The Mobile Screen Comes Into Sharper Focus For Marketers: PubMatic
Is the future of advertising going to be programmatic and mobile? For Asia, the answer is a resounding yes, according to online advertising company PubMatic.
It is estimated that programmatic will grow from a market value of US$2.7 billion to US$6.8 billion for APAC between 2017 and 2020 (Boston Consulting Group) as more advertisers in South East Asia (SEA) seek to benefit from the advantages of targeted data driven advertising.
As programmatic becomes more mature in SEA, PubMatic has found several compelling trends.
Rising importance of Mobile
The availability of inexpensive smartphone technology coupled with fast internet speeds in SEA has resulted in an upwards mobile consumption trend that is unmatched by other markets.
According to a study completed by Google & Temasek for Tech in Asia in 2017, more than 90 per cent of users in SEA are connecting to the internet via mobile, making the region top of the charts when it comes to mobile first .
For sure, Indonesia, Malaysia, Philippines and Thailand are among the top 10 most globally engaged countries on mobile. As seen in an eMarketer report from February 2019, mobile ad spends accounts for 76.6 per cent of digital advertising in with APAC.
Despite the huge growth in mobile penetration, most SEA advertisers do not have a mobile-specific buying strategy, and mobile ad advertising has not increased exponentially. To start capitalising on this opportunity we believe advertisers need to implement the following actions:
- Work with supply partners to Eliminate Fraud and Instil Better Measurement
Advertisers remain fearful of investing their programmatic budgets on mobile due to the perceived quality of mobile app inventory and rampant mobile ad fraud. To alleviate these concerns, we are in the forefront of all IAB initiatives including Seller.JSON, app-ads.txt, having only direct or single-hop inventory, and establishing a fraud-free guarantee.
Additionally, the launch of Open Measurement SDK by IAB will create a standard measurement ground for all verification partners to better fight fraud. These initiatives will establish a path to quality inventory where advertisers can feel more confident in mobile advertising.
- Create Mobile-First Formats
Advertisers are encouraged to create mobile-first formats like Interscrollers & Vertical Videos and work with third-party rich media vendors to create engaging interactive ads, such as gamified ads. These ads typically generate an engagement rate two to three times higher than a standard display unit.
Advertisers should also look to create native ad formats for popular apps like Grab & Meitu to fit the app’s look and feel, making them less intrusive. Native advertising on mobile is a great opportunity for advertisers on premium apps as these formats have not been highly demanded by advertisers yet.
- Continued demand for video supply
Given the accessibility of mobile devices and the low cost of 4G usage, it is no surprise that there is a shift from TV to mobile as users in SEA are consuming more video on their device, especially on OTT apps such as Netflix, Viu, etc. According to eMarketer, Video on Demand revenues. in APAC are forecasted to increase from US$21 billion in 2018 to US$48 billion in 2024. Brands like Unilever and Proctor & Gamble have shifted their focus to buying on video, utilising storytelling techniques to encapsulate their brand message and capture more market share.
Publishers in Indonesia particularly show this increase for video demand as they have been asked by clients to increase their supply for instream formats, indicating interest from advertisers to diversify their spend beyond focusing on Youtube.
We have embarked on a strategy to onboard more video supply, especially OTT publishers such as Telkomsel Maxstream in Indonesia, and LineTV in Thailand. We’ve also partnered with several rich media providers, like Bonzai & SeenThis, to empower a rich media video marketplace and support advertisers in engaging with their audiences.
Advertisers should create mobile-first video formats such as short-form vertical videos, and work with a trusted supply-side partner and publishers to curate their own video marketplace for premium video supply.
- Growth of Programmatic Guaranteed & Private Marketplaces
As programmatic matures in SEA we have seen a steady growth in Programmatic Guaranteed and Private Marketplaces, especially in the Indonesian and Thai markets. A BCG study performed in 2018 predicts that Programmatic Guaranteed in digital display and video ad activity will increase from six per cent in 2017 to 11 per cent in 2020 across APAC.
