Strong prospects for programmatic advertising
More are tapping the platform to gain market share and boost sales
PETALING JAYA: With an estimated 82% of digital advertising revenue in Malaysia to be generated via programmatic platform by 2023, there is strong prospects for its growth as more marketers aim for the right audience to maximise their return on investment (ROI).
Marketers as well as those who employ agencies to advertise their products online are tapping this advertising platform in a big way to gain market share and boost sales.
Programmatic advertising is the use of automated technology for media buying as opposed to traditional (often manual) methods of digital advertising.
This form of media buying utilises data insights and algorithms to serve ads to the right user at the right time and at the right price.
Cxense senior vice-president and general manager for Asia-pacific, Charles Ho, told Starbiz that in line with the growing demand for online advertising and evolving method of such advertising, marketers now want to reach the right audience at the right time to maximise their ROI.
“Having the ability to advertise across any touchpoint, whether that’d be a site or an app, in a few easy, automated steps is extremely convenient. Programmatic buying and selling has matured over the years.
“It offers marketers the means to get the best ROI per dollar by having a platform which offers price transparency, self service convenience and scale to reach the intended audience,” he added.
Norway-based Cxense is an Ai-powered data management and intelligent personalisation platform that helps leading publishers and marketers worldwide deliver personalised experiences that grow subscription revenue and boost targeted advertising. It has offices in Oslo, Berlin, New York, Buenos Aires, Singapore and Tokyo.
Cxense is the official sponsor of the upcoming Programmatic Malaysia 2019 which will be held on Oct 16 at the Sheraton Hotel, Petaling Jaya.
It is forecast that by 2023, 82% of digital advertising revenue would be generated through programmatic advertising out of the projected total ad spending of Rm1.123bil in Malaysia.
Ho said the country is strong in embracing the programmatic platform and marketers are also driven by their advertising agencies which uses programmatic as a way to scale for themselves, in terms of operations and sales.
With the push and support from the advertising community, he said programmatic is here to stay.
According to Ho, the bigger challenge is touchpoint where the ads land.
“The touchpoints are the publisher, blogger, independent sites and apps. Publishers (or content site owners) wish they could get a higher cost per thousand (CPM) revenue as there is a cost to producing the content. But the CPM is on a downward trend due to the price competition in the market and an oversupply of ad inventory in the market.
“Hence, it is a challenge for publishers to rely solely on advertising revenue. Most of the spending eventually lands on social media platforms and search platforms which threatens the local media industry.
“These content providers need support, especially the trusted publishers, so that we can get quality content instead of fake news. After all, the Internet is all about content. Without content, the Internet is nothing,” he noted.
CPM is also known as cost per mille, which is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage.
Hence, Ho said marketers should support publishers by allocating their marketing budget to place more targeted campaigns and ads on these sites by buying the publishers’ audience.
“This allows marketers to do more targeted campaigns since publishers understand what their readers’ interests and preferences are. It is a win-win situation, maximising marketing ROI for the intended audience by targeting based on readers’ content consumption habits on the publisher’s site, which is more accurate and provides better brand safety.
“Right now, most programmatic revenue is not targeted by nature as the campaign will cost higher,” he added.
Ho said Programmatic Malaysia 2019 would help create awareness, education, trends and networking opportunities for those attending the event. For more information on Programmatic Malaysia 2019, visit bit.ly/pgmmy2019 or email events@thestar.com.my