Cadreon Expands in Asia; Microsoft and Cathay Among RTB Spenders

IPG Mediabrands has expanded Cadreon, its programmatic buying platform, to nine more markets in Asia.

The trading desk reveals that clients such as Microsoft and Cathay Pacific have been using it for their campaigns in the region as well as globally.

The Holding Group made an official announcement of Cadreon’s rollout under its Mediabrands Audience Platform across what it coins “World Markets Asia,” which includes Singapore, Hong Kong, Taiwan, Malaysia, South Korea, and Southeast Asia markets – Thailand, Philippines, Vietnam, and Indonesia last week.

The expansion follows the successful implementation of Cadreon for key clients in more matured markets such as Australia, Japan, and China.

Adoption rates for programmatic buying vary across the region and demand tends to be directly proportional to digital marketing penetration and marketing media mix in each of the markets, Neeraj Gulati, executive director for digital integration, World Markets Asia from Universal McCann, tells ClickZ.

The budget that goes into automated buying also varies from 5 to 50 percent within the digital buys depending on client objectives for the campaign.

“Certain performance clients are pushing very hard on Cadreon platform because they are seeing results comparable to search,” he adds.

These clients include telecom operators, airlines, and technology companies that have a direct impact on driving business conversions online.

Among those that could be named, Microsoft is its regional client and Cathay Pacific uses Cadreon for global campaigns.

Because companies that are focused on branding campaigns have a different set of KPIs such as brand recall and purchase intent, the agency would recommend buying its video inventory, which is said to yield 10 to 20 times higher reach compared to regular display buys.

Additionally, IPG Mediabrands leveraged its proprietary tool in partnership with Nielsen, a single video currency (Video Ratings Point) that measures across multiple screens from TV, laptop, and mobile to justify allocating a portion of media spend in programmatic buying, Gulati explains.

This approach allows online video to measure against different screens and attribute brand KPI and brand sales to demonstrate effectiveness in buying across video inventory.

However, offtake for video inventory co-relates to average Internet bandwidth of the country where an internal study shows lower bandwidth would result in more than 60 percent of people who experienced a buffer to leave immediately, Ullas Sahadevan, director for performance marketing at Reprise Media, explains.

Thus demand in programmatic video buying is “exploding” in markets like Singapore, Malaysia, and Hong Kong while uptake in Vietnam, Thailand, and Taiwan has seen big growth figures but the base is small.

While Cadreon’s real-time bidding (RTB) offering is now open to all clients under the agency group in Asia, it is selective to work with clients that have clear campaign goals.

“We are not trying to push Cadreon widely to everybody and we don’t even expect everyone to pick it up,” Gulati notes.

His team has been working with clients that have a very clear vision of success and what to expect from their campaigns, and they would start out on a trial basis before taking on as a regular media buy with a huge percentage out of their digital spends.

And in the past six months, those clients that were allocating experimental budgets have shifted to full blown budgets in programmatic buying, he adds.

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