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Why Israel’s ad tech firm Matomy Media is expanding into APAC

The digital performance marketing firm, Matomy Media Group, which is headquartered at Israel, has been investing beyond the US and Europe market this year. The company reported a revenue of USD 125 million in the first half of 2015. Matomy had acquired a 70 per cent majority stake in data-driven email marketing business Avenlo in April this year. In conversation with Digital Market Asia, Menachem Salinas, Matomy Media Group’s SVP of Group Business Development, talks about the future plans for the ad technology firm.

The media group had a busy year as it went public on the London Stock Exchange this year and acquired MobFox. Now, the next step for Matomy is expanding into the Asia-Pacific market.

Explaining the Matomy’s vision in the region, Mr Salinas said, “APAC is extremely important to Matomy given recent findings suggesting a significant increase in digital advertising spend in the region. We intend to expand into the Asia-Pacific market as many app and game developers, as well as advertisers, are seeking a trusted, global partner to work with in order to help them engage, acquire and retain new and existing customers from Western markets. These advertisers, as well as the thousands of publishers in the APAC region, would benefit, we believe, from Matomy’s innovative performance-based digital advertising solutions. We look forward to delivering app developers the Western and European users they are seeking.”

Mr Salinas laid out three specific reasons for investing in the APAC region: long-term projected growth that the market offers; the region’s need for consolidation in the digital advertising and ad tech sector; and because APAC being a hub of innovation.

The Asia-Pacific region is projected to have significant and sustained market growth as one of the fastest-growing markets in digital advertising. “Foreign ad tech companies will find it easier and more profitable to launch and operate in APAC as more inexpensive smartphones come to market and as more ‘lite’ versions of popular apps that work on 3G, or even 2G networks, are launched,” Mr Salinas added.

In terms of challenges in the region, Mr Salinas believes that APAC is an intensely fragmented market that is ripe for consolidation. The digital ad marketplace in this region is overcrowded with many advertisers and app developers being forced to work with multiple companies at once in order to achieve their digital branding and customer acquisition goals. “At Matomy, we believe that market consolidation will help yield a level of credibility and trust in ad tech companies that is necessary for long-term sustained growth. Furthermore, consolidation will help reduce market inefficiencies that currently exist due to overlapping services from similar companies,” he added.

In Asia Pacific, digital ad spend will increase by 30 per cent in 2015, and will hit USD 47 billion this year (Statista). In Asia, programmatic advertising – the automated buying and placement of advertisements in digital formats – grew nearly 75 per cent last year, faster than anywhere else in the world (Magna Global). Speaking about the future of programmatic advertising, Mr Salinas said, “Programmatic has gained traction worldwide. Based on the popularity we have seen in the US, specifically the increase in spend, we predict the same to occur in APAC. We are seeing a better than expected adoption for programmatic advertising in the APAC market. We have many DSPs already integrated from the APAC and the results we see are astonishing.”

Mr Salinas believes that there are additional incentives to placing part of their business in the APAC region, specifically with China, Southeast Asia and South Korea having become global digital ad powers. In addition, cellular infrastructure development in the region, combined with the rise in inexpensive smartphones, has created new digital and mobile advertising opportunities in the region.

Three Qs to Mr Salinas on Matomy’s aim for growth in APAC

How are you approaching mobile advertising, since Asia is a mobile-first region?
Brands wants to reach their target audience in a more engaging way. MobFox by Matomy is working on enriching ad requisitions with as much information as possible. We are in discussions with a few data companies to help us know more about the user behind every ad requisition so we can enable brand advertisers to accurately engage, acquire and retain their target consumers and users. Through native and video ads, we facilitate brand campaigns with better user experience and viewability on mobile. Accurate user information and better ad formats will help brand advertisers successfully engage and interact with their audience.

Impression and click fraud can hurt the advertising dollars of a marketer. How does Matomy address this issue?
We have multiple safety parameters in place, including our managed ad network. Additional safety measures we put in place include:

• Our proprietary fraud identification algorithm
• IP-level blocking if fraudulent activity is detected
• Astrict vetting process for new publishers before they are allowed to join the network
• CTR max restrictions
• A money-back guarantee if inventory is not verified by third-party verification partners

How is Matomy’s offering different from other platforms?
We consider ourselves a smart solution for a programmatic world. That means we place an ad with the right piece of content to the right user at the right time through Matomy’s DSP. Additionally, we provide a personal and dedicated customer service experience that adds a human, custom layer of support to an otherwise automated process. You can say that we balance the programmatic experience with human touch.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.