programmatic ad buying in asia...programmatic ad buying in asia + a note on the covid-19 pandemic...
TRANSCRIPT
PROGRAMMATIC AD BUYING IN ASIA
A Closer Look at Programmatic Ad Buying Trends and Challenges
Across the Region
IntroductionAccording to Zenithrsquos Programmatic Marketing Forecasts of 2019 Report1 programmatic ad spend was forecasted to rise globally to $127 billion US dollars in 2020 accounting for 69 of all global digital ad spend this year While buyers in Asia recognize the immense opportunity that programmatic presents to digital advertisers the region has been slower than others to move budgets to programmatic
To uncover the barriers to adoption and to assess opportunities to accelerate the growth of programmatic ad spend across different markets in Asia Rubicon Project and Campaign Asia paired up to survey media buyers Our research focuses on market readiness to buy programmatically as well as compares and contrasts findings across established versus emerging markets in the region
We invite you to join us in taking a deep dive into the programmatic opportunities for this diverse and important region and to discover our recommendations for capitalizing on programmaticrsquos potential in 2020 and beyond1 ldquoProgrammatic Marketing Forecasts 2019 ndash Zenithrdquo
PROGRAMMATIC AD BUYING IN ASIA + A note on the COVID-19 Pandemic and
the Impact on the Research
+ Key Findings
+ Methodology
SECTION 1 THE STATE OF THE MARKET + Adoption Rate of Programmatic Buying Principles
Across Asia in General is Strong
+ Budgets are Slowly Migrating from Direct IO to Programmatic
SECTION 2 WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION + The lsquoClient Mandatersquo Plays a Role
+ Whatrsquos Holding Programmatic Back
+ Greater Investment in Education and Skill Development will Help Drive Further Adoption
+ Which Markets Are Poised for Growth
SECTION 3 BUYING BEHAVIORS + The Open Marketplace is the Regionrsquos Primary
Programmatic Buying Method
+ Asiarsquos Mobile-First Mentality Remains Strong
+ The Value of Data-Driven Buying
SECTION 4 THE FUTURE OF PROGRAMMATIC BUYING + OTT is the Leading Pick for Programmatic Growth
RECOMMENDATIONS
P 9 |
P 12 |
P 15 |
P 17 |
P 4 |
P 7 |
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
4
These are some promising results for programmatic advertising in APAC The region might not be the first to adopt programmatic fully but accelerated growth means that it could soon be on par with the US or Europe Encouraging also is the expected growth of Over-the-Top (OTT) as an emerging platform This may be where Asia really makes its mark in programmatic with confidence in this channel expected to strengthen over the coming months Overall media buyers know what they want to get out of programmatic mdash itrsquos just a matter of helping them to gain trust in a fast-evolving market
mdash CHRISTIE LEE SENIOR CONTENT PRODUCER CAMPAIGN ASIA
The original research for this report was conducted at the end of 2019 prior to the COVID-19 outbreak In light of the significant impact of the pandemic on the advertising industry Rubicon Project and Campaign Asia conducted a recontact survey in April 2020 to substantiate the report findings and recommendations
The second wave of our research confirmed that the pandemic has had a limited impact on our findings and our recommendations in this report In fact the second wave of research enriches some of the data collected during the first waversquos findings
The findings suggest that during the uncertainty of the pandemic buyers are looking to data to inform their decisions and will bias towards programmatic advertising due to the inherent targeting measurement and optimization capabilities of the channel
We are encouraged by our findings and that despite a decline in overall advertising budgets media buyers will take advantage of the benefits of programmatic advertising and migrate investment away from direct buying to programmatic
The details of the second wave findings are noted in the body copy of the report
A NOTE ON THE COVID-19 PANDEMIC AND THE IMPACT ON THE RESEARCH
It was pleasing to see a high rate of adoption for programmatic buying across Asia Although some markets still face challenges relating to shifting existing relationships and execution via automated methods the progress over the last five years has been outstanding The regionrsquos diversity demands a unique approach in every market to ensure the promising outlook for continued growth is realised
mdash YOGESH SEHGAL REGIONAL MANAGER ASIA RUBICON PROJECT
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
5
1 The adoption rate of programmatic buying across Asia in general is positive with 76 of buyers stating that the markets in which they operate have a lsquohighrsquo to lsquomediumrsquo level of adoption
2 Despite the optimistic outlook on adoption rate buyers also stated that a lack of understanding of how to plan effective programmatic campaigns outside of the walled gardens and then evaluate their performance is the single biggest challenge holding them back from shifting spend from direct insertion order (IO) to programmatic
3 Data measurement and optimization are the three most important features of programmatic media buying Pricing and budgets are less influential in driving decisions
4 When evaluating programmatic performance ease of optimization relevant targeting and audience reach are the three most valuable key performance indicators (KPIs)
5 Opportunity for programmatic budget growth is most significant in The Philippines India Vietnam Indonesia and Hong Kong with more than 70 of respondents indicating that they expect programmatic budgets to lsquoincreasersquo over the next 12 months
6 Mobile display formats still reign supreme in Asia but Over-the-Top (OTT) platforms and solutions are moving to the forefront and will receive the most significant budget increase in 2020
KEY FINDINGS
METHODOLOGY
Rubicon Project and Campaign Asia surveyed 185 programmatic leaders in nine markets - Hong Kong India Indonesia Malaysia Singapore Taiwan Thailand The Philippines and Vietnam The second wave recontact survey had 36 respondents
Dates in the field (first wave) 31st October - 15th December 2019
Dates in the field (second wave) 8th April - 22nd April 2020
Methodology Written survey and telephone interviews
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
6
WHO TOOK PART
122Indonesia
53Other - Write In
98The Philippines
87Thailand
69Vietnam
73Taiwan
113Singapore
104Hong Kong
169India
111Malaysia
114Other
81
Demand Side Platform
675Media Agency
130
Programmatic Trading Desk
130Head of Department
124C-suite Level
54VP
368Director
146Senior Manager
178Manager
CHART 1
In which countries are you directly involved in buying media
CHART 2
Which of the following best describes your company
CHART 3
Which of the following best describes your role at your company
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
7
According to our survey there is a healthy understanding of programmatic buying principles across Asia with 76 of respondents stating that the markets in which they operate have a lsquohighrsquo or lsquomediumrsquo level of adoption in their market
In this report lsquoadoption ratersquo relates to the maturity of each market including the extent to which programmatic buying is utilised the sophistication of buying strategies and the level of programmatic knowledge among media buyers
Singapore Hong Kong and India are the self-identified mature markets with a strong rate of adoption These markets under-index for lsquolowrsquo adoption versus the average for the nine markets surveyed Meanwhile three of the eight markets Thailand Indonesia and Malaysia selected lsquomediumrsquo adoption The Philippines Taiwan and Vietnam all identified as lsquolowrsquo adoption countries (CHART 4)
ADOPTION RATE OF PROGRAMMATIC BUYING PRINCIPLES ACROSS ASIA IN GENERAL IS STRONG
THE STATE OF THE MARKET
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
120
100
80
60
40
20
0
55
High Adoption Medium Adoption Low Adoption
All Markets
37
8
34
55
11
23
59
19
28
44
28
26
46
28
25
47
27
30
34
36
45
21
33
32
32
35
33
43
24
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
CHART 4
Could you rank the level of adoption of programmatic across the below countries according to your experience
11
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
8
Despite the high level of proficiency in programmatic trading advertising budgets have been slow to migrate away from direct IO averaging below 50 Among respondents 43 (the highest proportion) typically allocate 20-50 of their advertising budgets to programmatic whereas only 20 are allocating over 50 of their overall digital spend to programmatic (CHART 5)
Unsurprisingly there is a strong correlation between the lsquohigh adoptionrsquo markets and a higher percentage of overall digital budgets apportioned to programmatic ad buying For example 42 of buyers in Singapore generally allocate 20-50 of digital budgets to programmatic and 21 allocate 50-80 Similarly 60 of buyers in Hong Kong allocate 20-50 of digital budgets to programmatic and 11 allocate 50-80
Itrsquos worth noting that there are some interesting anomalies among the medium-to-low adoption markets with 26 of buyers in Vietnam and 27 of buyers in Taiwan reportedly allocating 50
or more of overall digital advertising budgets to programmatic This puts these markets on par with the budget allocation of mature markets in this particular category
BUDGETS ARE SLOWLY MIGRATING FROM DIRECT IO TO PROGRAMMATIC
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
100
90
80
70
60
50
40
30
20
10
0All Markets
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
None 1-20 20-50 50-80 80-100 I Donrsquot Know
27
42
21
23
60
11
34
45
16
41
33
15
27
57
10
51
38
8
54
29
11
35
38
19
32
37
21
36
43
14
CHART 5
For a typical campaign what percentage of overall digital budget is typically allocated to programmatic
