In-App Ad APAC Region: Insights, Trends, and Innovations


03 October 2023

The Asia-Pacific area stands out as a highly vibrant and constantly evolving market within the multibillion-dollar advertising sector. After North America, this region is the world’s second-largest contributor to advertising expenditure at 157 billion USD and expects 275.5 billion U.S. dollars by 2026. A number of countries in the APAC region, including but not limited to China, Japan, Australia, and Indonesia, hold prominent positions among the globe’s most significant advertising markets.

According to the report ‘Asia-Pacific Programmatic Advertising Market’ by Mordor Intelligence, the Asia-Pacific Programmatic Advertising Market reached a valuation of USD 16.92 billion in the preceding year. It is expected to maintain a Compound Annual Growth Rate (CAGR) of 17.61% over the next five years, reaching an estimated value of USD 44.27 billion. DecenterAds is actively engaged in this promising market and is a member of IAB SEA+India.


In-app Statistics in the APAC Region

APAC takes a large share of global mobile in-app programmatic ad spend, with an increase in CTV ad spending. Some statistics from Pixalate emphasize this.

  • 34% of global mobile in-app open programmatic ad spend goes to apps registered in the APAC region (Google Play Store and Apple App Store).
  • 15% year-over-year rise in open programmatic CTV ad spend in the APAC region (Q1 of 23 vs. Q1 of 22).
  • 42% mobile device market share for Apple iPhone; Samsung and Oppo are tied for second with 12%.
  • 23% CTV device market share for Samsung; Chromecast is second with 12%.
  • 20% invalid traffic (IVT) rate in APAC in June 2023, including ad fraud.

In various emerging marketing avenues like in-game advertising, programmatic audio, and digital out-of-home (DOOH), the Asia Pacific Programmatic Advertising Market is taking the lead. In-game advertising is seen as a path to connect with an audience less engaged with conventional media, offering brands a chance to engage extensively with consumers.

In the Asia-Pacific region, the programmatic advertising market segments itself according to a trading platform (real-time bidding, private marketplace guaranteed, automated guaranteed, and unreserved fixed-rate), advertising media (digital display and mobile display), and the size of enterprises (small and medium-sized businesses and large enterprises).


In-app Growth in the APAC Asia-Pacific region

Mobile apps and mobile gaming serve as the primary channels for digital marketing in APAC. With Southeast Asia alone boasting 460 million internet users, brands have ample opportunities to utilize retail media and reach new consumers. Embracing program-based applications that eliminate the need for manual execution in premium inventory opportunities sectors commonly used for brand campaigns, ad techs have achieved a significant stride. This dynamic is a pivotal driver behind the surge of programmatic advertising in the APAC region, capitalizing on its enhanced effectiveness and efficiency compared to traditional tag-based reservations.

In the realm of digital advertising within APAC, mobile in-app advertising stands tall as the premier channel. As brands increasingly target digital-savvy consumers, advertising budgets are undergoing a transformation towards digital media and mobile in-app avenues. On average, 58% of total advertising budgets are directed toward digital media, and a noteworthy 20% of this allocation is devoted to mobile in-app advertising.

The allure of in-app channels extends considerable benefits to advertisers. Programmatic in-app advertising fosters robust customer engagement and aligns with brand objectives. Approximately 53% of the advertising budget is dedicated to branding, underscoring its crucial significance. This approach proves effective, as 45% of advertisers acknowledge enhanced customer engagement, while a remarkable 72% credit their investment decisions to brand alignment. Notably, 29% even employ brand alignment as a key performance indicator (KPI) to measure campaign success.


In-game Advertising APAC Region Trends

For years, the APAC region has held a dominant position in an industry with a staggering USD 300 billion value. Remarkably, gamers in APAC dedicate an impressive 8 hours and 27 minutes per week to gaming. Recognizing the potential of in-game marketing, the industry considers it a gateway to engage with audiences unresponsive to traditional media. Brands can strategically harness this distinctive advertising channel to connect with highly engaged consumers on a substantial scale.

The substantial community of Asian gamers presents an excellent opportunity to establish novel touchpoints with users through in-game advertisements. The insights obtained from this programmatic channel can then effectively inform performance enhancement in other media avenues, including audio or display advertising. Ultimately, this approach fosters a more cohesive strategy for comprehensive full-funnel advertising.

A prominent trend in the APAC region revolves around the surge of in-game payments, which heavily relies on convenient, frictionless, or single-click payment processes for higher revenue forecasts. This trend isn’t limited to the region; globally, the mobile gaming sector has grown steadily, even post-pandemic. While players might have once been willing to manually input their financial information during the early days of non-optimized checkouts, the expansion of mobile gaming has made a clunky experience unacceptable.

As the industry evolves, anticipate a heightened focus among APAC game developers on providing seamless in-game transaction methods, such as e-wallets and mobile payments. By the conclusion of 2023, these streamlined payment options could well become the predominant choices for gaming transactions across the APAC landscape.

The sweeping disruptions brought about by AI and ML are reshaping various sectors across industries, and the marketing field is gradually embracing this transformative wave. Based on comprehensive insights into purchasing patterns and behaviors, AI-driven marketing has become a formidable influence.

In digital marketing, companies integrate AI in diverse ways, employing chatbots, predictive and targeted content, content generation, and image recognition technology to elevate customer experiences. Leveraging image recognition software as an AI asset enhances customer interactions. Furthermore, ad tech companies are innovating AI-powered tools to assist marketing strategists in planning, researching, and crafting content, paving the way for a more innovative and effective marketing landscape.



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