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hello everyone first I'd like to address , Hugh's comments about Canadians they're , entirely accurate got up At:W , yesterday to watch the Leafs game so , split explains alto but you know China , represents perhaps the biggest global , opportunity when it comes to performance , marketing advertisers traffic sources , exchequers and acquisitions for , ad tech and and more but there are , challenges to the average performance , marketer that might make China a , daunting market to enter today we , brought together three heavy hitters who , can speak to all sides of these topics , and more to help demystify China , unlocking affiliate marketing' biggest , opportunity give our panel a warm , welcome Tommy far left we have , Constantine who's managing partner at , code face media you'vie probably heard , him speak before at other AWA events , he's been an active affiliate marketer , for over five year sand runs his team , code face media foreboding code face , specializes in native advertising and , face book media buying for e-commerce , products network of content sites app , promotion and other nichesKonstantin , can speak directly to working with , Chinese traffic sources to make lot of , money next we have a manual Gong , entrepreneur and ahead oaf defy , Emmanuel ISS former professional poker , player turned affiliate marketer in May , W he's originally from Romania and he , now lives in Vienna Austria he can speak , very well to work running some a mob , Vista's top offer sit's not necessarily , in Chin abut using working with Chinese , advertisers and some of the some of the , things you need to know about that and , then we have been Aiken business , operations general manager at ma visa , been used to work at turd in a , traditionalFMCG business for more than , eight year sand he's also worked in the , brand space with Procter and Gamble and , Mar she's has a great experience in , business management he now leads the mob , Vista global business delivery team so , let'Sgt started guys so monist has , you know been a big part of this AWA , conference fora long time since since , it began and so we sat here a year ago , not we but some other people sat here a , year ago and talked about the Chinese , opera , unity I wanted to start by just talking , about how in the intervening year how , things have changed what's what's , developed in the in the Chinese with the , Chinese opportunity from year to year , can you start without one buddy yeah it , reminds me last year the same situation , the same place also in Bangkok talking , to these friends affiliate friends about , China mobile marketing and affiliate , business at that time when we talk about , business it's more focusing on China , utility apps promotion but in this year , the things changes a lot outdoes't mean , that the utility is not so good it means , that it becomes more result driven with , the related content information the , advertisers becoming more curious about , the final result of ROI of the payment , of the user you get and also this lead , mo refocused you came to Exocet , how to say broadcasting this kind of the , new information promotions so basically , in the past the vertical is more focus , on utilities but now game e-commerce , branding broadcasting news information , this kind of the product becoming more , and more popular in this market , Constantine you got anything that is on , yeah okay , I would just like to talk about how how , much it's changed at least since I'vie , been there because when I first Giotto , China and I was doing some Facebook , dating stuff it was pretty much , impossible to even even to get on , Facebook and and to even run campaigns , outside of China it was incredibly , incredibly difficult and then with the , rise of the whole app install wave and , then eavesdrop shipping which is , now going on huge it's it's really , incredible to see not only how the , resources within China have developed , and and been able to support performance , marketing but also to see the , opportunities now that exist within , China so like for for our e-commerce , business we spent alto of time you know , using say a packet shipping methods to , go from China to other countries but now , I also believe that there's a huge , opportunity just in , getting products that are maybe , available at like a huge markup within , China and actually selling to Chinese , consumers and with that you can really , leverage you know Baud search or some , of these awesome Chinese DPs that I'vie , developed over the past few years and , Emmanuel have you seen your business , grow with the number of sort of , available offers you know moving from , CPI into e-commerce things like that so , we still do mostly apps actually so I , can agree with what Benny said although , utilities were the main thing and maybe , close to the only thing that were , existed for a Chinese advertisers before , now they're just a small part of it so , at the same time they're not they're , small part of the whole pie but the pie , is still very big and that part is still , reasonably big so Icahn actually not , talk about the e-commerce part so I , don't I'm not familiar with that yet , maybe may behalf maybe'vie learned , something at this event oh nice so let's , start with maybe with the traffic , sources so what what are the biggest , traffic sources when when advertising in , China and and and what are some of the , challenges with actually working with , them yeah Think this is a with very , curious question almost everybody , sitting here want to know because China , there's