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Online Search and Advertising Market Opportunity in Asia Pacific
Frost & Sullivan, Dec 2008, Pages: 181
This research service provides insights into the progresses made in the online search and advertising markets in Asia Pacific.
This Frost & Sullivan research service titled Online Search and Advertising Market Opportunity in Asia Pacific provides a detailed analysis of the existing online advertising ecosystem. It also provides key insights and highlights the strategic levers for the growth of online advertising in the APAC. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: display advertising, paid search, online directories, and online classifieds.
Market Overview
Online Advertisements Overcome Initial Resistance from the Media Community to Emerge an Integral Part of Media Planning
Next-generation digital marketing strategies provide all the metrics necessary to evaluate advertisement reach and effectiveness, helping advertisers save costs and create highly targeted campaigns. Online advertising in the Asia Pacific is all set to grow due to a greater number of large-brand advertisers adopting the online model, followed by the rapid growth of advertisement networks over the last two years. The paid search advertising market will also get a leg up from the overall growth of search and innovative targeting options and proliferation of search engine marketing (SEM) agencies and advertisement networks. “Throughout 2007, cross-media integration was an emerging trend in the Asia Pacific and this is expected to aid the overall online advertising industry,” says the analyst of this research. “Frost & Sullivan believes that with the anticipated scenario of market participants shifting toward co-existence, online advertising will continue to thrive among various other advertising media.”
Online classified advertising’s biggest driver has been the rapid audience shift, especially among the youth, from print to online. As people increasingly turn to the Internet for distributing and accessing ‘infotainment’ content, all segments of the online advertising market are expected to expand. Market participants will also gain from the adoption of new interactive products beyond the banner. Streaming video, branded content, mobile integration, and cross-media integration are all likely to offer higher margins and successful campaigns. However, market participants should not lose sight of their numerous security problems such as advance fee fraud, click fraud, credit card fraud, forex scam, employment scams, phishing, and wire fraud. It is, therefore, vital for the entire online industry to make a concerted effort to curb online frauds and create an ecosystem that increases advertiser confidence. “Online advertising companies in the Asia Pacific are also facing a significant challenge of inadequate digital media skills in the labor market,” notes the analyst. “Low awareness among small and medium enterprises about the power of online promotions and lack of industry standards for advertisement formats, pricing, and reporting in line with the major international guidelines are also restraining the growth of the market.”
Online advertising companies also need to look out for poorly executed spend management tactics and keyword strategies, which can compromise search marketing’s main selling point of return on investment (ROI) effectiveness. To help advertisers navigate service offerings, agency endorsement programs such as Yahoo! Search Marketing’s Ambassador club and Google’s new partner program need to become more high-profile. This factor will assume greater importance as major vendors increasingly rely on partners to manage growth. “With digital media currently being a key focus for advertising budgets, participants of the online advertising industry will not only have to restructure and improve their own strategic focus but also work hard to bring major agency partners to speed,” observes the analyst. “The need of the hour is education of advertisers, proven case studies for these new products, and novel audience targeting strategies, especially for user-generated content.”
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Product Segment:
- Display advertising
- Paid search
- Online directories
- Online classifieds
By Geographic Region:
- India
- Malaysia
- South Korea
- Singapore
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