Jumptap Forms Mobile Ad Alliance With Dentsu

Cellphone-Japan

Mobile ad network Jumptap has entered into a partnership with Cyber Communications Inc (CCI), the digital arm of ad giant Dentsu Group, to provide mobile ad technology in Japan. In return, CCI will make a strategic investment in Jumptap.

Under the agreement, CCI will integrate Jumptap's mobile ad targeting capability into its own smartphone-focused mobile ad network. Its targeting spans methods including contextual, behavioral, demographic and keyword-based.

By integrating Jumptap's technology, data and targeting expertise we have the potential to deliver the most strategic and comprehensive mobile marketing solutions," said Shuichi Hiroya, CEO of CCI subsidiary Criteria Communications, which operates the mobile network. "We believe Jumptap's technology will keep us on the cutting edge in the market."

Jumptap CEO George Bell said the alliance with CCI would help accelerate mobile ad penetration in Japan, which he called "one of the largest and most influential markets for the development and adoption of smart devices."

A study released by comScore in October comparing mobile use in Japan, Europe and the U.S. found that Japan was the "most connected," with more than 75% more users browsing the mobile Web and accessing applications or downloading content, versus 43.7% in the U.S. and 38.5% in Europe.

CCI aims to build on high mobile data use and rapidly growing smartphone adoption in Japan to accelerate mobile advertising growth. Earlier this month, Dentsu struck a deal with Apple to bring its iAd platform to Japan. CCI will handle the selling and "creative execution" of iAds in the country, with campaigns set to kick off in early 2011.

Jumptap CMO Paran Johar said the Japanese mobile ad market is estimated at more than $1 billion, and is probably larger than that in the U.S. at present. "But what we've seen in the last year is a much faster rate of growth in the U.S.," he said. Now, through its deals with Jumptap and Apple, Dentsu is tapping into that mobile ad growth. Jumptap did not disclose the amount of the CCI investment, but Johar said it was more than $1 million.

The mobile ad network in September brought on former Excite CEO and General Catalyst partner Bell as chief executive to boost Jumptap's standing in the emerging mobile ad business. The company has raised about $70 million to date from General Catalyst and other investors, including AllianceBernstein and WPP.

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