a war pretend protect this kind , of the internal market and basically , Baud , Ar lie and tents and industry dominate , mobile company takes about W percent of , total China traffic there are rows more , like Google and Facebook in US but the , percentage is even higher and for these , three top super companies Alley is more , focusing on the commenced they are , not selling their traffic they use their , traffic to sell their product and for , Baud it's more like Google during the , search during the display it is kind of , the advertising and think he can talk , more because he also worked for Baud , for several years yeah and then for , Ti zen Ti zen is more LAN now looks like , game company they have their traffic , they develop their games to buy some , game diva companies and they promote , this kind of the tools so basically if , you want to buy the main source of the , traffic in China you can go Baud or you , can go tenser and what they are doing in , China is first , they have direct clients communicated , with P&G Unilever , although this kind of the super , advertisers and beyond that they have , hundreds of I know Baud is with more , than re sellers in China more focus , on different kind of the verticals the , manufactures small comedy medicine , Aussie discount of the different , vertical industry they have different , kind of the resells you want to buy , traffic from buy do you direct goes to , this kind of resealed of course , Moved is one of them who can direct , come to us we can open your account you , can bad traffic from Midyear so when , it comes to buying traffic from these , places I understand that they don't , really have self-serve interfaces that , you can just go on and and buy from so , Constantine what are some of the ways , that you actually have to go about to , get this traffic in Otis it challenge , when you don't have you're not able to , pull all the levers yourself directly , yeah so it definitely depends on the , platform an din some cases it does make , it a lot easier to use a re seller even , if you're within China , so re sellers typically work really well , if you're if you're coming from outside , of China and trying to do some media , buys on Chinese traffic but even for , campaigns that we'Verdun while I'vie been , in Beijing sometimes it's easier because , the like Baud has it'SA pretty good , reporting interface but I mean it is , completely in Chinese and it only really , works well on Windows so it leaves some , things to be desired and if you do have , you noway team who can help you manage , those campaigns then obviously it'll , make things little bit easier with , scaling and there's literally hundreds , of re sellers correct that can go about , doing this why why have they chosen the , this re seller model- rather than then , you know perfecting a self-serve , interface for instance why do you think , they'vie done that okay this is quite big , question because you know China economy , and the development pace is so much , differences from city to city just like , Beijing Shanghai Denizen this kind of , the city is quite similar like New York , like Tokyo this kind of the global big , city but there's still some under , development under developing cities so , in this kind of different geographies , they are located indifferent kind of , industries so Tobit , their direct line is big but they're not , so much the client numbers not so much , bu tin China there are four million , companies who is doing export this kind , of the business because in the past made , in China is symbol for Chinese local , manufacture factories made in China so , now these years lot of this kind of , the companies they want to buy traffic , transfer from offline to online and in , this way so it needs a lot of different , kind of the industry familiar expertise , to get this kind of the client gate is , kind of the budget so that is why they , have so many clients are so many , reselling China yeah so Manuel as one , of my visas top affiliate partners what , what are some of the the cultural , differences about working with Chinese , advertisers specifically that that you , find are important to think about when , when running Chinese advertisers alright , so they definitely have a few different , ideas about work ethics so specifically , with some of the biggest advertisers in , China you need to be able to develop a , good working relationship through an , intermediary though if you don't speak , Chinese which Id on't and Id on't have a , contact in China aside formalist I , think it's close to impossible to run , with them so biggest difference is that , you have an intermediary that can update , you on your traffic quality on your , payments on your Poison cab son all , these sort of terms so that'definitely , the most important thing the aside from , that there are also smaller things which , apply not only to the advertisers but , also to you they fee lat the affiliate , network if you're in Europe or even in , the US you have to adjust a bit your , time zone to be able to talk to your , affiliate managers language which might , be surprising to some is not an issue in , my experience most affiliate managers , are very well trained so like they speak , very good English its communication in , that sense is okay and actually that's , all that comes to mind as the bigger , differences that could be challenge , for people thank you so I understand , that Facebook and Google are still , mostly banned or fully banned throughout , China you know that obviously poses a , big challenge as as their you know most , people in the West would consider those , the biggest traffic sources so can you , speak , why why this is and and do you see it , changing in the future yeah this is a , good question because actually Facebook , and Google this the world , top two players Tracie players are been , it's not almost it's totally been in , China yeah but the thing is like that in , China the reason behind is it's more , like China government and local want to , do some kind of the control of this , information , and to make some kind of the government , policy within it but this is more like , the top layer situations but for the , traffic side you know there's still four , re sellers for Facebook in China and , they're still less than W but so many , resells Google in China , so basically movie star is used to , helping Chinese local advertisers to , gain users outside of China the main , traffic source is directly coming from , this kind of the resell open , account force and with direct promote , app son Facebook and Google so basically , you still can buy traffic and promote , your product on Facebook and Google but , their product is forbidden to use to sea , level the users the users is can only , use the We Chat and if I do this kind of , the Chinese version Google and Facebook , yeah so Constantine do you this is these , are methods that you use basically in , order to still advertise on these , sources yeah definitely definitely I'vie , made a lot of use oversells over the , past few years and I mean it helps a lot , actually because they'll they'll also , give you a percentage of spend back , which is can be very beneficial to the , the overall of the campaign but , speaking to Google and Facebook being , banned as a whole it's a it could be , extremely frustrating at times but I'vie , actually heard rumblings and Benny also , like we were talking about this earlier , that there may be Facebook opening up , into China so this will be a huge huge , change to the social media landscape of , China as many of you may know right now , we chat is pretty much the hugest thing , like whatever I'm even when I'm not in , China I'm pretty much on We Chat all day , and when Facebook is is I guess granted , entry into China there will be some huge , huge shifts in terms of just social , media usage among normal Chinese people , but there are also be huge advertising , opportunities because as many of you , know Facebook has some of the best , targeting in the world yeah yeah , actually we have talked about it that , Facebook is now developing your simple , version Facebook tools and they are now , looking for some account of the , re sellers to promote this kind of the , promotion their product in China so they , come to us and we are now in negotiating , and I thinks Berg is really , brilliant in EQ he knows how to work , with China government so basically we , thin kit will be in the future yeah so , Constantine we're like what is your , traffic breakdown look like on the on , the offers that you run like where are , you buying most of your traffic and you , just sort of on a percentage basis what , does that look like mean so I would , say for the work I do outside of China , then a lot of it is between Facebook and , native within China the campaigns that , we run tend to be much more commerce , focused so it would be basically , American companies that want to test , their products in China on relatively , limited spend compared to like a full , productivity and so what we do is set , up a team all store which is like a kind , of like eBay but way way way way better , and for brand sand we would just drive , by to either buy to display network , traffic orbit search traffic directly , to their team all stores and that has , worked really really well , in the past for us but we have not , actually dived too much into the , frontispiece that have popped up so , I'd be interested to hear more about , that actually , and how many DPs are there in China to , me according to my knowledge there's , more than company dint's business , in China yeah more than W , yeah and almost half of them has their , own Deviated management so this is you , know something that we're doing you know , always trying to buildup your audiences , base don their locations based on their , contextual data this is all happening in , China obviously as well because , programmatic is , happening China we seen just several , years but really grow so fast today in , China the total mobile industry budget , percentage is about W percent occupied , by programmatic it grows so fast but , actually it's still in a progress not , like us us is about to percent is , problematic , so basically movie star is also doing , this kind of DSP SSB our exchange and , also our DMP now so the thing is like , that we also want to be one-stop , solution for the advertisers if you want , programmatic we have we want affiliate , this is where we were spoon we have and , if you want network we have so basically , TMP the programmatic is one component , just like I mentioned many times we have , Hamburg we have candy we have soap what , do you like yea hand what's the demand , in China for for products that come from , the West like you were saying that you , sell in a little bit of help helping , companies have sort of beachheads India , Chinese market is there is there a , strong demand for for Western products , it depends on of course what types of , Western products but if they tend to be , more niche or like slightly higher end , products then yeah there's a huge market , and I mean there's there'Si mean pretty , much any Western company wants to break , into China and so if if they're able to , test that on a small budget then they're , they're more than happy to give it a , shot and I mean that Chinese consumers , especially in the first year cities like , they spend a lo ton Western product sand , so I think that'sand that'singly gonna , get way way higher in the next few years , so there's definitely a huge opportunity , there with advertising within mainland , China and that'sand that'SA , characteristic we're seeing of you know , changing the Chinese market changing , where it's you mentioned this earlier , but it's really about the the the middle , class rising and you're not just looking , to export products to the rest of the , world but to increase demand within the , country itself you see this happening , and you see it in the business yeah , actually this is Avery big trend happen , this two years because you know in the , past just like mentioned made in China , is a single about what kind of product , Chinese company made a small I small , comedy , manufacture henna crab these kind of , things and in the past there's usually , two foreign buyers or sellers that come , into China for this kind of physical , visit they go to Guangzhou Shanghai , Beijing discount city to place order by , hard copy and then they need to come , back and to sell the products to pay to , get prepay and to wait for the product , delivery but now the thing is like that , commerce's kind of thing greatly , improved the efficiency and in this year , China government has placed huge policy , a lot of this kind of advantage for this , at this kind of the company to ship or , export Chinese local product you outside , of China and also just like mentioned , Chin amid class is now is rising they , have huge money they have a lot of money , to spend so you can see almost China old , woman old old man everywhere the by , almost every singing Japan Korea , Southeast Asia , us almost everything so basically the , e-commerce is definitely one big , direction I can see I'Webern really , impressed in Bangkok with the sneaker , culture here the amount of the the , desire finks and Adidas is just off , the charts I'vie been trying to get a , pair of ultra boosts and can't quite , find them but uh bu tit's pretty , interesting so can anyone share , information Ono who W or the so so , League which apparently on thirty , percent of the advertising market share , I mean you got anything to say about , that well I only know Chi who and a few , of the other big utility players so if , there'sch who there's Baud there's , cheetah mobile Antipas is probably , those are the top four Benny can correct , me if I'wrong here yeah , and all of them actually have their own , they monetize all the users almost all , the users so like a big percentage of , the users are monetized through , advertising for example cheetah mobile , apps are also on go tomboy I know they , are very high volume for native then , they also have their own Scathing by do , ibid everyone knows them and they , are just are they the biggest player in , China you can correct me for advertising , yeah , Sq who is also , one of the companies that ISO think , they are the one that actually started , the utilities and tools trend and they , were the first one to make it really big , and then the others follow suit so all , of them are huge advertisers that try to , go global and it's a funny thing that , I'noticed that yeah since they , monetize advertising there are very very , different payout sin many many different , Goo's so maybe some of you'vie noticed , that when you try to go to your an , affiliate manager and ask for offers , there's gonna be like Thieu.s. pays $1 , and then you go to an offer that is , advertised in Romania or India and zero , point three so there are a few reasons , and mostly it'because of the how much , the user is worth is there are there any , key differences then in working you know , with with affiliate network sin China , would that promote external you know , what'different about the offers that , you're gonna get from a mob visa then , you might from from a Western affiliate , network well the main thing is that , movies that can work directly with the , advertiser sand all Chinese networks , usually try to do that because they can , build that relationship well if you try , to work with another feel that Network , that is not base din Chi naif they not , don't have an office in China I don't , think they get a direct deal so they , often get the offers from a visa from , Yemeni mo bi do the other Chinese , affiliate networks so if you want to , have abettor payout and usually a , better conversion rate for mobile , because loading speed is the key thing , basically you should work as direct as , possible so that'shy you should go to , Chinese networks although maybe it would , Beau bit of shift in how you work , initially think it's worth it but it , could you go into some specific details , about offers that are working well in , China okay I think this is quite , interesting bye everybody , yeah just like mentioned by many yeah , the China utility table for advertisers , as W and I pass pass yea hand Baud , and , the mangy movie sound movies movie , they're Sinkiang's yeah that's our , number one client in Southeast Asia a , young South China yeah so now the top , three offers in China the first one in , Steel's W they have a lot of product , just like W security Opera Mini I can , show you some numbers W spent about , to million u.s. dollar on movie star , every month and we are not exclusive we , are just one part of their spending so , basically they're this big two to three , million every month this is the