Tag Archives: internet

Mobile to account for 62% of India digital ad spend by 2021

AppsFlyer has just released it’s “State of App Marketing in India” report, offering insights into India’s mobile marketing landscape, the latest trends and how to navigate India’s mobile ecosystem.

India is the world’s fastest growing mobile market, faster than even China, with the country now accounting for 10 percent of global smartphone shipments, according to IDC. Indian consumers have a relatively high in-app buying rate compared to the global average, especially in shopping apps.

India’s mobile ad spend is predicted to have double-digit growth over the next few years, meaning mobile will account for just under 62% of digital ad spending’s $2.80 billion in 2021.

India’s App Economy [Infographic]

AppsFlyer India App Economy Infographic
The report looked at three broad categories of shopping, travel and entertainment apps, and also revealed other key findings:

  • India ranks sixth globally in terms of number of minutes spent on apps per day.
  • There was a 200% increase in the average number of installs per app when comparing January 2017 to January 2018
  • India suffers from a high uninstall rate due to limited storage space in the Android dominated market. Close to one third (32 percent) of installed apps are deleted within 30 days. Retention is also a challenge with only about 5% of users active 30 days after installing an app.
  • India is increasingly attractive to non-Indian apps, especially Chinese ones. More Chinese apps are now in the top 200 compared to Indian apps. The share of non-Indian apps in the categories of shopping and travel grew by 84 percent and 45 percent respectively. In contrast, the share of Indian-based apps has risen year on year in the entertainment category.

The State of App Marketing in India report analyzed data from different time frames throughout 2017, with a sample of 1 billion plus app installs, 4 billion app opens, and $400 million generated from in-app revenue.

The full report can be accessed here.

 

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Myanmar Digital Trends 2018

Myanmar is going through a digital transformation. AdsMy, a local marketing tech platform, have produced a trends deck covering digital marketing and consumer behaviour for Myanmar in 2018. Programmatic, mobile, video, native and digital advertising are all highlighted as growth areas.

Myanmar is extremely hot with VC investment right now, built on the amazing speed of consumer growth in mobile and app usage.

Latest Digital in 2018 Global Report

We Are Social have just released their latest Digital in 2018 report. The new 2018 Global Digital suite of reports reveals that there are more than 4 billion people around the world using the internet.

More than 3 billion people around the world use social media each month, with 9 in 10 of those users accessing their chosen platforms via mobile devices.

Mobile App Predictions for 2018

[Photo] Jaede Tan, Regional Director, App Annie
Jaede Tan, Regional Director of App Annie
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.

apps ar japan

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.

video streaming apps

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.

Myanmar Big on Facebook and Mobile Gaming

Myanmar is a highly mobile market, backed up by the latest research showing 99% of households now own a SIM card. This points to an interesting dynamic where consumers own SIM cards to make calls, but will borrow a common handset from friends or relatives.

MyanmarMobile

Facebook and Gaming are the most popular mobile pastimes in Myanmar, although 95% of consumers still use their mobile phones for phone calls.

mobilephonesmyanmar

Source: Updated Myanmar Research

8 Mobile Trends for 2018

With Mobile quickly becoming the go to channel for brands, there is a quiet revolution happening in the world of marketing.  Mobile is growing up, and getting serious as it moves front and centre. Here are our top Mobile advertising trends in APAC for the year ahead.

1. Rise of the apps

App use is growing 22% year on year, driven by increased smartphone adoption. Consumers already spend more than 50% of their total digital media time in app. This promises to grow again in 2018.

2. Gaming is the new TV

With 27% of time on mobile devices spent gaming, mobile games are slowly replacing TV as the backdrop to everyday life. One of the biggest opportunities for brands in 2018 is leveraging mobile gaming as a high reach, context neutral environment, just like TV or UGC / Social Media.

3. Mobile video keeps on rolling

Mobile video advertising spend has grown by 63% in over 2017. And with 4 times as many consumers preferring video over static advertising, brands will continue to top up in 2018.

4. Mobile native creativity

As consumers spend a majority of their media time on mobile, expect mobile native interactive and vertical video formats and functionality to move front and centre. Marketers will make more use of mobile capabilities to engage consumers in 2018.

