Strong Recovery in JAPAC Programmatic Activity Following Covid: OpenX & ExchangeWire Research

The report highlights that programmatic advertising investment and spend is growing at a rapid rate across the Japan and Asia-Pacific (JAPAC) region.

  • 64% of agencies, publishers, brands are increasing programmatic spend or revenue,
  • 30% recorded higher figures compared to pre-Covid levels
  • Growth driven by a surge in digital transformation across agencies, publishers, brands
    • 4 August 2021, Singapore – Despite a hugely challenging 12 months in terms of both the ongoing coronavirus pandemic and the deprecation of third-party identifiers, programmatic investment and spend is growing at a rapid rate across the Japan and Asia-Pacific (JAPAC) region, with nearly two thirds of firms increasing their programmatic activity from last year. This is according to a new research report, The State of Programmatic in JAPAC – 2021, unveiled by OpenX and ExchangeWire.

        • Publishers have matured in their strategic selection of header bidding partners, while the use of Prebid has increased by over 10% market-wide. Compared to 2020, publishers areusing relatively fewer providers than in 2020, and prioritising ease of setup for when existing providers are not meeting expectations. This is prevalent in the Indian market, where 32% are now using 1-4 partners, compared to just 7% last year, and 13% are using 15 or more partners, which has more than halved from the 29% recorded in 2020.
        • Concerns within the region over the deprecation of IDFA and the third-party cookie. Two-thirds (67%) are concerned about the effect of IDFA and cookie deprecation, with 29% very concerned about these changes. India displayed the most concern, with 87% disclosing some level of concern, followed by Indonesia (71%) and Australia (62%). In Japan, only 49% are concerned, while half (50%) are not perturbed about the upcoming changes.
        • Brands and agencies are not funnelling spend to the walled gardens, and instead favour independent ad tech. Only 16% of buyers are increasing walled garden ad spend in response to IDFA and third-party cookie deprecation, whereas 27% are investing in exchange, SSP, and DSP partnerships. In India, only a handful (2.5%) are funneling spend away from independent ad tech towards the walled gardens.
        • Buyers are acting over concerns of transparency, and are more confident in amending their programmatic pipelines. Two-thirds (67%) of marketers and agencies have run an SPO review in the previous 18 months, with 32% indicating that it was the first one they have ever done. Concerns around transparency are high in the Indian market, with 100% of respondents showing some concern. This is followed by Australia (93%) and Indonesia (88%). By contrast, only 20% in Japan are very concerned and actively looking for solutions, while 29% are not concerned at all by fraud- and quality-related issues.
        • India is more heavily invested in programmatic than its peers. Only 2% are not using the channel, compared to 33% in Japan, 9% in Australia and 6% in Indonesia. Moreover, 12% of respondents within India are generating over 75% of their spend in programmatic, double that of both Australia and Indonesia.