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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9
In the feedback obtained from our study buyers pointed to the lsquoclient mandatersquo as an increasingly important factor in allocating a greater portion of advertising budgets to programmatic Media buyers indicated that their direct clientsrsquo understanding of programmatic advertising and their wish to incorporate it into their media buying strategies led them to allocate a greater portion of ad budgets to programmatic channels
With more clients taking an active role in programmatic decision-making and strategy
media buyers will continue to experience increased freedom to transition budgets from direct IO-based buying to programmatic
Yet despite the client mandate to allocate a greater portion of ad budgets to programmatic some resistance to shifting budget away from direct IO-based buying to programmatic
remains 36 of respondents indicated that they are lsquosomewhatrsquo hesitant to move budgets from direct IO to programmatic and 7 indicated an extreme hesitancy to shift budgets to programmatic
WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION22
THE lsquoCLIENT MANDATErsquo PLAYS A ROLE
WHATrsquoS HOLDING PROGRAMMATIC BACK
36
Somewhat Hesitant
7Extremely Hesitant
57
Not at all to Moderately HesitantCHART 6
Across the APAC region as a whole how hesitant are buyers to shift budgets from direct IO to programmatic
Our clients are more receptive to programmatic now compared to two to three years ago
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
IntroductionAccording to Zenithrsquos Programmatic Marketing Forecasts of 2019 Report1 programmatic ad spend was forecasted to rise globally to $127 billion US dollars in 2020 accounting for 69 of all global digital ad spend this year While buyers in Asia recognize the immense opportunity that programmatic presents to digital advertisers the region has been slower than others to move budgets to programmatic
To uncover the barriers to adoption and to assess opportunities to accelerate the growth of programmatic ad spend across different markets in Asia Rubicon Project and Campaign Asia paired up to survey media buyers Our research focuses on market readiness to buy programmatically as well as compares and contrasts findings across established versus emerging markets in the region
We invite you to join us in taking a deep dive into the programmatic opportunities for this diverse and important region and to discover our recommendations for capitalizing on programmaticrsquos potential in 2020 and beyond1 ldquoProgrammatic Marketing Forecasts 2019 ndash Zenithrdquo
PROGRAMMATIC AD BUYING IN ASIA + A note on the COVID-19 Pandemic and
the Impact on the Research
+ Key Findings
+ Methodology
SECTION 1 THE STATE OF THE MARKET + Adoption Rate of Programmatic Buying Principles
Across Asia in General is Strong
+ Budgets are Slowly Migrating from Direct IO to Programmatic
SECTION 2 WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION + The lsquoClient Mandatersquo Plays a Role
+ Whatrsquos Holding Programmatic Back
+ Greater Investment in Education and Skill Development will Help Drive Further Adoption
+ Which Markets Are Poised for Growth
SECTION 3 BUYING BEHAVIORS + The Open Marketplace is the Regionrsquos Primary
Programmatic Buying Method
+ Asiarsquos Mobile-First Mentality Remains Strong
+ The Value of Data-Driven Buying
SECTION 4 THE FUTURE OF PROGRAMMATIC BUYING + OTT is the Leading Pick for Programmatic Growth
RECOMMENDATIONS
P 9 |
P 12 |
P 15 |
P 17 |
P 4 |
P 7 |
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
4
These are some promising results for programmatic advertising in APAC The region might not be the first to adopt programmatic fully but accelerated growth means that it could soon be on par with the US or Europe Encouraging also is the expected growth of Over-the-Top (OTT) as an emerging platform This may be where Asia really makes its mark in programmatic with confidence in this channel expected to strengthen over the coming months Overall media buyers know what they want to get out of programmatic mdash itrsquos just a matter of helping them to gain trust in a fast-evolving market
mdash CHRISTIE LEE SENIOR CONTENT PRODUCER CAMPAIGN ASIA
The original research for this report was conducted at the end of 2019 prior to the COVID-19 outbreak In light of the significant impact of the pandemic on the advertising industry Rubicon Project and Campaign Asia conducted a recontact survey in April 2020 to substantiate the report findings and recommendations
The second wave of our research confirmed that the pandemic has had a limited impact on our findings and our recommendations in this report In fact the second wave of research enriches some of the data collected during the first waversquos findings
The findings suggest that during the uncertainty of the pandemic buyers are looking to data to inform their decisions and will bias towards programmatic advertising due to the inherent targeting measurement and optimization capabilities of the channel
We are encouraged by our findings and that despite a decline in overall advertising budgets media buyers will take advantage of the benefits of programmatic advertising and migrate investment away from direct buying to programmatic
The details of the second wave findings are noted in the body copy of the report
A NOTE ON THE COVID-19 PANDEMIC AND THE IMPACT ON THE RESEARCH
It was pleasing to see a high rate of adoption for programmatic buying across Asia Although some markets still face challenges relating to shifting existing relationships and execution via automated methods the progress over the last five years has been outstanding The regionrsquos diversity demands a unique approach in every market to ensure the promising outlook for continued growth is realised
mdash YOGESH SEHGAL REGIONAL MANAGER ASIA RUBICON PROJECT
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
5
1 The adoption rate of programmatic buying across Asia in general is positive with 76 of buyers stating that the markets in which they operate have a lsquohighrsquo to lsquomediumrsquo level of adoption
2 Despite the optimistic outlook on adoption rate buyers also stated that a lack of understanding of how to plan effective programmatic campaigns outside of the walled gardens and then evaluate their performance is the single biggest challenge holding them back from shifting spend from direct insertion order (IO) to programmatic
3 Data measurement and optimization are the three most important features of programmatic media buying Pricing and budgets are less influential in driving decisions
4 When evaluating programmatic performance ease of optimization relevant targeting and audience reach are the three most valuable key performance indicators (KPIs)
5 Opportunity for programmatic budget growth is most significant in The Philippines India Vietnam Indonesia and Hong Kong with more than 70 of respondents indicating that they expect programmatic budgets to lsquoincreasersquo over the next 12 months
6 Mobile display formats still reign supreme in Asia but Over-the-Top (OTT) platforms and solutions are moving to the forefront and will receive the most significant budget increase in 2020
KEY FINDINGS
METHODOLOGY
Rubicon Project and Campaign Asia surveyed 185 programmatic leaders in nine markets - Hong Kong India Indonesia Malaysia Singapore Taiwan Thailand The Philippines and Vietnam The second wave recontact survey had 36 respondents
Dates in the field (first wave) 31st October - 15th December 2019
Dates in the field (second wave) 8th April - 22nd April 2020
Methodology Written survey and telephone interviews
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
6
WHO TOOK PART
122Indonesia
53Other - Write In
98The Philippines
87Thailand
69Vietnam
73Taiwan
113Singapore
104Hong Kong
169India
111Malaysia
114Other
81
Demand Side Platform
675Media Agency
130
Programmatic Trading Desk
130Head of Department
124C-suite Level
54VP
368Director
146Senior Manager
178Manager
CHART 1
In which countries are you directly involved in buying media
CHART 2
Which of the following best describes your company
CHART 3
Which of the following best describes your role at your company
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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7
According to our survey there is a healthy understanding of programmatic buying principles across Asia with 76 of respondents stating that the markets in which they operate have a lsquohighrsquo or lsquomediumrsquo level of adoption in their market
In this report lsquoadoption ratersquo relates to the maturity of each market including the extent to which programmatic buying is utilised the sophistication of buying strategies and the level of programmatic knowledge among media buyers
Singapore Hong Kong and India are the self-identified mature markets with a strong rate of adoption These markets under-index for lsquolowrsquo adoption versus the average for the nine markets surveyed Meanwhile three of the eight markets Thailand Indonesia and Malaysia selected lsquomediumrsquo adoption The Philippines Taiwan and Vietnam all identified as lsquolowrsquo adoption countries (CHART 4)
ADOPTION RATE OF PROGRAMMATIC BUYING PRINCIPLES ACROSS ASIA IN GENERAL IS STRONG
THE STATE OF THE MARKET
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
120
100
80
60
40
20
0
55
High Adoption Medium Adoption Low Adoption
All Markets
37
8
34
55
11
23
59
19
28
44
28
26
46
28
25
47
27
30
34
36
45
21
33
32
32
35
33
43
24
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
CHART 4
Could you rank the level of adoption of programmatic across the below countries according to your experience
11
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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8