number , one so basically you can run their , security their browser , Opera Mini these kind of offers Opera , Mini we can get ab ail out it's a eight , hundred thousand US dollar per day this , is the budget eight hundred thousand US , dollar per day yeah so this is the , biggest and then after that it's Baud , yeah you know to booster to cleaner , antivirus this kind of thing they're , quite sustained yeah they're not that , big as W but they still spend about 1 , million.s. dollar doomster every , month yeah many people I thin kin this , room maybe around this campaign already , yeah beyond that this is the utilities , talking about e-commerce yes since we , are seeing within commerce ISS quite , big direction next year , for example VIP calm little red book , this is the company have some support on , the back by the Chinese government so , they are pretty pretty rich so basically , they ask for high quality users with no , limited budget only if you have the , traffic yeah , but the most focus is still in China you , have Chinos traffic no limited yeah , so basically this is commerce utility , and for game think most of you already , know see OK clash of King yeah match , rush this kind of the game they run , pretty well in US and finally as well , news app show to sagest , yeah this is the number one in China Jew , r TT yeah they also spent millions of , the US dollar to more mister every month , and there are all these apps are they , looking for Chinese users or they also , have global offerings , okay so commerce are looking for , Chinese offers but they are looking for , China local based users but for , utilities they are more looking for , traffic to us European this kind of the , tier countries just like many who talk , about it because last several years , about year W to this kind of the , utility apps a small like in asking for , the user globally , no matter where it is they just need a , number the called quantity but , especially starting this year maybe , their investment is spread out so they , are now looking into the ROI , so basically finally the competition is , still existing IN.s. US user exam is , about to times versus Southeast , Asia , users so basically Southeast Asia budget , is in the decline way they're not asking , for this kind of the number but finally , they need magnetization a high , efficiency way so that is why US and , Europe tier 1 countries payment is , pretty high is there a lack of offers in , China or affiliates just looking in the , wrong place it's kind of a softball I , can tell you that we run W hours in , China now W this is the latest number , Id on't know how many offers you can get , so basically we can touch almost every , client in China because we base her ewe , have more than W employee sin China so , you came magic we can touch almost , everybody dozen't sound like there's a , lack so when Constantine when it comes , to e-commerce is there a different , credit culture in China than there is in , the West like when it comes to like , people in the West love putting things , on credit cards they love is that is , that as is it I remembers few year sago , it will probably wan'Ta's common is , that something is billing all done , through credit card in the same way it's , quite similar but actually the more , popular payment method these day sis , actually We Chat payments and there's , also other I guess I guess you could , call them copycat versions where there's , like a Baud wallet and actually the , oldest is they'll , but um these are these are the more , common payment methods compared to , credit cards and I honestly probably , us ewe try payments maybe three times a , day three or four ti mesa day and you , know I think Think what's happening , that actually kept up is there a fee on , that ah so there is a very very little , fee if you withdraw the money from their , system like 0.1%yeah so you pouring one , person seems like a pretty efficient , method of payment right right up there , with Bitcoin bu ta little easier to , understand , yeah and they actually just added that , fee like a couple month sago so for the , first guess was like a year or more it , was a hundred percent free but even now , it's almost nothing so only if you draw , your money but outside of the bank , outside of the account it will charge a , bit otherwise if you do any transactions , it costs nothing , so for affiliates out here looking to , break into the Chinese market like just , lay it out what are the what it like the , first three steps that they'd have to , take in order to let's say run you know , Chinese offers in China , what are those first three steps they'd , have to take in order to make that , happen start making some money well for , actually from my perspective Would say , that there are not insignificant , barriers to entry and like even for me , like I can speak pretty okay Chinese and , II'vie lived therefor a long time and I , kind of know how to get things done , eventually but even then it takes a very , long time to even say set up directly , with Baud because you need to register , a Chinese company and you need to go , through all these hoops so if you're , actually just starting out and you don't , have any real access I do think that , running offers is a great way to get , started and a manual from your , perspective as someone who runs a lot of , Chinese offers globally what what are , the first three steps to take to really , get get going from from that perspective , well to run them globally it's actually , not so hard because they are very very , interested in just getting users over , the world but so what I