Authorised Investment Fund reports progress in US$60 billion programmatic advertising market

Authorised Investment Fund ASX AIY programmatic advertising market growth
The new service will operate programmatic advertising requirements for AIM’s Travel Elite clients and to advertisers requiring digital planning and buying.

Authorised Investment Fund (ASX: AIY) has revealed that one of its investee companies, Asian Integrated Media (AIM), is making strong headway in the US$60 billion (A$83 billion) programmatic advertising sector.

AIM has struck a deal with Ambient Digital Group to form a joint venture offering its bespoke digital planning and buying to advertisers throughout south-east Asia.

The announcement follows on from the company’s move into programmatic advertising, previously announced in August.

Programmatic advertising is a term used in digital marketing to describe computer-based automated buying, selling, placement, and optimisation of digital advertising. In contrast to traditional advertising, programmatic ad buying involves the use of non-human software machines to purchase digital ads.

As it stands, Authorised Investment Fund owns a 25% interest in AIM with an option to increase its holding to 30% at any time over the next 3 years.

The company first committed to acquiring a major stake in AIM in April this year, after identifying AIM as one of the world’s leading media sales representation networks that could both diversify and amplify its broader investment portfolio.

The power of AIM

AIM has an expansive team working in Hong Kong, Singapore and Beijing with a worldwide affiliate network of sales agents in all the key cities in Europe, Asia and the US.

The deal between AIM and Ambient, offers a variety of synergies including geographical market reach, addressable audience and sharing mutually beneficial technology.

AIM has confirmed the newly-created service will operate the programmatic requirements of AIM’s Travel Elite clients and to advertisers requiring “specialist, bespoke digital planning and buying requirements”.

Programmatic advertising market growth 2019 chart
The rapid growth of programmatic advertising.

Currently, Ambient Digital is one of the largest independent digital companies in south-east Asia providing a range of marketing and media solutions delivering the entire range of digital media products to mobile and desktop via programmatic technology platforms.

Ambient has a turnover of around US$17 million (A$23.5 million) but hopes the deal with AIM will provide a significant boost to its bottom-line given the strong focus on providing next-generation advertising capabilities to its clients.

The operation currently has over 200 digital and media experts working in across Asia and providing campaigns on all digital devices including PCs and mobiles.

One of its key aims is to expand what it calls its “one-stop-shop for compelling universal digital campaigns”.

Ambient benefit

Ambient Digital provides services to advertisers in six major South East Asian markets with a combined reach of 580 million people in peak growth countries such as Vietnam, the Philippines, Indonesia, Thailand, Myanmar and Singapore.

Additionally, with over 100 connections to global demand partners, Ambient Digital’s tie-up with AIM is expected to provide a global marketplace for publishers. With over 4 billion monthly impressions and 200 million active internet users across 5 countries, the joint venture with AIM is forecast to provide “a perfect union to propel revenue opportunities and support solid capital growth,” according to AIM.

A partnership with AIM could potentially propel the company to greater heights given that AIM is the exclusive partner of several global airlines such as Cathay Pacific, Qantas, Singapore Airlines, and Emirates; as well as newspaper giants Handelsblatt in Germany and Daily Mail in the UK.

Some of its other notable partners include the Hong Kong Tourism Board, Robb Report China and Richesse.

Providing the best international sales representation for premium media, AIM is highly selective in the titles and platforms it represents with its key portfolio in the travel and luxury lifestyle segments.

According to AIM, by combining its industry experience, longstanding client relationships and a strong network of sales offices ensures it can deliver the maximum level of advertising revenue for its multifaceted media partners.

“We have been working with the Ambient Digital Group for some months now and to be able to provide these exceptional services to our clients who are increasingly looking to reach elite audiences through digital platforms we can now provide bespoke solutions,” said Peter Jeffery, CEO and Founder of Asian Integrated Media.

“It will enable us to harness and capture the opportunities of the programmatic advertising sector as it continues to grow from US$60billion in revenues worldwide. It is envisaged that this joint venture will provide a solid platform for us to drive considerable additional revenues and build substantial and solid capital growth for both Ambient and AIM,” said Mr Jeffery.

George is an award-winning market analyst who has authored articles and editorial opinion pieces for multiple publications around the world. He has written about a wide variety of topics including financial markets, stocks, trading, politics and economics.