In this weekly segment, ExchangeWire sum up key industry updates on ad tech from around the Asia-Pacific region – and in this edition: SEA markets see disparate digital ad spend; China bank brands more valuable than US peers; Japanese ad firm buy out Singapore activation agency; Landor & Designworks unite in AU; AOL launch price optimisation tool in Asia; and IAB AU bring on executive consultant and new board member.

SEA markets see disparate digital ad spend

Digital ad spend in Southeast Asia is projected to climb 20.4% to USD$2.07bn (£1.66bn) this year, fuelled by consumer demand for mobile, video, and social media.

Spending in the sector varied significantly across the six regional markets, comprising Singapore, Indonesia, Malaysia, Thailand, Vietnam, the Philippines, as well as Hong Kong and Taiwan, according to a report jointly released by IAB Singapore and eMarketer.

In Singapore, digital would account for 23.8% of total media budgets, up from 18%, generating USD$376.5m (£301.79m). Digital platforms would see strong growth in the city-state over the coming years and account for four out of every five digital ad dollars by 2020, when digital ad spend is projected to be USD$404.6m (£324.31m), said eMarketer.

Hong Kong also would see growth in digital ad spend, which would generate more than 20% of total media budgets this year, before climbing to 24% by 2020. Across the region, this figure would be highest in Taiwan, where digital ad spend would account for 40.4% of overall expenditure in 2017.

The market, though, would be on the lower spectrum in Indonesia, Thailand, Malaysia, Vietnam, and the Philippines. According to eMarketer, digital ad spend would account for less than 20% of total media buys this year across all these markets. By 2020, this figure would climb up to 25%, driven by the respective governments' commitment to online connectivity locally and globally, said the market researcher.

eMarketer's senior forecasting analyst Shelleen Shum said: "Internet and smartphone penetration rates are still relatively low in developing parts of Southeast Asia, leading to a relatively lower digital share of total media spending.

"As internet and mobile connectivity in Southeast Asia develops in the coming years, this presents a unique opportunity for advertisers to tap into a new market of fast-urbanising, middle-class consumers", Shum said.

According to IAB Singapore, these market figures would be reviewed every six months.

In a separate announcement, the industry group this week also announced their new board and committee co-chairs, following the 2017 elections.

IAB Singapore said their board had grown from eight to 14, comprising representatives from the various market segments including publishers, agencies, and ad tech providers. The new board comprised Tobias Wilson, CEO of Asia Pacific Digital; Joanna Flint, managing director of Google Singapore; Jack Lim, chief commercial officer for MediaCorp; and Sanchit Sanga, Asia-Pacific chief digital officer at Mindshare.

China bank brands more valued than US peers

For the first time this year, the total brand value of China's banks has outpaced their US peers, according to Brand Finance's latest Brand Finance Banking 500 index.

Accounting for 24%, or USD$258bn (£206.8bn), of total brand value in the index, Chinese banks edged out their US counterparts' 23%. China's ICBC also unseated Wells Fargo to become the world's most valuable bank brand, growing 32% year-on-year to be worth USD$47.8bn (£38.31bn).

Brand Finance said their analysis revealed Chinese consumers expressed no cynicism and revealed an affinity for brands and economic patriotism that afforded their banks a robust foundation, which western banks were unable to match. Increased merger activities between Chinese and foreign companies also fuel growth, offering opportunities for banks in China beyond their domestic market.

Brand Finance CEO David Haigh said: "Chinese banks are being carried along in the slipstream of its industrial giants as they grow and expand into international markets. Facilitating international deals boosts revenues, but, more importantly, enables the banks to build their reputations with potential clients across the world."

The market analyst added that domestic loyalty as well as improving global recognition had generated "formidable brand equity and brand value" for Chinese banks.

Apart from ICBC, China Construction Bank and Bank of China also clocked growth rates of 17% and 13%, respectively. Another Chinese bank, Harbin Bank, was the fastest-growing brand, which grew threefold in 2016 to USD$811m (£650.06m).

Wells Fargo's reputation was adversely impacted by their fake accounts scandal and downgraded revenue forecasts causing their brand value to dip by 6% to USD$41.6bn (£33.34bn).

Japanese ad firm buy out Singapore activation agency

Hakuhodo have acquired Singapore-based activation agency group, Integrated Communications Group (ICG).

Japan's second-largest ad company, Hakuhodo, said the acquisition would beef up their specialist marketing service platforms as well as integrated marketing and management capabilities to better service customers.

ICG was established in 2003 and currently operates in 12 markets across the Asia-Pacific region, including China, India, Australia, Indonesia, and Sri Lanka.

"By welcoming ICG, the group will significantly enhance their responsiveness and proposal platforms in the activation business domain in Asia-Pacific", Hakuhodo said.

Landor & Designworks unite in AU

WPP AUNZ have announced the merger of Landor Australia and Designworks in Australia, where the two agencies will operate under the Landor brand.

The union will meld expertise in corporate and branding as well as customer experience design with methodologies in consumer branding, the agency group said.

They added that the merged company would offer "a new breed of omnichannel brand and customer experience practices" in the region.

WPP AUNZ CEO Michael Connaghan said: "Bringing them together creates a unique offering in the Australian marketing landscape. They are both highly innovative and future-focused in their approach to business."

The Designworks brand would remain unaffected in New Zealand.

Alex Khan, Asia MD, AOL

AOL launch price optimisation tool in Asia

AOL Platforms Asia have launched their dynamic price floor optimisation tool, AlephD, in the region.

Offered as part of the One by AOL: Publisher suite, the tool had come from last year's acquisition of French software vendor, AlephD. Citing research they conducted in Southeast Asia, AOL said the new optimisation tool could help publishers grow performance yields by 10% to 40%.

AlephD would look at various factors, including historical data and trending activities, to make predicative adjustments, pre-bid, in real-time. This would enable publishers to maintain higher price floors, if demand was peaking and capture higher bids, AOL said.

AOL Asia's managing director Alex Khan said: "Programmatic trading is often criticised for being biased in favour of the advertiser. The roll out of AlephD is a significant milestone in AOL's continued efforts to build and enhance tools that help publishers manage and monetise their assets better.

"This strikes a balance. It gives publishers the control to optimise their sales based on the wealth of data they amass, ensuring they never sell below where they need to, and better enables advertisers to make decisions in real-time, based on market demand", Khan said.

IAB AU bring on executive consultant & new board member

IAB Australia have engaged industry veteran Jonas Jaanimagi as executive consultant and appointed Libby Minogue as a new board member.

The industry group said Jaanimagi would support the IAB Technology Council and working groups and help drive various initiatives, including the IAB's Ad Portfolio update. The former head of media strategy and operations at REA Group has more than 18 years of digital industry experience, and currently also sits on the IAB executive board.

Minogue, currently REA's executive general manager of media and marketing, joins the IAB board armed with 20 years of industry experience.