The State of Programmatic Advertising in APAC

BH_programmatic in APAC

The evolution of programmatic advertising is not slowing down. With the constant advancement of Artificial Intelligence (AI) and Machine Learning (ML), it is now becoming the fast-growing marketing trend in the Asia Pacific (APAC) region as well. 

According to MAGNA, Asia Pacific remains the second largest global ad market behind North America with a growth of +13% in 2021, despite the challenges of the COVID-19 pandemic. Economic recovery has been stronger and faster than anticipated in this region. PubMatic’s Quarterly Mobile Index found that although mobile spending fell in Q1 2020, it had already returned to pre-pandemic levels by Q2. For instance, China, one of the leading ad markets of this region, has seen an abrupt economic recovery since the mid-2020 and is predicted to account for 56% of Asia-Pacific advertising in the current year. Indonesia, another growing country in APAC, also experienced rapid growth in terms of mobile programmatic, and it is estimated that mobile ad spend will grow to $692 million here by 2023.

Case Studies

We reviewed two recent campaigns in the APAC region that we would like to call out. One of the apps we looked into was a gaming app, the other – non-gaming. The biggest contributor to achieving the desired campaigns’ goals was our creative strategy. The biggest contributor to achieving the desired campaigns’ goals was our creative strategy.  By marrying our Dynamic Creative Optimization and Machine Learning capabilities, we managed to deliver incredible results for both.

Gaming App

This campaign for the gaming app generated a 198.27% increase in the return on investment (ROI), which was 94.82% above the client’s ROI goal. A deeper analysis of the campaign performance also showed a 662.03% increase in conversion rate (CR) and a 73.18% decrease in cost per install (CPI).

Non-Gaming App

We registered resounding success with the non-gaming app as well. The performance of the campaign improved across various metrics. The retention rate increased by 298.35% and CPI improved by 95.68%. Campaign performance generated an outstanding 17X more app installs.

Basic Creative Strategies for Programmatic Advertising in APAC

In this article, we will reveal several creative strategies that contributed to the success of the campaigns described above. Meanwhile, don't miss the chance to get acquainted with our Machine Learning strategies here.

   1. Featuring testimonials

Featuring testimonials from satisfied customers in mobile ads increases the level of trust and credibility, as well as alleviates fears of users who might have doubts about trying an app which is new or unfamiliar.Featuring testimonials   2. Highlighting functions and important features of the app

Focusing on the main functions and important features of the app is a great way to communicate your brand’s unique selling points to users. This strategy helps keep the target audiences informed of the real value your app can bring.Highlighting important features of the app     3. Showing real people

Showing images of real people is one of the best ways to increase confidence and build trust amongst users. This strategy can also be an effective way to attract users' attention and engage them with the possibilities an app can bring.

Showing real people

     4. Featuring discounts and promotions

In the competitive world of mobile advertising, offering discounts and promotions can be an effective way to encourage users to take action. When dealing with educational apps, for instance,  both students and their parents can reap the benefits of the app. Offering discounts or special promos can be attention-grabbing and motivating.Featuring discounts

      5. Highlighting the available rewards

Showing available rewards, especially when users reach new levels, can be an effective strategy for gaming apps. It helps them overcome all challenges with an increased level of motivation and determination.Highlight the available rewards       6. Featuring exciting gameplay

Highlighting gameplay is a fantastic way to show users how much fun and excitement your app can bring. This strategy can help establish emotional bonds between users and your gaming app.Feature exciting gameplay

Programmatic Trends in APAC

To gain a better understanding of the state of programmatic advertising in Asia Pacific, let’s dive deep and explore the programmatic trends in the region.

   1. Retargeting 

The retargeting strategy has been one of the most effective ways for marketers to convert their users into buyers, increase brand awareness, drive traffic, and improve conversion rates. Marketers prefer to engage with their existing users rather than to acquire new ones who may or may not perform well for many years. 

According to Appsflyer's report, Asia Pacific’s marketers have utilized retargeting most effectively in 2020. Compared to other regions, APAC registered the highest rate of retargeting conversions across all verticals. However, Apple’s announcement of major privacy changes to the IDFA on iOS 14.5 in June 2020 was a huge shot across the bow in the mobile advertising world, opening a new phase for user acquisition and retention strategies. 

Early signs show that consumers do not want to be tracked. For instance, Australia’s early iOS tracking opt-in rates were lower than anticipated, with the industry reporting 10% on average (in the first week), slightly lower than the global average of 13%. Since the data collected from iOS devices has changed, marketers should think of opportunities to bring together creativity and technology to reach and attract, as well as convert consumers into high lifetime value (LTV) users.

     2. Ecommerce growth continues in 2021

Asia-Pacific (APAC) has become an increasingly important market for eCommerce during recent years. While eCommerce already had its established place pre-pandemic, Covid-19 caused a major shift in consumer behavior, resulting in the growth of online shoppers. 

According to global market research company Euromonitor International, the region is forecast to double eCommerce sales by 2025 reaching USD 2 trillion.

    3. Programmatic video advertising

Video advertising continues to skyrocket in 2021 with the expected rise of 5G wireless technology in APAC. Interactive video ads engage users in the most efficient way, increasing users’ appetite for fun and new experiences. Video ads also give more creative freedom to advertisers. Virtual reality ads and 360° panoramas provide an opportunity to create more compelling experiences for users. Hence, finding the balance between entertainment and technology is of great importance. 

Aarki succeeds in running winning mobile programmatic campaigns in APAC. If you would like to learn more about how Aarki can help you along this way, shoot us a message here.

Topics: Marketplace Insights