Digital Video Trends In Asia 2019

Today, in the US, the western markets, and also in the far east regions such as Asia, digital video advertising technology plays an integral part of the modern tech-driven society. Like the rest of the world, countries in Asia are experiencing a high surge in the consumption of digital video technology. Different video technologies are expected to penetrate even more in all aspects of Asian lives. From video conferencing to video live streaming via various video connected TV apps, digital video technology will continue to grow in 2019, and in some countries, it will be blowing up.

Advertising using Connected TV - Is it finally in Asia?

Yes!, As a continent dominated by TV for decades, the growth of smart or connected TV in Asia is increasing, and we see in SelectMedia the amount of available ad space inventory to sell grows from month to month. According to my opinion with the support of reputable market studies, I predict an increase in the consumption of connected TV’s in 2019 across all Asia particularly in large countries such as Indonesia, Thailand, and Vietnam. During Q4/2018, I saw a surge in demand and requests from brands willing to invest top dollars in ConnectedTV ad units, I also found buyers willing to invest a significant amount of their budgets in the different Asian regions. I truly believe that 2019 is going to be the year of the ConnectedTV as I see different companies try to compete (successfully) against Google in this domain.

Online video monetization

Every marketer says (including myself) that video marketing is expected to explode in the Asian market in 2019. I have been working with direct advertisers and most of them are making decisions and planning in the Q4, we already saw spikes in demand for January and February which are considered to be slow months in terms of media spends. As seen across most western nations, video marketing will form an important part of advertising both for small-medium companies and of course for established and large businesses. Different online advertising platforms (including my company- Selectmedia) provide today better and efficient means to reach millions of people across the globe every day, and it’s a great tool to compete against giants such as YouTube or Facebook, a feat every company wants. Also, different from the traditional TV video ads, online videos provide its audience with personalized messages. The ability to track their reach in real time will allow brands across Asia to grow across multiple platforms and to centralize it with one major DSP.

It’s time for outstream

According to a recent Zenith report, as demand for outstream products increase, Asia is expected to become a market leader by contributing over 33 percent of world ad spend in 2019. These are definitely some amazing statistics, and I can see also from our company’s data the surge in spending from local advertisers across Asia, particularly the amount spent with us on outstream products. I predict the countries where we will see a spike in outstream ad units will include, Thailand, South Korea, Indonesia, Australia/NZ, the Philippines, and India. Also, without any reason, the rates for outstreams are usually 10%-20% cheaper than pre rolls and instream without losing the completion or engagement factor which is another reason why this ad unit is expected to explode during 2019;

What about the Live video streaming? Can it be monetized in 2019

Another sphere of digital video expected to grow in 2019 is the use of live streams. The technology to provide it became more like a shelf product and not expensive to operate; although there are multiple online platforms offering video streaming options, brands are yet to take full advantage of such services and its still avoided by the brand media planners especially in Asia. I totally understand the motivations by the brands to limit this advertising vehicle. In Asia, live streams have seen slow growth because of limited internet reliability such as poor Wi-Fi and expensive mobile data, and in the rest of the world is probably the YouTube issue of placing ads on inappropriate content. However, with the continued improvement in mobile network coverage and related internet connection across Asia, it is possible that we will see some budgets go into this direction. I still wonder how it will be accepted by brands. Regardless, the Video-on-demand (VOD) services that are already common in Asia will continue to grow, and I already see some good companies in the space expanding.

In the Sphere of Performance: The name of the game is Viewability and VTR

Over the years, viewability has increasingly become an issue of concern for marketers as it determines the level at which ads are seen. In addition to this is View Trough (also known as VTR), another important parameter cannot be ignored, I predict it will also be the focus for marketers in 2019. Another great trend I see in the markets in Asia with regard to the performance model is where advertisers pay only for 100% completion view for a video. I truly believe in this model, and I see this way of doing business expanding to all Asia during 2019.

Summary: 2019

Overall, I predict the continuation of digital to be evolving in 2019 (which started by the end of 2017); the Asian markets are still conservative and yet ready to try new things and technologies. I also predict that the performance model will take a big part of the Asian markets as well as going after connectedTV online budgets. The DSP’s challenge will be centralizing the media buy through different units into one platform to provide better efficiency to the brands.

 

Looking forward to getting into 2019 and seeing if my predictions will come true.

 

Yours,

Sagi Gordon

CEO of SelectMedia

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