In the vibrant landscape of Asia Pacific, in this digital era we are witnessing a surge in online video consumption, with 64% of connected consumers engaging in daily viewing. From bustling cities to serene landscapes, people of all age groups in the region are dedicating at least 1.7 hours each day to indulge in the diverse world of online video content. (Source: Kantar). As the digital horizon expands with countless platforms and opportunities, the question arises for advertisers: why not capitalise on this rising trend?

Growth Trends in Programmatic Advertising 

The Asia-Pacific programmatic advertising market size is on a steady rise. It is estimated to be at a whopping USD 23.13 billion in 2024 and is expected to reach USD 52.07 billion by 2029, growing at a CAGR of 17.61% for the forecast period (2024–2029). (Source- Mordor). Brands are gearing up for the digital ad boom.

Key Catalyst to this Growth Trend: AI

At the forefront of the remarkable growth trend in the APAC programmatic advertising market is the escalating integration of artificial intelligence (AI) and machine learning (ML). A Statista study conducted in 2023 revealed that 76% of advertising decision-makers at brands, agencies, and publishers stated they believed AI would change the way programmatic advertising operated. Nearly one in every five said they had already done it. AI can now be applied in every stage of the programmatic advertising process, and the scope of tasks delegated to AI is broad. It may range from simple data collection and analysis to creating consumer segments and ad targeting. This transformative shift empowers programmatic advertisers to utilise AI to enable precision in targeting and strategic ad placement, thereby causing an overall elevation in campaign effectiveness.

Another area where AI is used is programmatic advertising for the purpose of gathering insights. AI makes the gathering of insights from a vast pool of data very convenient. One such solution that can help you with this and uses its AI capabilities to the max is DMC, a proprietary tool made by the dentsu Data Sciences and Products APAC team. DMC Insights is a potent tool for programmatic advertisers, as it helps the advertisers gather contextual signals, helping marketers discover videos and articles with user sentiments attached to them, which can be used to identify optimal ad placements. It also helps you find keywords and hashtags that align with your brand. Another useful tool from DMC’s tool kit is YT Audit Report, which helps programmatic advertisers greatly. It will help you find relevant videos for your keyword in the language you want to target your audience in; this is greatly helpful for localised targeting.

Video Ads’ Rising Dominance of Programmatic Advertising

In 2022, video summed up 82% of all consumer traffic on the internet (source: Cisco). Video remains the most popular medium for high-impact ads; advertisers spent around $74.88 billion on programmatic video ads in 2023.

As more consumers prefer video over other types of content, publishers must align their strategies accordingly to maximise their programmatic advertising efforts. This makes platforms with huge viewing potential, like YouTube, a golden platform for programmatic advertisers. Embracing this trend can help publishers reach more audiences, increase engagement rates, and ultimately drive higher returns on their advertising investments. 

Golden Platform for Programmatic Advertising: YouTube

Source: Google

A staggering 7 in 10 shoppers in APAC acknowledge that advertising on YouTube significantly increases their likelihood of making a purchase. Hence, it makes it a platform for advertisers to be focused on. Activating programmatic campaigns on YouTube would not only increase the brand’s turnover but also enable it to hold a significant sway over consumer behaviour. YouTube’s impact goes beyond mere advertising; it acts as a trusted guide in the consumer’s decision-making journey. The platform’s ability to create a “confidence shift” in consumers, moving them from uncertainty to confident purchase decisions, is particularly noteworthy. 

Conclusion: Seizing the Digital Wave

As we approach the digital future, capitalising on the vibrant Asia-Pacific landscape, with its surge in daily online video consumption, becomes imperative. The integration of AI in programmatic advertising, epitomised by tools like DMC, and the understanding of the expansive reach of platforms like YouTube stand as catalysts, promising unprecedented opportunities for programmatic advertisers in the dynamic Asia-Pacific market. To learn more about DMC, reach out to us.

To know more, email us at dmcsupport@dentsu.com