Ever need data to help you understand the latest digital trends and audience behaviours? Good news: DataReportal is a complete online collection of all the reports published by We Are Social and Hootsuite over the past 7 years, and it’s just launched.
The collection already includes more than 7,500 charts covering people’s use of the internet, social media, mobile, and e-commerce in 230+ countries and territories around the world, and they’re promising to add thousands more insights over the coming weeks as they publish their Digital 2019 reports.
In addition to the reports, the site also includes all the analysis articles published since 2011, from extensive global overviews, right down to commentary on individual data points.
Best of all, they’re making all of these resources available for free, so if you have colleagues, clients, or friends who might find them useful, you only need one URL:
Latest data reveals that in Q1 2018, Facebook and Google ad revenue grew by 40% year-on-year across Asia Pacific (ex. China), while ‘The Rest’ – every publisher and ad tech business outside the duopoly – saw a fall in revenue of 20% over the same period.
Looking at the top-line, digital advertising is experiencing strong growth across APAC, with ad spend up $0.85 billion year-on-year in 2018. But it’s clear that while many publishers and ad tech businesses are still growing, in reality that additional $0.85 billion revenue is comprised of $1.63 billion more for Google and Facebook, and $0.78 billion less for everyone else.
As a result, Facebook and Google revenue hit 65% of APAC total digital revenue, up from 51% in Q1 2017. This means twice as much budget goes to the duopoly as every other digital publisher and ad tech platform in the region put together.
From a global perspective, Facebook and Google have been strengthening their hold over digital advertising budgets for several years. Asia Pacific has actually seen a slower shift in spend than the US or Europe, where Google and Facebook already account for 80% of digital ad revenue.
Human beings have long sought means to make our lives easier. From earliest times with the invention of the stone hand axe, to the swarms of gig economy apps which today get people to clean your apartments, drive you around, do your shopping or deliver you just about anything you can think of, at the touch of a smartphone screen, convenience has been the driving force behind much human-made ingenuity. Most of us in the modern world now expect gratification to be on-demand.
New ways of offering services to customers have significantly changed how organisations and companies operate and compete in all markets. So it is no surprise that the age of convenience has come to our industry. What Uber did for transportation, Netflix for TV, and AirBnB for accommodation, Google and Facebook have done for marketing. And they are justifiably reaping the rewards.
In the on-demand era, there is only one guarantee: money flows to those who offer – or at least appear to offer – the comfort of convenience. This is the inconvenient truth.
As per last year, numbers are based on Facebook and Google publicly filed earnings information and best industry advertising revenue estimates via the IAB, Zenith and Emarketer among others – but someone out there may have a better view, so corrections welcome. The major assumption in this data is to exclude Chinese advertising spend from Google and Facebook earnings information and APAC industry spend estimates. This is to avoid distorting the data by including a market where Facebook and Google have small (although not insignificant) advertising businesses. All the data is available on a public Google sheet (yes, sorry, it’s Google!) here.
Below we’ve collected a series of takeaway resources covering the key digital trends in Vietnam.
Mobile Ecosystem Report Vietnam 2017/18
Vietnam mobile ecosystem and digital sizing report from Group M and the MMA.
Digital in Vietnam 2018
Key data covering the Vietnam digital landscape.
Digital Marketing Agency & Marketer Landscape in Vietnam
Vietnam digital marketing overview from an advertiser and agency perspective.
Vietnam Digital Landscape 2017
Detailed overview of digital stats and consumer internet data in the Vietnam market.
Vietnam Digital Trends 2017
Trends to watch out for across the Vietnamese consumer internet.
Vietnam ICO & Blockchain Market
Overview of the emerging blockchain and ICO scene in Vietnam.
Vietnam Today – The Digital Economy
In depth report looking at the future digital transformation of Vietnam.
PWC Vietnam Spotlight
Deep dive into Vietnam as an investment opportunity and information technology driven market.
Vietnam Esports Market Report 2018
Insight into the growth of Esports in Vietnam..