Despite the high level of proficiency in programmatic trading advertising budgets have been slow to migrate away from direct IO averaging below 50 Among respondents 43 (the highest proportion) typically allocate 20-50 of their advertising budgets to programmatic whereas only 20 are allocating over 50 of their overall digital spend to programmatic (CHART 5)
Unsurprisingly there is a strong correlation between the lsquohigh adoptionrsquo markets and a higher percentage of overall digital budgets apportioned to programmatic ad buying For example 42 of buyers in Singapore generally allocate 20-50 of digital budgets to programmatic and 21 allocate 50-80 Similarly 60 of buyers in Hong Kong allocate 20-50 of digital budgets to programmatic and 11 allocate 50-80
Itrsquos worth noting that there are some interesting anomalies among the medium-to-low adoption markets with 26 of buyers in Vietnam and 27 of buyers in Taiwan reportedly allocating 50
or more of overall digital advertising budgets to programmatic This puts these markets on par with the budget allocation of mature markets in this particular category
BUDGETS ARE SLOWLY MIGRATING FROM DIRECT IO TO PROGRAMMATIC
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
100
90
80
70
60
50
40
30
20
10
0All Markets
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
None 1-20 20-50 50-80 80-100 I Donrsquot Know
27
42
21
23
60
11
34
45
16
41
33
15
27
57
10
51
38
8
54
29
11
35
38
19
32
37
21
36
43
14
CHART 5
For a typical campaign what percentage of overall digital budget is typically allocated to programmatic
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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9
In the feedback obtained from our study buyers pointed to the lsquoclient mandatersquo as an increasingly important factor in allocating a greater portion of advertising budgets to programmatic Media buyers indicated that their direct clientsrsquo understanding of programmatic advertising and their wish to incorporate it into their media buying strategies led them to allocate a greater portion of ad budgets to programmatic channels
With more clients taking an active role in programmatic decision-making and strategy
media buyers will continue to experience increased freedom to transition budgets from direct IO-based buying to programmatic
Yet despite the client mandate to allocate a greater portion of ad budgets to programmatic some resistance to shifting budget away from direct IO-based buying to programmatic
remains 36 of respondents indicated that they are lsquosomewhatrsquo hesitant to move budgets from direct IO to programmatic and 7 indicated an extreme hesitancy to shift budgets to programmatic
WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION22
THE lsquoCLIENT MANDATErsquo PLAYS A ROLE
WHATrsquoS HOLDING PROGRAMMATIC BACK
36
Somewhat Hesitant
7Extremely Hesitant
57
Not at all to Moderately HesitantCHART 6
Across the APAC region as a whole how hesitant are buyers to shift budgets from direct IO to programmatic
Our clients are more receptive to programmatic now compared to two to three years ago
mdash CEO MEDIA AGENCY
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10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
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12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
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14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
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16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
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17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA + A note on the COVID-19 Pandemic and
the Impact on the Research
+ Key Findings
+ Methodology
SECTION 1 THE STATE OF THE MARKET + Adoption Rate of Programmatic Buying Principles
Across Asia in General is Strong
+ Budgets are Slowly Migrating from Direct IO to Programmatic
SECTION 2 WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION + The lsquoClient Mandatersquo Plays a Role
+ Whatrsquos Holding Programmatic Back
+ Greater Investment in Education and Skill Development will Help Drive Further Adoption
+ Which Markets Are Poised for Growth
SECTION 3 BUYING BEHAVIORS + The Open Marketplace is the Regionrsquos Primary
Programmatic Buying Method
+ Asiarsquos Mobile-First Mentality Remains Strong
+ The Value of Data-Driven Buying
SECTION 4 THE FUTURE OF PROGRAMMATIC BUYING + OTT is the Leading Pick for Programmatic Growth
RECOMMENDATIONS
P 9 |
P 12 |
P 15 |
P 17 |
P 4 |
P 7 |
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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4
These are some promising results for programmatic advertising in APAC The region might not be the first to adopt programmatic fully but accelerated growth means that it could soon be on par with the US or Europe Encouraging also is the expected growth of Over-the-Top (OTT) as an emerging platform This may be where Asia really makes its mark in programmatic with confidence in this channel expected to strengthen over the coming months Overall media buyers know what they want to get out of programmatic mdash itrsquos just a matter of helping them to gain trust in a fast-evolving market
mdash CHRISTIE LEE SENIOR CONTENT PRODUCER CAMPAIGN ASIA
The original research for this report was conducted at the end of 2019 prior to the COVID-19 outbreak In light of the significant impact of the pandemic on the advertising industry Rubicon Project and Campaign Asia conducted a recontact survey in April 2020 to substantiate the report findings and recommendations
The second wave of our research confirmed that the pandemic has had a limited impact on our findings and our recommendations in this report In fact the second wave of research enriches some of the data collected during the first waversquos findings
The findings suggest that during the uncertainty of the pandemic buyers are looking to data to inform their decisions and will bias towards programmatic advertising due to the inherent targeting measurement and optimization capabilities of the channel
We are encouraged by our findings and that despite a decline in overall advertising budgets media buyers will take advantage of the benefits of programmatic advertising and migrate investment away from direct buying to programmatic
The details of the second wave findings are noted in the body copy of the report
A NOTE ON THE COVID-19 PANDEMIC AND THE IMPACT ON THE RESEARCH
It was pleasing to see a high rate of adoption for programmatic buying across Asia Although some markets still face challenges relating to shifting existing relationships and execution via automated methods the progress over the last five years has been outstanding The regionrsquos diversity demands a unique approach in every market to ensure the promising outlook for continued growth is realised
mdash YOGESH SEHGAL REGIONAL MANAGER ASIA RUBICON PROJECT
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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5
1 The adoption rate of programmatic buying across Asia in general is positive with 76 of buyers stating that the markets in which they operate have a lsquohighrsquo to lsquomediumrsquo level of adoption
2 Despite the optimistic outlook on adoption rate buyers also stated that a lack of understanding of how to plan effective programmatic campaigns outside of the walled gardens and then evaluate their performance is the single biggest challenge holding them back from shifting spend from direct insertion order (IO) to programmatic
3 Data measurement and optimization are the three most important features of programmatic media buying Pricing and budgets are less influential in driving decisions
4 When evaluating programmatic performance ease of optimization relevant targeting and audience reach are the three most valuable key performance indicators (KPIs)
5 Opportunity for programmatic budget growth is most significant in The Philippines India Vietnam Indonesia and Hong Kong with more than 70 of respondents indicating that they expect programmatic budgets to lsquoincreasersquo over the next 12 months
6 Mobile display formats still reign supreme in Asia but Over-the-Top (OTT) platforms and solutions are moving to the forefront and will receive the most significant budget increase in 2020
KEY FINDINGS
METHODOLOGY
Rubicon Project and Campaign Asia surveyed 185 programmatic leaders in nine markets - Hong Kong India Indonesia Malaysia Singapore Taiwan Thailand The Philippines and Vietnam The second wave recontact survey had 36 respondents
Dates in the field (first wave) 31st October - 15th December 2019
Dates in the field (second wave) 8th April - 22nd April 2020
Methodology Written survey and telephone interviews
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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6
WHO TOOK PART
122Indonesia
53Other - Write In
98The Philippines
87Thailand
69Vietnam
73Taiwan
113Singapore
104Hong Kong
169India
111Malaysia
114Other
81
Demand Side Platform
675Media Agency
130
Programmatic Trading Desk
130Head of Department
124C-suite Level
54VP
368Director
146Senior Manager
178Manager
CHART 1
In which countries are you directly involved in buying media
CHART 2
Which of the following best describes your company
CHART 3
Which of the following best describes your role at your company
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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7
According to our survey there is a healthy understanding of programmatic buying principles across Asia with 76 of respondents stating that the markets in which they operate have a lsquohighrsquo or lsquomediumrsquo level of adoption in their market
In this report lsquoadoption ratersquo relates to the maturity of each market including the extent to which programmatic buying is utilised the sophistication of buying strategies and the level of programmatic knowledge among media buyers
