New Zealand’s first publisher cooperative, KPEX, is celebrating a very successful first six months of trading since the country’s four major publishers – Fairfax Media, MediaWorks, NZME and TVNZ – pooled their digital inventory to provide the necessary scale for a private marketplace in New Zealand.
“KPEX has surpassed a significant milestone, having just achieved its millionth trade,” said KPEX ceo Richard Thompson.
“The success of this alliance has far exceeded all parties’ expectations and it is in no small way due to the explosive growth of digital video.
This uniquely collaborative advertising co-operative, which is powered by global advertising technology company Rubicon Project, has enabled the major New Zealand publishers to compete effectively for growing digital advertising budgets on an international scale.
Buyers now have more flexibility and choice, as well as better access to quality local content. It has also allowed premium advertisers to adapt to the growing consumer appetite for mobile video, justifying investment in quality digital video advertising, specifically designed for mobile users in New Zealand.
“The growth of mobile video has been spurred by the vast improvements in the mobile user experience, due to faster internet speeds since the rollout of fibre and 4G, as well as advancements in device technology and more affordable data plans,” Thompson said.
“This has led to digital video becoming a really viable proposition for advertisers wanting to engage New Zealanders with their brand.”
KPEX currently reaches 70% of the New Zealand population, with 1.1 million unique users per day across desktop and mobile – a pretty major footprint amongst some core media owners – and this reach is set to grow further, with four new publishers in line to be announced soon by the cooperative.
KPEX uses programmatic ad technology via Rubicon Project’s platform, allowing campaigns to be heavily tailored to suit the needs of the audiences they are targeting and enabling advertisers to make decisions regarding when and how much are they willing to pay to serve their ads.
To date, 78,000 different advertisers have used the KPEX exchange and benefitted from its ability to target very specific segments of the population, enabling brands to engage with their desired consumers with relevant content and greatly reduce wastage.
“Mobile used to be one of those big gaps where advertisers were still not confident to spend a lot of their budgets but working in partnership with Rubicon Project, we’ve been able to educate New Zealand advertisers and their buyers about mobile video,” Thompson said.
“The mobile tide has definitely turned now though and the growth has been a key part of the success story for KPEX.”
Looking to the future, an increasing share of digital content will be video based, with Cisco estimating the world will reach three trillion Internet video minutes per month by 2020. That’s five million years of video per month, or about one million video minutes every second. High-definition and Ultra HD Internet video will make up 82% of Internet video traffic by 2020, up from 53% in 2015.
“And that’s a huge opportunity for advertisers and publishers alike,” Richard Thompson said.
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