In terms of other resources, check out Vietcetera for wider coverage of Vietnam, Tech In Asia for tech news, or Geektime and ICTNews for tech news… if you speak Vietnamese. Finally, you can find out all the practical information you need to know about the start-up scene in Vietnam at this Google Doc.
2018 marks the 10 year anniversary for both the Apple App Store and Android market. In the short time since the first wave of apps were published in 2008, they have impacted the lives of people all over the world on an unprecedented level. There are now apps for almost anything and everything – hugely successful apps that incorporate AR and VR, apps dedicated to events, and even an app just for popping bubble wrap.
Who could ever have imagined that apps would evolve from the simple Snake game on the Nokia phone (yes that was an app), to driving a $6.3 trillion industry in 2021?
Looking back over 2017, the app economy has hit some significant milestones:
By the end of October 2017, the iOS App Store and Google Play had more than 2 million and more than 3.5 million apps available, respectively.
New apps continue to be introduced at a strong pace. During the month ending October 31, 2017, roughly 50,000 new apps launched on the iOS App Store and over 150,000 were added to Google Play.
Across mature markets, users have up to 90 or 100 apps installed on their devices, 30 of which they use on a monthly basis. On average, people are spending two hours per day — which equates to one month out of every year — in apps.
More than 40 countries will generate over $100 million in consumer spend in 2017 for iOS App Store and Google Play combined.
Apps play a key role in almost every industry today, including retail, banking, travel, QSR, CPG and media & entertainment .
It is apparent that the evolution of mobile apps have transformed the everyday lives of people, and users continuously expect their favourite apps to be improved. There are several aspects of an app which users expect to be improved, but convenience is a core theme that underlies many of our predictions as we look to 2018.
1. Worldwide Gross Consumer App Store Spend Blows Past the $100 Billion Mark
The continued evolution of markets across the globe has led app monetization to continuously grow at an outstanding rate. Apart from games, which traditionally account for the majority of overall spend, we foresee spending in e-commerce apps such as Alibaba and Amazon to drive worldwide consumer spend – which is expected to grow about 30% year on year to exceed $110 billion in 2018. In APAC, consumer spend on apps hit $17.1 billion in H1 2017 alone.
2. App Store Curation Drives Higher Overall IAP Revenue and Expands Opportunity for Independent Publishers
In June 2017, both Apple and Google announced updates to the iOS App Store and Google Play aimed to alleviate this issue through app curation and editorial content. We predict that these updates will have a significant impact on apps in 2018, in particular apps that help people occupy their leisure time. These types of apps, which tend to be entertainment-centric, are most likely to connect with consumers when they are casually browsing through the app stores. Conversely, “needs-based” apps such as UberEats or DBS PayLah! are far more likely to be downloaded based on word of mouth recommendations or focused searches when a user encounters a particular need.
3. Broader Adoption of AR Apps
Pokémon GO and Snapchat sparked huge interest in augmented reality (AR) among the masses, and we foresee that AR will take another significant step forward towards realizing its massive potential in 2018.
Facebook, Google and Apple have taken the lead at their developer conferences in 2017, and together with the Chinese powerhouses Alibaba , Baidu and Tencent , have set the foundation for AR-related initiatives. These initiatives will accelerate the space by making it easier and faster for publishers to develop AR apps, while also stoking consumer interest. For example, in Japan, starting in May 2017, there has been a significant increase in iPhone app downloads for the top ranking apps by “Augmented Reality” app store search in Japan, and other APAC countries.
4. Fragmentation of the Video Streaming Space Accelerates
It is now not an uncommon sight to see people catching up on their favourite Netflix series or Hollywood movies while on the move. 2017 has been another extraordinary year for video streaming services and total time spent in Video and Entertainment apps tripled to almost 40 billion hours in APAC alone.
Between H1 2015 and H1 2017, time spent in the Video Players and Entertainment categories on Android phones in APAC has tripled to reach close to 40 billion hours – almost half of the worldwide total.
