In this weekly segment, ExchangeWire sum up key industry updates on ad tech from around the Asia-Pacific region – and in this edition: Singapore retailers need contextual marketing; IAB AU set viewability benchmarks; India fastest-growing among top ad markets; TubeMogul partner with Tapad in cross-device deal; Exponential unveil Face Filter in AU; MSLGroup step into Thai via Arc; and China's Labbrand open up in Singapore.

Singapore retailers need contextual marketing to drive sales

Retailers in Singapore will need an omnichannel strategy as well as apply contextual marketing to more effectively drive sales.

According to a survey by SAP Hybris, which polled 1,000 consumers in the country, 39% would make purchases as they browsed in physical stores for Christmas gifts. Some 68% preferred retailers that had physical stores as well as both an e-commerce site and mobile app, and 54% wanted the option of self-pick at physical stores.

The findings underscored the need for retailers to cater to a "truly multi-channel market", where most consumers used a combination of devices in their online and offline shopping, said Nicholas Kontopoulos, SAP Hybris' global vice president of fast growth markets in Asia-Pacific.

He noted that Singaporeans were amongst Asia's most tech-savvy shoppers and were highly familiar with e-commerce. The findings indicated a future where offline and online shopping were no longer two separate business models, he added, and consumers expected a seamless, omnichannel shopping experience.

Kontopoulos said: "With more than two-thirds of Singapore consumers looking to personalise gifts for their loved ones this Christmas, it is critical for retailers and marketers to be thinking of contextual marketing to understand what they are looking for and ease the gift-hunting experience.

"Retailers have the opportunity to thrive across many touchpoints with well-executed hybrid experiences that drive engagement and sales to get Singaporeans spending beyond Christmas", he said.

IAB AU set viewability benchmarks

The Interactive Advertising Bureau (IAB) Australia have released a whitepaper outlining the association's seven principles on ad viewability.

They said the benchmarks were based on industry data collected and supported by PwC, comScore, Integral Ad Science, and Moat. The viewability benchmarking data would be published every six months, it added.

In the seven principles, IAB Australia stated that the viewability standard was the US Media Rating Council's MRC standard and that non-viewable and non-measurable did not equate to fraud. It also pledged to drive viewability in the country and touted independent measurement as a necessity in measuring viewability.

IAB Australia CEO Vijay Solanki said: "Viewability is complex and we've tried to simplify where we can. Whilst viewability is important, there are other variables to consider. We look forward to healthy engagement on the whitepaper as we work with the industry to take this work forward."

According to the report, viewability rates for direct buys were higher than inventory through programmatic platforms; although, premium inventory purchased programmatically likely had higher rates than non-premium inventory.

The data also revealed differences in viewability rates of between 45% and 76% for different desktop creative format sizes.

IAB's research director Gai Le Roy explained that the variance in viewability was influenced by site design and ad position on a page. It also depended on whether the creative ad unit used industry-recommended LEAN (Light, Encrypted, Ad choice-supported, Non-invasive) digital ad principles.

India fastest-growing among top ad markets

The Indian market remains the fastest growing market among the world's 10 global ad markets worth more than USD$10bn (£7.95bn), according to latest projections from WPP's GroupM.

The country's ad spend is predicted to expand by 13.8% this year and 12.5% in 2017, driven by low interest rates, continued urban demand, and key economic reforms.

China also is proving to be a stronghold with a revised 7.8% growth this year, up from GroupM's earlier forecast of 6.6%. Ad revenue from the FMCG sector increased 4.6% year-on-year in the second quarter, higher than the 2% forecasted.

The agency group said China's ongoing urbanisation efforts and robust consumer confidence drove the market's growth, even though this was no longer in the double-digit rates. GroupM added that digital ad spend would grow 29.5% this year and 21.5% in 2017.

The Chinese would take a slight lead ahead of the US, with both markets contributing half of all net growth this year and next.

Global ad spend for 2017 was projected to grow 4.4% to reach USD$547bn (£434.82bn), of which 33% would come from digital. This year, digital accounted for 72 US cents (57 pence) of every new ad US dollar (80 pence), while TV accounted for 17 US cents (14 pence).

China and Japan would be among the world's top five ad economies next year, ranked second and third, respectively. US would lead the pack, while the UK would place fourth and Brazil fifth.

GroupM said in a statement: "China and other 'new world' countries continue to over-contribute to global growth, but a new normal, more modest, level of growth has settled in. Digital advertising continues to be the chief beneficiary of growth."

TubeMogul partner with Tapad in cross-device deal

The two ad tech vendors have signed an Asia-Pacific agreement to provide cross-device marketing services across the region.

Launched already in Singapore, the offering tapped Tapad's Device Graph tool to establish how devices were associated with one another and build a unified, cross-device view of the user's behaviours and transactions.

TubeMogul's Southeast Asia head of enterprise sales, Tai Morshed, said: "As consumers move from device to device seamlessly throughout their day, so too must our marketers as they execute their campaigns."

Morshed added that the partnership would enable better targeting and generate higher efficiency results in cross-screen campaigns.

Exponential unveil AR ad units in AU

Exponential Interactive have launched a Face Filter feature as part of their video ad platform, VDX.

The new tool is touted to offer an augmented reality (AR) user experience for consumers who opt into the service, and activate their webcams to engage the Face Filter. It is available on display ads and in-stream on devices that have webcams.

Upon doing so, facial feature and head-tracking technology would be applied to the users' face, enabling advertisers to overlay virtual objects such as makeup, hats, and helmets.

Exponential's Asia-Pacific and South Africa managing director, Ben Maudsley, said: "AR is widely expected to hit its stride during 2017. Increasingly, brands will begin to experiment with augmented reality in order to deepen consumer engagement and interaction."

The ad tech vendor said ad units integrated with Face Filter could enable brands to improve user engagement and offer a unique brand user experience, potentially increasing the likelihood of product purchases.

MSLGroup step into Thai via Arc

Arc PR Thailand are officially part of the MSLGroup and will operate under the agency brand alongside other Publicis One agencies.

Established in 2004, the Thai agency offered a range of PR services and specialised in the consumer industry. The announcement also marked MSLGroup's presence in the Asian market and the eighth global office launched this year, which included Vietnam, Sri Lanka, and the Philippines.

MSLGroup Thailand's Karl Kongkham would take on the role of director for local operations.

China's Labbrand open up in Singapore

The Chinese brand consultancy have set up an office in Singapore, two months after launching their New York outfit in October.

Founded in 2005, Labbrand said the local office was part of their efforts to expand in Asia-Pacific and support their global clients' brand activities in the region.

Labbrand Singapore's managing director Yukino Yamamoto said: "Asia is a large market, comprised of diverse cultures and consumer behaviours – all at different stages of economic development.

"Our international clients often face challenges to breakthrough in these diverse markets. With our Singapore office, we will enable our clients to strengthen their foothold in Asia with more timely and in-depth insights into local cultural nuances."