Digital Advertising Calculations Infographic

No matter how much we may want to avoid it, maths (or math to our American friends) is a big part of Digital advertising. In order to measure and optimise marketing we have to be comfortable with CPA, CPC, Conversion Rates and many more metrics and KPIs.

Almost everyone knows how to use total cost and number of conversions to calculate the CPA. But it’s actually surprisingly easy to get almost any number you need from an incomplete set of data on a digital report or media plan. For example with just CPC and CTR you can work backwards to CPM.

The infographic below shows all the common calculations in digital advertising – an easy cheat sheet for when your brain is on go slow and you just need to finish that report.

Digital Advertising Calculations [Infographic]
Digital marketing calculations

Half of APAC Smartphone Users Now Shopping on their Device

The latest MasterCard Mobile Shopping Survey covering Asia Pacific finds consumers embracing the convenience of mobile shopping. Almost half of consumers – around 45% in total – made a purchase using their smartphone in the three months preceding the survey.

Exactly 50% of respondents across Asia Pacific cited convenience as the most compelling reason for shopping on their smartphone. Other motivating factors include the ability to shop on the go and the growing availability of apps that make it easy to shop online.

Fig 1: % consumers who have made a purchase using a smartphone
2014 2013 2012
Asia Pacific 46% 39% 35%
Korea 54% 48% 40%
China 70% 59% 54%
Thailand 59% 51% 51%
Hong Kong 38% 40% 41%
Taiwan 62% 45% 28%
Singapore 37% 31% 40%
Vietnam 45% 35% 34%
Indonesia 55% 47% 55%
India 63% 47% 30%
Malaysia 46% 32% 25%
Philippines 34% 33% 21%
Japan 26% 23% 26%
New Zealand 21% 15% 18%
Australia 20% 25% 19%

In addition to using their mobile phones to make purchases, shoppers in the region are also using it to compare prices between physical and online stores. Close to half (45%) of respondents have conducted price comparisons, with a similar proportion (44%) also stating that they have conducted research online prior to making a purchase in-store.

Overall, consumers from China (70%), India (63%) and Taiwan (62%) are the most likely to shop using their smartphones with the most popular mobile shopping purchases amongst Asia Pacific shoppers include clothing and accessories (27%), followed by apps (21%) and daily deal coupons (19%).

Asia Pacific consumers are also adopting new mobile technologies, with 28% of respondents saying that they use mobile banking apps. Group buying apps (40%) and digital wallets (28%) are the most popular amongst Chinese consumers.

Increased smartphone ownership is clearly having a massive impact on the way people across Asia Pacific shop and spend. Brands and online shopping portals need to continue to develop easy and simple ways to browse and pay, as convenience remains paramount to consumers whether they are shopping on their phones or in-store.

Mobile Viewability: The final frontier

Mobile is a hot topic. Viewability is perhaps even hotter. Bring the two together and you have some sort of digital marketing nuclear volcano.

Well maybe. Mobile viewability is a subset of the overall “has my ad been seen and by who” issue, but a particularly tricky one. The lack of a unique user ID is the clearest roadblock. But it’s also clear that the various technologies and vendors used to solve mobile advertising delivery issues, often create further fragmentation.

Fragmentation is especially critical when understanding exactly how ads are delivered to a mobile webpage or app. In mere milliseconds – the time it takes to load a webpage or app – a typical mobile ad is requested, analyzed, bid on, approved, and served. That’s the reality of the coming era of programmatic advertising as many of you know.

A recent infographic from The Mobile Majority walks us through the steps required for all these technologies to work together. And with a whole swathe of brands and ad tech firms in the mobile first APAC region committing unequivocally to the future of programmatic, the mobile viewability issue is not going to go away.

Understanding Mobile Viewability [2015]

Mobile-Viewability-The-Mobile-Majority

In simple terms, the entire journey of an ad, from initial request to final display, has to happen really fast. That’s what programmatic necessitates. During such a rapid journey, handoffs between technologies and vendors have to be clean and consistent.

