The State of Programmatic Advertising in APAC


Mobile is driving programmatic advertising growth worldwide. According to MAGNA, Asia Pacific (APAC) represented the 22% of the global programmatic ad spend in 2016, ranked as the second largest programmatic region after US. APAC includes the second and the third largest programmatic markets, China and Japan. It also comprises some of the most highly developed global programmatic markets like Australia, New Zealand, and Singapore. According to the Head of APAC Platform Sales for MoPub, Simon Toh, “93% of marketing professionals in Australia, New Zealand and Singapore are spending programmatically, 32% of which spend more than 50% of their digital ad budgets programmatically”.

The Hurdle

APAC has several factors that prove a strong programmatic growth potential. However, it has also a number of limitations, such as a fragmented ad tech landscape, issues with data access, and tendencies towards difficulty to scale RTB transactions. In a region that is extremely diverse within individual countries, APAC’s programmatic understanding and implementation ranges from being in its infancy to, in some cases, advanced maturity.

Some countries such as Australia, Hong Kong, and Japan are advanced when it comes to programmatic in the region. However, even in countries with a more in-depth programmatic understanding, marketers still consider that it is important to continue to educate the region and in particular - the clients on how to maximize the benefits of programmatic advertising.

Programmatic Trends and the Promising Future

To better understand the state of programmatic advertising in APAC, let’s dig deeper and explore the programmatic trends in the region.

According to the results of the recent study by Adroll, retargeting and attribution will be the key focuses of marketers in APAC this year.

  • Retargeting

Since development costs are going high and user acquisition costs are not slowing down, marketers now prefer to engage their existing users rather than to acquire new ones who may or may not perform well. In this perspective, the retargeting strategy stands as one of the most effective ways for marketers to convert their users into buyers and was the first breakout use case for programmatic advertising since it delivers such clearly measureable ROI. According to Adroll, the average APAC marketer is spending between 25% and 50% of their online advertising budget on retargeting and 83% of marketers plan to increase their mobile retargeting budget in 2017.

  • Attribution

APAC marketers are paying more and more attention to marketing analytics and attribution. Based on Adroll’s study, 79% of marketers believe attribution is critical or very important to marketing success and 99% of marketers track view-through conversions in this region. Furthermore, over 30% of Australian marketers said that they spend over half of their yearly budgets on campaign measurement.

So, what should we expect for programmatic adoption in APAC?

The fast growing APAC market is forecasted to be worth $56 billion in 2017, surpassing the programmatic spend in North America where the market today is more mature. Moreover, the gap between APAC and US in respect to programmatic information is closing so we can expect to see APAC programmatic growth inline with US trends in the near future.

“We are seeing a turning point in the history of advertising and media. As the technology infrastructure gets fully setup in the region and different app marketing strategies evolve to help marketers better understand the users, we are expecting APAC to become the center of digital evolution this year, “ said Carla Adraque, APAC Partnerships Manager at Aarki.


Topics: Industry News