Singapore Hong Kong and India are the self-identified mature markets with a strong rate of adoption These markets under-index for lsquolowrsquo adoption versus the average for the nine markets surveyed Meanwhile three of the eight markets Thailand Indonesia and Malaysia selected lsquomediumrsquo adoption The Philippines Taiwan and Vietnam all identified as lsquolowrsquo adoption countries (CHART 4)
ADOPTION RATE OF PROGRAMMATIC BUYING PRINCIPLES ACROSS ASIA IN GENERAL IS STRONG
THE STATE OF THE MARKET
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
120
100
80
60
40
20
0
55
High Adoption Medium Adoption Low Adoption
All Markets
37
8
34
55
11
23
59
19
28
44
28
26
46
28
25
47
27
30
34
36
45
21
33
32
32
35
33
43
24
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
CHART 4
Could you rank the level of adoption of programmatic across the below countries according to your experience
11
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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8
Despite the high level of proficiency in programmatic trading advertising budgets have been slow to migrate away from direct IO averaging below 50 Among respondents 43 (the highest proportion) typically allocate 20-50 of their advertising budgets to programmatic whereas only 20 are allocating over 50 of their overall digital spend to programmatic (CHART 5)
Unsurprisingly there is a strong correlation between the lsquohigh adoptionrsquo markets and a higher percentage of overall digital budgets apportioned to programmatic ad buying For example 42 of buyers in Singapore generally allocate 20-50 of digital budgets to programmatic and 21 allocate 50-80 Similarly 60 of buyers in Hong Kong allocate 20-50 of digital budgets to programmatic and 11 allocate 50-80
Itrsquos worth noting that there are some interesting anomalies among the medium-to-low adoption markets with 26 of buyers in Vietnam and 27 of buyers in Taiwan reportedly allocating 50
or more of overall digital advertising budgets to programmatic This puts these markets on par with the budget allocation of mature markets in this particular category
BUDGETS ARE SLOWLY MIGRATING FROM DIRECT IO TO PROGRAMMATIC
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
100
90
80
70
60
50
40
30
20
10
0All Markets
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
None 1-20 20-50 50-80 80-100 I Donrsquot Know
27
42
21
23
60
11
34
45
16
41
33
15
27
57
10
51
38
8
54
29
11
35
38
19
32
37
21
36
43
14
CHART 5
For a typical campaign what percentage of overall digital budget is typically allocated to programmatic
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
9
In the feedback obtained from our study buyers pointed to the lsquoclient mandatersquo as an increasingly important factor in allocating a greater portion of advertising budgets to programmatic Media buyers indicated that their direct clientsrsquo understanding of programmatic advertising and their wish to incorporate it into their media buying strategies led them to allocate a greater portion of ad budgets to programmatic channels
With more clients taking an active role in programmatic decision-making and strategy
media buyers will continue to experience increased freedom to transition budgets from direct IO-based buying to programmatic
Yet despite the client mandate to allocate a greater portion of ad budgets to programmatic some resistance to shifting budget away from direct IO-based buying to programmatic
remains 36 of respondents indicated that they are lsquosomewhatrsquo hesitant to move budgets from direct IO to programmatic and 7 indicated an extreme hesitancy to shift budgets to programmatic
WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION22
THE lsquoCLIENT MANDATErsquo PLAYS A ROLE
WHATrsquoS HOLDING PROGRAMMATIC BACK
36
Somewhat Hesitant
7Extremely Hesitant
57
Not at all to Moderately HesitantCHART 6
Across the APAC region as a whole how hesitant are buyers to shift budgets from direct IO to programmatic
Our clients are more receptive to programmatic now compared to two to three years ago
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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4
These are some promising results for programmatic advertising in APAC The region might not be the first to adopt programmatic fully but accelerated growth means that it could soon be on par with the US or Europe Encouraging also is the expected growth of Over-the-Top (OTT) as an emerging platform This may be where Asia really makes its mark in programmatic with confidence in this channel expected to strengthen over the coming months Overall media buyers know what they want to get out of programmatic mdash itrsquos just a matter of helping them to gain trust in a fast-evolving market
mdash CHRISTIE LEE SENIOR CONTENT PRODUCER CAMPAIGN ASIA
The original research for this report was conducted at the end of 2019 prior to the COVID-19 outbreak In light of the significant impact of the pandemic on the advertising industry Rubicon Project and Campaign Asia conducted a recontact survey in April 2020 to substantiate the report findings and recommendations
The second wave of our research confirmed that the pandemic has had a limited impact on our findings and our recommendations in this report In fact the second wave of research enriches some of the data collected during the first waversquos findings
The findings suggest that during the uncertainty of the pandemic buyers are looking to data to inform their decisions and will bias towards programmatic advertising due to the inherent targeting measurement and optimization capabilities of the channel
We are encouraged by our findings and that despite a decline in overall advertising budgets media buyers will take advantage of the benefits of programmatic advertising and migrate investment away from direct buying to programmatic
The details of the second wave findings are noted in the body copy of the report
A NOTE ON THE COVID-19 PANDEMIC AND THE IMPACT ON THE RESEARCH
It was pleasing to see a high rate of adoption for programmatic buying across Asia Although some markets still face challenges relating to shifting existing relationships and execution via automated methods the progress over the last five years has been outstanding The regionrsquos diversity demands a unique approach in every market to ensure the promising outlook for continued growth is realised
mdash YOGESH SEHGAL REGIONAL MANAGER ASIA RUBICON PROJECT
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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5
1 The adoption rate of programmatic buying across Asia in general is positive with 76 of buyers stating that the markets in which they operate have a lsquohighrsquo to lsquomediumrsquo level of adoption
2 Despite the optimistic outlook on adoption rate buyers also stated that a lack of understanding of how to plan effective programmatic campaigns outside of the walled gardens and then evaluate their performance is the single biggest challenge holding them back from shifting spend from direct insertion order (IO) to programmatic
3 Data measurement and optimization are the three most important features of programmatic media buying Pricing and budgets are less influential in driving decisions
4 When evaluating programmatic performance ease of optimization relevant targeting and audience reach are the three most valuable key performance indicators (KPIs)
5 Opportunity for programmatic budget growth is most significant in The Philippines India Vietnam Indonesia and Hong Kong with more than 70 of respondents indicating that they expect programmatic budgets to lsquoincreasersquo over the next 12 months
6 Mobile display formats still reign supreme in Asia but Over-the-Top (OTT) platforms and solutions are moving to the forefront and will receive the most significant budget increase in 2020
KEY FINDINGS
METHODOLOGY
Rubicon Project and Campaign Asia surveyed 185 programmatic leaders in nine markets - Hong Kong India Indonesia Malaysia Singapore Taiwan Thailand The Philippines and Vietnam The second wave recontact survey had 36 respondents
Dates in the field (first wave) 31st October - 15th December 2019
Dates in the field (second wave) 8th April - 22nd April 2020
Methodology Written survey and telephone interviews
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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6
WHO TOOK PART
122Indonesia
53Other - Write In
98The Philippines
87Thailand
69Vietnam
73Taiwan
113Singapore
104Hong Kong
169India
111Malaysia
114Other
81
Demand Side Platform
675Media Agency
130
Programmatic Trading Desk
130Head of Department
124C-suite Level
54VP
368Director
146Senior Manager
178Manager
CHART 1
In which countries are you directly involved in buying media
CHART 2
Which of the following best describes your company
CHART 3
Which of the following best describes your role at your company
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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7
According to our survey there is a healthy understanding of programmatic buying principles across Asia with 76 of respondents stating that the markets in which they operate have a lsquohighrsquo or lsquomediumrsquo level of adoption in their market
In this report lsquoadoption ratersquo relates to the maturity of each market including the extent to which programmatic buying is utilised the sophistication of buying strategies and the level of programmatic knowledge among media buyers
Singapore Hong Kong and India are the self-identified mature markets with a strong rate of adoption These markets under-index for lsquolowrsquo adoption versus the average for the nine markets surveyed Meanwhile three of the eight markets Thailand Indonesia and Malaysia selected lsquomediumrsquo adoption The Philippines Taiwan and Vietnam all identified as lsquolowrsquo adoption countries (CHART 4)
ADOPTION RATE OF PROGRAMMATIC BUYING PRINCIPLES ACROSS ASIA IN GENERAL IS STRONG
