Despite the headwinds of global economic uncertainty and the deprecation of third-party identifiers, programmatic investment and revenue within the Japan and Asia-Pacific (JAPAC) region are surging, with over 70 per cent of firms increasing their programmatic activity from 2021, with a tenth of respondents increasing their programmatic activity by more than 75 per cent.
This is according to a new research report, The State of Programmatic in JAPAC – 2022, published today by OpenX and ExchangeWire.
Building on trends from 2020 and 2021, digital advertising professionals representing brands, agencies and publishers in Australia, India, Indonesia, and Japan were surveyed. Alongside programmatic activity, the report examines market reaction to identifier deprecation, the evolution of header bidding usage, and attitudes to direct approaches from DSPs.
Supplementing the statistical findings, the report also includes analysis from thought leaders at Microsoft, Times Internet, and Xaxis.
Audrey Michelin (pictured), director of account management, ANZ, OpenX said: “The report demonstrates programmatic’s robust growth in the region and in Australia, with 70 per cent of respondents seeing an increase in spend and revenue. This is thanks to Australia’s maturity and continued confidence in programmatic. COVID-19 drove a need for streamlined efficiency and greater flexibility across the industry, shifting spend towards programmatic, with the trend continuing post-pandemic.
“Despite being a mature market, many Australian marketers have yet to prepare their first-party data-driven strategies and find appropriate tools and partnerships to activate them. Currently only 15 per cent have access to first-party data, the lowest across the surveyed markets. The industry needs to work together to test and identify the best solutions, sooner rather than later, working alongside trusted adtech partners.”
Commenting on the importance of first-party data solutions and the support from publisher partners, John Harvey Faurholt, director – advertising and retail media partnerships — JAPAC, China, Microsoft Advertising said: “While general access of first-party data has improved across the region, we still need to deliver a solution that can provide enough scale to warrant deeper investment from agency and brand partners.
“This starts with expanding our supply, enabling an ease-of-use and access, and more effective bundling with our broader offerings and solutions. First-party data buys are just one piece of an overall media plan, so illustrating the full picture for our buy-side partners and collaborating through this transition, will ensure broader adoption and success.”
Highlights from the report include:
- Publishers have matured in their strategic selection of header bidding partners, while the use of prebid has seen a sharp decline. Compared to 2021, more respondents are using fewer partners – 61 per cent using up to 9 partners (up by 5 per cent) and 24 per cent using 10 or more partners (down by 9 per cent). The use of prebid solutions is down to 12 per cent compared to 33 per cent a year ago. This is most prominent in India, where no respondents reported using prebid in 2022 as compared to 50 per cent using it last year.
- Concerns about fraud and quality, and more active optimization of supply chain. Fraud and quality concerns remain high (89 per cent) in JAPAC. Similar to 2021, the Indian market displayed the highest concern with 99 per cent showing some concern, following by Australia (94 per cent) and Indonesia (86 per cent). Concerns are increasing in Japan, with 42 per cent very concerned (up by 10 per cent).
In response, a majority of buyers (80 per cent) have run a supply path optimization (SPO) review in the past 18 months, with 34 per cent indicating that it was the first they have ever done. India is the most active market with 86 per cent having run an SPO review in the past 18 months. Japan is seeing a steady annual growth in SPO reviews from 34 per cent in 2021 to 50 per cent in 2022.
- Concerns over identifier deprecation and mitigation solutions. 73 per cent expressed some concern, up from 67 per cent in 2021. At 91 per cent, India remains the most concerned market. This is followed by Indonesia (72 per cent), Australia (65 per cent) and Japan (63 per cent).
Mitigation strategies vary strongly across JAPAC. In Indonesia, 88 per cent of publishers are heavily relying on obtaining more first-party data assets, compared to just 17 per cent in Japan.
Other markets favour a range of third-party solutions:
India prioritizes demand-side platforms (DSP) (50 per cent) and third-party ID solutions (48 per cent).
Japan prefers a cross-supply chain approach, with a mix of DSP (45 per cent) and exchange/ supply-side platforms (SSP) (42 per cent).
Australia shows a balanced approach in exploring all surveyed options except first-party data use, though there is a slight preference for sell-side solutions, with exchange/SSPs favoured by 34 per cent.
- Increasing preference to work directly with DSPs without an exchange or intermediary. About two-third of JAPAC participants are open to working directly with DSPs, without an intermediary or exchange. On the sell side, publishers in Indonesia (45 per cent) and Japan (40 per cent) prefer to work with intermediaries. Almost one-third (32 per cent) of publishers in the region prefer to work with intermediaries rather than on a direct basis.Meanwhile, buyers in India (82 per cent) and Indonesia (77 per cent) are actively considering a direct approach, followed by Australia (60 per cent) and Japan (48 per cent).