5. Consumer choice and permission based advertising

With the rise of subscription media like Netflix, and increased adoption of ad blockers, consumers have more choice over their exposure to ads. Rewarded ads on mobile get 68% approval ratings from consumers, compared to only 20% who approve of pre-roll.

6. Mobile only consumers

With 65% of consumers in emerging markets already mobile only, and those in developed economies very much mobile first, the next generation may never experience the internet the way we do. Avid voice searchers, and heavy app users who avoid the desktop, they will see the world in a whole new way.

7. Mobile brand safety tracking and viewability grows up

Mobile devices are personal, so it’s even more crucial that advertising is delivered in a way that works for both advertisers and customers. Brand safety and viewability measurement will drive increased scrutiny of media investment, and a cleaner advertising experience for consumers.

8. Programmatic growth

Advertising spend is shifting fast to programmatic, and even faster from desktop to mobile. With mobile video set to account for 28% of ALL ad spend by 2019 it’s time to get on the mobile programmatic train.

Indonesia’s Digital and Content Marketing report

Get Craft recently surveyed 150+ Indonesian marketers asking about their digital & content marketing habits. 55% of marketers still lack clarity about how their digital marketing drives business objectives. Other key findings included:
  • Marketers spend 31.5% of their budget on digital, 76% say this is an increase
  • Average and Median digital marketing budget of IDR 1.9 billion / year and IDR 875 million / year, respectively
  • Digital marketers’ key problems are around budget restraints & skills/resources gaps
  • Customer experience & content marketing are the most exciting growth opportunities
  • Content marketing is generally used for engagement & awareness – but B2B measures primarily lead generation
  • Written articles and videos are the most effective content marketing types
  • B2B brands prefer more to invest in dedicated in-house content team, whilst B2C relies more in agencies

You can download the full report here.

6 Interesting Start Up Ideas at Innovfest Singapore

1. V-Key managing trust and identity with virtual hardware on your phone

V-Key is a global leader in software based digital security. V-Key is the inventor of V-OS, the world’s first virtual secure element that uses advanced cryptographic and cybersecurity protections to comply with standards previously reserved only for expensive hardware solutions. How does it work? They create a virtual hardware smart chip within an app, meaning identity is held in the same way as on a cashcard smart chip – and with the same level of security. Interesting ultimately for anyone concerned with real world identity, which is why they already work with governments worldwide. Prepare for your passport to change in the near future. Trust simplified.

2. Handshakes automating corporate due diligence

Handshakes applies natural language processing and machine learning technology in an innovative way to analyse corporate data and publicly available unstructured data. The platform can then fuse this data with a companies existing unstructured databases to provide strategic intelligence about who to trust and who to do business with. Exciting stuff and sure to disrupt back offices globally – corporate due diligence is suddenly a trivial task.

3. Xjera Labs video analytics for crowd control

Xjera Labs focuses on revolutionary smart video content analytics (VCA) by implementing deep learning based VCA for various commercial applications. Kind of like Minority Report.

xjera_labs_crowd_scenario_sh_deployment

4. IOT Factory simplify the Internet of Things for normal entrepreneurs

IOT Factory have built a unique Software Platform to make any sensor, any device, using any network (M2M, LoRa, SigFox, BLE and many more) speak a desired language, through dashboards, reports, smart alerts, and easy integration capabilities. Essentially they’ve automated the back end of the Internet of Things so non-technical innovators can start to build on it. Thank you.

5. SettleMint, a blockchain for democracy

SettleMint is a fintech player working with distributed ledger technology. One of their projects, called SettleMint Ballot Box, uses immutable blockchain technology to record votes. In doing so, the company aims to address any doubts regarding the outcome of voting processes and elections. Use cases for the blockchain are crucial for pushing this forward.

6. Playpass bringing versatile Apple Pay / Paywave type technology to events

PlayPass are all about events and technology. They provide RFID solutions to allow better event management – in short every attendee gets an RFID wristband. From the moment the gates open real-time reporting tracks and displays the number of visitors on-site, which brands and activations are of interest to that visitor and what they consume and purchase.

iKorea: Media Reps – Past, Present, and Future

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.

