Asia leads programmatic growth

23 April 2014
GLOBAL/SINGAPORE: Asia is expected to register the highest levels of growth in the global programmatic market in 2014 with an increase of 73% and total spend of just over $500m, the latest industry data has forecast.

According to Magna Global, the global media unit of IPG Mediabrands, Korea's programmatic spend of $247m will account for almost half of the region's total.

However, while Korea will lead the programmatic share in the region's developing markets this year, "The International State of Programmatic" report forecasts that Malaysia and Singapore will emerge as the top two regional markets for real-time bidding (RTB) in 2014 with a spend of $12m and $10m respectively.

Total RTB spend in the developing Asian markets will be $54m in 2014 and Malaysia and Singapore's RTB penetration is expected to surpass that of China, Campaign Asia reported. Both countries will achieve 30% RTB market share by 2018.

The report also noted that the combined size of the programmatic markets in Japan, China and Australia are six times larger than the rest of developing Asia and that China's display market will be worth $15m by 2017.

Looking at the other regions covered in the report, North America remains by far the largest market, accounting for more than half of global total programmatic spend.

Other major players include Australia, Japan, China and the UK, but the top ten programmatic markets are expected to record a lower growth rate of 39% this year compared to growth of between 57% and 66% among the small to medium players.

For example, strong growth rates are forecast for Latin America, where RTB and non-RTB spending is expected to increase as much as 61% by 2018, with Colombia's RTB penetration matching that of Mexico and Brazil.

"As a marketer who has been on both sides of the table – client and agency – I strongly agree with many who suggest that programmatic is the transformative force in the industry," concluded Shaffia Sanchez, president of world markets at Magna Global.

Data sourced from Magna Global, Campaign Asia; additional content by Warc staff
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