Since the pandemic, RetailTech has experienced numerous transformations. It is crucial for RetailTech to find a way to adapt to the new shopping habits of customers amidst its constant changes. AdTech (Advertising Technology) is one of the biggest subsectors within RetailTech, which was valued at USD 886.19 billion in 2022 and is forecasted to expand at a CAGR (Compound Annual Growth Rate) of 13.7% from 2023 to 2030.
The rapidly growing digital ad spending is the key driving factor behind the rise of the AdTech industry. There are many other factors that contribute to the rise of Adtech such as:
Increasing Adoption of Digital Advertising
The growing acceptance of digital advertising is one of the major factors driving the APAC region’s AdTech market. Digital advertising has established itself as a crucial tool for companies looking to connect with their target market. This is a result of the large and expanding population in Asia with a high proportion of internet and smartphone users. Social media platforms such as Facebook, Instagram, TikTok, and WeChat are widely used in Asia, which provide the perfect platform for targeted advertising for RetailTech start-ups. Digital advertising is anticipated to account for US$ 338.40 billion in the APAC region by 2027 and is projected to grow at 9.26% from 2023 to 2027.
The pandemic has accelerated the growth of E-commerce as more people were staying at home and were limited to visiting physical stores. As a result, E-commerce paved the way for people to shop online and many tech-savvy young consumers were becoming more comfortable with online shopping. Moreover, the development of logistics and supply chain infrastructure, along with the rise of digital payments, has made it simpler for companies to sell and deliver goods to consumers in even the most remote location, further boosting the expansion of E-commerce in Asia.
Programmatic Advertising Adoption
Another development that is propelling the expansion of the AdTech market in the APAC region is programmatic advertising. Digital ad placement and purchase using automated systems is referred to as programmatic advertising. Businesses are using it more and more frequently to target their audience with relevant ads and maximize their ad spend. Lastly, programmatic advertising’s cost-effectiveness and efficiency have made it an appealing option for businesses of all sizes in Asia trying to maximize their advertising budgets.
Increased Awareness of Data-Driven Advertising
As a result of the pandemic, it accelerated the shift to online and digital channels for advertising. This led to a need for businesses to use data to understand changing consumer behaviors and preferences in real time. Additionally, advances in data analytics and artificial intelligence technologies have made it easier for companies to analyze and leverage this data to target their advertising more accurately.
So…What are the trends in APAC Adtech space?
Rise of Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML are already transforming numerous tech industry and AdTech is one of them. ML allows the companies to tailor their content for different audiences and help personalize it. In addition, AI-powered tools such as robotic automation assist AdTech start-ups to augment and automate about 45% of repetitive tasks. Moreover, 84% of senior executives believe algorithm-based technology is crucial for their company to grow.
Interactive ads provide viewers with a way to actively engage with your brand. It encourages consumers to take an action in order to discover something the ad will reveal or navigate to your website landing page. Interactive ads increase engagement by appealing and directly urging the audience to physically interact with some aspect of the ad, transforming it from a passive experience into an activity. As a result, it is likely to increase interest and compel them to learn more about your company on your website. For instance, a study showed that interactive video ads drive a 47% gain in time spent with a marketing message compared to a non-interactive ad.
Increase Demand for Social Commerce
Social commerce is the merging of social media and E-commerce. Social commerce capitalizes on people’s fast enthusiasm for things they see on social media and attempts to fulfill their desires promptly. Furthermore, when compared to traditional eCommerce, the experience is far more active, and shareability capabilities on social media apps turn shopping into a group activity. To add on, if the company’s target audience is in the 18 to 35 age group, social media is the crucial channel for sales.
Data and Analytics in Advertising
As AI and ML gain increased implementation by companies, data analytics are becoming more essential for businesses to utilize data insights and algorithms to automatically deliver the ads to the right user, at the right time, on the right platform, and at the right price. Having an understanding of the data received through your digital advertisements, allows you to have better insights into your audiences and tailor your ads to the right audience.
Overall, the Asia-Pacific AdTech market is predicted to grow rapidly in the coming years, driven by a variety of reasons such as the increasing implementation of AI and ML, interactive advertisements, demand for social commerce, and the importance of data and analytics.
Storm5 Is Here For You
AdTech will continue to grow as RetailTech industry expands across the globe. In order to perfectly execute and implement AdTech in your company, you need professionals. We, at Storm5, want to help RetailTech start-ups achieve a high level of success. We are a specialized recruiter dedicated to working with the best companies in the RetailTech and eCommerce industries. Storm5 is here to help you find the right senior talent for the right specialism, whether you are a start-up or planning to scale up. Get in touch if you are looking to grow your team.