OpenX Partners With Dentsu Unit On Japanese Ad Exchange

Tim Cadogan, OpenX

Display ad technology firm OpenX has struck an agreement with Dentsu’s digital unit to work on a platform for a display ad exchange in Japan. The deal comes a few months after Los Angeles-based OpenX teamed up with France Telecom-owned Orange Advertising to create a pan-European online ad exchange last spring. OpenX’s entry into the Japanese market is part of a larger goal of forming a global display network that will provide an on-ramp to advertisers who want to easily spread their dollars around to target audiences in a variety of regions and countries.

“This is the first time that a significant Japanese player has got into the display space, not to mention the first time that a major ad agency has moved into the exchange space as an operator and not just through a demand-side platform,” said Tim Cadogan, OpenX’s CEO, in an interview with paidContent. “We see this as a good time to build a presence in Japan. The exchange model hasn’t really taken off there yet, so there’s naturally a lot of potential growth.”

The Japanese online ad market was saw an estimated $7.4 billion in spending last year and is expected to grow to more than $10 billion by 2014, a growth rate of more than 42 percent, Cadogan said, citing figures from the Nomura Research Institute.

The partnership is with Dentsu’s cyber communications inc, which has been in the online ad business since 1996. The launch of the Japanese ad exchange is scheduled for the end of the year.

Now that it has a toehold in Asia, OpenX is considering what other regions it wants to enter into. While many ad companies have been looking to the Latin American market, OpenX is in no rush to move into South America. “Latin America isn’t as a high a priority for us right now compared to other markets in Asia and parts of Europe,” Cadogan said. “We’re looking for markets that exceed at least $1 billion in display ad spend. Brazil and Mexico are going to be large and we’re still thinking how best to approach those countries.”

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