In this weekly segment, ExchangeWire sums up key industry updates on ad tech from around the Asia-Pacific region – and in this edition: China's programmatic buying small, but growing; Most agree AU digital ad trading should be more transparent; Kiosked invests in APAC expansion; Dentsu Aegis Network inks partnership with York Butter Factory; and Amobee lures Asia exec from Millennial Media.

China's programmatic buying small, but growing

Spend on online display ads in China will hit USD$14bn (£9.9bn) this year, with programmatic accounting for more than 20% of these buys, according to research firm Forrester.

While small compared with more matured markets, such as the US, programmatic spend in China is growing more rapidly, Wang Xiaofeng, Forrester's China senior analyst for B2C marketing professionals, wrote in a report released this week.

She explained that the market's growth was fuelled by growing spend on online display ads in China, which was already the world's second-largest online ad market. Advertisers in the country also were looking to improve buying efficiencies, Wang said. This was especially critical since the local digital ad market was more fragmented than those in the West, making it more difficult for Chinese marketers to obtain positive returns on their digital investments.

She added that programmatic buying is currently a seller's market, dominated by local internet giants Baidu, Alibaba, and Tencent – also popularly known as 'BAT'.

Wang Xiaofeng

The Forrester analyst noted that ad exchanges and DSPs in China were particularly mature, having emerged earliest alongside the development of the local digital market and formed the core of the programmatic buying ecosystem.

"They are also closest to advertisers' money. Since 2011, both large media and independent players have flocked to invest in them and expect good returns", Wang said. "Now, they are the most mature and competitive sectors in the ecosystem."

With BAT dominating China's digital landscape, she said third-party data players were finding it challenging to find their place in a data-driven environment. She explained that the three major players were "highly conscious of data security – both for its own sake and to maintain competitive advantage", and were still in an early phase of tapping data for marketing.

She added that agency trading desks were mostly owned by large global media agencies and had only entered the Asian region over the past couple of years, making them latecomers, compared to local DSPs.

Most agree AU digital ad trading should be more transparent

Seven-in-10 media professionals in Australia agree that the local digital ad trading ecosystem is not as transparent, accountable, and trustworthy as it should be.

According to the Audited Media Association of Australia's (AMAA) inaugural Media Channel Trust Report, there was an apparent trust deficit, especially in digital, among agencies and marketers. The survey polled 300 professionals from the industry, including agency and client-side.

Some 66% of marketers, compared to 45% of agencies, pointed to proof of performance as the most important area the industry must address over the next year.

And, while 59% of agencies highlighted cross-media audience measurement as the second-most important issue to address, 49% of marketers thought likewise. Viewability was placed third-most important issue, pointed out by 52% of agencies, and 36% of marketers.

Both groups, however, reached a consensus in their belief that media agencies should be the champions of accountability and transparency, the AMAA survey revealed. Some 91% of all respondents also underscored the value of industry body collaboration in establishing best practices and verification guidelines for the Australian market.

AMAA CEO Josanne Ryan said: "After speaking with some of Australia's top marketers and agency heads, it became clear that the pace of innovation and change is surpassing the rate at which trust is being established.

"While around 50% of advertisers and agencies say digital is the focus of their daily work, they still view print as the channel delivering the most transparent and trusted environment", Ryan noted. "Dollars are moving from traditional channels to digital, despite the lower levels of trust in terms of being verified and safe. Agencies rate programmatic as one the lowest channels in this regard."

"Publishers of premium inventory have an opportunity to gain traction by taking the high ground and delivering safer environments", she urged.

Kiosked invests in APAC expansion

Global publisher monetisation platform, Kiosked, says it will be investing up to USD$10m (£7.07m) over the next two years to expand its footprint in Asia-Pacific, where it recently established offices in Tokyo, Sydney, and Shenzhen.

Citing figures from the International Monetary Fund and Forbes, Kiosked said Asia would account for two-third of the world's digital ad spend in the next five years, with online video revenues across 14 Asia-Pacific markets expected to hit USD$35bn (£24.76bn) by 2021.

Kiosked Asia-Pacific managing director David McGrath said: "Now is the right time to commit resources to Asia, allowing us to select the best sales, support, and development talent across 16 countries."

He added that the company would be looking to set up one of its Innovation Labs in Singapore, hiring developers in two high-growth areas in the region: mobile and video.

Dentsu Aegis Network inks partnership with York Butter Factory

The Japanese media agency group has formed a partnership with Melbourne-based startup community facilitator, York Butter Factory (YBF), giving its employees and clients access to the latter's innovation hub.

Among other organisations that support the YBF community are Qantas, Coles, ANZ Bank, IBM, and Salesforce. Founded in 2011, the startup facilitator focuses on B2B startups in adtech, fintech, healthcare tech, and big data analytics.

Dentsu Aegis Network ANZ CEO Simon Ryan said: "I look forward to working with closely with YBF to bridge the gap between our established network of companies, and their exciting startup community. There will be countless benefits to be gained for both our staff and clients."

Amobee lures Asia exec from Millennial Media

Singtel's mobile advertising unit, Amobee, has appointed Robert Woolfrey as its senior vice president for Asia, according to a Mumbrella report.

Woolfrey was the regional managing director at Millennial Media, which was acquired by AOL in September last year.

The executive had helped establish Millennial Media's Southeast Asian operations in 2011, having joined the company from InMobi, where he was responsible for its sales in Southeast Asia.