Year to date through October 31, 2017, these apps have driven significant growth of worldwide consumer spend for the Entertainment category on both iOS and Google Play. However, as some of the biggest names in the entertainment industry and app economy — including Netflix , Apple , Google , Facebook , Snap and Disney — have announced huge plans to expand their footprints in variety of ways, we expect that 2018 to mark the beginning of an inflection point for this space, in terms of fragmentation. In fact, our research shows that Android users in South Korea who use video streaming apps are significantly more likely than average to be accessing other video and related entertainment services.
Overall, this space will continue to see steady growth in terms of revenue and engagement, but in the years that follow, consumers may start to rationalize how they spend their time and money among a dizzying array of choices, resulting in some players succumbing to profit pressures as they get crowded out of this competitive space.
5. Mobile Pushes Towards the Center of the Retail Customer Journey
Analysts and experts have pronounced the retail apocalypse in recent times, and we see apps as a way to reinvigorate consumers’ retail experience. Brick-and-mortar retailers have already embraced apps and shoppers are now very engaged; results are telling from the Great Singapore Sale 2017 , which saw an increase in sales thanks to the GoSpree app. In Indonesia, which has a population of 261 million and a burgeoning middle class, users spend an average of just over 90 minutes per month in Shopping apps, placing it at #2 after South Korea. On 11 November 2017, dubbed Single’s Day, Alibaba generated a record breaking $25.3 billion in sales, with mobile users accounting for 90% of sales. These numbers are only the beginning of what is a rapidly evolving retail experience for consumers.
Come 2018, apps will continue to cause consumers to change their shopping habits which will in turn redefine the relationship between and even the very nature of existing retail channels (e.g., mobile app, web, brick-and-mortar). China, for instance, is one huge influencer in this area. We are seeing people in western markets increasingly use physical stores as a place to pick up items purchased on mobile. In addition, cash registers’ longstanding role in the checkout and payment process will become reduced, or in some cases replaced, by mobile. For many consumers, mobile will be a core part of the shopping experience regardless of channel.
6. Restaurant Aggregators Drive Mobile Conversion as Delivery-as-a-Service Further Penetrates Premium Markets
As we predicted last year, there was some consolidation in the food delivery space. Looking ahead to next year, we expect that aggregators such as Korea’s Yogiyo will continue to expand the addressable market for this space by opening up under penetrated markets as well as converting users who do not currently use mobile apps from intermediaries to order meals. Meanwhile, delivery as a service (DaaS) providers (e.g., UberEATS , Deliveroo) will gain market share in premium markets where customers are more likely to pay more for higher-end restaurants that don’t have their own delivery fleets. Furthermore, we expect more quick-service restaurants (QSR) to respond to the increased competition from food delivery by partnering with DaaS apps, similar to McDonald’s growing partnership with UberEATS . As with video streaming, this space will face consolidation in later years as it needs to rationalize the fragmentation felt by customers and the profit pressures felt by service providers competing in a crowded space.
7. Finance-Related Apps Poised for Most Significant Transformation in 2018
In 2017 in Asia-Pacific specifically, the growth of downloads in the Finance category outpaced all app categories (non-games) combined, with China leading the way. Person-to-person (P2P) payment apps, like WeChat, AliPay, GoPay, Grab Pay and PayTM have been some of the shining stars in the fintech app revolution. They have transformed how consumers, particularly millennials, exchange money, by displacing the use of cash and checks. In the next year, we expect these services to capitalize on their popularity and broaden their range of services in an effort to expand their revenue potential, fend off increased competition from traditional banks and deepen user engagement. With retailers adopting such apps as an option for customers, we expect P2P payment apps to see increased transaction volume. These initiatives have been well received by users, as they will provide even greater levels of convenience. In addition, this space will see increased activity from successful players in other categories, like messaging and social networking, who are constantly looking for additional ways to serve, monetize and engage their large user bases.