With the need to ensure brand safety and secure premium inventory where supply is scarce among publishers, Programmatic Guaranteed has become increasingly popular in these markets as an automated way to replace and execute direct IO buying. Publishers also prefer such models as it guarantees their revenue and allows them to control the execution of their inventory. Models for Programmatic Guaranteed executions include CPM (Cost per Mile) and CPD (Cost per Day). Some key benefits of using Programmatic Guaranteed & Private Marketplaces in SEA include:
- Access to premium inventory such as instream supply that is scarce especially among publishers.
- The ability to ensure quality supply, and establish high control and personalization over their buy.
- Buying efficiencies for automation and cost.
Advertisers who want more control over their buys can consider building curated marketplaces around their verticals of interest, or engage with a supply-side platform or publisher to push out programmatic guaranteed deals that are catered around your requirements and audiences.
By tailoring their programmatic approach for SEA, and capitalising on the trends, advertisers are well poised to have a successful strategy capturing market share in this region. As partners, we believe in working closely together with our advertisers and publishers to curate offerings that are tailored for your buys.
Latest News
TV Ratings (06/05/2024): Emotional Lego Masters Goodbye Does The Numbers For Nine
And we thought Lego could only make you cry when you accidentally stood on a piece.
Lisa Wilkinson AM To Join Cannes In Cairns As Keynote Speaker
Multi-Award Winning Journalist and TV Host Lisa Wilkinson AM to speak at Cannes in Cains, sponsored by Pinterest.
Mamamia Names Natalie Harvey As New CEO
Mamamia has today announces the appointment of Natalie Harvey as Chief Executive Officer.
‘The Media Has A Way To Go On Diversity’ – Diversity Council Leader Lisa Annese On Industry Diversity And Why Sunita Gloster Is An Important Addition To Their Board
Few are more qualified than a Gruen regular to knock adland and the media into shape on diversity.
Mike Shows Up At A Wake And Still Hasn’t Seen That Show, In Latest Instalment Of ‘I Saw It On Binge’, Via Thinkerbell
Why is it we pay for 19 SVOD accounts namely due to FOMO but then rarely bother to watch the shows anyway?
Flexiroam Partners With Specialist Agencies To Launch “Ready For Anything” Global Campaign
Do you return from overseas with Bali belly, a possible STI & a huge phone bill? FlexiRoam may help with the last one.
Samsung Unveils Power Of AI To ‘Upscale Every Moment’ With Neo QLED 8K
Got mates who brag about their 83-inch, 10K resolution, OLED screen TV? You're just as bored & baffled as all of us.
Media-Wize Wins AUSCERT PR Account
Media-Wize calls itself "a media training and technology and cyber security PR agency". Think nerds with better hair.
Snapchat Taps Gelato Messina In New Brand Campaign
B&T needs little tempting to scoff more Gelato Messina. Apart from having to go up a size.
Travel Insurer Trippi Draws Ire From The Brazilian Embassy Over Cheeky Brazilian Ad
There's a very fine line between "playful" and "utterly offensive". These ads are almost a dictionary definition of it.
Racing NSW Hits Tabcorp With Legal Action Over $6 Million Revenue Loss
Here's some horse racing news that thankfully doesn't require a silly hat or passing out in a nearby rose bush.
AI Tools Such As ChatGPT Leading To ‘Content Overwhelm’ Among Marketers
Study says tech leading to an avalanche of content for marketers. Not to mention having to read the instruction manuals.
Stake Appoints 72andSunny As It’s Creative Partner
72andSunny nabs Stake's creative. And by that we mean the investment platform, not the nemesis of all vampires.
61% Of Aussies Want Corporate Australia To Stay Away From Social & Political Issues Leo Burnett Study Finds
Do you love a study that appears to fly in the face of every study before it? Be mesmerised by these results from Leos.
Brendon Cook, OAM, Inducted into the OMA Hall of Fame
Other than Australia's typically pleasant weather, no one's done more for outdoor than the former oOH! boss.
New Campaign Highlighting Renewable Gas As A Crucial Component Of Energy Transition
It's hard not to make a renewable gas ad sound like a tedious Year 9 science lesson. So well done to the agency here.
