In this weekly segment, ExchangeWire sums up key industry updates on ad tech from around the Asia-Pacific region – and in this edition: Classifieds Drove AU 2017 Ad Revenue; SPH Restructures Magazines Business; China Consumers Shop Differently on Mobile & Desktop; Accordant Now Part of Isobar ANZ; and GumGum Sets Up in Sydney.

Classifieds Drove AU 2017 Ad Revenue

Classified ads clocked a 15% year-on-year growth in Australia last year, helping to push total online ad revenue to AUD$7.9bn (£4.47bn) in 2017.

Overall, online ad spend climbed 7% for the full year, according to the IAB Australia/PwC Online Advertising Expenditure Report, which noted growth rates across all categories. Classifieds led the pack, hitting AUD$1.5bn (£849.16m), fuelled by robust growth in local players such as REA Group, Carsales.com, and Seek.

Real estate remained the number one segment in classifieds, followed by recruitment and automotive.

"The strength of the Australian classifieds market, driven by local players, has meant that the local market is quite different from the U.S. and UK, in a time when global trends and structure tends to dominate most industries", the report stated.

It noted that, while classifieds currently accounted for nearly one-in-five digital ad dollars, or about 20%, in Australia, this figure was just 4% in the U.S.

Search and directories climbed 5%, to hit AUD$3.6bn (£2.04bn) and accounted for 45% of Australia's total ad dollars. General display grew 6%, to reach AUD$2.8bn (£1.59bn), accounting for 36% of the overall market, with display videos increasing 43% to hit AUD$1.1bn (£622.72m)

IAB Australia's director of research Gai Le Roy said: "2017 was a challenging year for all advertising supported media; yet, the digital ad market saw continued growth from a very strong base. We are seeing a breadth of different advertising options and formats driving significant revenue including video, native, content, and in-feed advertising."

Source: IAB Australia/PwC Online Advertising Expenditure Report

Mobile ads climbed 35% to hit AUD$3.1bn (£1.76bn), with 73% driven by smartphones, while tablets contributed 27%.

SPH Restructures Magazines Business

Singapore Press Holdings (SPH) says it is folding its custom content solutions business, which is part of SPH Magazines, into its contract publishing arm Focus Publishing.

According to the Singapore publisher, the custom content unit provided publishing, advertising sales, and digital services, including marketing consultancy. It published content for clients such as Frasers Hospitality Group and Cold Storage.

Part of SPH's Chinese media group, Focus Publishing focused on commemorative books, magazines, and newsletters.

The publishers said existing contract agreements would be fulfilled in accordance with their stated requirements. They added that the consolidation was aimed at boosting their custom publishing services.

The move also was part of "a major restructuring exercise" to prepare SPH Magazines for "a digitally driven future", SPH said. The restructure would "consolidate" its position as a digital network in the magazine space, they said.

Apart from moving their custom content business to Focus Publishing, the restructuring also would encompass other initiatives, including the setting up of shared digital editorial desks.

SPH Magazines' sales and marketing teams also would be shuffled into two divisions comprising unified sales and marketing development. The former would manage advertising sales for all print and digital titles, organised by industry sectors, while the marketing development team would lead new marketing initiatives for all titles within the group.

The magazine group's headcount also would be reduced from 379 to 300.

Noting that there were no plans to shut down titles, SPH Magazines' CEO Loh Yew Seng said: "While editorial will maintain its sharp focus on serving our audiences, we believe this new structure allows us to be more agile in developing multi-platform business solutions for our customers."

He added, though, that the group would monitor the performance of titles, which currently comprised more than 100 digital editions.

Loh said: "Our digital products are showing consistent growth, despite the severely challenged media market. We will continue to expand our digital network and also roll out innovative advertising solutions. We are also investing further in analytics and our developer resources."

China Consumers Shop Differently on Mobile & Desktop

Online consumers in China exhibit different preferences on PCs and mobile devices, with a majority conducting product searches on desktops but turning to mobile to place orders.

Some 81.1% of Chinese shoppers viewed products on their PCs; whilst 74.9% turned to the same device to search for products, according to local market researcher, iResearch.

Some 81.3% then would pick up their mobile devices to place orders and make payments, with 82.7% turning to PCs to view shopping data before paying on their mobile.

iResearch said: "PCs have a larger screen and, thus, offer a broader view and immersive experience; whilst mobile devices have a closer relationship with users and bring more intimate interactions."

The report added, however, that online shoppers would turn on their PCs to purchase products with higher value transaction, including home appliances, mobile phones, furniture, and consumer electronics.

Mobile devices, in comparison, were used for transactions involving fast-moving consumer goods (FMCGs) such as public transport, flight tickets, and financial services.

Accordant Now Part of Isobar ANZ

Dentsu Aegis Network says its digital marketing agency, Accordant, has been integrated into the Isobar Group Australia and New Zealand.

The move followed the agency's acquisition last May and would see it renamed 'Accordant, Linked by Isobar'. The merger would beef up Isobar ANZ's offering and digital capabilities in data, creativity, design, technology, and personalisation, said Dentsu.

Accordant specialises in customer experience, tapping data and technology to personalise and optimise user experience.

With the integration, Isobar ANZ now would encompass WiTH Collective, Soap and SMG Studio, Accordant, and New Zealand's Little Giant.

Accordant's co-founder and CEO Stephen Knowles said: "As CMOs engage with their customers via true digital experiences and stray away from more conventional advertising models, our combined offering and proven wins will enable them to achieve their objectives. We believe the Isobar Group brings together the best of the best to deliver actionable ideas for sustainable competitive advantage."

GumGum Sets Up in Sydney

The ad-tech vendor has expanded its operations in Australia with a new office in Sydney, as it looks to spread awareness of in-image and in-screen solutions.

The new outfit also would support growing demand for "brand-safe ad formats", said GumGum's ANZ managing director, Jon Stubley.

Stubley said the vendor's network had more than doubled to over 13 million since launching in Australia two years ago. It also operates an office in Melbourne.

GumGum boasted an ad viewability rate of 81% and seven-times higher engagement than traditional display ads.

Its local offerings also had been expanded to include cross-device ad units, it said, adding that all of its ad units delivered in Australia would comply with Coalition for Better Ads' guidelines.

The new Sydney office includes several new hires, including director of publisher development, David Pope.