Once the ad is actually placed, a whole other set of considerations emerge. Publishers control their site or app, deciding how and where to place the ads that get delivered. On the other hand, tech vendors control how the ad is rendered. How that rendering interacts with publisher placement can go a long way in determining viewability.

Mobile ads are also becoming more complex. The banner ad, although still incredibly popular, is receding to the back of the most-effective-ad discussion. Taking its place at the front are rich media ads and video, which offer much higher levels of interactivity, engagement and ultimately conversion.

But higher levels of creative require – you guessed it – more layers of technology. Try to integrate this creative across different operating systems, app formats, web browsers and connection types, and you have countless opportunities for viewability to break down.

And here’s the final problem: we don’t even have a set of viewability standards for mobile yet. The IAB standards are designed for desktop, and therefore really only helpful as a frame of reference. So while we wait for official mobile guidelines (expected by the end of this year), viewability on mobile will continue to have a frontier feel to it. Hopefully, there won’t be too many outlaws.

Data and Automation will Drive Programmatic in APAC

Programmatic advertising seems to be taking over the world in 2015, and it’s importance is growing across Asian markets.

Matt-Ware_avatar_1428590011-300x300In fact recent studies show that 3 out of 4 APAC brands to increase investment in data driven buying over the year ahead, in line with global trends.

We talk to Matt Ware, Commercial Director APAC, at MediaMath about the three M’s – Mad Men, Math Men, and Maroon 5. Plus a little bit about programmatic.

DIA Hi Matt. How are you?

MW Hi Digital in Asia! Very well thanks.

DIA We’re big fans of Mad Men here at DIA. Can you explain how we got from the Mad Men era, to the Math Men era, and the key differences?

MW To the world’s first advertising agencies, the technology now available to help marketers would have seemed like something from a fantastical science fiction novel.

In reality, the latest technology is proving to be an essential business tool in delivering what has long been promised but never realised – true customer-centric marketing.

While these tools and new ways of working can seem complex and intimidating even to experienced agency hands and marketers, grasping the fundamentals and understanding how programmatic can help business is surprisingly simple.

DIA What are the most compelling benefits programmatic trading can offer advertisers?

MW The three key business advantages that programmatic can deliver are improved targeting, scale, and relevancy. Combining these elements with real-time decision-making across millions of ad-serving opportunities means a brand can lower its marketing costs while boosting its return on investment.

At the heart of the matter is data. Consumers are becoming more sophisticated in how they use devices – from desktops to tablets and mobiles – and when they want to research, review, and buy goods or services. Marketers can now access more data than ever before about this increasingly complicated consumer path to purchase.

DIA Tell us more about data driven advertising. We know that data is THE key component of marketing moving forward.

MW Data Driven Marketing and Advertising (DDMA) – a common acronym among agencies and networks – is powered by technology that analyses vast data sets and provides the algorithms that underpin programmatic buying. This approach to marketing strategy is attracting more and more investment.

According to research conducted among 3,000 marketing practitioners across 17 countries, almost two-thirds (63%) increased their investment in DDMA in 2014, and nearly three-quarters (73%) expect to increase their DDMA budget this year.

It is vital that companies invest in technology that can analyse their consumer data because without this information, their competitors will simply leave them behind. The technology enables data to be qualified and mined for insights that can help with audience segmentation and contextual targeting. Engaging ads can then be created to serve to potential customers. Finally, these ads must be tracked, measured, adjusted and tested again and again to achieve optimum performance.

DIA How can advertisers take their first steps into programmatic?

MW Many brands are now testing programmatic buying on small projects so they can learn more about the systems, before using the results to help convince the CEO or the board that more budget should be invested in automated trading. Some brands such as Mondelez and Procter & Gamble have already announced that a large chunk of media spend will now be traded programmatically.

DIA What does programmatic advertising mean for consumers?

MW Ultimately, programmatic trading allows clients to serve relevant advertising to the consumer via the appropriate channel or platform, and at the right time. It is customer-centric because it prevents the shopper from being bombarded with meaningless messages for products in which they have no interest. The idea is to create a truly personalised shopping experience.

