.  Our business is based on exclusive partnerships with publishers, platforms and best of breed technology and creative solutions which enables us to deliver a unique market position for agency and clients alike at scale.

Can you define ‘casual social gaming’ and provide some examples?

Social gaming can be played through multiple social platforms, and typically features multiplayer and asynchronous gameplay mechanics. These are mainly through online platforms with ever increasing usage throughout all Asia markets.  Additionally the introduction of tablets has meant mobile will become an increasing prominent vehicle. To give you an idea of size, there are tens of millions of active users with Indonesia and the Philippines the largest markets.  Mafia Wars, FarmVille, FrontierVille and CityVille are more recent examples.

Who are VeNA’s biggest competitors in the APAC region?

There are lots of good players across the SEA and Pacific region which individually can be a threat to the VeNA business.  That said having offices across 4 markets allows the brand to embrace different attributes within each of these.   Examples of this would be Australia where platform based services are gaining traction whilst in Singapore many businesses are looking for a clearer direction before they commit themselves to a single structure, not only buying but more specifically addressing questions around content, exchanges, dsp’s to name a few. This ultimately limits competition as we can actively engage these markets across multiple communication points.

How do video and ‘casual social gaming’ markets differ across APAC?

When it comes to Video and Social gaming, Asia-Pacific is one of the most significant and challenging markets in the world.

Social gaming continued expansion into the APAC region has seen ever increasing growth over the last year with platforms like Facebook, QZone and RenRen in China key to this success.  Continued spend increases, affordable smart phone and tablet hardware across SEA and in-particular Indonesia and the Philippines has seen share growth far outstripping the rest of the digital marketplace.  Technology has been the key component across video, the introduction of adap.tv, SpotXchange, Yume and DSPs within markets such as Australia, Japan and Singapore has helped address the shortage of inventory.

Given the move towards ad automation and the growing influence of ATDs and DSPs, the traditional ad network model needs to evolve. How will VeNA adapt to a changing environment?

Our business model allows us to embrace both a traditional sales vehicle as well as a platform based structure.  We are very conscious that over the next 2-3 years platform based services (dsp, ssp) will increase rapidly, enabling agencies and marketers to gain clearer visibility as to what, how and where they are buying inventory and ultimately at what price.  VeNA has embraced this shift in strategy and is working with global best of breed platform partners to accommodate agencies requirements.  We should though keep in mind that DSPs currently only play a small part in the digital revenue base.  Australia is sitting around 2% of total spend with NZ and Asia yet to reach 1%, which means we still need to have a solid strategic sales structure in place for some time to come.

Are you likely to work with exchanges, DSPs or Agency Trading Desks?

We are actively working with all.

There’s been a lot of debate in Australia around whether or not ad exchanges will commoditise publisher inventory, resulting in downward pressure on CPM prices.  What’s your view on exchange trading in the APAC region?

Ad exchanges are and will continue to be an integral part of the media cycle.  Aggregation of inventory, in particular the lowest common denominator allows marketers to achieve their primary strategic goals -driving higher engaging, greater converting content or placement etc then using exchanges to drive down pricing.   eCPMs have already declined this year by around 15%, however this will be temporary for quality inventory within exchanges as SSPs and DSPs start to collect and use data in a more productive fashion as per trends experienced by markets like the US.

Is VeNA dependent on agency spend – or do you take a stronger client direct approach?

Currently much of what we do based around agencies and strategic houses.  This though is changing as there is an ever increasing demand for VeNA to initiate new opportunities with publishers, in particular content development, content syndication and clients direct through brand funded creation.

How common is behavioural targeting/audience buying?  Are agencies and advertisers buying into the potential?  What is VeNA’s offering in this area?

Over the last year the traditional opinion around “lesser valued” media not producing quality results has started to change.  The increase in publisher, agency and now marketers direct utilising either proprietary tools or white labelling new solutions can be seen by the amount of technology businesses looking to break into the APAC marketplace.   VeNA’s business model has been built around maximising the opportunity of all inventory within the portfolio therefore targeting, whether behavioural, demo, geo or remarketing is an integral part of growth.  We work with key global businesses to help us build out what we believe is a best in market solution.

What role will mobile apps, video and ‘social casual gaming’ play in opening up new sources of inventory in the APAC region?

As the VeNA business has built a structure around video, social gaming and apps we would hope that we are in a pretty good position to open up new exciting opportunities and revenue streams as we move into 2012.  The video market, unlike America has only just taken off and social gaming is by far outstripping all other digital channels in terms of % growth across many Asian regions.  Overlay this with some pretty cool optimisation technology, one of the largest pools of exclusive, brand safe and 100% user initiated Pre Roll inventory and this can only drive a positive outcome for the business.

What trends are we likely to see in the display market in APAC over the next year?

A continued shift from contextual/relevant placement to audience/behavioural targeting.  This will span across mobile, social, display and video.  As this gathers pace the importance of DMPs, DSPs and control of technology in particular through Australia and Singapore will become more apparent.

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