would say is , that you should keep in mind the quality , of the traffic is that's usually , important for them because they they , like Benny said they're starting to , monetize so you need to make sure that , the air traffic quality , pretty good and then just sign up to a , bit affiliate Network they will manage , the relationship for you one thing that , is a bit different in running with , running Chinese affiliate offers locally , is that at least in Europe and , especially in the US there's this , culture that like the customer is always , right I would say that in this case if , you consider yourself the customer as , the affiliate promoting their offer , you're not always right and they're not , going to treat you like you're always , right so expect that there's gonna be , some friction so you know back back to a , manual here what are some differences , between the Chinese ad networks that , you'vie worked with what what is your , experience been like well so the , experience between them was usually , quite different between each so I , would't I could't be I would'tube , able to generalize just a Chinese , networks I like this or like that so my , best experience will was with mock Vista , so far but then all the other affiliate , networks were really goo din the sense , of spoken English , they ha dwell-trained affiliate managers , so always very polite sometimes too , polite to be honest so at least younger , startup people are more not I would't , say impolite but just informal they , sometimes are a bit more formal and'm , I don't feel like being called sir so , those are a few up word thing sit's not , a very formal industry generally when , you're yeah exactly what is yeah that's , true but then there's not much of a , difference in Chinese networks or , international networks so like say based , in Canad abased in Germany they are all , very similar in the sense that some are , good some are bad you just have to test , each of them and it'snot always there , for the network itself you might just be , unlucky with an affiliate manager or , your contact person there is not the , best person to have so you should not be , afraid of dealing with them it's the , same as dealing choosing globally can , you talk a little bit about the payouts , and the the cap situation that you're , finding with Chinese networks oh yeah , that'actually quite interesting one of , the good things about apps from Chinese , developers is that they they have lower , pay out but that the reason they have a , lower parent is that they usually , convert really well so they want to , acquire users at a cheap price because , they can but at the same time once you , get something going they usually don't , have budget they have unlimited cash , so if you can bring them good users , they're gonna pay you for all the users , all the time and just maybe they will , try to take over the world so you're , finding the caps make up for what they , may be dactyl there's a bit of extra , work there's a bit of extra work to get , in the payout might be fooling some , people that are just starting out that , oh how Cain make thousands of dollars , if they'repaying ME cents or $1 per , install in Thieu.s. well once you have , it going they won't care if you can , bring them a hundred million users go , for it yeah I think this I can say , something because this is where very , common question many people especially , outside China affiliates will ask I can , show you a real case last year number , one affiliate working with Bobby'just , round one two three or four just run , four campaigns the revenue is just half , a year six months is six point six , million u.s. dollar six point six , million US dollar for six months on four , campaigns this is the number one I , cannot tell the name yeah but this is , what men use if you can bring the , quality users the budget is awesome , almond almost unlimited and what's the , average payout on those four offers it's , on Facebook it's for global it's about , one dollar one dollar is pretty good , last year because last year Facebook and , Google is run pretty well in China yeah , so one of the biggest opportunities in , the entire performance marketing space , for finding his video videos you don't , it ends up being you know the most sort , of profound experience for the consumer , it packs in the most meaning it'st he , leastdismissible what are you seeing , with the Chinese opportunity when it , comes Toto video advertising Benny , video is very good traffic frankly , speaking everybody wants it the , experience to me just like that when I , go to us the first question that avatars , are usually asked is do you have video , traffic yeah so when it comes back to , Chin awe do video traffic like this , first of all in China , the main traffic source of video is you , Inge - though this kind of the local , website they also have their apps they , pretty much like bad - Ali Ali intention , in video industry they almost dominant , about W% of this market total traffic , of the video but also we work wit has , you know van Gog at colony unity this , kind of the global company they directly , have the abstract for video so we work , with them until era to monetize their , their traffic in video so basically if , you want to buy the top media traffic , for video in China it's really hard but , you can work with developers for the , developer traffic for the video have you , guys run with any video yeah we'vie , definitely run a lot of video and it , converts the best for us pretty much , exclusively we're running video if we're , doing maybe some retarding campaigns , we'll