What’s for sure is that we’re hitting another disruptive phase in digital advertising and how media reps will fit into this picture is still to be determined.

5 Steps to Capture the Valentine’s Day Dollar

With Valentine’s Day hot on the heels of Chinese New Year – itself coming about a month after Christmas – there have been and will be great opportunities for retailers to capture the gift-giving market. Yet, it’s been well publicized that the retail industry is flagging, with data showing that the average vacancy rate of suburban malls, has doubled from less than 1 per cent in 2013 to 2.4 per cent in the fourth quarter of 2016.

The problem is that we’re no longer in an era of business as usual. Retailers cannot employ the same tactics which have worked for years and expect customers to come flocking back. In today’s age, customer experience is the new currency. The strategy of leveraging products to gain a competitive advantage is obsolete when you are fighting with “everything stores” like Amazon and Alibaba which offer almost infinite choice and cheaper prices. When everything is available all the time, at any price, experience is the remaining true differentiator

How can retailers generate powerful experiences to capture today’s new customers (and their Valentine’s day gifting dollar)? It’s a journey to get from being a product-based business to an experience-based business. In its recent “Path of Experience” report, Adobe sheds insights on the 5 milestones to experience-driven commerce:

  1. Segmentation: The first milestone on the journey is to truly know one’s audience. They exist, but the challenge is in finding them, and defining them. Not by demographics, but through shared attributes and behaviours. In practical terms, this allows a retailer to reach many individuals with a collective message and expect a certain desirable result. Each audience has to be large enough to make a difference in revenues, but small enough to be distinct. The answer to this is big data – be it through first party, second or even third party data. This is where a data management platform comes in, pooling all this information so retailers can experiment with traits that help them find these natural groupings
  1. Personalization: With the data, you can now create a special and specific experience for each audience segment. Wooing a customer with a one-sized-fits-all approach is no longer effective today, akin to giving a girl roses when she in fact prefers lilies. Whilst personalization is nothing new, today’s difference is that it can be delivered at scale using automation. By using the digital fingerprints that customers leave behind after every interaction, retailers can build a progressive personal profile that allows them to understand how customers feel, what they do, and ultimately, what customers want.
  1. Omnichannel: Now that retailers have gotten the ability to achieve customer intimacy, the third experience milestone is putting those relevant, personalized experiences where they count. Different customers use channels in different ways—without differentiating between touchpoints and channels, inbound and outbound. The consumer is everywhere. Retailers need to be there as well. And the best way to do this is via the mobile – the most personal device ever. Because of this, mobile often serves as a second-screen or cross-channel resource especially in brick-and-mortar selling. This opens the door for intelligent contextual marketing, where mobile is viewed as a behavior rather than a separate channel or technology. Because the behavior is constant, brick-and-mortar retailers can use mobile to augment the store experience, using various technologies.
  1. Dynamic Content: Experience-driven commerce requires that retailer reimagine what shopping looks like. It’s more about telling a story rather than telling the customer why they should buy the product, instilling a perception of increased value that differentiates from the competition. Dynamic content and shoppable media can bridge that gap, using the latest tools to tell compelling stories that take buyers straight to the checkout line. A great example of this implementation is Amazon Go – reducing barriers to commerce to make shopping a breeze
  1. Real-Time Analytics: As no two customers will share the same purchase journey, it’s important to always know where customers are at. Real-time data allows retailers to watch over the customer’s shoulder, understand the journey and smooth out any rough spots. It makes it easier for retailers to lead the customer from awareness to conversion. Analytics also provides optimization opportunities – and the chance to fine-tune the customer journey through a simple three step process: Measure (customer interactions), Adjust and Improve (the customer journey).

While the journey might sound a bit daunting at the outset, the key is to start small, move forward, and not stagnate. By carefully evaluating their ability to act on the five capabilities described above, retailers should get a better idea of where they need to go. And as they do, the customer experience will surely improve.

For more information, please download the full report here.