ClickZ.asia

Google is preparing to launch its Ad Exchange (AdX) in China, seeking to get buy in from advertisers and top publishers.

This month, Google highlighted its AdX during its Creative Sandbox event in Shanghai, a technology event for marketers.

In addition, Google’s DoubleClick exec has been making the rounds with media agency professionals in the Greater China region to talk about its AdX and demand-side platform Invite Media, ClickZ Asia has learned.

When contacted, Google’s PR responded that they have yet to officially launch the ad exchange in the country.

Since May, recruitment ads indicate Google wants to hire a Beijing-based manager on the buyside for its AdX in the Mainland. (Earlier this year, they identified Japan as a target market.) The new manager is expected to build and maintain relations with key ad agencies, advertisers and ad networks in China as well as serve as a domain expert in ad serving and media monetization. Google’s goal: to become a leader in the display ad space in China, according to the job description.

An industry source from an international media agency said it will be a big hurdle for Google to convince Chinese advertisers and publishers to invest in the emerging display ad tech ecosystem.

China’s display market is very much dominated by premium inventory. And, local site owners of popular portals have strong influence over advertisers, using their sales teams to sell inventory rather than encourage the use of automated exchanges.

While it is common for advertisers in Europe and the U.S. to allocate 30 to 40 percent of budget to ad networks, Chinese advertisers typically only spend 5 to 10 percent for display ad targeting in the country, according to Karen Ho, head of MEC Interaction China.

She added that when it comes to display advertising in China for instance, advertisers want to see screen captures of their ads before sending an invoice.

While Google’s search share continues to erode in China, the company apparently seeks to focus its efforts on capturing the display ad market with its exchange – that is, if its competitor Baidu does not beat it to the game.