Mediabrands rolls out agency trading desk Cadreon across Asia, ‘we do not arbitrage’

Cadreon logoMedia agency group IPG Mediabrands is rolling out its automated internet advertising trading operation across the region.

Called Cadreon, the unit’s unique selling point, says Mediabrands, is that it does not arbitrage – the practice of buying media and reselling it at a profit to clients without disclosing the original cost.

Arbitrage has becomes a contentious issue in the US, where advertisers have pulled out of automated trading because of a perceived lack of transparency.

The roll-out comes about a month after the head of Cadreon for Mediabrands’ key markets outside the US, Arun Kumar, told Mumbrella that the arbitrage issue had been overplayed by the trade press, particularly in the US. 

Global brands such as Ford, Procter & Gamble, Unilever and Kimberly-Clark have pulled funds from agency trading desks because they feel their agencies cannot adequately explain how their money is being spent.

Cadreon already exists in China, Australia and Japan, and will now be set up in other key markets across the region.

The unit will deliver the lowest costs per acquisition against industry standards, a press release is claiming.

Prashant Kumar, president of IPG Mediabrands World Markets Asia, said: “Cadreon brings next generation performance marketing in the form of real time, adaptive, and prospect-aware optimisation that drives outcome right to the end of the purchase funnel. We have piloted this across a spectrum of clients in Asia in last one year and the marginal returns attest to its real impact. We are very excited to open this to our full range of clients.”


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