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A flurry of venture capital and merger-and-acquisition activities has taken place in China’s programmatic market as financial and strategic buyers bet on the area’s growth or seek to expand their knowhow. eMarketer’s Andria Cheng spoke with Charlie Wang, COO of programmatic video ad tech firm ReachMax, about key trends and potential impediments to programmatic ad growth in China.
eMarketer: What are the biggest changes you have seen in China in the past year?
Charlie Wang: We’re seeing consolidation. AdChina, one of the biggest ad networks in China, was acquired by Alibaba. BAT [Baidu, Alibaba and Tencent] is actively acquiring technology companies in this space. There’s definitely going to be a lot of acquisitions either by the BAT or by the agencies. We’re probably going to see no more than five big independent programmatic players survive. The independent DSPs [demand-side platforms] definitely have to make an IPO [initial public offering] soon or they’ll just get acquired.
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