Quantcast, a prominent global advertising technology company, unveiled its Asia Pacific 2023 Advertising State of Play Report. The report delves into the future trajectory of digital advertising, the challenges and opportunities faced by advertisers and agencies, the allocation of ad spend by brands in the current financial year, and the barriers hindering programmatic video adoption and success.
Through extensive conversations with marketers and agencies across the region, Quantcast identified significant challenges shared by both groups. These challenges include the imperative to demonstrate ROI/performance and effectiveness, along with the need to personalize ads and reach new audiences, especially amidst the global economic downturn.
Notably, preparing for a cookie-less world is of paramount concern, with approximately 60% of agencies and 43% of brand-side marketers ranking it as their top priority for FY 23/24.
Consequently, their focus will be on exploring cookie-less advertising solutions and gaining deeper audience insights through first-party data over the next twelve months.
Quantcast inquires about the significance of preparing for the deprecation of third-party cookies for companies and their clients, along with the primary concerns surrounding this development.
Looking ahead, APAC marketers and agencies anticipate grappling with the battle for consumer attention, achieving ROI, measuring ad effectiveness, and coping with the impact of the economy in the coming months.
Despite these challenges, they recognize numerous opportunities, such as performance-led advertising, business growth, and investments in user-friendly tools. As the new financial year approaches, industry professionals seek to upskill in cookie-less ad solutions, performance-led advertising, brand advertising tactics, and understanding audience behavioral changes.
In terms of budget allocation, marketers and agencies plan to heavily invest in digital channels, with programmatic video and search projected to see significant growth in the APAC region.
Social channels, particularly in countries like Hong Kong, Singapore, Thailand, and the Philippines, will continue to play a critical role.
Meanwhile, OTT investment in APAC is predicted to experience a substantial increase from US$4.3 billion to US$7.2 billion between 2020 and 2026, marking a remarkable 67% growth in just six years.
Traditional media formats like linear TV and radio are likely to witness a decline as advertisers redirect more funds towards creating digital experiences.
However, the push towards programmatic video is not without apprehensions. APAC brand-side marketers express concerns about programmatic’s ability to deliver results and accurate measurements, while agencies worry about technical aspects, including data and inventory quality.
Sonal Patel, Vice President of Quantcast APAC, highlighted that despite global economic challenges, the digital advertising market in APAC is still expected to grow by 13.25% over the next year, adding US$2.87 billion over the next decade.
This growth is attributed to technological advancements, increased digital ad spending, a rise in internet users, mobile phone prevalence, and the surge in digital media throughout the region.
In light of these projections, APAC marketers are advised to seize opportunities to build their brands during downturns, as this can allow them to gain market share from more conservative competitors.
Patel emphasizes the importance of preparing for a cookie-less future, encouraging brands to adopt a test-and-lead approach to connect better with customers as third-party identification becomes obsolete.
The Quantcast Advertising State of Play Report is based on an online survey of nearly 480 advertising and marketing professionals across Australia, New Zealand, and the Asia Pacific.
