Affle’s Anuj Kumar on the evolution of mobile advertising, privacy, and Ad-Tech future

In this exclusive interview, Anuj Kumar, Co-Founder and Chief Revenue & Operating Officer, Affle, shares valuable insights into the evolution of mobile advertising, the trends and challenges facing the global ad tech industry, Affle’s innovative strategies, the impact of Connected TV (CTV) on digital advertising, and his vision for the company’s future in the ever-evolving tech landscape. Excerpts:

Affle has a strong focus on mobile advertising. Could you please share insights on how mobile ads have evolved over the past few years and where you see the growth coming from, especially with the emergence of new technologies like 5G and increasing concerns regarding privacy and user data?

Affle has been a pioneer in mobile advertising since 2005, predating widespread smartphone use. We’ve been instrumental in shaping the mobile advertising market as it evolved. Today, mobile phones are an integral part of our lives, capturing our attention for work and leisure. As consumer screen time soars, it’s only logical for advertising to focus where attention is concentrated. In recent years, mobile device usage has evolved beyond work emails, with thousands of apps for gaming and content consumption. This shift is a major driver of change. The arrival of 5G technology enhanced connectivity, speed, and reliability, ensuring a seamless content experience on mobile. As this experience improved, so did advertising, mirroring consumer attention. As advertising shifted from traditional to digital media, it targeted mobile devices, reflecting where consumers spend most of their digital time.

What are the trends and challenges you see in the global ad tech industry as of now? How is Affle well-positioned to address and leverage them?

Fast-growing sectors face both opportunities and global regulatory changes. Government policies like GDPR, PDP, CCPA, and India’s Personal Data Protection Act mark a regulatory shift. Companies like Apple and Google are adapting by phasing out IDFA and cookies. These changes promote responsible data use and are positive for the industry. Affle saw growth post-GDPR and iOS changes. We prioritised consumer privacy with our first patent in consumer-acceptable advertising dating back to 2005-2006.

In our business, our focus is on conversion-related advertising, requiring a balance of three components: targeting the right users, crafting compelling messages, and combating ad fraud. We’ve developed technologies and obtained patents to address ad fraud. We’re also early adopters of AI and ML, moving towards generative AI in line with industry trends. However, it is crucial to use these technologies while respecting user privacy and data security standards. These principles guide our tech application. As a tech company, we prioritise these aspects to ensure effective advertising solutions.

Tell us about some of the innovative strategies and technologies that Affle has developed or adopted to enhance user engagement and ad effectiveness, and elaborate on how these initiatives have impacted the company’s clients and partners in the ad tech ecosystem?

Programmatic advertising enhances transparency and ROI focus, with most digital media in India now being traded programmatically across various devices, including connected TV and digital out-of-home. Therefore, all media and advertising should be bought and sold programmatically, allowing advertisers to layer intelligence and assess ROI. We are witnessing this trend in the Indian market and globally as well.

Increasing advertising effectiveness hinges on a few key components. First, it’s crucial to target the most relevant users. Advertising aims for a return on investment, and reaching the right audience increases the likelihood of engagement. So, the first aspect is all about precise user targeting. The second aspect involves presenting the ad in a format that resonates with consumers, encouraging engagement and desired actions – a focus on the creative side of advertising. Lastly, addressing ad fraud is crucial in our industry. Effective management of these three elements – targeting the right users, delivering engaging creatives, and combating ad fraud – positions a platform for success in advertising.

How is the growth of CTV impacting the digital advertising landscape, and what factors are contributing to this rapid expansion?

CTV is a captivating space to watch. Consumers have shifted from traditional cable and DTH services to streaming content, especially in India with platforms like Netflix, Amazon Prime, ZEE5, and MX Player gaining popularity. This shift is due to two primary reasons. First, streaming platforms offer an on-demand experience that traditional TV can’t match. Traditional TV schedules dictate when it comes to airing shows, inconveniencing viewers. On-demand content allows people to watch what they want, when they want, making CTV highly popular.

Improved data connectivity has been a game-changer, enabling high-quality video streaming that was challenging in the past. Competitive pricing has drawn people to connected TV platforms, shifting their attention from traditional TV. As a result, ad spending has followed this shift. An interesting industry development is the BCCI auctioning media rights, generating more revenue from digital than TV rights, highlighting the rise of digital viewership, even for live sports content.

India’s CTV market, while smaller globally, has substantial growth potential. We foresee virtually every TV becoming a connected TV in the next three to four years. This shift offers a significant opportunity as TV ad spending moves towards programmatic advertising on CTV platforms. Affle has been an early player in the CTV space with our Mediasmart platform and aims to maintain our leadership position in this rapidly growing and exciting sector.

How has programmatic advertising evolved to provide more personalised targeting options for advertisers in the context of the growing trend of connected devices?

Programmatic advertising brought a transformative change to advertising. Traditional media displayed the same ad to all consumers, like a newspaper ad being identical for every reader. However, programmatic advertising shifted this paradigm, enabling advertisers to customise ads for each individual. Factors like user profiles, content preferences, and app usage on mobile devices drove this customisation. Advertisers could bid differently for specific users, offering, for example, $10 to target one user of a newspaper and only $1 for another. This customisation revolutionised media trading as programmatic advertising streamlined media trading and expanded targeting options. These options, long available in digital, now extend to connected TV. For example, in CTV, we can display ads to viewers and re-target them on their mobile devices through “household sync”. This integration enhances user experiences, bridging the gap between multiple devices. As this evolves, advertisers can expect more precise and personalised targeting in the connected device landscape.

Could you share your vision for Affle in the next couple of years to three to five years? And where do you see Affle reaching in three to five years?

Our company’s growth journey has been remarkable and unique. We’ve achieved rapid growth while staying profitable, a rare combination. What sets us apart further is that we’ve done this in challenging emerging markets like India, Southeast Asia, the Middle East, Africa, and Latin America. Navigating these markets isn’t easy, but we’ve built a fast-growing and profitable business in them. Since going public, our revenues and profits have grown over five-fold, and we anticipate continued strong performance and growth. Technologically, we’re focused on leveraging cutting-edge innovations like generative AI for greater personalisation. We also aim to expand our conversion-linked advertising model beyond mobile devices, encompassing the entire connected device journey. These areas drive our innovation and are integral to our ongoing success.