Sign up if you’re interested in a digest of ASEAN (with an Indonesia focus) tech, digital, startups, VC, internet, fintech, gaming, ecommerce, adtech and lots of other stuff related to the ‘new economy’ every other Friday.
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The Growjek thesis is this:
ASEAN is the biggest and most exciting multi-decade growth and investment opportunity in the world right now — driven by ‘new economy’ tech
Indonesia is — by size alone — the natural centre of gravity for ASEAN (sorry Singapore, but you have a crucial role to play as THE open-source regional aggregator platform!)
‘New economy’ investment and innovation flows first into ASEAN, and by extension Indonesia, but increasingly in the years (and decades) ahead out of Indonesia and across ASEAN
The Growjek newsletter will be more VC and investment focused than Digital in Asia, which covers a broader region, and a wider range of topics.
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.
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.
Marketing Matters is a monthly column covering how marketers today can use Digital to drive innovation and results
Today, video is an exceptionally important marketing tool for most businesses. Video is so powerful largely because it can tell a story in a complete visual way. Over the past decade, online video has exploded into importance – quickly becoming a popular way for people to satisfy their information and entertainment needs. Video is also an important element in content marketing: statistics show that it drives traffic and that using videos on landing pages drives conversions, engaging viewers and fostering sharing and circulation. And naturally, video has become an indispensable part of social media and search engine optimisation strategies.
Video marketing begins with channels. As we know, YouTube is the video channel giant for both business and personal use. Google, the owner of YouTube, is now introducing ‘buy now’ buttons on for mobile searches, where customers seeking specific items from participating retailers will be able to instantly make purchases, opening up an important new path for potential customers and creating remarkable opportunities for marketers.
At the same time, most people are unaware of just how big Facebook has become as an emerging video sharing platform. According to Statista, the share of online population of Youtube has been going down the slope slowly since Q3 2014; and yet a trend spanning three straight quarters. Recently, lesser brands have been posting YouTube videos on Facebook; given the facts that Google owns YouTube and that Google and Facebook are competitors. Brands have ‘gone native’ and now post Facebook videos directly to Facebook. Other video platforms like Vimeo are also shifting traffic away from YouTube.
Because of this, in terms of interaction figures, Facebook has virtually wiped out YouTube, as native Facebook videos perform exponentially better than videos from all other platforms. Facebook videos are also shared more than YouTube links, as they can be shared directly. Bear in mind that those who create video content for YouTube will not optimise their success if they are not posting on other platforms as well, particularly short video and photo platforms like Vine and Instagram, which are now eating into Facebook’s market share, proving just how quickly the market is evolving.
Facebook has become a market leader due to their ability to capture a lot of data and their aggressive advertising and marketing strategies. This is very good news for marketers. However, the entire social media environment is highly dynamic and is changing every minute. Competition among different platforms is driving rapid innovation, with customer-friendly features coming out every day. To take advantage of this environment and capitalise on the benefits, marketers need to understand and stay on top of this situation.
Creating great video content starts with the mission – does the video need to generate awareness or generate a response? The beauty of video is how it can create a virtual experience and give an audience the feeling of ‘being there’. Video is highly flexible – it can demonstrate product features, like operation manuals, or for B2B video can provide a sales talk or an interview.
Being informative is not enough however – there also needs to be emotional appeal. Some videos are like TV commercials; others are more like MTV, micro-movies or even movie trailers. These are more emotionally appealing, making people laugh or cry – frightening them or generating comments. Generally though, B2B companies avoid humour in marketing.
In terms of content, video marketers need to be aware of time limitations: even though YouTube supports long-form video, these videos needs to be punchy and eye-catching to attract attention and get the message across. Keep in mind that different channels may require different versions of the same video.
