APAC digital publishers are undergoing a shift in attitude towards programmatic trading; from viewing it as an outlet for unsold inventory towards ‘holisitic yield management’.

As global regions go, APAC is perhaps the most diverse of them all, both in terms of cultures and economies – and by extension, in media and ad marketplaces, writes Stuart Bartram, Rubicon Project MD, APAC.

That said, European and Asian advertising moved noticeably closer together in 2013 with Dentsu’s Aegis acquisition, not to mention a range of smaller deals like Chinese firm BlueFocus buying the UK’s We Are Social in December. Meanwhile WPP’s ‘Asian domination’ plan, which began almost 30 years ago continued apace, with more companies snapped up, and big hopes pinned on continued significant digital growth in the region over the next five years.

Still, the fact remains that for many global firms, attempts to ‘crack’ APAC fall short of expectations. And it’s safe to say a big part of this is down to two apparently simple factors:
1. A failure to tailor their approach sufficiently to each individual country.
2. Not having the right staff on the ground to advise and consult with local clients directly and effectively.

While some in Europe would be forgiven for thinking close neighbours like France and Germany couldn’t have more different ad markets, just imagine the variety we see in JAPAC between the major markets of Japan, India, China, Taiwan, Singapore, South Korea and Hong Kong.

How this translates in approaches to each region

In many cases, it means an approach that includes global and local elements working jointly, to the advantage of both buyers and sellers.

For example, due to our scale, it was necessary for us to open a data centre in Japan, ensuring the best possible performance for buyers in the region, and by extension for sellers too. Though this means a separate integration for global buyers active in Japan, it also provides them with an extra layer of security, while other providers continue to operate through one global datacentre, despite the obvious drawbacks.

As for the global element, it is clear there are lessons we can take from markets where automated advertising has surged ahead, and apply them to others. In short, we would be failing local clients if we didn’t share what we’ve gleaned from working hand in hand with both buyers and sellers across the rest of the globe.

Trading Desk Expansion

The major trading desks are set to increase staffing and expertise in a range of Asian markets over the coming months, as they continue to drive the growth of automated advertising across the region.

The latest to launch is the Dentsu Audience Network in Japan. And as Dentsu Aegis and the other agencies look to shift spend away from ad networks, through their own trading desks, they will benefit from the input of European and US partners (in Dentsu’s case, Amnet). The trading desks will no doubt move quickly to encourage publishers to open inventory to real-time bidding and private marketplaces.

On the topic of private marketplaces, these have seen rapid adoption already in Australia. Buyers across other regions are expecting sellers to catch up quickly, as they understand the benefits around time efficiency and cutting overheads. This is just as we have seen most recently in countries like Italy, moving rapidly to widespread adoption of automated advertising within a matter of months.

Further into 2014, Australian publishers and app developers are expecting more demand for homepage takeovers and rich media delivered via automated advertising, as buyers seek to shift more premium deals into private marketplaces.

As third-party analysts continue to report, mobile will continue to be important as we move through the year, but as an integrated part of wider, cross-platform campaigns – the ‘glue’ that binds all the rest together. As such, automated advertising, already linked across mobile and display, as well increasingly as video, radio and outdoor, is the perfect way to execute it. As many Asian markets lead the way in terms of mobile penetration and smartphone usage, analysts expect some exciting results across the region.

Towards True Yield Management

Back to Australia again, where reports suggest many sellers are moving beyond simply associating real-time bidding with unsold inventory, towards ‘holistic yield management’ instead.

This is a topic explained by Jordan Mitchell, Rubicon Project product VP, on TraderTalk TV in December: Essentially, the type of product Jordan describes moves us away from a simplistic ‘highest bid wins’ strategy to account for scarcity alongside pricing, and true yield management through optimising every single impression a publisher serves.

Holistic yield management marks the way forward for many of the markets both in APAC and globally, not just Australia. As we have seen real-time pricing adopted rapidly by the most advanced publishers in the US, UK and France, it will be interesting to see how quickly Asian markets evolve to this level of sophistication.

Where otherwise so far ahead of the rest of the world in terms of technology adoption, it might seem odd that automated advertising is still a new concept in many of these countries.

What will be interesting to see is how quickly each of such a diverse and innovative group catches up.

- Stuart Bartram, Rubicon Project MD, APAC.