go back to two other traffic , sources but we like video a lot so , you're based in China right Constantine , yeah Beijing so how big of a team have , you put together what was your , experience putting that putting that , team together is it make spat's mainly , or is it a remote team or expat sand , local Chinese as well but like very very , westernized local Chines ewe try not to , have a very large team we're actually , much more code focused so we like , hooking up into all the API as possible , and just going pro grammatically whenever , we can that's more our focus so what , about ad formats so what about ad , formats are they are they similar as , they are elsewhere are there different , kinds different sizes yeah pretty much , the same pretty much the same in China , and outside China is banner its young up , stream native this kind of thing pretty , much the same yeah , where would you hire aching based , freelancer got any company insights on , on that well , limited experience tried up work few , years ago remote work dozen'seem to be , the best idea so the locals can get more , info there yes maybe I can talk about it , because I can share some in formations , that especially in Beijing and Shanghai , these two cities this year let me see , every v-necks is coming tomato is coming , please pies already been there , MOV is one of the best into in China , local trafficking based in Beijing and , [Music] , Missy applauding is in Beijing yeah this , kind of the network companies or enter , China market within this year or last , year so basically they go to these , cities hire small office hire about two , to ten the biggest one may be a movie in , movies about forty people in China doing , about seven to nine million u.s. dollar , every month they're the biggest and , beyond that is about several people this , kind of thing we saw GM and several from , the supply side one or two from the , demand side working with movies that is , kind of the network's to drive the , business so basically foreign companies , or foreign teams enter China in this way , it's really hard to hire freelance to , work for for you from this remote , distance way because you know Chinese , people is pretty smart yeah , and actually you don't know what they're , doing it's really hard to manage their , energy or power how much percent is , spend on your business on your project , so I don'think so Id on't think it's a , good suggestion to hire this kind of the , people remote , so when you when you want to run an , offer in China is there you know can you , what's the best way to get something , translated what's the best way to , actually if you don'ts peak the language , you're not gonna jet that Google , Translate it's probably a bit of a too , much of a hammer you're not gonna get , the right subtleties how do you go about , hiring translators they can allow you to , run in China so I mean that'snot , particularly different than any other , country I mean there are the obvious , resources that everyone uses like , one-hour translation or even Fiver and , just split testing the translations , against each other but I mean for me , like obviously it'snot too difficult , because I can just actually I a lot of , times I'll translate stuff myself and , then I'll have you noway native person , look at it and say okay you know Have , how to be better yeah yeah but it's , pretty much the standard sources that , you would you would use for others as , well as mandarins the main the main , language of the business yeah yeah yeah , only one why is that because everybody's , speaking yeah this is the formal and , standard language in China and if , possible think you have also hires , some college student to do it for you , yeah they are pretty much low cost for , high efficiency and they're also looking , for some kind of department job yeah , this is what we do yeah we're seeing , lot of activity with with Boethius , mergers and acquisition sit's you know , the most exciting space in the world for , you if you own an ad tech company you , want nothing more than to be bought by a , Chine sea Chinese firm right so can you , talk a little bit about that what's , happening in the space why is it so hot , and why are the valuation so high okay , this is a quite big topic Frank speaking , about this is very hot topic you know , applauding so two Chinese company this , year endmost so two Chinese company , this June I , Already know many foreign companies , like in US and the European they want to , sell to Chinese companies but I cannot , tell the name yeah so basically this is , more like a trend because from vistas , side we think the advertising business , is in full layer of protections first , one is the client level you can get the , budget so you are stronger than the , others the second is that the operation , your operational efficiency is higher so , which means they can run campaigns , but you can run two thousand that means , huge differences the third layer is , product and technology it means you have , your own solutions you will have your , own data digging these kind of solutions , you can re targeting you can do anything , you can do something that anybody else , cannot this is the cert and finally the , fourth thing is the investment and , capital this is what we believe in , because when you look at back to the , advertising industry you Knapp you , know hovers this kind of the super big , company they have hundreds of sub , companies so basically when you comes to , the end of the day advertising is more , like compete with scale with technology , what means by scale that is investment , budget