Games developer Animoca Brands (ASX: AB1) is spreading its footprint in China, having inked a deal expected to add US$8 million to its annual revenue.
The company today announced it has signed a framework agreement with China-based iClick Interactive Asia to become a strategic reseller of its iClick online and data marketing technology platform, which has multi-channel marketing capabilities to connect worldwide marketers with audiences in China.
The collaboration follows other recent partnerships in its bid to expand its gaming market portfolio, including deals with six leading blockchain companies as well as artificial intelligence (AI) gaming developer DEEPCORE.
Animoca said this latest partnership diversifies its business model by generating revenues in other parts of the gaming, media and technology ecosystem, with its goal being to develop and grow an online marketing business serving the video game sector.
This year, iClick was ranked as China’s largest independent online marketing technology platform in terms of gross billing, according to market research firm Frost & Sullivan.
Animoca co-founder and chairman Yat Sui said the company looks forward to utilising “this rare opportunity to leverage – through our AI subsidiary Zeroth – the valuable data assets of over 780 million Chinese user profiles”.
According to Animoca, adults in China spend an average of three hours a day on internet activities, with digital media being an “integral part of the lives of hundreds of millions of Chinese consumers”.
“The company believes that the partnership will unlock significant opportunities for new audience reach and revenue generation in China, the world’s largest mobile gaming market with over 25% of global games revenue,” Animoca stated.
Under the framework agreement, the company will utilise its AI subsidiary Zeroth for data analysis and said it planned to invest up to US$2 million to develop the media and advertising business, including building and developing products and services to monetise iClick’s audience data.
Animoca has also raised A$6 million through a strategic share placement at a premium of $0.098 per share in order to support its expansion plan.
Shares in Animoca were up 5.26% to $0.1 by early afternoon trade.