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Targeted Advertising

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7 Benefits of Online Display Advertising

According to Statista (Statista, 2015), the online advertising expenditure in the Asia Pacific region has gradually increased and it is predicted that it will reach 53.16 billion U.S. dollars in 2016, which means the spend on marketing budget is leaning towards online display advertising.

Why will online display advertising become the trend and preference for marketers? Not only that now is the digital era, it is also because this method can scale and reach the largest target audiences possible at anywhere in the buying process - something other marketing channels cannot. This type of advertising not only uses text to communicate with the audience, but also flash, image, video, and audio on web sites.  

If you still not sure whether to include display advertising in your marketing campaign? Here are the 7 reasons to give it a try.

1.     Cost Effective. Unlike traditional advertising methods, online display ads give marketers a cost-effective way to engage their target audiences without wasting a single ad impression on those who are not the target audience.

2.     Get the ads to appear on relevant sites. Your ads can be shown to your target audience on contextually relevant sites (websites your target audience usually visits or content that they read associated to your product/service). This will increase the likelihood of getting attention and clicks or even acquisitions.

3.     Retargeting target audience. Considering that your target audience might not convert the first time they see your ad, a retargeting strategy will allow them to recall your product/service through showing the display ads again in a timely manner.

4.     Increase brand exposure. Exposure at scale on the relevant web sites or social media can reinforce the message and then influence your target audiences’ buying decision.

5.     Real Time conversion measurement.  Your display ads will be effectively shown to specific target audiences and the impact can accrue analytic data that includes click through, acquisition or impression statistics for you to review in real time.

6.     Ability to track. Using display ads will enable you to receive a daily or weekly update and track the click-through rate, unique visitors and impressions. The daily or weekly update will reveal the effectiveness of the current strategies and guide you to better strategies if it is under-performing.

7.     Ability to run A/B testing.  You have the chance to either test a strategy then adjust it once the result does not meet your expectation or test several strategies at the same times then decide to use the most effective strategy/strategies so to get the best outcome. Algorithms can automate this process considering hundreds of data points.

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Asia and the Programmatic Wave

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Asia and the Programmatic Wave

Before we delve into how Asia is facing up the next adtech wave, let us begin with the most basic question: what is programmatic? Programmatic buying, also known as automated trading, is “the buying of online media through the use of computers and algorithms”. It means that traditional media buying over business lunches and phone calls is now being replaced by automated ad biddings on an ad exchange which connect advertisers and publishers. Real-time Bidding (RTB) is the most widely known programmatic method – also, the most popularly adopted in Asia and hence the key discussion in this post.

A comprehensive report by Magna Global in 2014 quoted an impressive figure of US$21bn media inventory being transacted through programmatic methods, with US$9.3bn contributed by RTB. Growth is expected to be strong in 2014-2018, with an average annual growth rate of 27%, and a forecasted transaction value of US$53bn by 2018. Asia however is a newcomer to this programmatic race. MediaQuark reported a much lower adoption rate in APAC than in Europe and America, with 65% of APAC advertisers adopting but still assigning less than 25% of their digital budgets to the methods. Despite this, Asia is rated by Magna Global as the region with fastest programmatic growth in 2014 (73%) with US$500 million ad spending. The growing support by advertisers is simultaneously buoyed by an enlarged ecosystem with several ad tech players setting up or expanding their infrastructure in the region, including Adskom, The Trade Desk, Rocket Fuel, PubMatic and Rubicon Project.

The key inhibitors to adoption rate in Asia are the lack of understanding of programmatic process on the part of advertisers and publishers, and the lack of education or simplification on the part of programmatic intermediaries. The ecosystem as a whole is not yet strong and transparent with low trust level for third-party ad servers or data, forcing advertisers to continue their reliance on site-based advertising – where they can check if their ads are online – rather than programmatic trading. In certain countries like China, strong resistance was seen due to the dominance of a few concentrated media channels and regulation hurdles. Currently, Korea is the largest developing Asian market in term of programmatic ad spending, totaling US$237 million in 2014. Malaysia and Singapore closely follow with a forecasted RTB penetration of 30% by 2018, surpassing China.

For advertisers, the opportunities presented by programmatic ad are plenty. Targeted advertising could help to drive down cost, especially with display ads from premium publishers. The most benefit would come from increased campaign ROI and a better control and management of campaign. Andrew Tu, APAC Managing Director of The Trade Desk, explains: “Buying digital is not about driving down CPC or paying for the lowest CPM. Rather, it’s about the ability to track the CPM performance and more meaningful performance metrics.” Additionally, advertisers will benefit from an enhanced understanding of their target audience and can move beyond a “quarterly marketing budget” cycle to launch real-time initiatives based on real-time opportunities, simultaneously increasing the relevance of their content and context.

For publishers, programmatic opens a new realm of digital channel which prioritizes cost saving and value maximization. Publishers could explore and build capabilities in fast rising digital formats such as video and mobile ad. There are plenty of investment returns from first-mover advantage and publishers could differentiate themselves from competitors.

At Phar Focus, we help marketers and advertisers across the region to tap into the programmatic potential without being burdened by the industry’s technical jargons and sophisticated mechanism, to focus on what they do best – that is, strategic marketing. Our specialist team will provide consultation services on both media mix and campaign management, working closely to deliver the new height of digital benchmarks and generate integral insights which can help our clients and partners to stay ahead of the crowd. Keep an eye on our next post on Focus+ and how our platform can create a difference in your strategy.

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