China’s streaming ecosystem is a far cry from what’s going on in the West, in terms of content, monetization, and how the audience interacts with the content.
While platforms such as Twitch and YouTube generate the majority of their revenues through subscriptions, China’s biggest platforms, including YY Live, Huya, and Douyu, predominantly make money from user donations to streamers.
China is a mobile-first country and this is reflected in its game-streaming market. The collective nature of traditional Chinese culture also means that its viewers engage with content differently to Western viewers. Interactions between viewers and the streamers are far more prominent in China, thanks to innovative platform features such as bullet chats.
Chinese streaming platforms are also generally less toxic toward women, as gender balance is very important in Chinese culture. In fact, there is less toxicity all round, as gaming and streaming are considered social activities in China
This report from NewZoo looks at the game-streaming market in China in detail.
The influencer marketing space has heated up over the past few years, across Asia Pacific with platforms and resources readily available to both marketers and influencers.
Driven by strong market advancement, digitalization and capable industry players, influencer marketing has gone from strength to strength in Asia, and has become a part of most marketer’s arsenals today.
This new influencer marketing report from CastingAsia leverages data points from over 170,000 influencers and over 1,300 influencer marketing campaigns conducted across Asia over the past year.
There are 240 million Muslims in Southeast Asia and 600 million Muslims in South Asia, representing a $2.2 trillion dollar market, and with Ramadan just around the corner, brands are racing to stand out in the busiest season of the year.
Digital platform ADA have put together some useful research covering how marketers can reach consumers during this period.
Ramadan Digital Trends 2020 [PDF]
A few key Ramadan trends for marketers in Southeast Asia and South Asia:
Travel to hometowns is common – but travel patterns may differ by country.
Visits to mosques, prayer rooms and cemeteries shift.
The usage of religious apps fluctuates.
Muslims start eating out less.
Last minute buying of big-ticket items.
Muslims are searching for different content at different times
Digital identity in the future looks very different to how we understand it right now. And that change will be driven not by privacy regulations, or the death of the cookie, but by the rise of the Internet of Things (IOT).
The idea of one or two personal devices giving us access to individual consumers will disappear, to be replaced with a range of potential devices – from mobile to voice-activated speakers to connected TV to fridges.
Across those devices a range of different digital identities will exist – some individual (like now), some family/household, some work/B2B, and some more generic.
It’s a paradigm shift – and it’s why the idea the cookie is crumbling as the web shuts down consumer tracking, isn’t actually that big a deal. The medium-to-long term view of how we deliver and measure marketing in an increasingly automated and digital world looks very different, whatever happens to cookie based targeting right now.
Binge-watching of online video is on the rise amongst Singaporeans, who spend on average two hours, 35 minutes watching videos in each sitting according to the State of Online Video 2019 report.
In addition to time spent, Singaporeans are also consuming more online video services. The report revealed that a majority 64 per cent of Singaporeans subscribe to at least one streaming service, and nearly three in four Singaporeans (72 per cent) now use dedicated streaming devices such as Google Chromecast, Amazon Fire TV, or Apple TV.
Globally, people who watch online video spend an average of six hours, 48 minutes per week watching various types of content. Average viewing time is has grown 59 percent since 2016.
Figure 1: How many total hours of video content do you watch online each week (by year)?
Viewers in the US watch the most online video each week at an average of eight hours, 33 minutes, followed closely by viewers in India. Singapore sees the third highest volume of online video viewing.
Figure 2: How many total hours of video content do you watch online each week (by country)?
Latency, or delays in streaming, remains a critical point of frustration for viewers. The report found that more than half of Singaporeans are more likely to watch live sports online if the stream was not delayed from the broadcast. This is because traditional streams are generally delayed by 30 seconds or more from the broadcast feed, and with the rise in social media usage, every second of delay can potentially ruin the game when online viewers learn about big plays from social media before seeing the action online.
