APAC programmatic mobile in-app advertising peaks with 4 key investment areas

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Many consumers have made their mobile devices a primary digital interface, and in response advertisers are allocating more budget to the mobile channel and looking for in-app opportunities. As Asia-Pacific advertising budgets shift to digital media, the mobile app has become the preferred digital channel, earning the highest percentage of budget allocation over the next 12 months: 20% vs. 17 % for mobile web, 16% for connected television (CTV) and 15% for desktop.

Within this channel, buyers are increasingly embracing programmatic as an essential part of media plans. The study, “The State of Integrated Programmatic Advertising in APAC” commissioned by PubMatic and conducted by Forrester, found that 80% of advertisers and media buyers in APAC use programmatic advertising frequently or all the time. integrated into the app in digital media plans. Although Direct In-App Purchase is still the channel receiving the highest budget allocation, due to the higher cost of inventory, Programmatic App receives the second highest budget allocation and is more commonly used in a client’s digital media plan.

Increasingly, these expenses are used to achieve longer-term goals such as brand alignment and customer engagement. According to the study, APAC advertisers indicated that their top reasons for investing in the programmatic app are:
• To extend reach: 74%
• Better customer engagement – 73%
• Effectiveness of ad buying: 73%
• Brand alignment: 72%

The study added that 81% of China-based advertisers invest in in-app advertising for brand alignment, compared to an APAC average of 72%. Overall, advertisers allocate an average of 53% of budgets to branding.

Research has also shown that sustained growth requires both short-term revenue-generating marketing goals and long-term brand building goals. However, market forces such as the pandemic have caused brands to make decisions that favor short-term goals such as boosting sales conversion at the expense of long-term goals such as building affinity. with the brand and increasing customer lifetime value.

As budgets shift to branding, in-app video advertising KPIs with a long-term focus, such as brand awareness and affinity, are becoming increasingly important. additionally used.

What kind of content are marketers spending on?

According to research, programmatic video advertising has grown faster than programmatic banner advertising globally. In programmatic video, connected television (CTV) is growing the fastest, while mobile remains the top driver of programmatic video spending and currently captures three times as much spend as CTV.

When asked about in-app advertising budget allocations, APAC media buyers allocate the most to social media. However, in-app video, outside of social media, emerges as the second most popular ad type.

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In Indonesia, 79% of advertisers invest in in-app video advertising for brand alignment, compared to an APAC average of 72%.

The challenges facing advertisers

Despite the benefits of in-app programmatic advertising, some challenges remain for advertisers. In particular, advertisers are concerned about data privacy and targeting:
• 39% are concerned about data privacy which limits data collection
• 37% are concerned about the impact of IDFA changes on optimization
• 36% are concerned about the effectiveness of targeting

Advertisers are looking to the sell side to mitigate some of these challenges – with 57% indicating that access to publisher data is a key selection criteria when deciding which publishers to work with. Sell-side platforms (SSPs) have an important role to play in providing this access.

“The results of this study are consistent with our view that the opportunity for a programmatic app is huge for media buyers and developers. The programmatic mobile app is becoming an increasingly important brand channel and a channel that advertisers should not ignore,” said Lashanne Phang, director, publisher development, Southeast Asia, Greater China & Korea, and mobile app (APAC) at PubMatic.

“Publishers and mobile app developers need to take steps to ensure they capture this brand spend. As the challenges advertisers raise center around privacy and data targeting, app developers Applications should consider working with an SSP with strong targeting capabilities that also understands regional and global data privacy regulations.

In this study commissioned by PubMatic, Forrester conducted an online survey of 472 respondents in China, Singapore, India, Japan, Indonesia, South Korea, Thailand and Vietnam. Survey participants were advertising decision makers responsible for mobile media buying. The study started in September 2021 and ended in November 2021.

Photo courtesy: 123RF

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