Updated: Roy de Souza informs MediaNama that by spinning off the Indian unit, the company will be able to focus completely on the nees of advertisers in India, since it is a huge market and has specific needs. He clarified that there are no plans to form a JV and that many agencies buy from Zinc. However, it is open to an agency investing in Zinc India Exchange, but the agency will be an arm’s length investor and the exchange will be agency neutral. On being quizzed about who fits in as a suitable partner, de Souza mentions that agency holding companies like WPP, Dentsu, Publicis and others have invested in exchanges and are very confident that all agencies will spend most money through exchanges. Any agency holding company that is investing in the Indian market will be a good investment partner for ZINC (India) Exchange.
Zedo, the digital ad serving solutions company, which had recently launched Zinc, an online ad exchange for publishers and media buyers, in the Indian market, intends to spin off the exchange into a separate company, reports VC Circle. In an interview to the website, Zedo co-founder and CEO, Roy de Souza informed that Zedo intends to partner an ad agency to operate the company, jointly. The company also plans to venture into mobile ads and tablet optimised ad formats, in addition to setting up more joint-venture companies in other parts of the Asia-Pacific region.
The Zinc exchange offers an open bidding platform, selling inventory for media brands such as NDTV, HT Media, Mid Day, Financial Chronicle and other regional publications. Zedo claims that the Zinc Exchange will feature only premium, guaranteed inventory for advertisers, and look to cater to newspaper publishers, and offer high-visibility, premium advertising positions.
Like we said, it is probably that since Zedo has been deployed by many publishers to serving advertising, Zinc comes in and allows publishers an alternative advertisement to put in a spot, which means that it might again get relegated to a remnant inventory sale, despite Zedo’s claims. However, the ad exchange’s open-bidding format enables price discovery, and allows advertisers to choose based on their target audience.
We believe that forming JVs with ad agencies will give Zinc access to more clients and campaigns. It has already signed contracts with five Indian ad agencies and intends to get 100 media publishers on board.