Global ad tech company IPONWEB (the super smart guys who built most of the programmatic infrastructure the industry relies on today) has set up a TV Solutions division to capitalise on the opportunities in the rapidly-growing digital TV sector. PwC predicts that one-third of the more than $200 billion global TV market will be traded programmatically by 2021. OTT and CTV (among other acronyms) are a huge focus in the entertainment industry right now, and where the biggest VC bets are being made, from Netflix to Hotstar. Digital in Asia took time to chat to Moritz Wuttke – newly appointed to lead the IPONWEB TV solutions division in the region – about all things Video, OTT and TV in APAC.
Digital in Asia: First off, WTF is OTT?!
Moritz Wuttke: OTT joins the long list of seemingly ubiquitous three-letter acronyms prevalent in digital media. Coming under the ‘advanced TV’ umbrella, it refers to video content that is streamed over the internet without the need for a paid-for cable or satellite subscription – it is delivered ‘over the top’ (OTT) of the traditional closed TV structure.
Content is viewed on any device connected to the internet – smartphones, tablets and laptops, as well as connected TV (or CTV to reinforce the acronym point).
Internet-based TV is now part of daily life for many people and the increasing consumption of internet video content on mobile devices is further driving this trend.
Consequently, the convergence of the digital media and television industries is now an ever-present fact that broadcasters and content providers must take into account.
DIA: Why is TV over the internet important for broadcasters?
MW: Traditionally, broadcasters were the masters of what people viewed and when they did so; the digital age has, of course, turned this on its head. Today’s YouTube and Netflix ethos sees users create vast swathes of free video content that anyone online can watch. Meanwhile, people expect to view what they want, at a time to suit them on the device that is to hand at that moment.
The increasing uptake of streamed video, paid and free, is tipping the balance back again. Broadcasters have developed additional platforms to attract and entertain their audiences, as well as offer them viewing flexibility, whether that is accessing programmes via catch-up or on-demand or binge-watching their favourite shows.
TV over the internet provides commercial broadcasters with additional advertising channels, and with that, new sources of revenue, while programmatic technology enables media trading to be fast efficient and, in some markets, more targeted.
DIA: Why does TV have such an ongoing appeal for advertisers, and do you see this changing?
MW: TV has always appealed to advertisers as the most cost-effective way to reach the mass market. While the broadcast media trading industry is seeing unprecedented changes, the inherent advantages offered by OTT television help the transition.
The various YouTube and Facebook ad placement scandals have shone a spotlight on the need for brand safety – and how difficult it can be to orchestrate in the digital arena. Broadcast TV available over the internet however lets advertisers control where their budget is spent so that it is non-damaging.
At the same time, it is also effective thanks to high-quality audiences and ads that can’t be skipped or fast-forwarded. This has resulted in strong growth of OTT advertising, particularly in the US market where Magna Global estimates that OTT grew 40% to $2 billion in 2018.
Addressable TV raises the bar still further, allowing different ads to be shown to different people, depending on their profile. Advertisers only need to spend where they want the ad to be seen, driving return on investment without the wastage that is typically found in broad-spectrum ad placement. In the UK, Sky leads the addressable TV space, reaching more than 40% of all households.
DIA: What types of brands or verticals are investing in advanced TV advertising, and why?
MW: Direct to consumer, or DTC, brands by their very nature will flock to advanced TV advertising. This will include addressable TV on linear (real-time) TV, where the audience is targeted with ads most relevant to them, and OTT advertising with its pre-roll and mid-roll options as well as relevant ad placement.
Advanced TV advertising is ideal for brands wanting to reach very distinct audiences, whether by geography, behaviour or demography. SMEs may want focus on the very specific locations in which they operate, while a brand that is available nationwide will have a large catchment area but may only be relevant to a particular audience (an air conditioning supplier is most likely to appeal to homeowners and new house-buyers for example.)
At the other end of the scale, TV advertising is now a reality for luxury brands, for whom ‘mass appeal’ has never been an issue. Luxury car-maker McLaren launched its first-ever TV advertising campaign via addressable TV because addressable advertising enabled it to target the right niche audience and deliver ROI.
DIA: How fast is internet TV being adopted in Asia?
