APAC marketers aren’t allocating high budgets to mobile advertising just yet

Anne Freier

In Mobile Advertising

September 27, 2016

Mobile advertising may not be such a big deal in APAC countries just yet. That’s the finding from research by the APAC branch of the Mobile Marketing Association (MMA). Brand owners in Asia Pacific regions are still allocating large amounts of their ad budgets to more traditional media choices.
Indeed, the average Asian company spends just 7-10% of its marketing budget on mobile advertising, despite a rapid growth of mobile technologies in the region.
Mobile advertising not a big deal in APAC just yet
Source: exactdrive.com
Whilst Indonesian companies may be focusing more on mobile advertising, that hasn’t yet translated into higher ad dollars.
Rohit Dadwal, the Managing Director of MMA Asia Pacific, says that despite an increase in mobile ad revenue in the region, the format is only the third-largest advertising platform in Indonesia, trailing behind TV and radio formats. Conventional media still has a huge reach in the country.
Brands here are allocating up to 15% of their marketing budgets to mobile advertising, whilst TV remains to be the most popular ad format choice. He explains:
rohit dadwal

“The main effect of the rise of mobile usage is that companies will start to allocate more money for mobile advertising from their budgets little by little, from 10 to 20% currently to about 30% in the near future.”

He adds that mobile advertisers should place greater emphasis on cross-screen campaigns, viewing mobile and traditional media as a more integrated way to advertise with campaigns running side by side.

“It’s no secret that mobile advertising poses a threat to other forms of advertising. However, to succeed in marketing today, you shouldn’t use a completely mobile strategy. You need a marketing strategy that includes mobile because it will help you with your overall marketing objectives in the end,” he says.

However, that doesn’t mean brands in the country will simply shift focus away from TV. After all, the medium’s reach is still greatest. Digital advertising is likely to take a 25% share of ad spend in Indonesia by 2019, up from 7.3% in 2015.
Digital adverts almost tripled last year to $835m from $234.2m in 2013 and that figure is set to grow four times to $4.9bn by 2019.