Tencent Launches Tango DSP

Tencent, one of China’s largest Internet companies, has unveiled its own demand-side platform (DSP) called Tango. It is aimed to give advertisers a more efficient and targeted ad platform to maximize their ROI by allowing them to bid for impressions through its premium inventory.

Simon He, director of product management at Tencent, tells ClickZ that Tango will compete with other DSPs in the market.

According to industry sources, there are more than 30 DSPs in China such as iPinYou, AdChina, Yoyi Media, and Avazu to name a few.

Tango’s competitive advantage includes its bidding algorithm capabilities and the ability to leverage massive user data for audience profiling and targeting, He explains.

Tencent’s DSP will have retargeting and dynamic creative features.

In January, Tencent officially rolled out its Private Ad Exchange that offers remnant inventory from its news portal QQ.com, QQ instant messaging platform, video, and Weibo site.

Google is said to have introduced programmatic buying into China with the launch of its AdX in May 2012 but has started evangelizing the market as early as late 2011.

There are currently five major ad exchanges in China – Google AdX, Tanx, (Alibaba’s Taobao ad exchange), Tencent Ad Exchange, SAX (Sina AdExchange), and Baidu Ad Exchange.

However, Tencent’s ad exchange is similar to Sina, which is an invitation-based private exchange unlike Google AdX and Tanx.

Tencent is also building a demand-management platform (DMP) that is now used internally for big data analysis and is not available to the public, He notes.

While Tencent is open to partnering with other DSPs for its private exchange, Tango, its DSP, will be used to service its own clients/advertisers that will compete with other DSPs in the programmatic buying space in China.

With Tango, Tencent aims to provide its advertisers with a “one-stop service” to programmatically buy audiences directly from its DSP and ad exchange.

In China, Tencent’s online ecosystem extends across entertainment, social, information, search, mobile, and e-commerce. This slide presented at SES Shanghai (ClickZ’s sister organization conference) last week shows Tencent’s platforms and its reach compared to the global equivalents.

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Simon He, Tencent’s product management director, provides more background to its Tango DSP in this video (in Mandarin Chinese).

Mainland Chinese users can access the video here.

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