In this weekly segment, ExchangeWire sums up key industry updates on ad tech from around the Asia-Pacific region – and in this edition: China to drive new ad dollars; AU advertisers see gains from people-based marketing; Adskom eyes growth from India's e-commerce market; QBE taps responsive web experience in ANZ; and Dentsu Aegis sees exec changes in Malaysia.

China to drive new ad dollars

Despite the ongoing economic slowdown in China, the Asian powerhouse is expected to be the top contributor of new ad dollars between 2015 and 2018, bypassing the US for the first time.

While the China ad market last year was just 41% of the US market, it grew 2.4-times faster than the latter, according to ZenithOptimedia's latest ad expenditure forecasts.

"Over the next three years, China will maintain this growth disparity and rise to 46% of the size of the US", it said. The Asian economy would account for 25% of the global market's overall growth of USD$75bn (£52.43bn) over the forecast period, just slightly ahead of the US, which would account for 24%. The UK would contribute 7% of global growth, followed by Indonesia at 5%.

ZenithOptimedia noted that global advertiser confidence would remain largely unshaken amid global economic challenges, including China's slowdown, the recession in Brazil and Russia, and uncertainty over the future of the European Union.

The agency group said Japan's ad market would remain "stuck in its rut of persistent low growth", clocking an average growth of 1.8% between 2015 and 2018. Five countries grouped under "Advanced Asia" (Singapore, Australia, New Zealand, Hong Kong, and South Korea) also saw disappointing growth of 2.8% last year, and were expected to see an average growth rate of 2.2% through to 2018. Singapore continued to be dragged down by a weak property sector and China's slowdown.

"Fast-track Asia" markets, such as China, India, Indonesia, the Philippines, Taiwan, and Thailand, were expected to see rapid growth, as these economies adopted Western technology and practises, and gained from funds injections from investors looking to tap this growth.

With China accounting for 74% of ad spend in the Fast-Track Asia group, the country's economic slowdown would inevitably have a significant impact on the region. According to ZenithOptimedia, ad spend in Fast‐track Asia would grow 8.9% in 2016, and at an average rate of 8.5% a year between 2015 and 2018, down from 11.9% a year between 2010 and 2015.

AU advertisers see gains from people-based marketing

More media buyers in Australia are opting for people-based advertising, which they say is giving better returns on their investments.

Some 86% of advertisers who had deployed people-based campaigns said these had outperformed standard campaigns on similar channels, according to a study by Econsultancy and Signal. The online survey polled 358 senior Australian marketers and media buyers with moderate to high online ad budgets.

Almost 60% reported higher conversion rates from people-based marketing, while 75% saw improved click-through rates.

The study noted that 92% of respondents were planning to increase their people-based media buys this year; adding that this indicated a possibility that marketers were looking for new addressable media options outside closed platforms. According to the survey, 87% expressed concerns with data governance when operating within walled gardens, while 80% were anxious about handing over customer data in the process.

Some 75% of advertisers were familiar with people-based marketing, with 25% currently spending more than half of their budget on such campaigns. Two-in-three said they had used Facebook Custom Audiences, the report stated, noting that two-thirds of respondents viewed the traditional model for display advertising as broken.

"Cookie-based targeting doesn't work in a cross-device world, and has left advertisers waiting for a way to connect with real people", explained Signal's senior vice president and managing director, Michael Twomey. "They see people-based advertising as a way forward to help improve digital media performance, and want flexible solutions to extend their addressable media buys to more channels and publisher sites beyond Facebook, where their customers are engaged."

"People-based marketing removes the guesswork from digital media. When advertisers achieve the power of knowing who they are targeting, they can reduce wasted ad spend, create better customer experiences and, ultimately, improve returns on ad investments," Twomey said.

Adskom eyes growth from India's e-commerce market

The Singapore-based programmatic ad vendor has unveiled plans to expand its team and services to tap India's growing e-commerce market.

Citing figures from eMarketer, Adskom noted that India's digital ad market is expected to grow past USD$1bn (£699.12m) this year; with display ads accounting for more than 60% of total ad spend. Programmatic ad buys also are forecast to contribute 65% to 70% of overall ad sales in India.

"The e-commerce boom in India presents Adskom with a phenomenal opportunity", said Italo Gani, the ad tech vendor's Southeast Asia CEO. "The country has the scale we are looking for [and] is still very much experiencing a period of rapid growth. India makes the most sense for us as the next country in which to expand our operations."

Adskom's Italo Gani

The country also offers a conducive environment to beef up the company's engineering teams, according to Adskom, which has R&D offices in Indonesia and the US.

Rajeev Saxena has been appointed the new country director in New Delhi, joining the company from Acxiom, where he was its business director for Southeast Asia and India.

"The new publishers are going to be e-commerce players that have access to rich consumer data, which changes the game in digital advertising today", Gani said. "With this in mind, Adskom sees India as a new opportunity to help publishers monetise via ad tech."

He added that its sales team in New Delhi was expected to comprise 10 people by the end of 2016, and focus on building partnerships with local advertisers, e-commerce operators, and publishers.

"We believe local data and partnerships will be the key to winning in the Indian market", he said.

QBE taps responsive web experience in ANZ

The insurance services provider has gone live with its Sitecore Experience Platform deployment in Australia and New Zealand, enabling its website to provide responsive digital user experience and improve relationships with its customers.

The Sitecore platform allows QBE Insurance to more easily and quickly publish content to any device, creating and customising webpages that fit the customer's preferences, according to the ad tech vendor.

Marcus Marchant, QBE Australia's head of digital, said: "It provides customers with a digital experience that is engaging, personal, and relevant, [so] they receive tailored content that better meets their needs and achieves greater engagement with the website."

The improved analytics and personalisation also would enable the insurance services provider to better engage with its customers through their behaviour and intent.

"We see our website as a key driver for supporting direct new business growth and maximising customer lifetime value", added Marchant. "As a result, we were looking for a solution that would equip the organisation with better analytics capabilities and marketing automation functionality."

Dentsu Aegis sees exec changes in Malaysia

Dentsu Aegis Network Malaysia has unveiled three senior appointments in its management team, including new country and financial heads.

Nicky Lim is the agency group's new Malaysia CEO, taking over from Margaret Lim who retired from the industry, said the agency group. Nicky Lim joined the company in March 2015 as COO, and previously held senior positions in Geometry Global and McCann and Grey group.

With more than 20 years of advertising experience, he will be responsible for driving the operations and management of Dentsu's brands in Malaysia, including media, digital, creative, and sports marketing.

"We are now entering into a new era of Dentsu Aegis Network, when delivering innovative solutions that fuel positive disruption and promote effective collaboration will drive all that we do", he said. "I'm thrilled to be able to deliver on the strong growth targets for the business with a reenergised team."

In addition to Lim's appointment, Dinesh Bhaskar Shetty also would assume the CFO role, while Gan Mei Lian has been appointed talent management director. Both executives report to Lim.

In a separate announcement, Dentsu's Carat in Malaysia also welcomed its new CEO Darren Yuen.

Reporting to Lim, Yuen kicked off his career at the agency's research department 19 years ago, before moving on to other roles in media planning and client account management, including his most recent position as general manager of business operations.