The real opportunity for programmatic advertising has not been realised in the wider APAC region, with too many brands still engaging in blind buying and poor media optimisation practices. According to a recent report from SpotX, programmatic video will be critical for brands in gaining a foothold in growing APAC markets.

The report, called “How Brands Can Win with Pure Programmatic Video in Asia Pacific and Japan”, noted that video advertising, in particular programmatic video, must be utilised if brands hope to effectively reach the growing Asia-Pacific and Japan market.

Online video content and advertising will be the dominant branding medium in the next few years, and the right skills need to be learned now,” the report said.

Through automation and machine learning, programmatic video allows advertisers to target narrowly defined audiences at scale — with granular insights into audience, inventory, viewability and creative performance in real time, the report said. The reasoning is based on data-driven marketing, which is making waves throughout the industry.

Uptake of programmatic video in the Asia-Pacific market has not been widespread. “Programmatic has yet to overcome a lack of momentum of pure data-driven advertising in the region,” the report said. But digital marketers around the globe are keen to target audiences through the ever-growing number of screens and streams.

This disparity presents an opportunity for publishers across Asia Pacific and Japan, using programmatic video to “sell premium audience inventory, target audiences, and deliver advertisers strong brand awareness by ensuring video campaigns are seen by the right audiences; creating fewer wasted ad dollars.

Growth in Asia-Pacific Japan Region
Impression Growth in Asia Courtesy: SpotX

However, many video ad buyers in the region continue to depend on inventory aggregators, sacrificing performance for the ease and speed of media buying that is done blindly,” the report said. When the penny finally does drop and advertisers and agencies begin investing significantly in programmatic video, they will “secure a tremendous uplift in brand awareness,” the report said.

Brand advertisers can already fulfil digital advertising campaigns by purchasing their advertising media up front, or by having an ad agency provide an aggregate industry buy, the report said. But the programmatic method present advantages over ‘blind buying’, the report said, and “ensures that media is identified, optimised and analysed, and the brand is provided with the best campaign strategy for its particular product or service offering.”

Programatic BuyingThe other main attraction of the programmatic method is its ability to provide a wealth of data and insight that is reviewable, making campaigns more dynamic, the report said.

Brands can create a campaign where data and metrics go beyond just clicks and headline price, according to the report. “A powerful aspect of programmatic trading is that brands, in tandem with their agency trading desk partners, can optimise and fine-tune digital video advertising campaigns after just a few days of data.

Programmatic video advertising, while potentially very effective, can be resource intensive, according to the report, which lists five considerations for brands implementing the method:

1. Test the Different Buying Tools

Brands need to consider curated and private marketplaces as well as programmatic direct buying methods in addition to regular open trading and exchange-based marketplaces.

2. Utilise Publishers’ Data

Publishers may be willing to part with their own first-party data in an effort to maximise the profit of their media properties. This presents an opportunity to access consumer data to be used in demographic targeting.

3. The Agency Should Provide Demonstrable Value to the Brand Advertiser

An agency’s mission should be to provide expertise and consultation in addition to campaign execution. Managing the brand/agency relationship can be critical to success.

4. Every Part of the Transaction Should Be Transparent
Transparency of all transactional data — including value, volume, price and return — allows for dynamic campaigns that respond to performance on the fly. It also provides a way to compare video campaigns to other ad spend.

5. Put Mobile Video onto the Media Plan

With mobile being far and away the fastest -growing media, brands must act now. Mobile video ads provide interactivity and data collection, and the base of available mobile video inventory is growing in the Asia-Pacific Japan region.

The programmatic video trading approach enables brands to take control of every dollar they spend, and optimise their spending 
by using proper media mix modeling,” the report said. SpotX presents a compelling case for programmatic video trading, where campaigns are more targeted, optimised and measurable in a region with potential for great growth. Organisations must weigh the benefits versus the resource investment required to pioneer a new market.

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