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Digital advertising is thriving in the Asia-Pacific region, outshining North America and Europe in some categories, according to a new global benchmark report by DG MediaMind.
The Viewability: A New Lens for Engagement report compares the digital advertising behaviours from 47 countries around the world, analysing more than 600 billion display advertising impressions during last year.
Worldwide, digital advertising currently accounts for 19.8% of total media advertising spend and according to eMarketer, it will account for 21.7% by the end of 2013.
By 2016, experts are predicting that it will account for more than a quarter of all media advertising spend.
Digital marketing is steadily growing and the report highlighted that digital video advertisements took centre stage last year, seeing a 43.8% growth over 2011, which is largely due to the increasing adoption of digital video.
Rich media advertisements were also very successful, with 63% viewable, and the report points out that there is a direct correlation between visibility and performance.
The most viewable rich advertisement formats were commercial breaks (97%), floating advertisements (96%) and wallpaper advertisements (83%), indicating that these highly interactive and persistent formats are valuable for brands that are using viewability as a key performance indicator.
For the Asia-Pacific region there were a few key takeaways from the report, which include:
1. Australia and New Zealand are mature markets nestled in a growing region: The report highlights that both countries are drivers of economic growth, including digital marketing.
2. Dwell rates coincide with strong expansion: In Australia and New Zealand, average user dwell times in seconds were 47.1 for rich media, 58.5 for expandable banners, 4.2 for floating advertisements, 25.0 for floating advertisements with a reminder and 37.4 for the polite banner.
3. In-stream video advertisements shine in Japan, while rich media is solid in China and Taiwan: In-stream video has a 3.5% click-through rate (CTR) in Japan and a 77.1% fully played rate. With rich media, 0.19% of Chinese internet users click through and 0.38% of Taiwanese users do.
4. South Asia is a developing market: South Asia has the potential to move to digital advertising at scale, boasting high dwell rates, average dwell times and expansion times. Average dwell rates for polite banners was 2.2%, 7.0% for expandable banners, 32.2% for floating advertisements and 3.7% for rich media.
5. East Asia experienced better CTRs than North America: East Asia had consistently higher CTR’s than North America when it comes to rich media (3.5% vs 0.14%), in-stream video advertisements (2.04% vs 1.11%), mobile (2.04% vs 0.88%), expandable banners (0.36% vs 0.16%) and polite banners (0.15% vs 0.1%).