Marketers in the Asia/Pacific region admit to having a limited understanding of how programmatic advertising works, and significant concerns over transparency, according to a new study by Warc and AppNexus. But that hasn’t stopped them rushing in to the technology in world beating numbers.
AppNexus VP sales APAC Dave Osborn said, “It’s clear to me that the vast majority of digital advertising will be transacted programmatically in the next few years, so it’s critical that we ensure the most important stakeholders are brought along the journey.
“Yes, we have to address the valid concerns people are expressing regarding control and transparency. But that needs to be part of a much broader education for advertisers and agencies that helps them understand when, where and how this evolution towards programmatic execution can benefit them…and equally where they’re exposed to new risk.”
The report found that many advertisers are still grappling with the concept of programmatic. Across the APAC region more than a third (36 per cent) of advertising professionals admit they know very little or nothing about how programmatic works.
Interestingly, the lack of understanding around programmatic hasn’t stopped advertisers piling on. Usage is relatively high at 77 per cent, suggesting there is a ‘do first and understand later’ attitude, say the study’s authors.
Among the key concerns, four in 10 respondents were worried about a the lack of transparency about where ads are being served, with almost half fearing their advertisements would appear on undesirable sites.
Additionally, only one in four advertising respondents (25 per cent) in the region claimed they were totally confident in knowing how effective their digital campaigns were.
“These concerns around trust indicate a need for education and transparency in order for programmatic to reach its full potential,” according to the authors.
This high regional adoption rate suggests a confidence in the ability of programmatic to deliver more and better campaigns outcomes.
The study also found that a majority of programmatic adopters within the APAC region use programmatic for mobile and video – giving it a much higher use ratio than the global market.
The study reveals that 90 per cent of those surveyed use it for mobile advertising while the figure for video was just under 80 per cent. The comparable global rates were 71 per cent and 56 per cent respectively.