Huge growth as Asia learns programmatic fast

Apr 22, 2014 at 06:09 am by Staff


Programmatic buying in Asia will grow by 73 per cent this year, faster than anywhere else in the world, according to new research.

According to IPG Mediabrands’s strategic global media unit, Korea will account for the biggest share with $237 million of a regional spend of more than $500 million.

Korea represents the largest share of the total programmatic spend among Malaysia and Singapore will lead real time buying penetration within developing Asia and surpass China.

The new International State of Programmatic study, which covers 24 markets across the globe, predicts total global programmatic CAGR of 31 per cent through 2017 and a 38 per cent CAGR for RTB during this period.

The study identifies “major benefits” offered by automation to advertisers and publishers: “As a marketer who has been on both sides of the table, I strongly agree with many who suggest that programmatic is the transformative force in the industry,” says Shaffia Sanchez, unit president and contributor to the study.

While North America is “by far the leading programmatic market” – accounting for more than half of the world’s total programmatic spend – it is followed by big players such as Australia, Japan and China. However, it is the growth of less mature markets which shows rapid acceleration.

While Korea will dominate the programmatic share in the region this year ($237 million), Malaysia and Singapore will become the number one and number two RTB markets in 2014 with $12 million and $10 million of spend respectively. RTB and non-RTB  purchases will represent a quarter of total display spend in developing Asia in 2014.

Total RTB spend will be $54 million in 2014 but in the following  years RTB shares will vary significantly  between low penetration markets like Korea and Taiwan, and Malaysia and Singapore which will top 30 per cent RTB market share by 2018.

Lessons learned from well-developed programmatic markets continue to translate into younger markets now entering this field, the report says.

Sections: Digital business

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