Alibaba, Neilson Partner Up In Developing App To Improve Ad Targeting

Alibaba, Neilson Partner Up In Developing App To Improve Ad Targeting

Alibaba has announced partnering with Neilson to develop Omni Channel application, which integrates online and offline user data. Separately the company has revised its IPO statement to allow two additional board members

By Ghous Zaman on Jul 14, 2014 at 8:55 am EST

Nielsen Hldg NV (NLSN), a leading provider of consumption trends, has partnered with Chinese e-commerce giant, Alibaba in its launch of the application “Omni Channel” which would integrate online and offline data relating to Chinese consumers. Alibaba will be supplying online data relating to Chinese consumer demographics and their buying patterns while Neilson will contribute offline data.

According to Yan Xuan, president of Neilson, this application is the first of its kind as before there was no way for businesses to jointly analyze online and offline purchasing patterns for Chinese consumers. Omni Channel will allow businesses to better identify advertising opportunities and take advantage of them.

Online retailers like Taobao, an Alibaba subsidiary, will be able to incorporate offline data supplied via Omni Channel to better target their online ads, which are a major source of revenue for them. US web giants such as Facebook Inc. (FB) and Google Inc (GOOGL) already make extensively use of offline data to better target their online advertisements.

Alibaba’s revises its IPO Registration Statement

Separately, a new US regulatory filing on Friday revealed that the 27 top executives of Alibaba can appoint an additional two members to the company’s board of directors following its IPO in the US.

Under the changes, the company’s top executives can now appoint six out of 11 members to the company’s board of directors up from four out of nine, according to an earlier SEC filing.

“This ability to expand board seats is just another mechanism to give the partnership control and keep control of Alibaba” according to Eric Jackson, president of Ironfire Capital LLC.

The consortium of 27 top executives, dubbed ‘partnership’ has been looking to retain maximum control of the company despite going public. The company was rejected a public spot in Hong Kong for the shady ‘Intricate Ruse’, but more flexibility in US IPO regulations make the execution of the founder-dominant public company model possible through the issuance of different classes of securities which underline varying rights for investors.

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