THE STATE OF THE MARKET
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
120
100
80
60
40
20
0
55
High Adoption Medium Adoption Low Adoption
All Markets
37
8
34
55
11
23
59
19
28
44
28
26
46
28
25
47
27
30
34
36
45
21
33
32
32
35
33
43
24
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
CHART 4
Could you rank the level of adoption of programmatic across the below countries according to your experience
11
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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8
Despite the high level of proficiency in programmatic trading advertising budgets have been slow to migrate away from direct IO averaging below 50 Among respondents 43 (the highest proportion) typically allocate 20-50 of their advertising budgets to programmatic whereas only 20 are allocating over 50 of their overall digital spend to programmatic (CHART 5)
Unsurprisingly there is a strong correlation between the lsquohigh adoptionrsquo markets and a higher percentage of overall digital budgets apportioned to programmatic ad buying For example 42 of buyers in Singapore generally allocate 20-50 of digital budgets to programmatic and 21 allocate 50-80 Similarly 60 of buyers in Hong Kong allocate 20-50 of digital budgets to programmatic and 11 allocate 50-80
Itrsquos worth noting that there are some interesting anomalies among the medium-to-low adoption markets with 26 of buyers in Vietnam and 27 of buyers in Taiwan reportedly allocating 50
or more of overall digital advertising budgets to programmatic This puts these markets on par with the budget allocation of mature markets in this particular category
BUDGETS ARE SLOWLY MIGRATING FROM DIRECT IO TO PROGRAMMATIC
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
100
90
80
70
60
50
40
30
20
10
0All Markets
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
None 1-20 20-50 50-80 80-100 I Donrsquot Know
27
42
21
23
60
11
34
45
16
41
33
15
27
57
10
51
38
8
54
29
11
35
38
19
32
37
21
36
43
14
CHART 5
For a typical campaign what percentage of overall digital budget is typically allocated to programmatic
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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9
In the feedback obtained from our study buyers pointed to the lsquoclient mandatersquo as an increasingly important factor in allocating a greater portion of advertising budgets to programmatic Media buyers indicated that their direct clientsrsquo understanding of programmatic advertising and their wish to incorporate it into their media buying strategies led them to allocate a greater portion of ad budgets to programmatic channels
With more clients taking an active role in programmatic decision-making and strategy
media buyers will continue to experience increased freedom to transition budgets from direct IO-based buying to programmatic
Yet despite the client mandate to allocate a greater portion of ad budgets to programmatic some resistance to shifting budget away from direct IO-based buying to programmatic
remains 36 of respondents indicated that they are lsquosomewhatrsquo hesitant to move budgets from direct IO to programmatic and 7 indicated an extreme hesitancy to shift budgets to programmatic
WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION22
THE lsquoCLIENT MANDATErsquo PLAYS A ROLE
WHATrsquoS HOLDING PROGRAMMATIC BACK
36
Somewhat Hesitant
7Extremely Hesitant
57
Not at all to Moderately HesitantCHART 6
Across the APAC region as a whole how hesitant are buyers to shift budgets from direct IO to programmatic
Our clients are more receptive to programmatic now compared to two to three years ago
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
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17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
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5
1 The adoption rate of programmatic buying across Asia in general is positive with 76 of buyers stating that the markets in which they operate have a lsquohighrsquo to lsquomediumrsquo level of adoption
2 Despite the optimistic outlook on adoption rate buyers also stated that a lack of understanding of how to plan effective programmatic campaigns outside of the walled gardens and then evaluate their performance is the single biggest challenge holding them back from shifting spend from direct insertion order (IO) to programmatic
3 Data measurement and optimization are the three most important features of programmatic media buying Pricing and budgets are less influential in driving decisions
4 When evaluating programmatic performance ease of optimization relevant targeting and audience reach are the three most valuable key performance indicators (KPIs)
5 Opportunity for programmatic budget growth is most significant in The Philippines India Vietnam Indonesia and Hong Kong with more than 70 of respondents indicating that they expect programmatic budgets to lsquoincreasersquo over the next 12 months
6 Mobile display formats still reign supreme in Asia but Over-the-Top (OTT) platforms and solutions are moving to the forefront and will receive the most significant budget increase in 2020
KEY FINDINGS
METHODOLOGY
Rubicon Project and Campaign Asia surveyed 185 programmatic leaders in nine markets - Hong Kong India Indonesia Malaysia Singapore Taiwan Thailand The Philippines and Vietnam The second wave recontact survey had 36 respondents
Dates in the field (first wave) 31st October - 15th December 2019
Dates in the field (second wave) 8th April - 22nd April 2020
Methodology Written survey and telephone interviews
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6
WHO TOOK PART
122Indonesia
53Other - Write In
98The Philippines
87Thailand
69Vietnam
73Taiwan
113Singapore
104Hong Kong
169India
111Malaysia
114Other
81
Demand Side Platform
675Media Agency
130
Programmatic Trading Desk
130Head of Department
124C-suite Level
54VP
368Director
146Senior Manager
178Manager
CHART 1
In which countries are you directly involved in buying media
CHART 2
Which of the following best describes your company
CHART 3
Which of the following best describes your role at your company
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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7
According to our survey there is a healthy understanding of programmatic buying principles across Asia with 76 of respondents stating that the markets in which they operate have a lsquohighrsquo or lsquomediumrsquo level of adoption in their market
In this report lsquoadoption ratersquo relates to the maturity of each market including the extent to which programmatic buying is utilised the sophistication of buying strategies and the level of programmatic knowledge among media buyers
Singapore Hong Kong and India are the self-identified mature markets with a strong rate of adoption These markets under-index for lsquolowrsquo adoption versus the average for the nine markets surveyed Meanwhile three of the eight markets Thailand Indonesia and Malaysia selected lsquomediumrsquo adoption The Philippines Taiwan and Vietnam all identified as lsquolowrsquo adoption countries (CHART 4)
ADOPTION RATE OF PROGRAMMATIC BUYING PRINCIPLES ACROSS ASIA IN GENERAL IS STRONG
THE STATE OF THE MARKET
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
120
100
80
60
40
20
0
55
High Adoption Medium Adoption Low Adoption
All Markets
37
8
34
55
11
23
59
19
28
44
28
26
46
28
25
47
27
30
34
36
45
21
33
32
32
35
33
43
24
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
CHART 4
Could you rank the level of adoption of programmatic across the below countries according to your experience
11
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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8
Despite the high level of proficiency in programmatic trading advertising budgets have been slow to migrate away from direct IO averaging below 50 Among respondents 43 (the highest proportion) typically allocate 20-50 of their advertising budgets to programmatic whereas only 20 are allocating over 50 of their overall digital spend to programmatic (CHART 5)
Unsurprisingly there is a strong correlation between the lsquohigh adoptionrsquo markets and a higher percentage of overall digital budgets apportioned to programmatic ad buying For example 42 of buyers in Singapore generally allocate 20-50 of digital budgets to programmatic and 21 allocate 50-80 Similarly 60 of buyers in Hong Kong allocate 20-50 of digital budgets to programmatic and 11 allocate 50-80
Itrsquos worth noting that there are some interesting anomalies among the medium-to-low adoption markets with 26 of buyers in Vietnam and 27 of buyers in Taiwan reportedly allocating 50
or more of overall digital advertising budgets to programmatic This puts these markets on par with the budget allocation of mature markets in this particular category
BUDGETS ARE SLOWLY MIGRATING FROM DIRECT IO TO PROGRAMMATIC
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
100
90
80
70
60
50
40
30
20
10
0All Markets
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
None 1-20 20-50 50-80 80-100 I Donrsquot Know
27
42
21
23
60
11
34
45
16
41
33
15
27
57
10
51
38
8
54
29
11
35
38
19
32
37
21
36
43
14
CHART 5
For a typical campaign what percentage of overall digital budget is typically allocated to programmatic
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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9
In the feedback obtained from our study buyers pointed to the lsquoclient mandatersquo as an increasingly important factor in allocating a greater portion of advertising budgets to programmatic Media buyers indicated that their direct clientsrsquo understanding of programmatic advertising and their wish to incorporate it into their media buying strategies led them to allocate a greater portion of ad budgets to programmatic channels
With more clients taking an active role in programmatic decision-making and strategy
