APAC Search Ad Spend Up 13%; India & China Fastest Growing Ad Markets

In this weekly segment, ExchangeWire sums up key industry updates on ad tech from around the Asia-Pacific region – and in this edition: APAC search ad spend up 13%; India and China fastest growing ad markets; Facebook launches immersive mobile ads in AU; and Tencent inks Dentsu partnership in China.

APAC search ad spend up 13%

Search advertising expenditure in Asia-Pacific climbed 13% in the third quarter this year, over the same quarter 2014, and 7% over the previous quarter.

The region’s growth is the fastest worldwide, according to the latest stats from Kenshoo’s Search Advertising Trends report, which polled results from Singapore, Australia, Japan, China, and Indonesia.

Impressions also increased 24% year-on-year and 6% over the previous quarter, while clicks climbed 22% and 27%, respectively. Click-through rates (CTRs) dropped 1% year-on-year; although they made a 21% recovery over the previous quarter. Cost-per-click remained stagnant.

Mobile search ads accounted for 55% of overall clicks and 42% of spend, compared to 44% and 35%, respectively, in the previous year. In terms of cost-per-click, this clocked at AUD$0.34 for mobile, AUD$0.64 for tablet, and AUD$0.67 for desktop.

“Cost-per-click for phones in Asia-Pacific Japan is considerably less than for desktop or tablet, but all three devices dipped in the third quarter, relative to the previous quarter”, Kenshoo said. “Possible causes could be heavier reliance on brand terms, or building out broader keyword lists at lower prices to increase overall keyword coverage.”

Across the region, China had the highest CPC at AUD$0.96, while Australia had the highest CTR at 3.8%, according to the report.

“Overall CPCs dipped in the third-quarter for Asia-Pacific Japan, compared to both the previous quarter and the same quarter last year. Click-through rates grew despite the large increase in impressions on smartphones, noted in the previous section”, Kenshoo said.

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India & China fastest growing ad markets

The ad markets in India and China are expected to expand by 13% and 6.9%, respectively, next year, with the two Asian powerhouses emerging to be the fastest growing among 12 global markets.

According to <a href="http://www.warc.com/Blogs/The_global_aDSPend_outlook.blog?ID=2213″>Warc’s latest international ad forecasts, Australia’s ad market will climb by 2.7% in 2016, while Japan will grow 2.5%.

Globally, the research firm noted that the internet was now the largest ad medium, accounting for two-thirds of total ad spend.

“Digital is playing a growing role in the galvanisation of traditional media,” said Warc’s research analyst James McDonald. “Programmatic trading, the automated buying and selling of ad space, has been the catalyst for hastening spend on out-of-home, radio, and, indeed, TV advertising in a number of these markets.”

Online ad spend climbed 17.4% in 2015 and will increase 12.2% next year, according to the research firm. TV ad expenditure, in contrast, dipped 2.5% across the 12 markets but was expected to see a 2.9% growth in the new year.

Facebook launches immersive mobile ads in AU

The social media site has brought its Canvas platform to the Australian market, offering advertisers a way to create fully-branded pages within Facebook.

First announced at Cannes Lions Festival in June, it is touted to deliver such content on mobile through a full-screen and fast-loading experience.

Tourism Australia and Audi Australia will be tapping the new tool in coming weeks. “The new immersive experience fits perfectly with our campaign and gives us an innovative new way for audiences to experience Australia”, said Lisa Ronson, CMO at Tourism Australia.

Facebook’s immersive Canvas mobile offering had been piloted by several marketers in the US, including Gatorade and Michael Kors.

Stephen Scheeler, Facebook’s Australia and New Zealand managing director, added: “Over 11 million Australians visit Facebook everyday, most of them on mobile. We are excited to offer immersive mobile canvas to Australian marketers to help them create compelling experiences to reach their customers on mobile, and drive their brand and business outcomes.”

Tencent inks Dentsu partnership in China

Tencent Online Media Group has inked a partnership with Dentsu Aegis Network to establish an “integrated big data ecosystem” in China.

The agreement is touted to bring together disparate data silos, allowing Dentsu to tap Tencent’s data to facilitate programmatic buying, as well as analyse consumers’ brand experience.

Tencent’s corporate vice president Steven Chang said: “In the past, some companies built their own large data assets without considering that such platforms are actually isolated from each other. In addition, these companies did not have clear models for data application.

“We are delighted to be able to collaborate with Dentsu Aegis in building an integrated data ecosystem that allows advertisers to more effectively reach their target audience, while setting industry standards and best practices for the markets”, Chang said.

Dentsu Aegis Network China COO Nobuaki Kyushima added: “Dentsu Aegis’ global expertise and ability to connect brands and people, together with Tencent’s smart data solution, will help brands make more accurate and powerful advertising decisions to improve the effectiveness of brand and performance marketing.”

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Via ExchangeWire

Copenhagen INK

Lars is the owner of Copenhagen INK and is an experienced and passionate marketer with a proven track record of driving business impact through innovative commercial marketing initiatives.

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