The brand, client, and agency benefit from efficiencies of scale and accurate targeting, and there is less money wasted on trying to reach the potential consumer. A consumer who is happy with the messages he or she receives is more likely to buy the goods and services on offer. It’s a win-win all round.

DIA Thanks Matt. Finally, has anyone ever mentioned your resemblance to Maroon 5 lead singer Adam Levine?!

MW Thank you. The rock and roll stardom wasn’t enough for me, I find a career in programmatic far more exciting.

Latest Research Shows Viewability “Just Works”

Viewability was one of the hottest topics in Digital over 2014, but the buzz has eased off slightly since the release of the IAB standards. Concerns around fraud rumble on, with a feeling that current regulation does quite not go far enough.

Getting measurement right is a key component of successful advertising delivery, especially in the Digital space where there is so much measurement available. Benchmarks, research and case studies are crucial, so it’s handy that Sizmek have just released their latest report into the impact of viewability measurement.

The Sizmek Research team analyzed viewable data from more than 240 billion measured impressions, 840,000 ads and 120,000 campaigns served in 74 countries to more than 22,000 publishers and 43 programmatic partners. That’s quite a lot.

The report found that ads with greater interactivity are more likely to be viewable, that mobile ads are more viewable than ads on desktop computers, and ads sold directly to publishers are more viewable than ads sold through automated or programmatic platforms.

There are some interesting comparisons looking at APAC versus other regions. Asia in general scores very high in rich media mobile ad CTRs.

In the US, the IAB minimum viewable threshold for performance, is 70% viewability. The research found this level to be a reliable indicator of performance. The report also found that choosing mobile friendly HTML5 formats and creative sizes specific to mobile devices, improves ad viewability.

Sizmek Viewability Benchmarks [2015]

“The specifics and definitions will no doubt continue to be debated, but the recent efforts at standardizing viewability terminology move the industry toward a more transparent marketplace for digital ads, and our research backs that up. Viewability just works in terms of driving campaign performance,” says Alex White, VP Product Strategy at Sizmek.

Clearly, measuring whether an ad is viewable gives the industry a great starting point for trading in true engagement.

A Quick Guide to Social Media in China

China’s social media landscape has proven a fast moving target. Ogilvy have just released the latest in their guides to the market highlighting the (mostly) differences but sometimes surprising similarities to global platforms.

The big story is the continued rise of WeChat, with the Tencent owned platform taking on the role of multiple Western platforms in China. Video sharing makes a first appearance, inspired by Vine. The major players are Sina owned Meipai and Tencent’s 微视 plus WeChat’s “Sight” functionality.

One of the few western platforms not blocked in China remains LinkedIn. In a market where networking is done face-to-face there are questions as to cultural fit, but with a China office this is clearly a long term bet. There are definite opportunities for brands.

China Social Media Landscape [2015]

Social Media In China

Previous versions of the infographic can be found here.

APAC, the $6bn Mobile gaming opportunity

With close to $6 billion revenue, Asia Pacific is the largest mobile gaming market in the world. Led by Japan, China and South Korea, the category is still growing at 25% annually across the region.

We chat to Jun Lim, Senior Business Development Manager and Lison Chen, Senior Account Manager at AppLift about this promising yet “very fragmented” market opportunity.

DIA: What are the biggest challenges for mobile game advertising in Asia?

JL & LC: The Asian market is very fragmented. Each market is different in terms of language, culture, and economic levels. Advertisers in different markets have different levels of understanding regarding the business model and traffic sources of mobile advertising, and traffic is still centralized by either big international players such as Facebook, Google, and Inmobi or local players such as Wechat in China, KakaoTalk in Korea, and Line in Japan. It is important to understand the situation and preferences in each country, and have a localized strategy to better satisfy the advertisers’ needs and wants.

What are the key opportunities?

