Finance & Currency Risk Management
News Index
By Noémie El-Maawiy

Kantox publishes first report on the role of FX in digital advertising

Published March 27, 2019

Following on from the report on the impact of FX in the Travel Industry, Kantox has just released a new report, The Role of Foreign Currencies in Digital Advertising, which takes a closer look at the important role of currencies within the digital advertising (adtech) sector.

Digital ad spend is booming – and so is the technology that supports it. According to the 2017 IAB / PwC Digital Adspend Study, 80% of all digital display advertising is already traded programmatically and that number is expected to reach 95% by 2020.

Due to the company’s unique position as an FX technology provider for a number of adtech companies, the research presented is supported by real use cases and insights from players including Improve Digital, Tabmo, ExoClick and Marfeel.

Kantox’s client portfolio includes supply-side platforms (SSPs), demand-side platforms (DSPs), ad networks and ad exchanges. And as co-founder and COO, Toni Rami, explains, all have benefited from embracing currencies and automating their FX risk management strategy.

“In this modernised landscape, efficient currency management can be a game-changer for companies looking to remain competitive whilst protecting their profit margins,” says Toni. “This is especially the case in the adtech industry, where businesses price dynamically and deal with high volumes of small, real-time transactions.

“After setting up efficient micro-hedging strategies using our FX risk management software, many clients have reported an increase in profits and are overall less concerned about market movements negatively impacting their business,” he affirms.

The innovative 18-page report covers a wide range of topics and is organised into nine parts. It highlights the importance of using the right currency management strategies and discusses key industry issues, including:

  • Why using currencies to ‘speak the language’ of advertisers is so important
  • How FX exposure arises and why its impact on the company’s margins is often underestimated
  • How adtech companies are (mis)managing their FX – including examples of current sector practices
  • The reason that micro-hedging is the most efficient strategy to fully protect against currency risk

If you are interested in finding out how to address the complexities of currency risk management in digital advertising, leave us your details and download your free report here.


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