These are just a handful of areas where we expect the app economy to evolve over the near future. Despite how far this space has advanced over its first decade, it is just scratching the surface of its full potential. Users increasingly expect apps to completely transform the very nature of how they accomplish goals and tasks, as well as create brand new experiences not possible on other platforms. We are excited to see how app developers change the world by delivering on these needs over the app economy’s second decade.
A quick check of their books reveals that in the first quarter of 2017, 92 cents of every new dollar spent in online advertising across Asia Pacific (ex. China) went to Facebook and Google.
That’s an incredible statistic. The good news is that digital marketing in the region is clearly experiencing strong growth, with revenues up by $1.23 billion year-on-year in 2017. The bad news? Of that $1.23 billion in growth, virtually all of it – $1.13 billion in total – goes to Google and Facebook, with only $100 million to share across the remainder of APAC publishers.
Facebook and Google combined revenue this quarter hit 51% of all APAC revenue, meaning more budget goes to to Google and Facebook than every other digital publisher in the region put together.
Google and Facebook also forge ahead in terms of revenue against all media in the region, taking 15 cents in every 1 dollar spent. This is up from 12% – or 12 cents in the dollar – last year, and represents the increase in budget flowing from traditional media, including TV.
Finally, a note from history. In the early 1900s, the United States had around 2,000 firms producing one or more cars. By 1920 the number of firms had decreased to about 100 and by 1929 to 44. In 1976 the Motor Vehicle Manufacturers Association in the US had only 11 members.
In many ways digital advertising, and the industry that surrounds it, is it’s own worst enemy. All dollars eventually become digital dollars, so it is the only show in town. But a show obsessed with the next shiny thing, full of incomprehensible – and often meaningless – metrics, and more importantly, critically lacking in real transparency. Programmatic has only accelerated these tendencies.
Google and Facebook have done a huge amount to bring new money into digital advertising by simplifying advertising for brand marketers. And they have reaped the rewards.
However, they are now part of a systemic change representing an existential threat to an entire industry – media, advertising, agencies, publishing, journalism are all caught up in this – across the region and globally. Change rarely comes without casualties. The struggle for monetisation continues.
A huge debt to Jason Kint (this chart in particular) and Brian Nowak at Morgan Stanley for the inspiration for this article, and the work they have done creating similar graphs for Global and US ad revenues. Corrections welcome. Numbers are based on Facebook and Google publicly filed earnings information and best industry advertising revenue estimates – but someone out there may have a better view. The major assumption in this data is to exclude Chinese advertising spend both from Google and Facebook earnings information and APAC industry spend estimates to avoid distorting the data in a market where Facebook and Google have small (although not insignificant) advertising businesses. All the data is available on a public Google sheet (yes, sorry, it’s Google!) here.
Notes and References.
1. Google 2017 1st Quarter Earnings Report: a. Estimated based on reported total APAC revenues x 90% (percentage of Google revenues represented by advertising) b. Excludes Google revenue in China estimated based on APAC revenue data sources.
2. Facebook 2017 1st Quarter Earnings Report: a. Estimated based on reported total APAC revenue by User Geography b. Excludes Facebook revenue in China estimated based on APAC revenue data sources.
3. APAC digital revenue data compiled from: IAB, eMarketer, GroupM, ZenithOptimedia, McKinsey & Company
4. APAC all media revenue data compiled from: IAB, eMarketer, GroupM, ZenithOptimedia, McKinsey & Company.
iKorea is a new column by Soyoon Bach, a Digital Marketing professional in Seoul, covering developments in the Korean digital ecosystem.
If you work in advertising in Korea, you will most definitely have heard of the term “rep sa.” “Rep” is short for “representative” and “sa” in Korean means “company.” This is a shortened phrase for agencies that Koreans refer to as “media representatives.” So what exactly are media reps?
The general hierarchy of the Korean digital advertising landscape goes like this:
Advertiser → Ad Agency → Media Rep → Publishers
Simply put, media reps act as liaisons between agencies and publishers. They arrange the sale of media inventory on behalf of advertisers (or agencies). Media reps also provide media plans, intricate reporting, optimization recommendations, updates about the newest publishers and ad types, etc. Many media reps have proprietary technologies that make setting up ads easier, provide key insights, and run ads more efficiently.
