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APAC advertisers to increase spend on data driven buying

Audience and data driven buying is beginning to build momentum in Asia, with 65 per cent of the ecosystem already delivering campaigns using this method. This was highlighted in the Programmatic and Data survey from MediaQuark.

About 108 digital advertising professionals, including brands and marketers, participated in the survey about the importance of programmatic and data driven advertising in 2015. The survey took an in-depth look at programmatic investment levels, uses, and sources of data as well as audience-based buying.

“The results of this survey show that 2015 will be the year that data, audience and automation take the spotlight in all marketing, especially in APAC,” said Tom Simpson, CEO of MediaQuark.

“Over the past few years there have been an influx of ad tech players into the region – setting up their infrastructure preparing for the market to mature. 2015 is the year that programmatic marketing will finally attract serious budgets from brands and investments start to pay off,” Mr Simpson added.

The survey highlighted that at least three in four APAC advertisers plan to increase their use of data, with the majority wanting to make better use of both third party and first party data. About 54 per cent of demand side players, specifically, plan on buying and using more third party data. More than 96 per cent of those surveyed reported that they see audience targeting as an effective marketing strategy.

“Site based planning will remain the dominant approach to digital media buying, but brands are starting to see the value in data driven audience targeting, with 74 per cent believing that it increases campaign ROI,” added Mr Simpson.

But APAC advertisers highlighted that they spent less than 25 per cent of their total digital budgets in 2014 on programmatic, thus data driven buying still has a long way to go in Asia. About 54 per cent of brands and marketers also cite concerns over a lack of quality of the third party data, and 39 per cent say that the high cost of data services is inhibitive.

“With 62 per cent of brands and marketers in APAC citing lack of industry understanding as the biggest challenge facing data in the region, it is clear that continued investment in education is the key to growth in 2015,” said Mr Simpson.

“In 2014, 60 per cent of brands looked in-house or to specialists such as DMPs or Data Providers for data services and only 5 per cent saw their DSP as a primary source for audience data. It is therefore incumbent on programmatic players to educate and simplify the real-time-bidding (RTB) process in order to make it easily accessible to all advertisers and increase data driven buying,” he added.

Talking about the year ahead, Mr Simpson said, “2015 is the year that programmatic goes mainstream with marketers. The results of this survey show that across the region, ad sellers, including exchanges and publishers, are more focused on the potential of technology to offer competitive differentiation and build increased value into their products. However, the challenge remains education and accessibility.”

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.