MW: In China the majority of TV content is delivered OTT because of the high internet bandwidth available (more than 2.1billion devices are IP connected and can receive video content), while Thailand’s 4G rollout allows good quality internet TV via mobile screens. Overall, 16.3% of Asia Pacific internet users are current OTT subscribers, with show strong growth forecast over the next few years. This is underpinned by investment in the region by a number of large OTT players; we’ve seen the launch of HBO Go Asia and HOOQ, an OTT streaming solution backed by large content providers and local contributors including SingTel.
This shift to OTT services also reflects the ‘mobile first’ preference of consumers; at the end of 2018, more than 61% of webpage views in Asia were on mobile (compared to a global average of 48.2%).
DIA: Why is the shift to OTT happening now?
MW: Television has always held mass appeal – to audiences and therefore to advertisers. What we are witnessing now is the power of TV being made available over wireless networks (i.e. mobile phones and robust home internet connections). As hardware, software and connectivity continue to improve, audiences are increasingly able and willing to watch TV content online.
But it’s not without its significant challenges. Aligning and measuring TV audiences over different channels, non-integrated platforms and transparency are all issues on which IPONWEB is focused, with the goal of balancing investment in OTT with subsequent revenues.
There is certainly both appetite and talent to drive innovation in the television market – and the pace of change is fast, with Amazon and Netflix adding highly attractive content to make the space even more dynamic. Watch this space.
Digitalization of Asia’s commerce brings choice to consumers and opportunity to businesses. It also provides the region’s societies with a path to greater economic growth and prosperity. Better government and business support of the digital economy is needed though, to fully reap these benefits. Greater public and private sector collaborations are also key to unlocking digitalization’s full potential.
While it can appear that the surge of digitalization in Asia – driven by better digital infrastructure, deepening internet and mobile penetration, and rapidly increasing discretionary incomes – is already successfully driving market growth and development, there is tremendous untapped potential ahead. According to Bain & Company, the digital economy contributes just 7 per cent of GDP in ASEAN and 16 per cent in China (as compared to 35 per cent in the US) and stronger digital foundations could contribute an additional $1 trillion to the GDP of ASEAN alone.
To open new markets, the millions who are still excluded from digital marketplaces – particularly the elderly and the poor – must be addressed. Factors such as lack of access to the internet and training and education have left millions unable to participate in this digital market revolution.
Further, according to a recent Economist Intelligence Unit report commissioned by Mastercard, the digital age divide and the digital income divide have meant that the societal gains from today’s digitalization have already been unequal. In each of the region’s economies, a greater share of those under the age of 35 has used the internet to make an online purchase or bill payment than those over 55. There’s a similarly wide gulf between the rich and poor.
Differences in regulations and the level of digital infrastructure across the region compound the issue and hinder Asia’s ability to fully reap the benefits of the digital economy.
To successfully include all of Asia’s populations in the digital marketplace, it is imperative that people have the ability to acquire the necessary technological and financial skills, and governments ramp up investment and infrastructure.
However, this can’t be left to the region’s governments alone. For one, many governments don’t have the financial resources to allocate adequately to digitalization. Two, several simply don’t have the bandwidth to look beyond other more basic problems.
This provides an opportunity for the private sector to step up and fill the void. Whether through partnering with regulators and policymakers to shape the regulatory agenda around what is still a relatively nascent industry, investing in people and businesses so they can leverage digitalisation, or helping bring digital infrastructure and services to those left behind, the private sector must play a more active role.
At Mastercard, we are partnering with fintechs as they take digitalization to the remotest parts of Asia’s economy, resulting in both digital and financial inclusion. Through our global accelerator programme Start Path Global, we support start-ups by providing mentoring, giving them access to our global ecosystem and helping them break into new markets with the help of our relationships and customer base.
We’ve also recognized the need for greater public-private collaboration. For example, in September last year, Mastercard’s Track, a global trade platform, was integrated with Singapore’s Networked Trade Platform in an initiative led by Singapore Customs and the Government Technology Agency of Singapore. This digital trade platform facilitates secure and efficient electronic transactions and payment reconciliation between buyers and suppliers, greatly streamlining and simplifying B2B transactions to facilitate more inter-regional trade.