media buyers will continue to experience increased freedom to transition budgets from direct IO-based buying to programmatic
Yet despite the client mandate to allocate a greater portion of ad budgets to programmatic some resistance to shifting budget away from direct IO-based buying to programmatic
remains 36 of respondents indicated that they are lsquosomewhatrsquo hesitant to move budgets from direct IO to programmatic and 7 indicated an extreme hesitancy to shift budgets to programmatic
WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION22
THE lsquoCLIENT MANDATErsquo PLAYS A ROLE
WHATrsquoS HOLDING PROGRAMMATIC BACK
36
Somewhat Hesitant
7Extremely Hesitant
57
Not at all to Moderately HesitantCHART 6
Across the APAC region as a whole how hesitant are buyers to shift budgets from direct IO to programmatic
Our clients are more receptive to programmatic now compared to two to three years ago
mdash CEO MEDIA AGENCY
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10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
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12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
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14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
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15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
6
WHO TOOK PART
122Indonesia
53Other - Write In
98The Philippines
87Thailand
69Vietnam
73Taiwan
113Singapore
104Hong Kong
169India
111Malaysia
114Other
81
Demand Side Platform
675Media Agency
130
Programmatic Trading Desk
130Head of Department
124C-suite Level
54VP
368Director
146Senior Manager
178Manager
CHART 1
In which countries are you directly involved in buying media
CHART 2
Which of the following best describes your company
CHART 3
Which of the following best describes your role at your company
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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7
According to our survey there is a healthy understanding of programmatic buying principles across Asia with 76 of respondents stating that the markets in which they operate have a lsquohighrsquo or lsquomediumrsquo level of adoption in their market
In this report lsquoadoption ratersquo relates to the maturity of each market including the extent to which programmatic buying is utilised the sophistication of buying strategies and the level of programmatic knowledge among media buyers
Singapore Hong Kong and India are the self-identified mature markets with a strong rate of adoption These markets under-index for lsquolowrsquo adoption versus the average for the nine markets surveyed Meanwhile three of the eight markets Thailand Indonesia and Malaysia selected lsquomediumrsquo adoption The Philippines Taiwan and Vietnam all identified as lsquolowrsquo adoption countries (CHART 4)
ADOPTION RATE OF PROGRAMMATIC BUYING PRINCIPLES ACROSS ASIA IN GENERAL IS STRONG
THE STATE OF THE MARKET
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
120
100
80
60
40
20
0
55
High Adoption Medium Adoption Low Adoption
All Markets
37
8
34
55
11
23
59
19
28
44
28
26
46
28
25
47
27
30
34
36
45
21
33
32
32
35
33
43
24
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
CHART 4
Could you rank the level of adoption of programmatic across the below countries according to your experience
11
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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8
Despite the high level of proficiency in programmatic trading advertising budgets have been slow to migrate away from direct IO averaging below 50 Among respondents 43 (the highest proportion) typically allocate 20-50 of their advertising budgets to programmatic whereas only 20 are allocating over 50 of their overall digital spend to programmatic (CHART 5)
Unsurprisingly there is a strong correlation between the lsquohigh adoptionrsquo markets and a higher percentage of overall digital budgets apportioned to programmatic ad buying For example 42 of buyers in Singapore generally allocate 20-50 of digital budgets to programmatic and 21 allocate 50-80 Similarly 60 of buyers in Hong Kong allocate 20-50 of digital budgets to programmatic and 11 allocate 50-80
Itrsquos worth noting that there are some interesting anomalies among the medium-to-low adoption markets with 26 of buyers in Vietnam and 27 of buyers in Taiwan reportedly allocating 50
or more of overall digital advertising budgets to programmatic This puts these markets on par with the budget allocation of mature markets in this particular category
BUDGETS ARE SLOWLY MIGRATING FROM DIRECT IO TO PROGRAMMATIC
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
100
90
80
70
60
50
40
30
20
10
0All Markets
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
None 1-20 20-50 50-80 80-100 I Donrsquot Know
27
42
21
23
60
11
34
45
16
41
33
15
27
57
10
51
38
8
54
29
11
35
38
19
32
37
21
36
43
14
CHART 5
For a typical campaign what percentage of overall digital budget is typically allocated to programmatic
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
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9
In the feedback obtained from our study buyers pointed to the lsquoclient mandatersquo as an increasingly important factor in allocating a greater portion of advertising budgets to programmatic Media buyers indicated that their direct clientsrsquo understanding of programmatic advertising and their wish to incorporate it into their media buying strategies led them to allocate a greater portion of ad budgets to programmatic channels
With more clients taking an active role in programmatic decision-making and strategy
media buyers will continue to experience increased freedom to transition budgets from direct IO-based buying to programmatic
Yet despite the client mandate to allocate a greater portion of ad budgets to programmatic some resistance to shifting budget away from direct IO-based buying to programmatic
remains 36 of respondents indicated that they are lsquosomewhatrsquo hesitant to move budgets from direct IO to programmatic and 7 indicated an extreme hesitancy to shift budgets to programmatic
WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION22
THE lsquoCLIENT MANDATErsquo PLAYS A ROLE
WHATrsquoS HOLDING PROGRAMMATIC BACK
36
Somewhat Hesitant
7Extremely Hesitant
57
Not at all to Moderately HesitantCHART 6
Across the APAC region as a whole how hesitant are buyers to shift budgets from direct IO to programmatic
Our clients are more receptive to programmatic now compared to two to three years ago
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
7
According to our survey there is a healthy understanding of programmatic buying principles across Asia with 76 of respondents stating that the markets in which they operate have a lsquohighrsquo or lsquomediumrsquo level of adoption in their market
In this report lsquoadoption ratersquo relates to the maturity of each market including the extent to which programmatic buying is utilised the sophistication of buying strategies and the level of programmatic knowledge among media buyers
Singapore Hong Kong and India are the self-identified mature markets with a strong rate of adoption These markets under-index for lsquolowrsquo adoption versus the average for the nine markets surveyed Meanwhile three of the eight markets Thailand Indonesia and Malaysia selected lsquomediumrsquo adoption The Philippines Taiwan and Vietnam all identified as lsquolowrsquo adoption countries (CHART 4)
ADOPTION RATE OF PROGRAMMATIC BUYING PRINCIPLES ACROSS ASIA IN GENERAL IS STRONG
THE STATE OF THE MARKET
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
120
100
80
60
40
20
0
55
High Adoption Medium Adoption Low Adoption
All Markets
37
8
34
55
11
23
59
19
28
44
28
26
46
28
25
47
27
30
34
36
45
21
33
32
32
35
33
43
24
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
CHART 4
Could you rank the level of adoption of programmatic across the below countries according to your experience
11
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
8
Despite the high level of proficiency in programmatic trading advertising budgets have been slow to migrate away from direct IO averaging below 50 Among respondents 43 (the highest proportion) typically allocate 20-50 of their advertising budgets to programmatic whereas only 20 are allocating over 50 of their overall digital spend to programmatic (CHART 5)
Unsurprisingly there is a strong correlation between the lsquohigh adoptionrsquo markets and a higher percentage of overall digital budgets apportioned to programmatic ad buying For example 42 of buyers in Singapore generally allocate 20-50 of digital budgets to programmatic and 21 allocate 50-80 Similarly 60 of buyers in Hong Kong allocate 20-50 of digital budgets to programmatic and 11 allocate 50-80
Itrsquos worth noting that there are some interesting anomalies among the medium-to-low adoption markets with 26 of buyers in Vietnam and 27 of buyers in Taiwan reportedly allocating 50
or more of overall digital advertising budgets to programmatic This puts these markets on par with the budget allocation of mature markets in this particular category
BUDGETS ARE SLOWLY MIGRATING FROM DIRECT IO TO PROGRAMMATIC
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
100
90
80
70
60
50
40
30
20
10
0All Markets
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
None 1-20 20-50 50-80 80-100 I Donrsquot Know
27
42
21
23
60
11
34
45
16
41
33
15
27
57
10
51
38
8
54
29
11
35
38
19
32
37
21
36
43
14
CHART 5
For a typical campaign what percentage of overall digital budget is typically allocated to programmatic
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
9
In the feedback obtained from our study buyers pointed to the lsquoclient mandatersquo as an increasingly important factor in allocating a greater portion of advertising budgets to programmatic Media buyers indicated that their direct clientsrsquo understanding of programmatic advertising and their wish to incorporate it into their media buying strategies led them to allocate a greater portion of ad budgets to programmatic channels