The first ever media rep can be traced back to 1980 with the establishment of KOBACO. They were resellers for TV ad inventory and became the sole entity to control all the domestic TV ad inventory. They retained their power until a constitutional court ruled this as illegal monopolistic practice.
Since then, Korea has diversified its media rep offerings and media reps have especially become a key player in the complicated world of digital advertising. Usually, ad agencies don’t have the time or resources to keep contact with every single publisher or media platform out there and know which ones are best for their needs. This is where media reps come in. They synthesize all media-related information and updates and provide agencies with the insights they need. They let us know which creative is best served on which platform. Some platforms also have strict inventory booking processes. There are minimum spends, minimum ad periods, and cancellation fees. Media reps keep track of these processes and give ad agencies a heads up when they think certain bookings will become an issue.
The initial idea of media reps started out as a broker, a simple reseller. Now, they have evolved to so much more. They are media agencies for ad agencies, providing critical services that they can’t get from publishers directly. For instance, if an ad agency is working with multiple media platforms without a media rep, it’ll be up to them to individually communicate and negotiate with the publishers, set up the ads, aggregate the data, and compile the reporting. However, when you go through a media rep, they provide all these services for you so that you can spend more time tending to your clients.
Because this is such a common practice that’s taken for granted, it’s easy to forget that there are actually no regulations in place regarding this process. There’s no restrictions preventing agencies from bypassing media reps and going directly to the publishers. Similarly, there’s nothing to stop media reps from reaching out directly to advertisers. However, this practice continues to exist because this breakdown and distribution of tasks lets everyone do their jobs more easily.
A client can have one contact point for all their media dealings (the agency) instead of having to individually contact the publishers. Agencies can also focus more on making creatives and strategizing on the overarching direction of the campaigns. Media reps gain more clients and without much effort by teaming up with an agency and publishers also have the same benefits by teaming up with a media rep. The benefits are so real that Korean publishers will also pay back some of the money to media reps or agencies as a sales commission. And this commission could be as high as 20%.
For how much longer this model will persist, only time can tell. But media reps are already starting to feel the onset of programmatic media buying as a threat to their business. Global agencies are receiving pressures from their global headquarters to implement systems such as DBM and manage it internally, taking some business away from media reps. Media reps are frantically trying to develop their programmatic departments so that agencies will still be incentivized to use them for these services.
Aparna Krishnan, Associate Director of Strategic Planning, Mindshare, Malaysia
From the Internet of People (IOP) to Internet of Things (IOT): we are at the cynosure of behavioural change and technology. Asia Pacific known for its heterogeneity is a motley of sub-cultures and mind-sets, yet consumers in the region are unvaryingly relinquishing control and giving authority to technology. The screen bathing Asian consumer is appraising Connected Living as an evolution mandated by reliance on technology and the need for convenience. The numbers say so.
Within the APAC region, the adoption rates for smart technologies/connected objects have been slow yet steady. The most popular connected object being Smart TV, followed by Smart wristbands and then the Smart watch. In terms of appetite of markets towards connected objects – China leads ahead of the curve, followed by Thailand and then Japan.
Source – Global Web Index, Q4 2016
In lieu of the profusion of data and our knowledge on adoption of smart technology, below is a realistic prophecy at APAC’s ‘smart’ future both from a Consumer and Marketer perspective.
The Consumer Perspective
The jarring digital sever at home
With the multitude of solutions that smart objects provide, more and more consumers could fall prey to the Ostrich problem – the tendency to bury their head in sand and intentionally avoid or reject information. Picture this – a family sitting around a smart dinner table not talking to one another in the real world, the parents looking at data records transmitted to the table from the kid’s shoe that monitored how the kid had been holing up and not interacting with friends!
Connected living could be constructing glass walls between individuals who can communicate with each other but instead choose not to. We could be rewiring ourselves to function better online than offline!
