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iPinYou completed Round C financing, opening up DSP on a free basis to expand to foreign markets

2014.07.04

On July 3rd, iPinYou declared that its core product: DSP Optimus™ system will be free of use for advertisers and agencies. Any service charge will also be completely transparent, including the cost of media purchase. Meanwhile, the company also announced that it has completed 20 millionUSD of Round C financing, with the investment primarily used to to expand on mobile and to expand into foreign markets.

 

The strategy of providing free access to iPinYou’s DSP is aimed at spurring the development of programmatic buying in the China market, lowering the cost for more advertisers to embrace and try programmatic. And at the same time, advertisers can experience transparency and real time optimization for their marketing campaigns. It is estimated that the advertisers who use the iPinYou’s DSP system will see an improvement of at least 30% in media efficiency as well as enjoy the benefits of additional user insight reporting.

 

In the past two years, as programmatic buying becomes increasingly more popular, a number of companies with various backgrounds, such as SEM and Affiliate Networks, have started to label themselves as DSPs. This led most advertisers to believe that a DSP’s core function is to aggregate and buy media. However, the real value of a DSP is to present a powerful matching system, helping advertisers increase efficiency of transactional media ad costs, and not on gaining profits off of an arbitrage media model. iPinYou aims to solve this issue by supporting media purchase transparency.

 

Grace Huang, the founder and CEO of iPinYou, said that “through the experience of serving over 1000 customers, iPinYou’s DSP system is China’s leading programmatic buying system with the most complete functionalities, largest reach in inventory, the most advanced optimization. This year witnessed iPinYou as the first DSP in China to launch PDB (Programmatic Direct Buy) functionalities. iPinYou decided to open up their DSP product system for free in order to help brands cut down on the cost of experiencing this new programmatic trend." Only by sufficient utilization of the DSP system can advertisers understand its benefits. Like taxi hailing apps, only through new user experiences will users learn its benefits and become long-term users.

 

In the era of media fragmentation, the concept of big data and Internet are increasingly embraced and accepted. Due to the high cost of development of DSP system, iPinYou has in the past only offered its DSP system at no profit to several 4A companies and large e-commerce customers. However, iPinYou is now offering its free DSP system for all advertisers and agencies, which will, to a large extent, make more brands really experience big data marketing and make programmatic buying a standard marketing strategy.

 

To coordinate this program, iPinYou will also provide certification training in optimization to help Advertisers operate programmatic systems. Since 2013, iPinYou jointly with other experts in the field: world-renowned 4A agencies-  OMG, IPG, Aegis, ad exchange platforms- Sina’s SAX third-party monitoring institutions - AdMaster, Miaozhen Systems, IResearch and DCCI Internet data center together hosted such professional training. It is estimated that during the year iPinYou will train nearly 1000 professional certified optimization analysts for the industry. Over the past few years, with the strategic cooperation of 4A companies, iPinYou has become their primary partner in programmatic technology service, and in effect, iPinYou helped train nearly 60 certified optimization analysts throughout China. For those customers who haven't used the iPinYou DSP system, programmatic buying can also be accessed through these important partners.

 

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