that this kind of thing so this , is the direction so based on this , direction Chinese local capital market , is quite unique in deserts on this earth , so basically our PX is the highest in , the world so that is also why so many , china companies even they already IPO on , NASDAQ they want to withdraw and go back , to china yeah there they can raise more , money with the same performance so , that's the first question and the second , thing is that china now is export not , all in their product but also the , culture their solution there are willing , to do business with foreign companies , they get together so that is why now , china existing companies leukemic sighs , now look into partners like , European and Europe companies so this is , a second the third thing is that once , this count the merge and acquisition , happens it can leverage both sides , stress for example we by native acts , this February and in the past movies , that has no in enteric has no instant , traffic for the bursting campaigns like , games like Disneyland is kind of thing , but when we buy game native acts they're , good supplementary to us and also in the , past game analytic native acts they can , get so many non innocent offers but they , don't have no means and traffic so when , this kind of merger acquisition happens , we can leverage the resource on both , sides so the thing is like that finally , this kind of investment happened for the , mother company take him how to say they , can pay at a lower price but they can , get a higher return on the China local , capital market and for this kind of the , merger and acquisition of the RSA , company they can leverage the mother , company's resource to purse the double , or triple their existing business if , they have the how to say issue or , problem in capital in oversea market in , global expansion this kind of thing so , basically this is what I can see that's , why the valuations are are a bit higher , and are they are they are the deals like , you know you don't ha veto go into , detail but our deals structured with are , they structured differently with Chinese , companies than they would be externally , like are there are there more more you , know stock or is there is there is there , reason that that that that happens yeah , friends being in Europe and the US the , average merchant acquisition price about , a company is about six to eight eight is , higher six to eight times versus a new , margin this is in US and Europe I in , China minimum is ten minimum is ten to , W times so basically that is why we , want to merge Ina cuisine with the , foreign teams with the outside China , companies more young in China in China , the price is pretty high , yeah interesting it's good for external , companies as well that's why they want , to sell yeah actually , last time when I talked to Lorenzo and , some co founders often we're also , talking about this kind of the , corporations because STM know many star , teams know many these kind of the , affiliate teams where we are not , familiar but actually we are we have the , desire to know this kind of the teams to , do some kind of the investment so last , time in Berlin yeah the July yeah we , talked about it but finally I see STM , already has disowned already let's , talk about with the last minute here , let's talk about some predictions for , the future Kyle you got you got it where , do you see your business going in the , next year , I like I'vie been saying I want to do a , lot more selling actually to Chinese , consumers think at least at least , personally for me and my team it's it's , somewhere where we can really leverage , ourselves against like the rest of the , affiliate world so to speak and you know , really make some big moves in the next , few years and you'rein Good position , you know straddling the worlds right you , having having as much knowledge you do , living living in China but also having , foot in the West as well so being able , to balance that bringing in external , goods and yeah like I feel like it kind , of comes full circle from when when it , was impossibly difficult even to just to , upload ads on Facebook when I first got , there and coming to a point where like I , can actually do performance marketing , you know selling to Chinese consumers so , it's it's very nice and hope to , develop that lot Emmanuel any , predictions for the future well I just , agree with Constantine but I would just , summarize it as China is going glob also , so ride the wave yeah to me I's a , great year we walk with affiliate , members to deliver double business , growth and almost the triple margin , growth in the W so for the next year , we have many priorities in simple words , from the geography wise we want to , develop the US Korean Japan and European , is our top priorities we want to start , our office there Korean saw is already , done Japan is in next month's , so basically this is the geography wise , and for the business wise we expand the , current performance based business to , branding which means we have our DSPSSP , and monetize the traffic in app and then , selling to just like Auto Procter & , Gamble this kind of the companies by CPC , and Command also to the vertical level , layer level we are not just focusing on , utilities we're especially for example , in Korea where half of our business is , game another half of the business is , commerce so still Is till think , commerce's a very big direction for , our fillets to work together yeah so , exciting times to come , I want to thank our panel today thanks , for everyone for coming out thank you , thank you thanks .
