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SEA advertisers embrace alternative ad targeting amidst new data privacy laws

SEA advertisers embrace alternative ad targeting amidst new data privacy laws
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Singapore – A growing number of advertisers in Southeast Asia are tapping into alternative ad targeting methods amidst new data privacy laws that have been implemented, according to the latest report from InMobi.

According to the report, around 80% of respondents have already started testing rules-based targeting that allows businesses to switch app experiences based on ‘rules’ such as user geography, operating system, browsers, device and more. Meanwhile, 76% of respondents identified contextual targeting as an alternative ad method to serve personalised messages to consumers based on demographics, preferences, and behaviours within the app.

Despite these strategies to move into alternative ad targeting methods, 44% of respondents highlight that a top concern on the phasing out of advertising identity is the inability to personalise and accurately target their ads. In addition, 51% of respondents expressed worry over the effectiveness and frequency of their consumer reach, resulting from having to rely on smaller data pools.

The report also noted that 38% of brands and 55% of media agencies in Southeast Asia are in the early stage of consumer data privacy management practice maturity, still trying to identify and understand the impact of consumer data privacy developments on their current mobile marketing strategy.

In addition, 81% of respondents comprising business decision-makers in Southeast Asia believe that increasing reach and conversion to improve profitability ranks as one of the top high-critical marketing priorities. This further links to privacy-related challenges where 60% of respondents acknowledged users’ ability to block their identifier for advertisers (IDFA) as a key marketing challenge.

Rishi Bedi, managing director for Asia-Pacific at InMobi, said, “The advertising ecosystem in Southeast Asia showcases matured levels of preparedness for data and identity deprecation. Publishers in the region are more advanced in their consumer data privacy practices than brands and media agencies who seem to be struggling to build a culture that values privacy and enforces regulatory compliance. Obtaining executive support for data stewardship and governance program can help businesses overcome this obstacle.”

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