With more clients taking an active role in programmatic decision-making and strategy
media buyers will continue to experience increased freedom to transition budgets from direct IO-based buying to programmatic
Yet despite the client mandate to allocate a greater portion of ad budgets to programmatic some resistance to shifting budget away from direct IO-based buying to programmatic
remains 36 of respondents indicated that they are lsquosomewhatrsquo hesitant to move budgets from direct IO to programmatic and 7 indicated an extreme hesitancy to shift budgets to programmatic
WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION22
THE lsquoCLIENT MANDATErsquo PLAYS A ROLE
WHATrsquoS HOLDING PROGRAMMATIC BACK
36
Somewhat Hesitant
7Extremely Hesitant
57
Not at all to Moderately HesitantCHART 6
Across the APAC region as a whole how hesitant are buyers to shift budgets from direct IO to programmatic
Our clients are more receptive to programmatic now compared to two to three years ago
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
8
Despite the high level of proficiency in programmatic trading advertising budgets have been slow to migrate away from direct IO averaging below 50 Among respondents 43 (the highest proportion) typically allocate 20-50 of their advertising budgets to programmatic whereas only 20 are allocating over 50 of their overall digital spend to programmatic (CHART 5)
Unsurprisingly there is a strong correlation between the lsquohigh adoptionrsquo markets and a higher percentage of overall digital budgets apportioned to programmatic ad buying For example 42 of buyers in Singapore generally allocate 20-50 of digital budgets to programmatic and 21 allocate 50-80 Similarly 60 of buyers in Hong Kong allocate 20-50 of digital budgets to programmatic and 11 allocate 50-80
Itrsquos worth noting that there are some interesting anomalies among the medium-to-low adoption markets with 26 of buyers in Vietnam and 27 of buyers in Taiwan reportedly allocating 50
or more of overall digital advertising budgets to programmatic This puts these markets on par with the budget allocation of mature markets in this particular category
BUDGETS ARE SLOWLY MIGRATING FROM DIRECT IO TO PROGRAMMATIC
Singapore Hong Kong India Thailand Malaysia Indonesia ThePhilippines
Taiwan Vietnam
100
90
80
70
60
50
40
30
20
10
0All Markets
MEDIUM ADOPTION LOW ADOPTIONHIGH ADOPTION
None 1-20 20-50 50-80 80-100 I Donrsquot Know
27
42
21
23
60
11
34
45
16
41
33
15
27
57
10
51
38
8
54
29
11
35
38
19
32
37
21
36
43
14
CHART 5
For a typical campaign what percentage of overall digital budget is typically allocated to programmatic
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
9
In the feedback obtained from our study buyers pointed to the lsquoclient mandatersquo as an increasingly important factor in allocating a greater portion of advertising budgets to programmatic Media buyers indicated that their direct clientsrsquo understanding of programmatic advertising and their wish to incorporate it into their media buying strategies led them to allocate a greater portion of ad budgets to programmatic channels
With more clients taking an active role in programmatic decision-making and strategy
media buyers will continue to experience increased freedom to transition budgets from direct IO-based buying to programmatic
Yet despite the client mandate to allocate a greater portion of ad budgets to programmatic some resistance to shifting budget away from direct IO-based buying to programmatic
remains 36 of respondents indicated that they are lsquosomewhatrsquo hesitant to move budgets from direct IO to programmatic and 7 indicated an extreme hesitancy to shift budgets to programmatic
WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION22
THE lsquoCLIENT MANDATErsquo PLAYS A ROLE
WHATrsquoS HOLDING PROGRAMMATIC BACK
36
Somewhat Hesitant
7Extremely Hesitant
57
Not at all to Moderately HesitantCHART 6
Across the APAC region as a whole how hesitant are buyers to shift budgets from direct IO to programmatic
Our clients are more receptive to programmatic now compared to two to three years ago
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
9
In the feedback obtained from our study buyers pointed to the lsquoclient mandatersquo as an increasingly important factor in allocating a greater portion of advertising budgets to programmatic Media buyers indicated that their direct clientsrsquo understanding of programmatic advertising and their wish to incorporate it into their media buying strategies led them to allocate a greater portion of ad budgets to programmatic channels
With more clients taking an active role in programmatic decision-making and strategy
media buyers will continue to experience increased freedom to transition budgets from direct IO-based buying to programmatic
Yet despite the client mandate to allocate a greater portion of ad budgets to programmatic some resistance to shifting budget away from direct IO-based buying to programmatic
remains 36 of respondents indicated that they are lsquosomewhatrsquo hesitant to move budgets from direct IO to programmatic and 7 indicated an extreme hesitancy to shift budgets to programmatic
WHAT FACTORS ARE DRIVING AND PREVENTING ADOPTION22
THE lsquoCLIENT MANDATErsquo PLAYS A ROLE
WHATrsquoS HOLDING PROGRAMMATIC BACK
36
Somewhat Hesitant
7Extremely Hesitant
57
Not at all to Moderately HesitantCHART 6
Across the APAC region as a whole how hesitant are buyers to shift budgets from direct IO to programmatic
Our clients are more receptive to programmatic now compared to two to three years ago
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
10
This hesitancy suggests another common theme holding budgets back among the somewhat-to-extremely-hesitant group of buyers which is a bias for direct IO versus programmatic buying Shifting budgets to programmatic is perceived as disrupting established relationships between publisher sales representatives and media buyers However media buyers should question the value of this practice and select the transaction method that will deliver efficiency and a return on investment (ROI) for advertising budgets
GREATER INVESTMENT IN EDUCATION AND SKILL DEVELOPMENT WILL HELP DRIVE FURTHER ADOPTION
While there is a healthy understanding of programmatic ad buying across Asia the rapidly-evolving nature of the programmatic industry makes keeping pace with the newest technologies and best practices an ongoing challenge
Buyers across Asia indicated that they believe the single biggest challenge hindering further growth of programmatic advertising budgets is a lack of understanding and a lack of appropriate skills to effectively plan and execute programmatic ad campaigns particularly outside of the walled gardens
With the industry in a constant state of change there is a critical need for continual education of the buy-side regardless of seniority or market maturity This will help build a thorough understanding of new technologies and ensure each buyer can effectively plan programmatic ad campaigns
In order to unlock more programmatic advertising budgets buyers indicated that education and training can help address the following challenges
1 Lack of understanding of advanced programmatic principles
2 Effective planning and measurement of programmatic campaigns specifically outside of the walled gardens
3 Concerns about trust brand safety traffic quality and ad fraud
Many of the existing relationships our buying team has with the direct sales team [are holding programmatic budgets back] The sales team themselves are also very reluctant to sell the needs of programmatic quite often because they can earn more by selling directly
mdash ASSOCIATE DIRECTOR GLOBAL PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
11
Looking forward there is significant opportunity for growth in Asia with 70 of buyers in the region indicating that they expected budgets to increase over the coming year notably in The Philippines Vietnam India Indonesia and
Hong Kong (CHART 7) Encouragingly only a small proportion of the respondents from two markets (Vietnam and Malaysia) said that they expected programmatic advertising budgets to decrease
The results of the second wave of our research support the encouraging outlook on programmatic advertising budgets across the region Although overall digital media budgets have experienced a downturn particularly in verticals such as travel and sport programmatic advertising budgets are predicted to remain relatively stable Our findings revealed that 88 of respondents across the region expect budgets to remain the same or increase However despite this positive outlook it is too early to predict how the COVID-19 pandemic will ultimately impact advertising budgets
ThePhilippines
India Vietnam Indonesia Hong Kong Malaysia Singapore Thailand All Markets(Wave One)
All Markets(Wave Two)
100
90
80
70
60
50
40
30
20
10
0
Increase Decrease Remain The Same I Donrsquot Know
Taiwan
82
18
74
21
74
21
5
73
27
71
26
67
30
3
64
30
63
30
70
25
67
21
12
65
27
CHART 7
How do you expect the percentage of overall digital budget allocated to programmatic to shift over the next 12 months
WHICH MARKETS ARE POISED FOR GROWTH
Overall spend in programmatic is definitely affected because of the pandemic However the nature of programmatic has also allowed it to adapt with various data signals available to help clients navigate such times Examples include capability to ensure brand suitability and identifying consumer consumption trends
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
12
As the Open Marketplace (OMP) is a simple lsquoplug and playrsquo option it is established as the foundation of many buyersrsquo performance campaigns OMP is often favored for cost efficiencies and scale and generally requires less manual intervention to execute than programmatic guaranteed (PG) or private marketplace (PMP) deals