The Asian market is still growing. Due to the rise of smartphone penetration and shipments, especially in Thailand, Vietnam, and Malaysia, we continue to see rapidly growing markets in South East Asia. Mid-mature markets such as Korea, Japan, and China are the top countries in terms of revenue in Google Play and App Stores. Mobile marketing trend is changing rapidly into performance-driven, meaning that it is possible to do campaign with measurable numbers.

How is AppLift positioning itself in the region? Which markets have the strongest potential?

AppLift positions itself as a data-driven app marketing platform that helps advertisers to handle the full spectrum of user acquisition. Additionally, AppLift highlights its LTV optimization technology that enables quality user acquisition on a performance basis. For example, in Korea, AppLift ran a non-incentive marketing campaign for RealFarm, a mobile farming game from NeoGames that delivered real vegetables to a few users who reached a certain level. AppLift focused on this interesting aspect of the game, and few months after the campaign, the fact that the game delivers real veggies went on viral through AppLift’s various media partners, resulting in a ROI of 1200%. It was a result of both NeoGames’ well-developed game contents and AppLift’s marketing strategy.

Do you see clients using mobile for brand driven campaigns? How do you position the connection between mobile and other media?

Branding can definitely help to increase the performances of mobile game advertising. Supercell, for example, spent millions of dollars on branded advertising for its game Clash of Clans across multiple channels such as metro, OOH and TV in Korea. Supercell’s massive promotion earned the game the number 1 position in the gross chart on Korea’s Google play even without using [the mobile platform] KakaoTalk. After the success of CoC, it has become quite a norm in Korea to do a huge scale branding / offline campaigns as in the case of mobile games such as Summoners War and Line Rangers. Mobile is such an real time channel in this sense, and brands are really getting to grips with the connection to other media.

Mobile ads have a reputation for low – or at least hard to track – performance. How does AppLift overcome this? Is data a big part of your positioning?

Based on big data, AppLift’s programmatic buying algorithm can target only the relevant audiences and content for a certain game. It can optimize campaigns and target performance improvements against CTR or revenue. These data driven techniques are very standard to advertising globally, and it is great to bring them at scale to APAC markets.

What is AppLift’s strategy to take on the APAC market?

With advanced technologies and know-how in each Asian market, AppLift plans to provide one-stop advertising/user acquisition services to advertisers. Our goal is to help advertisers connect their games/apps to the targeted Asian markets effectively through our technology, data and services.

What is your advice for brand marketers in one sentence?

Asian markets are sexy but challenging. Brand marketers should prepare various advertising strategies to adapt to local markets.

Thank you.

Kenshoo launches new product suite targeting mobile advertising market

Kenshoo today announced the release of Kenshoo Infinity Suite, aimed at the mobile display advertising market, expected to be a growth area over 2015 in APAC. The new product connects to ad tech giant AppNexus, meaning clients can now activate search and social data across display and rapidly growing in-app placements on exchanges like MoPub, Nexage, and other select inventory sources. Continue reading Kenshoo launches new product suite targeting mobile advertising market

APAC Social and Mobile Usage to Surge in 2015

2015 promises to be an exciting year for digital marketing across APAC. In ever timely fashion, the comprehensive We Are Social Annual Report confirms this potential, highlighting robust growth for social, digital and mobile in the region over the coming 12 months.

As we saw in 2014, rising mobile adoption is increasingly THE dominant regional consumer trend. With more than 3.7 billion mobile phone connections, it comes almost as a surprise that only 22% of Asian consumers make use of mobile social services like WhatsApp or WeChat. Prepare for big increases – 2015, the year of mobile squared? Continue reading APAC Social and Mobile Usage to Surge in 2015

MicroAd leads funding round for Ambient Digital in South East Asia

MicroAd Singapore today announced a Series A investment in Ambient Digital Group aiming to expand market share across South East Asia.

MicroAd will also connect its programmatic ad platform to Ambient Digital’s vast regional supply of inventory – a big win for programmatic ad buyers in South East Asia. Continue reading MicroAd leads funding round for Ambient Digital in South East Asia

News and Industry Resources for Digital Marketing and Media in Asia.

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