Return of TV time!
With Connected living freeing up more time in consumer lives there is bound to be a rise in Couch Culture, this could possibly spell the comeback of TV time in Asia. It might not be linear TV or a streaming service on the TV screen it could be content being rendered on any flat surface in a smart home. This surface agnostic content streaming could be intuitive and customized with input feeds from other smart objects such as their mood info relayed from their smart clothes.
Picture this – In Singapore, an overworked millennial is trying to get some sleep after a long day at work, however brain activity measured predicts that sleep will be induced only 3 hours later thereby turning the ceiling into a screen streaming his favourite TV show that automatically switches off when he dozes off.
Circle of Trust will wear out
Due to the eavesdropping ability of connected objects privacy concerns in consumers will touch an all-time high. Mindfulness of consumers towards the types of data being collected and shared by connected objects will be questioned; they will empower themselves to read the labels (like wash care labels) on smart objects. Because of a chunk of responsible and mindful consumers there will emerge conversations around what kind of data can be shared and stored by smart objects. This could possibly also create room for housekeeping rules related to privacy.
Living in the moment, we are all aware that though data steers the marketing of today, it is the consumer who keeps control. This is explicit from the fact that in spite of exponential growth in mobile penetration advertising is not embraced to the same extent. In such a chaotic context, we marketers cannot be desperate for order and a rulebook – we must avoid being overwhelmed by the data and avoid a fool’s rush in mentality.
The Marketer Perspective
Real time data will deliver immediate insights
There will be a new source for observed behavioural data of consumers that could feed in as inputs enabling faster insights into product performance, consumer trends and purchase behaviour. For example, through connected vending machines, Coca-Cola reports spikes in its beverage consumption on college campuses before certain television shows air, a specific insight that not only leads to better understanding of customer demographics, but one that also presents opportunities for targeted marketing.
Diversity in devices and skills
There will be richer diversity in the ‘devices’ and ‘skills’ that can integrate with AI systems , fuelled by an open source model.
Eg: C by GE is a table lamp that incorporates the Alexa Voice Service, a microphone and a speaker, and consumers can use it without possessing an Echo – or even a smartphone.
Hyundai providing members of its My Hyundai program with the ability to start their vehicle, set the internal temperature and switch on the lights before leaving the house.
Shift in the dynamics of advertising
There will be a transformation in the way low involvement products are being purchased.
FMCGs being the key Adex contributors in the APAC region could be frontrunners and the biggest beneficiary of Smart living. The replenishment of detergents by the washing machine through e-commerce partnerships, the refrigerator ordering milk for you to pick up on your way back home etc. The categories and brands with loyalty and high frequency of purchase stand to benefit the most. It might even usher in a change in the dynamics of advertising – with marketers having to focus only on brand building efforts.
A breakthrough example of Connected objects used as a marketing tool to deliver sales is the case of Rexona Deodorant in Malaysia. We used Wearables to communicate the Motionsense technology that releases freshness withheld in capsules on moving. This was a great example of media integrating with Smart objects to deliver business results, a 2% increase in penetration!
Undoubtedly, adrenaline times are here!
As marketers in the quest to future proofing businesses in the Connected landscape, we need to win both hearts and minds; the trick is to be User first, technology second and to dwell in the possibilities.
Digital growth accelerated over the previous 12 months in Asia Pacific, with internet users up 15% to pass the 1.9 billion mark. There are now also 4 billion mobile phone subscriptions across APAC, a penetration rate of 96%.
These findings have exciting implications for businesses, governments, and society, but they are also testament to the speed with which digital (and mobile) connectivity is changing the lives of people in the region.
More than 1.4 billion Asian consumers now use social media on a monthly basis, with 95% of them accessing platforms via mobile devices – the highest ratio in the world.
Digital in 2017: Southeast Asia
Digital in 2017: Eastern Asia
Digital in 2017: Southern Asia
Digital in 2017: Australia, New Zealand & The Pacific