NEW DELHI: Telecom giant Axiata‘s subsidiary, Axiata Digital Advertising (ADA) has formed a joint venture with US-based advertising tech firm Adknowledge to tap into $ 47 billion digital ad market in the Asia Pacific region and has identified India as a ‘key’ market.
The venture — Adknowledge Asia Pacific (AAP) — will help Adknowledge boost expansion plans in the APAC leveraging Axiata’s mobile advertising presence among the region’s more than two billion users.
One of Asia’s biggest telecom firms, Axiata will hold 80 per cent share in the venture with the remaining 20 per cent share with Adknowledge.
“The new venture will work with businesses, advertising agencies and app developers in Asia Pacific to provide data-driven advertising strategies,” Adknowledge CEO Ben Legg told PTI.
This will help companies raise brand awareness, drive sales and app installs through digital video, mobile and social media marketing, he added.
“With our technology, experience and expertise, we will change the ways advertisers connect with their target audiences across the rapidly growing and increasingly mobile Asia Pacific region,” he said.
He added that in the next one year, the venture would look at doing business worth $ three million a month.
AAP will focus on helping brands enhance their mobile advertising by bringing innovative solutions to the market that are less intrusive and more intuitive.
“The immediate target markets are Singapore, Malaysia, Indonesia, Hong Kong and India. In the next 12-18 months, we will take our headcount to about 100 from current five across these countries,” he said.
According to eMarketer, the Asia Pacific region boasts the second-biggest share of digital ad spending worldwide with a predicted $ 47 billion to be spent on digital advertising in 2015.
“Given the proliferation of smart devices, more consumers are spending their time online, which is driving rapid growth in digital advertising,” Legg said.
Global digital advertising spend is forecast to reach $ 154 billion in 2015.
“India will be a key market for us. We are in the process of setting up office here. India is already number two in terms of digital advertising after Indonesia and given the growing penetration of smartphones, this market is set to expand further,” he said.