How Brand Marketers and Advertising Agencies Can Succeed With Programmatic Video in Taiwan

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Taiwan stands out as one of the strongest digital markets – both in Asia as well as on a global scale. According to IAB Singapore’s report on ‘Ad Spending in South-East Asia’, Taiwan is one of the most digitally connected countries in the world with a smartphone penetration rate of nearly 90%. In 2018, while most Asian countries spent an average of 20% of their total media consumption on digital ads, Taiwan spent over twice that amount, and is expected to surpass 50% in two years.

As a relatively mature digital market, Taiwan has a higher demand for digital video ads, taking approximately 20% of the whole market share. Video is the most fast-growing of all digital formats, with spending growth rate climbing over 86% from 2014 to date. This is even more than (SEO) keyword advertising which has always been considered the best-performing marketing tactic. These stats may signal a substantial change in audience behavior. Meanwhile, all marketers are trying to answer the same question – how can we grab the consumers’ attention again?

Despite the increasing need for video advertising, agencies or marketers continue to rely mainly on static ad formats. Aside from the higher media cost of video, the more important deterrent is the inconvenience of sourcing new video materials. It’s quite unusual that marketers in Taiwan tend not to use global video creatives produced by their overseas head office, but prefer their own original ideas featuring Taiwanese storylines and often told in Mandarin. The unique culture of Taiwan has been deeply embedded into the development of video creatives. Budget limitations for video production is partly the reason for lower consumption in digital video advertising.

And how do marketers choose digital video advertising channels? Mobile devices are the primary means by which users receive video content. As you may know, the positioning of an ad is very important given the relatively small size of the mobile screen. YouTube ads are currently the leading solution for all brands and marketers in Taiwan, given its non-intrusive in-stream system as well as the stable CPV performance. Facebook and Instagram are also taking a share of the market, leading the battle between the outstream format providers. Outstream video format denotes the video appearing in non-video environments: it only appears when users scroll by. But research shows that users watch outstream videos 25% longer than instream. This implies that it’s important to let users choose how they receive the information, by themselves or not.

In addition to creatives and environments, brands also place greater emphasis on programmatic buying. Who will see my ads? Will they complete watching the ad? How many of the viewers will click on the ads? These are the topics that marketers care about when selecting their media partners. This is also an opportunity that FreakOut can capture. With our branch network across Asia, we’ve collected huge amounts of data that record consumer behaviors, as well as their likes and dislikes. We all know that data has no borders. This is why Facebook stands out in the advertising industry today. Programmatic is a necessity for all brands because it ensures that budget is spent appropriately, and also determines how efficient campaigns can be.

Programmatic Video is not only a key digital trend in Taiwan but will eventually become one of the most important advertising mechanisms globally. The best strategy for marketers is not to use a single platform, but to integrate both instream and outstream traffic simultaneously. When you combine the right format together with accurate audience delivery, every such campaign will successfully deliver optimal impact on its audience.

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