The information in this article is based on a Nielsen survey from 2018 – 2019 with 81 involved advertisers from 15 participating APAC countries.
Today, less than 14 % of advertiser marketing budgets in the region are being allocated to precision marketing. The top applications at the moment include understanding the consumer journey more clearly, enabling personalized communications and profiling consumers. These areas feel more like the beginner applications within the field.
As the Director of Brand Experience at Johnson & Johnson APAC, Akshay Trivedi notes: “The biggest opportunity within precision marketing is for us to use data to construct high value audience for media targeting and optimization that drives improved ROI. We need external partners to help normalize and standardize their resources into our precision planning process (data, technology, measurement, inventory, and workshops).”
This is a very common understanding of precision marketing as most see it as a growth driver, but only a few believe that they have the tools and resources to be successful at it yet. Even fewer people still think that their company is investing enough in this area.
Help is especially needed in topics like a well thought through data strategy, applications for ROI measurements, predictive analysis and forecasting. This is a big opportunity for analytic partners and data suppliers, as having access to reliable data and an ongoing view of how these efforts drive ROI will be the key.
Three main factors will help accelerate the progress for precision marketing in APAC:
Agency, technology, data and analytic partners play an enabling role; The more everyone understands the space, the more evangelizing and investment it will attract, or as Kartik Khare, Global Brand Director at Unilever puts it: “The biggest opportunity in precision marketing is ongoing improvement”
In the Asia Pacific region, the DMP opportunity still has a long way to go. Only in the last 3-5 years have some of the more progressive advertisers experimented with this technology, many in part due to their experiences in Western markets. While advertisers find that technology is critical to the success of precision marketing in the region, only some acknowledge that they fully understand it, few believe DMP’s work, and even fewer still are currently invested in this space.
This contributes to some of the reason as to why precision marketing is under invested in the region. Other considerations are: the absence of a strong expert ecosystem, unreliable, inadequate or expensive data and furthermore the limited amount of success stories. Unfortunately, the first attempts by early adopters led to some initial failures which has made others more nervous to invest.
Looking at the numbers, the most important factors for advertisers are analytics and data science prowess (59%), servicing support grounded in a strong understanding of the digital space (54%), ease of implementation (46%), ability to demonstrate ROI (46%) and affordability (41%). To take note of this top-5 list will help drive a much-needed resurgence for this technology in the region.
Here at Wagawin, these critical factors are where we place our focus. Our LivingAds technology can be deployed by brands and media agencies to vastly accelerate the reliable collection of unique, first party data of their prospective consumers in an engaging, interactive way.
In case you are interested, do not hesitate to get in touch with us: info [at] wagawin [dot] com