- Buyers are now funneling a higher proportion of their media spend through programmatic than publishers are generating revenues via programmatic. 72 per cent of buyers reported an increase in spend compared to 56 per cent of publishers who saw an increase in revenue. This marks a reversal from last year.
- More brands and agencies now have access to first-party data. 85 per cent of buyers now have access to first-party data, up 5 per cent from 2021. Despite being relatively mature programmatic markets in JAPAC, Australia (15 per cent) and Japan (31 per cent) have the lowest proportions of respondents with access to first-party data, and the highest proportion (both 32 per cent) of those who believe there are no appropriate solutions for activating their first-party data assets on the open web.
You can access the full report here.
A recent survey Pilot conducted shows that shame remains a solid barrier to men seeking professional help for sexual performance issues, so they started a campaign encouraging men to put it all out there, loud and proud. Pilot is a digital healthcare clinic, and since 2019, Pilot has given over 100,000 Aussie men convenient access […]
Creative agency FRED & FARID Shanghai has partnered with the international brand Guinness to make a mark on the Chinese market by envisioning and developing “A Whole Universe” – a visual odyssey honouring one of the most iconic beers. There are briefs that one cannot turn down, like the one to introduce the most iconic […]
Craig Reucassel (left) of The Chaser and dear friend of B&T, will take over hosting duties on ABC Sydney breakfast radio, with James Valentine returning to afternoons and Indira Naidoo handing over control of her evening show to producer Renee Krosch. Reucassel has produced three seasons of War on Waste for ABC TV since 2017 and last […]
New-generation media agency 27 Degrees Media has been appointed to manage digital media for national tyre retailer Tyreright in one of its first Australian client signings. Lead Image: Loan Morris – 27 Degrees Media CEO Under the partnership, 27 Degrees Media will be responsible for all digital media strategy, planning and buying, along with influencer […]
The Works has announced the launch of ‘Question Everything’ a new brand platform and campaign for their newest client, Archie Rose. As a nine-year-old independently owned and operated Australian multi-spirit distillery, Archie Rose has garnered a devoted following among existing customers, with a reputation primarily built on white spirits – particularly gin. However in line […]
Brisbane performance agency farsiight has announced the launch of its new market positioning, Growth for Good, in response to a changing business landscape, marking a departure from a “growth at all costs” mentality that has defined the industry in recent years. Agency founders and brother duo, Josh and Ben Somerville, envision Growth for Good as […]
Australia’s largest privately owned transit media supplier, GoTransit Media Group, now offers unprecedented options for transit advertising in Newcastle – on both land and sea following their successful tender to supply interior advertising inside the popular Stockton Ferries. The national transit media company is already well acquainted with the thriving NSW market, having successfully operated […]
Heritage and People’s Choice have launched People First Bank, the new name for positive change in banking Australia’s largest customer-owned bank has unveiled its new brand, announcing that Heritage and People’s Choice will be unified under the new name of People First Bank. Chairman Michael Cameron said the highly anticipated new brand offered a compelling […]
L’Oréal Groupe Australia and New Zealand have announced one of the largest investments to the Great Barrier Reef Foundation to pioneer new coral restoration efforts in the region. L’Oréal Groupe Australia and New Zealand have announced today a new partnership with the Great Barrier Reef Foundation (GBRF), to help coral reefs withstand the devastating impacts […]
Effective immediately, S4Capital’s operating brand Media.Monks, a digital-first marketing and advertising services company, has appointed Matthew Godfrey to lead its APAC Content practice. With over 15 years of experience leading innovative businesses in the Asia-Pacific region, Godfrey will support a best-in-class senior leadership team across the region as EVP, head of content, APAC. He joins […]
Chandra Sinnathamby, Adobe’s director, digital media B2B strategy & GTM, Asia-Pacific, explains how the tech firm is empowering its small business customers with new AI tools, including its Adobe Firefly tools. In today’s fast-paced digital landscape, small businesses face numerous challenges when it comes to creating captivating content that resonates with their audience. Despite the […]
Summer mornings are heating up with Triple M again in 2023, thanks to the star-studded line-up of Harley Breen, Candice Warner and Tom Tilley, who are joining forces each weekday morning from 6-9 am for Triple M’s Summer Breakfast show. Airing from 4 to 15 December in Sydney, Melbourne, Brisbane, Adelaide and streamed live on […]
The Hit Network has announced its summer line-up for 2023, kicking off on Monday, 4 December, featuring The Jimmy & Nath Show, Hamish & Andy podcast, Nights with Seany B and special return celebrations for Christmas Day and New Year’s Eve. Hit’s cheeky radio duo Jimmy Smith and Nath Roye of The Jimmy & Nath […]
Full-service CX, media and advertising agency AFFINITY has completed an 18-month-long global rebranding for ASX-listed engineering powerhouse Worley. The rebrand reflects Worley’s commitment towards being a leading force in sustainable change. Worley, a global provider of professional services in the energy, chemicals and resources sectors working across six continents, has set out on a significant […]