While there is no one template for these partnerships, a number of similar ways can be found for companies to work closely with policymakers in offering digital solutions and enhancing digital skills. Governments, for their part, can also further support Asia’s digitalization by harmonizing regional regulations with the aim of supporting the creation of seamless, interoperable platforms with uniform governance across countries.
Ultimately, only a rising tide of collective regional effort that includes a combination of greater cross-border collaboration and increased financial and digital inclusion will unlock the full potential of Asia’s digitalization. It will also help create a digital economy that benefits all.
In conjunction with its 7th birthday celebrations the company announced a series of products and services aimed at helping brands and sellers, both small and large, to win market share in the region by transforming them into ‘Super eBusinesses’.
The offerings are aimed at resolving three pain points that brands and sellers face – branding, marketing and sales.
“No seller is too small to aspire, and no brand is too big to be a ‘Super eBusiness’. That is why we are thrilled to roll out super-solutions to help our brands and sellers become more nimble in digitising their businesses, and better reach customers,” said Pierre Poignant, Lazada Group Chief Executive Officer at the inaugural LazMall Brands Future Forum (BFF).
The new solutions include:
A series of ‘Super’ campaigns in which LazMall brands and sellers can choose to take part to boost their brand image and better engage with customers
A new and improved Marketing Solutions Package and Business Advisor Dashboard that can deliver more traffic to their storefronts, and arm brands and sellers with near real-time information to help them make faster and better decisions to sell more effectively and efficiently
New tech tools like Store Builder for brands and sellers to customise their storefronts to differentiate themselves on Lazada, while in-app live streaming, news feed and in-app consumer games can help win the hearts of consumers with higher consumer engagement
At the same time, Lazada has also formalised online retail partnerships with 12 leading global lifestyle, technology and fashion companies, including electronics leaders Huawei, Realme and Coocaa. These collaborations will enable brands to tap on Lazada’s industry-leading tech and logistics infrastructure, innovation and eCommerce expertise. Other brands that are set to join will include several of the world’s biggest FMCG companies.
Backed by Alibaba’s technology and logistics infrastructure, Lazada has been able to launch over the past year a series of industry-leading tech innovations like search-image function, consumer engagement games and in-app live streaming to become the region’s only ‘shoppertainment’ platform on which people can watch, shop and play.
Accelerating the growth of Lazada brands and sellers
The new solutions will also make it easier for brands and sellers to open up stores on LazMall. Qualified merchants can now take advantage of the new self-sign up feature, a simplified sign-up process that can now be completed in mere minutes. This is in line with the Lazada’s goal of enabling SMEs to become globally competitive.
“Since the launch of LazMall in 2018, we have seen tremendous growth among our key pioneer brand partners. We want to extend the benefits of LazMall to even more brands and sellers to elevate their eCommerce operations,” said Lazada Group President Jing Yin. “We want to incubate them so they can grow alongside us and become sustainable and successful eBusinesses.”
Across the region, 60 per cent of small and medium enterprises (SMEs) are keen to invest in technologies to achieve sustainable growth in today’s digital economy. Business-oriented tools including online commerce solutions, customer relationship management (CRM) and business intelligence, have been identified by Lazada as the top investment priorities.
Driving ‘Shoppertainment’ in Southeast Asia
Pushing boundaries in eCommerce in Southeast Asia, Lazada is driving ‘shoppertainment’ to provide shoppers with a fun, interactive and entertaining experience. As part of its 7th birthday celebrations, Lazada is hosting a first-of-its-kind concert, Super Party, in Jakarta on March 26.
The concert, which features a star-studded lineup including British pop star Dua Lipa, culminates with Lazada’s birthday shopping event on March 27. The one-day sale promises a new online shopping experience that includes a new selection of exciting games for redeeming vouchers and attractive deals for consumers in the region.