HONG KONG: Industry analysts are expecting further consolidation in
the web measurement industry as Hong Kong-based iamasia ceased
operations, resulting in the loss of 30 staff.
Kevin Tan, chief executive officer of iamasia, said the "sudden" closure
came after investors and shareholders failed to settle differences.
"We have ceased trading. There is ongoing discussion and this has all
been very sudden as we have been doing quite well in revenues.
"The reason actually has very little to do with the market climate which
makes it more of a shame. It was a disagreement between the shareholders
and the investors which wasn't resolved," explained Tan.
Launched in 1999 in Hong Kong, iamasia was initially backed by BDA China
and Partners-e.
Techpacific.com invested HK$2 million into the company and became
its majority partner in July this year.
Tan added that iamasia was still in the process of deciding what support
would be extended to clients.
The news follows a decision by ACNielsen eRatings to withdraw sales
operations from Korea, Taiwan and Singapore. The company, along with
competitor NetValue, also cut back staff numbers recently.
Hugh Bloch, managing director at ACNielsen eRatings, denied rumours that
the company had withdrawn plans to launch services in China. The web
research firm recently received Government approval to conduct research
in China.
"We are continuing with our plans for China. They haven't changed. At
the moment we are looking at the first quarter of next year," said
Bloch.
Bloch added that he expected further consolidation in the web research
industry. "I think there is still room for further consolidation, and
probably only room for one big player. What's imporant is not to devalue
the service."
Meanwhile, NetValue is hopeful the closure of iamasia and operational
cut backs at Nielsen eRatings will give it a much-needed advantage in
the short term.
"It (business) is very quiet these days, but we are looking at market
conditions and hoping to take benefit from it. The iamasia closure means
there is one less competitor in the market. And with Nielsen (eRatings)
withdrawing from certain markets, it could put us in a good position,"
said Christina Wong, sales and marketing manager at NetValue.
"We just hope investors will see an opportunity to keep a presence here
and maintain confidence. The end of the year is generally very quiet for
business. We are seeing that the selling cycle is slower at the moment
as clients are being careful not to take bold actions."
