Over the next year 67 per cent of digital advertising spend in APAC will go to Google and Facebook, according to a new report from Salesforce.
Globally, 66 per cent of digital advertising spend will go to Google Search, YouTube, Facebook, and Instagram in FY19, which runs from March 2018 to February 2019.
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The figures, which don’t include additional platforms or display advertising exchanges owned by their parent companies, are contained in Salesforce’s Digital Advertising 2020 report.
The forecast is based on a survey of 900 advertisers, including 300 across APAC conducted in November 2017, prior to Facebook CEO Mark Zuckerberg announcing an overhaul of the social network’s news feed.
The report attributes Google and Facebook’s dominance to their scale and ability to target ads based on real identities.
Not including Facebook, social channels like LinkedIn, Pinterest, Snapchat, and Twitter account for an additional 11 per cent of planned spend across surveyed regions. But their collective share of advertising budgets is on the decline.
Also in the mix is display advertising which shrank from 16 per cent to 14 per cent of digital ad spend.
Advertising and marketing are converging
The report also highlighted a change in the way marketing and advertising work together, with more organisations sharing common budgets and team members.
In APAC, the majority or advertisers (60 per cent) already share brand and/or creative teams, while 56 per cent share common budgets and 56 per cent report to a single departmental head responsible for sending email campaigns and purchasing media.
This cooperation also impacts what technologies organisations invest in. 59 per cent of advertisers said they collaborate with marketing teams on the evaluation and purchase of technology.
According to the report, the number of data source advertisers use to target consumers continues to grow. Last year, advertisers used an average of 5.4 data sources, and next year they’re planning to use an average of 6.2.
In the Asia-Pacific region, use of first-party anonymous data is expected to shrink by 9 per cent.
Use of newer types of data — like mobile-derived location information — will grow 14 per cent over the next two years. Use of interests-based data (based on factors like personality and preferences) will see the biggest growth, expanding by 26 per cent as it becomes more widely available to brands.
Adoption of a Data Management Platform (DMP) to manage this volume of data is predicted to rise. Currently just 20 per cent of companies have been using a DMP for more than three years, however 91 per cent of advertisers have adopted, or plan to adopt, a DMP.
In terms of measurement, advertisers are using a wide variety of methods to track their results. According to the report, traditional tools such as spreadsheets (42 per cent) and website analytics platforms (50 per cent) are still popular.
But more wide-ranging solutions like DMPs (55 per cent), marketing attribution (47 per cent), and marketing automation platforms (30 per cent) have gained ground.