APAC advertisers to increase spend on data-driven buying in 2015

By Digital News Asia January 14, 2015

Programmatic marketing finally attracts serious budgets from brands
3 in 4 Asia Pacific advertisers plan to increase their use of data

APAC advertisers to increase spend on data-driven buying in 2015

AUDIENCE- and data-driven buying is beginning to build momentum in Asia, with 65% of the ecosystem already delivering campaigns in this way, according to the latest Programmatic and Data survey from MediaQuark.

MediaQuark, which provides data and targeting solutions for digital and programmatic advertising, said that the survey captured feedback from 108 digital advertising professionals, including brands and marketers, on the importance of programmatic and data driven advertising in their 2015 media strategies.

The survey took an in-depth look at programmatic investment levels, uses, and sources of data as well as audience-based buying, the company said in a statement.

“The results of this survey show that 2015 will be the year that data, audience and automation take the spotlight in all marketing, especially in Asia Pacific,” said its chief executive officer Tom Simpson.

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

MediaQuark said its survey found that at least three in four Asia Pacific advertisers plan to increase their use of data, with the majority wanting to make better use of both third and first party data.

Fifty-four percent of demand-side players, specifically, plan on buying and using more third party data. More than 96% of those surveyed reported that they see audience targeting as an effective marketing strategy.

“Site-based planning will remain the dominant approach to digital media buying, but brands are starting to see the value in data-driven audience targeting, with 74% believing that it increases campaign ROI (return on investment),” said Simpson.

However, data-driven buying still has a long way to go in Asia, as demonstrated by the fact that Asia Pacific advertisers report spending less than 25% of their total digital budgets in 2014 on programmatic ads, MediaQuark said.

Fifty-four percent of brands and marketers also cite concerns over a lack of quality third party data, and 39% say that the high cost of data services is inhibitive.

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

“In 2014, 60% of brands looked inhouse or to specialists such as DMPs (data management platforms) or data providers for data services, and only 5% saw their data service provider as a primary source for audience data.

“It is therefore incumbent on programmatic players to educate and simplify the real-time-bidding (RTB) process in order to make it easily accessible to all advertisers and increase data-driven buying,” he added.

Still, Simpson said he believes that 2015 is the year that “programmatic goes mainstream with marketers.”

“The results of this survey show that across the region, ad sellers, including exchanges and publishers, are more focused on the potential of technology to offer competitive differentiation and build increased value into their products.

“However, the challenge remains education and accessibility,” he stressed.