This article first appeared in The Edge Financial Daily on November 15, 2019

KUALA LUMPUR: Analytics.data.advertising (ADA), the integrated digital advertising unit of regional telecommunications company Axiata Group Bhd, plans to invest RM120 million over the next three years to expand its operations.

In a group interview after the launch of ADA’s Centre of Excellence yesterday, ADA chief executive officer (CEO) Srinivas Gattamneni said the unit would invest the amount in stages, to aggregate more data and to develop machine learning models.

“In order to implement this, we need a lot of platforms, [such as] platforms for automation for decision-making,” he said.

Srinivas said that since its formation, some RM60 million had already been invested in ADA, and that it is growing almost 50% year-on-year (top line and gross profit) and aims soon to be profit after tax-positive.

Currently, ADA employs 450 people but is looking to increase its workforce to about 650.

The company has some 500 brands in its portfolio of clients, ranging from financial services to the telco sector. According to Srinivas, ADA’s client growth strategy is to look beyond the top 10 brands in a particular industry, because those in the top 20 to 30 have more money for media spend.

ADA currently operates in all Asean countries except for Vietnam, Myanmar and Laos, but intends to make a foray into Vietnam and Myanmar as its clients believe it is necessary to tap into the rapidly developing markets.

Srinivas said ADA may enter Vietnam through an acquisition, which would be completed by mid-2020 if it materialises. It is still researching Myanmar’s market potential and the level of digitalisation there.

“Any investment dollars we have will be used to go deeper in every market,” said Srinivas who expects management consulting firms such as Accenture and McKinsey to be rivals in the future “as they are also looking to move into this space.”

He said that ADA is the largest independent agency in Asean, and that its current competitors include media agencies such as Mindshare, MediaCom and WPP.

ADA’s other shareholder is Sumitomo Corp, but Srinivas does not discount bringing in new shareholders.