Engage:BDR enters new agreements with two of Asia’s largest advertising companies

Digital advertising and media technology company, engage:BDR Limited (ASX:EN1), has today announced that it has signed agreements with two of Asia’s largest programmatic advertising companies.

This will integrate them into the engage:BDR programmatic platform, and continues the company’s rapid expansion of its programmatic advertising business into the fast growing Chinese and Indian markets.

Co-Founder and Executive Chairman, Ted Dhanik, commented on the update: “We are very excited to be working with two of Asia’s largest programmatic advertising platforms representing advertisers who can now connect with the publishers on engage:BDR’s programmatic platform. Engage:BDR believes they will make a significant contribution to the revenues and earnings of the business very soon, and for the years ahead.”

The first company is Chinese based Yeahmobi. The second company has asked that its identity remain confidential for commercial reasons. The projected 2018 revenue for these two contracts is A$4 million to A$8 million.

This is a speculative figure at this stage, so investors should seek professional financial advice if considering this stock for their portfolio.

Yeahmobi: a leading mobile marketing company

Yeahmobi is an advertising platform designed to help mobile technology companies grow globally, acquire active users and earn more from their inventory. The company is based in China and has offices in Japan, Germany and the United States.

The company focuses on technology, data and innovation and has helped a number of Chinese businesses with marketing technology solutions and financial services directed at building a global business ecosystem with their international partners.

Yeahmobi operates in consumer apps, mobile games, cross-border e-commerce, internet finance, lifestyle, travel and other industries, covering more than 200 countries.

Yeahmobi reported US$97 million in revenue and a profit of US$11 million in the first half year results of 2016. It has client and partner agreements with a number of well known international brands including Sega, Yahoo, Baidu and Gameloft.

CEO and co-founder, Mr Xiaowu Zou was featured on the 2017 Forbes ‘30 under 30 in Asia’ list, an annual ranking of Asia’s brightest young entrepreneurs, innovators and game changers.

A leading Indian-based digital advertising company

The second company is one of India’s largest mobile-first digital advertisers. The company has around 20 offices globally, with more than 1,000 employees.

Recent media reports on the company suggest that it has over 1.6 billion unique mobile devices worldwide, and its revenues total over US$300 million.

The company is investing heavily in the acquisition of App publishers through openRTB as well as the development of a proprietary in-app header bidding solution.

This is attributed to the huge growth in the App economy, which is expected to grow to US$950 billion in 2018.

The company has previously reported that its customers include Adidas, BBC Radio, Canon, Lancôme, Macy’s, Microsoft, Nokia and Yamaha.

How programmatic advertising works

Programmatic advertisers primarily act for either advertisers or publishers of digital media. An advertiser is any company that wishes to advertise on the internet and a publisher is the operator of a website.

EN1 provides an automated platform for advertisers to participate in an auction to buy space on a publisher’s website.

EN1’s clients are digital media publishers. Yeahmobi, and the other company who EN1 has entered into an agreement, act for digital media advertisers. Advertisers need to diversify their media publishers and work with groups like EN1 to gain access to unique publishers or new audiences.

Yeahmobi and the other company will be integrated on the EN1 platform, so that their advertisers can participate in auctions for media space on EN1’s publisher websites.

As the United States is the world’s largest consumer market, Asian advertisers need to enter into agreements with US-based programmatic companies, like EN1, to gain access to the American market.

By integrating on to the EN1 platform, thousands of these company’s advertising clients will have access to EN1’s publisher network. These clients will essentially be bidding for advertising inventory across EN1’s publisher network and adding to the approximately 70 billion daily auctions currently conducted on the platform. This additional demand will significantly increase sell-through and success on these auctions and increase revenue for engage:BDR.

The demand from these two companies will impact other regions, not just the company’s US advertising inventory. EN1 also has significant publisher relationships and advertising inventory in Europe, Australia, South America, Asia and Canada, and it will also be able to increase revenues from these markets.