Love Media Welcomes Alana Dowling As New Client Director
Seasoned media pro Alana Dowling joins the Love Media team. Clearly replacing someone who didn't love it
B&T 30 Under 30 – Where Are They Now? Until Recently, Prison!
A prestigious 30 Under 30 gong can get you headhunted, promoted or, in this instance, a two-year stint in the slammer.
“We Will Never Tell A Journalist What To Write” – Nine’s Aimie Rigas On How Data Is Shaping News
Data becoming the journalist's tool for more engaged content. Still not beating dodgy MAFS contestants or a Kardashian.
Beware The Bad Guy. Billie Eilish Fans Brace Themselves For Scammers
Thought getting Tay Tay tickets was an unimaginable nightmare? Read on as Billie Eilish promoters say hold my beer.
Twilio Names Chris Koehler As CMO
Chris Koehler named as Twilio's CMO. Which may prove a prickly tongue twister after a lengthy open bar tab.
ARN Announces Ad Sales Partnership With The Athletic
Can we slow the rotation of the sun? Because that's the only way we'll fit all these new podcasts into one day.
Burger Wars Continue As Hungry Jack’s Brings Back The Big Jack & Mega Jack
Hungry Jack's' Big Mac ripoff set to return after recent legal win. Still no one racing to clone the Filet-O-Fish.
Diverse Voices, Sustainable Choices: Natalie Dean-Weymark On Why Sustainability Is A Non-Negotiable
Here, Compass Studios' Natalie Dean-Weymark talks diversity in media. It's the human equivalent of the Family Assorted.
New Partnership Between The Sweetshop And The Gardening.Club
Thought you'd be getting tips on aphids & fungus gnats from this Gardening. Club news? Prove yourself totally wrong here.
‘A Very Rare Breed Of Creative’ – Clemenger BBDO hires Chief Creative Officer
B&T's chatting with Clems boss Dani Bassil on Adrián Flores CCO appointment. We never got to Italian or Thai herbs.
Concrete Playground Debuts Innovative Urban Exploration Platform With Lexus As Launch Partner
Concrete Playground announced the launch of its redesigned website in partnership with Lexus. This partnership introduces a new era of urban discovery, enabling a deeper, more intuitive engagement with cities through a state-of-the-art digital platform. Revolutionised Digital Experience Concrete Playground’s website has undergone a significant transformation, designed to enhance the way users interact with their […]
Mindshare And The Brand Agency Take Top April’s New Business Rankings
Which agencies soared like an eagle for the month of April? As in stellar performance, not Eddie the hapless ski jumper.
Suntory BOSS Coffee Fuels Ambition With New Campaign From It’s Friday
Does your workplace have a strict, policed illegal drug policy? Then Suntory BOSS Coffee will have to do.
Resolution Digital Wins MyPlates Media Account
The best thing about personalised number plates is it makes spotting wankers on the road far easier. And drug kingpins.
Debunking The “Three Year Lie”: A New Approach To Retail Digital Strategy
This columnist says it's wrong to claim digital always has a three-year pay off. Has no opinion on the seven-year itch.
TV Ratings (06/05/2024): The Farmer Is Back And He Wants A Wife
It was a good night for lovers of farming and love.
The Growth Distillery Unveils The New Rules Of Influence
The New Rules Of Influence has arrived. And there appears to be no "difficult second album" syndrome here.
Whittaker’s Launch New Brand Platform, ‘Hello Chocolate Lovers’ Via Bastion Shine
New Zealand chocolate brand continues its insidious march into the Aussie market. Much like New Zealanders themselves.
Tyro Shows They Are ‘Into Business Big Time’ With New Brand Campaign Via Howatson+Company
Think finance isn't funny? Think again with this fun work. Yes, it still applies to funeral homes & Clive Palmer ads.
IAB Study Finds 66% Of Advertisers Have Five Or Less Years Experience With Affiliate & Partnership Marketing
Study finds advertisers & agencies not overly experienced with affiliate marketing. The opposite to networking drinks.