StrategyMediaWindfall For Advertisers As Tencent Opens Third Party Data Access

Windfall For Advertisers As Tencent Opens Third Party Data Access

Advertisers are set to gain an additional foothold in China's growing programmatic market after Tencent announced the launch of its third party data management platform.

Tencent has launched a third party data management platform (DMP), giving advertisers open access to the database of its hundreds of millions of users for targeted media buys.

The Tencent DMP gives advertisers access to Tencent data, including that of its 800 million QQ monthly active users (MAU) and the 500 million on its messaging app, WeChat. It also allows for media buys on non-Tencent channels, such as video platform Youku, says Charlie Wang, Mindshare’s head of digital in Beijing.

“The new DMP will greatly increase targeting options for advertisers, which prior to this only had brand first party data to work on,” says Wang.

The product is significant because it also sets an example for other publishers in China, especially amongst the BAT (Baidu, Alibaba, Tencent) group to stop the ‘walled garden’ approach, Wang says.

“This signifies a trend in the market where the publishers are becoming more open with their data, not limiting advertisers to using their own programmatic stack.”

Deriving meaningful insight to drive effective customer intelligence and marketing campaigns is a major challenge for businesses everywhere, but the new DMP should help with scale and insight, says Steven Chang, vice president at Tencent.

“Tencent DMP gives businesses the big data capabilities they demand, thanks to the company’s large-scale user information and in-depth market knowledge. With the ecosystem we built with industry partners, Tencent DMP will deliver true insights to marketers and advertisers from companies of all sizes,” says Chang.

While the specifics of the platform will be announced in the coming months, it demonstrates Tencent’s ambition to open its data as a show of support to the industry, allowing advertisers access to consumer insight to leverage the DMP for programmatic buying, says Alvin Huang, managing partner of integrated media, at the Isobar China Group.

“It’s very exciting for Chinese programmatic buying because it means we can get consumer information from the huge amounts of social dialogue and the consumption of entertainment content, and then try to segment them with the data from the DMP,” says Huang. “We are getting close to perfect, so it’s wonderful news for advertisers and marketing agencies in China.”

Tencent is not the first technology company in China to open a DMP – Alibaba became the majority shareholder of Shanghai-based digital ad platform AdChina in January, which adds to the Alibaba family’s online marketing platform, Alimama, and cloud computing tool Aliyun. How open this platform will be for advertisers is yet to be seen.

Wang believes Chinese search engine Baidu will be the next to open its data, as it already provides some elementary tag data for DSPs that buy through its exchange.

There are no standards in the Chinese market for how data is charged, says Wang, who describes the Tencent move as ‘bold’.

“Every project now is ad hoc, pricing models are undefined, but I think the Tencent leadership has seen that there are more monetization opportunities by opening up their datasets, so it’s definitely a move for the betterment of the entire industry,” he says.

*To learn more about programmatic in China, be sure to join our programmatic panels at ClickZ Live Hong Kong on August 4-6, 2015 and ClickZ Live Shanghai on September, 8-10, 2015!

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