Currently more than 74 of survey respondents said they are lsquoalwaysrsquo or lsquooftenrsquo looking to OMP to execute their programmatic campaigns However it is likely that the reliance on OMP will reduce as PMP and PG deals gain traction 54 of respondents reported that they lsquoalwaysrsquo or lsquooftenrsquo use PMP deals Meanwhile 57 said they lsquoalwaysrsquo or lsquooftenrsquo turn to PG or direct marketplace deals for their programmatic buying
The results of the second wave of our research broadly support the original findings with OMP remaining the preferred buying method across the region OMP is likely favoured during this
time of uncertainty because it offers media buyers more flexibility than PMP and PG and requires no commitment to publishers on volumes and pricing
BUYING BEHAVIORS33
THE OPEN MARKETPLACE IS THE REGIONrsquoS PRIMARY PROGRAMMATIC BUYING METHOD
CHART 8
How frequently do you use the below buying strategy
Always Often Seldom Never
Open Marketplace Private Marketplace Programmatic GuaranteedDirect Marketplace
50
45
40
35
30
25
20
15
10
5
06
18
34
42
8
28
42
22
6
26
43
24
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
13
In line with Asiarsquos mobile-first economy buyers named mobile display as the format that they intend to purchase most frequently via programmatic pipes in 2020 which correlates with advertising investment worldwide in mobile display Last year worldwide mobile ad spend hit $190 billion US dollars and it is expected to surpass $280 billion US dollars by 20222
The top three channels and inventory types buyers will purchase over next 12 months are
While display and video are clearly on the rise in Asia more work is required to increase the purchase intent of emerging programmatic ad formats including Digital Out Of Home (DOOH) which ranked much lower than other formats for purchase intent in 2020 even before the COVID-19 pandemic
ASIArsquoS MOBILE-FIRST MENTALITY REMAINS STRONG
DISPLAY MOBILE APP
DISPLAY MOBILE
VIDEO IN-STREAM
CHART 9
Which types of inventoryplatforms do you or your clients intend to buy programmatically in the next 12 months
250
200
150
100
50
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Cou
nt
Hong Kong India Indonesia Malaysia Singapore
Taiwan Thailand The Philippines Other CountryVietnam
2 ldquoMobile ad spend worldwide 2007-2022 | Statistardquo 13 Dec 2019
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
14
Pricing ranked as the least important factor for buyers when planning programmatic ad campaigns This indicates that the data-driven buying capacities of programmatic advertising are more important and valuable to buyers than the potential cost-savings often associated with programmatic ad buying versus buying via direct insertion order
THE VALUE OF DATA-DRIVEN BUYING
The top three factors most important to buyers when transacting programmatically are
The top three ways buyers are evaluating the success of a programmatic ad campaign are
Ability to measure across deviceinsights into
cross-device behavior for advanced targeting
Data-driven buying
Real-time campaign optimization
Accurate and relevant targeting
Ease of optimization and increased media
efficiency
Audience reach
Efficiency consolidation simplification optimization and measurement capabilities are key to decision making
mdash CEO MEDIA AGENCY
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
15
With changing viewing habits driving demand for streaming content and increasing mobile device penetration across Asia media buyers are cham-pioning OTT as the major growth format for 2020
Our survey found that 47 of respondents ranked this format in the top three formats that will experience the most programmatic advertising budget growth over the next 12 months and 17 of respondents placed it in the number one spot (CHART 10)
In several ways the Asian region is primed for OTT growth Asia benefits from the fastest grow-ing OTT subscription rate globally along with high rates of online video consumption3 Competition between OTT providers is also strong with both international and local players operating in the region increasing supply options for buyers
Of the nine markets surveyed Indonesia and India show the biggest preference for OTT platforms and services
The growing interest of OTT in Asia correlates with worldwide market growth which is predicted to grow by $7773 billion US dollars in the period between 2019 and 20234
The COVID-19 pandemic is accelerating the growth of OTT budgets across the region Consumers are spending more time at home watching content on demand and buyers are shifting programmatic advertising budgets towards this channel to take advantage of the surge in demand A recent report by Publicis Groupe revealed that entertainment and OTT have experienced a 34 increase in time spent watching content during March 20205
THE FUTURE OF PROGRAMMATIC BUYING44
OTT IS THE LEADING PICK FOR PROGRAMMATIC GROWTH
3 ldquoAllied Market Research Global Market Over-the-Top Reportrdquo Sep 2019
5 ldquoPublicis Groupe Reboot To A New Normal Reportrdquo 16 Apr 2020
4 ldquoThe Global Media Intelligence Report 2019 - eMarketer rdquo 15 Oct 2019 Accessed 13 May 2020
I believe the pandemic will somehow influence the industry to finally embrace app and OTT which have been hyped for so long with much disappointment
mdash ASSOCIATE DIRECTOR GLOBAL MEDIA AGENCY
Traditional TV viewership is declining and consumers are moving towards various streaming platforms to consume content Thus these growing video platforms give significant opportunity for advertisers to raise awareness among hyper-targeted audiences with relevant contextual environments
mdash PROGRAMMATIC DIRECTOR PROGRAMMATIC TRADING DESK
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
16
Rounding out the top three areas that will experience the most programmatic budget growth over the next 12 months are
CHART 10 Across APAC in general which type of inventoryplatform do you predict will experience the greatest increase in programmatic ad spend in the next 12 months
90
80
70
60
50
40
30
20
10
0Video-CTV
Platforms
Display-Mobile App
Display-Desktop
Video-In-Stream
Video-Out-Stream
Display-Mobile
NativeDigitalAudio
Video-OTT
Platforms
DOOH
Tota
l Res
pons
e C
ount
Video In-stream
Video OTT platforms
Display Mobile
Taking a closer look at the predicted popularity of advertising inventory and emerging formats in particular markets there are interesting anomalies between geographic areas
Buyers in India intend to buy digital audio formats more than any other of the markets surveyed India will also lead the buying of DOOH The Philippines Indonesia and Taiwan will be the most prolific buyers of mobile app inventory
These nuances between markets reflect the differences in media consumption habits of varying populations and differing familiarity with advertising formats Media buyers must tune into the important differences between markets to help deliver ad campaigns via the appropriate channel and to maximise ROI Buyers should also look for the support and guidance of advertising technology providers that possess a deep understanding of the diversity of the regionrsquos media buying behaviours
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem
PROGRAMMATIC AD BUYING IN ASIA A CLOSER LOOK AT PROGRAMMATIC AD BUYING TRENDS AND CHALLENGES ACROSS THE REGION
RUBICONPROJECTCOM copy2020 RUBICON PROJECT ALL RIGHTS RESERVED
17
RECOMMENDATIONS
While buyers in Asia have a strong understanding of programmatic advertising the region is poised for greater growth in the near future Analyzing survey results Rubicon Project has identified several recommendations to lower the barrier of adoption to enhance programmatic ad spend and to improve market readiness for programmatic advertising across the region
While several markets in Asia are maturing including Singapore Hong Kong and India programmatic adoption remains low in other Asian markets particularly in Taiwan and Vietnam The programmatic advertising industry must increase investment and support for media buyers operating in emerging markets to fuel programmatic adoption and budgets
Programmatic advertising technology providers must focus on the features that matter most to buyers According to our findings these should include data campaign measurement and optimization as well as helping buyers find valuable insights from programmatic campaign data
As the advertising industry continues to evolve there must be an increased focus placed on learning and the up-skilling of media buyers across all markets and at all levels Instilling a culture of curiosity and questioning to close the education gap particularly in relation to emerging programmatic technologies and trends is vital to help grow programmatic advertising budgets
Despite very much remaining a mobile-first region there is a readiness amongst buyers to allocate programmatic budgets to emerging platforms and inventory types (most notably OTT platforms and services) Programmatic advertising technology providers must be ready and willing to support buyers on this journey with strong technology services and education
For more information about how Rubicon Project is helping propel the region towards a promising programmatic future and how we can help your business succeed contact Yogesh Sehgal Regional Manager Asia ndash ysehgalrubiconprojectcom
Direct clients are becoming more sophisticated in their approach to programmatic ad buying and influence how media budgets should be allocated While it is yet to be determined just how this will impact the industry and what value each media buying player will bring agencies should familiarise themselves with the potential competition presented by programmatic in-house buyers and by consultancies entering the media buying ecosystem