The good news is that thanks to the amazing diversity of available technologies, the cost of video production continues to fall, making viral videos easier to produce and promote. Still, regardless of how well your video is produced, it may not yield the desired results if it does not include a call to action. Before you begin, think about what you want people to do when they finish viewing your video. To achieve a lasting and memorable impact, ensure you include both a visual and audible call to action.
Always bear in mind of the lifecycle of digital platforms in general and the fact that ‘the next great thing’ is always waiting in the wings.
Epicentro specialises in digital content development and is a member of the Pico Group
Awarded ‘Events Standard of Excellence’ and ‘Marketing Standard of Excellence’ in 2015 WebAward for Outstanding Achievement in Web Development by the Web Marketing Association
Daniel has been with Pico for over 15 years and is a seasoned event marketing industry professional. Foreseeing the ample opportunities presented by the world’s rapidly-changing technological landscape, Daniel began planning for a new business unit specialising in digital content solutions in 2010. Commencing full operations in 2014, Epicentro has spearheaded the development of unconventional technologies, helping our clients reach and stay on top of the market. Under Daniel’s leadership, Epicentro has established a strong client list spanning the commercial and government sectors: AIA, Airport Authority Hong Kong, Amway, Dragages, the government’s Environmental Protection Department and Home Affairs Department, the Hong Kong Trade Development Council, Jardine, Suntory and Watsons.
We’ve heard plenty about Millenials (or Generation Y), those born between 1976 and 1994. But as this generation continues to age, marketers are starting to shift their attention to the next wave – Generation Z, those born in 1995 or later.
A new report from market research company Epinion and OMD looks at GenZ (Generation Z) in Vietnam. Numbering 14 million, and with an average monthly disposable income of 112 USD – significant in this emerging market – GenZ is incredibly valuable for Vietnamese brands.
However, for marketers to connect effectively with GenZ they must recognise them as a separate entity to their Millennial (or Generation Y) predecessors.
GenZ really just enjoy being online, hanging out and cocooning at home. Their most enjoyed activity is reading news on Facebook, and most comfortable method of contact with friends through chat apps.
They are also fairly marketing savvy. Only 27% said they would trust a celebrity endorsement or comment, and just 13% trust online reviews.
Bui Tieu Vy, Epinion’s Senior Marketing Executive said: “Our results found that because the under 21s have only ever known a world with internet, the line between digital and physical is very blurred to them and most feel their existence is validated by their social media presence. They would be nothing without their phone, and a large proportion have more than one.
“On top of this, they have learned from their predecessors’ mistakes and are very skeptical, making them much more unlikely to fall for online scams. For brands this means GenZ is able to read between the lines of marketing ploys and will require much more convincing to connect with a brand than to simply be told it is good.”
When it came to traditional advertising, again, this is a hard bunch to impress with only 21% trusting radio adverts, 17% magazine and 15% for both TV and newspaper ads.
A surprising 72% said it was advice from their parents or experts they trusted, reinforcing the importance of the family structure in a country still emerging into the modern era.
Bui Tieu Vy added: “For brands to connect with GenZ they must utilise a strong content strategy that displays social consciousness and demonstrates a higher purpose. ”
2015 promises to be an exciting year for Digital Marketing and Media in Asia. The core metrics won’t feel that different from 2014, but there will be increased focus in a number of areas, alongside raised expectations as Asia expands and matures from a Digital perspective.
It’s that time of year again, as the industry gets out the crystal ball, and places bets for the next 12 months in Digital. Then of course waits to be proved wrong, as it doesn’t turn into the fabled “Year of Mobile”… yet again! (Disclaimer: It will probably actually be the “Year of Mobile” this year.)
With this in mind, below is the annual digital trends roundup for 2014. Asia is covered in depth across the content, but many trends are global, and we have reflected that in the choice of material.
Vserv in partnership with the MMA have compiled a series of presentations covering key mobile consumer stats for many of the Asian markets. These provide comprehensive summaries of the mobile landscape in each market, covering apps, ads and social amongst other topics. Continue reading Mobile Marketing in Asia→