Tag Archives: Malaysia

From IOP to IOT: Consumers, Marketers and the Connected Future

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.

sdhliush;ODQSource – 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.

Advertisements

New platform offers real time performance buying for Digital OOH

New digital advertising firm Rodeo have created Malaysia’s first interactive in car advertising platform, which provides advertisers with a captive audience on a programmatic buying platform.

Clients already signed up to the service include Lenovo, Li TV, Sling Apps, Zepto, Rainfilms, and eBizu.

The innovative concept works by installing 10.1inch HD tablets on the back of car seat head rests, which entertain passengers and creates a dynamic platform that allows interaction with brands, offers and promotions designed to catch the passenger’s eye.

According to Rodeo CEO, Valens Subramaniam, the majority of passengers spend 10 minutes or more travelling per car journey. Advertising slots are sold in blocks of 16 (max) and run on a loop. Each advertisement is shown for 15 seconds, ensuring that ads have high frequency to maximise the exposure.

A major challenge for today’s advertisers is maintaining attention long enough for potential customers to buy into the benefits of products and services offered. Rodeo’s digital out-of-home (DOOH) media applications solve this problem by placing advertising platforms in vehicles, thereby maximising customers’ engagement with the content.

The interactive platform allows passengers to provide their contact details and ask for more information on a particular product or service. Leads are funnelled through to advertisers in real-time. Clients can also track customer data in order to enhance understanding of target audiences, and cutting-edge technology such as facial-recognition will be able to assist advertisers in providing personalised content.

Rodeo’s DOOH system also presents vital public service announcements and real-time information such as police reports on crimes or missing persons, which can help resolve these issues quicker by increasing the reach of information being spread.

Mr Valens – former CEO of iCab Malaysia – spoke of the benefits it can bring to advertisers and drivers. “In recent years, advertisers have faced a considerable challenge of keeping the attention of potential customers as they promote their products and services. Our innovative media application helps to solve that problem by offering a captive audience for each advertiser, every time.

“Our full-time drivers complete, on average, 140 rides per week, which translate to over 550 unique passengers per month, per driver. This is an excellent opportunity for advertisers to maximise their reach and generate real-time leads.”

He added, “Our drivers are also offered incentives to boost their income by generating additional income for themselves, as well as meeting their KPIs, and so this is a perfect opportunity for everyone involved to take advantage of the benefits offered by the in-transit media industry. It is truly an exciting time for the Rodeo team, and it is my goal to expand to other Malaysian states and South East Asian countries over the next two years.”

The DOOH media industry could be worth over $US60 million to Malaysian economy by 2019.

The Google Consumer Barometer: Free APAC Market Research

The Google Consumer Barometer is a fantastic new tool to help you understand how people use the internet – both mobile and online – across the Asia.

It’s a rich consumer research resource available for free, based on studies done by Google and partners globally over the recent past.

Curated insights are available for Singapore, Indonesia, Vietnam and many other APAC markets.

Definitely worth digging into next time you need to know the percentage of smartphone users in The Philippines, or the online population of Malaysia.

29_full_size_google-barometer-10

Half of APAC Smartphone Users Now Shopping on their Device

The latest MasterCard Mobile Shopping Survey covering Asia Pacific finds consumers embracing the convenience of mobile shopping. Almost half of consumers – around 45% in total – made a purchase using their smartphone in the three months preceding the survey.

Exactly 50% of respondents across Asia Pacific cited convenience as the most compelling reason for shopping on their smartphone. Other motivating factors include the ability to shop on the go and the growing availability of apps that make it easy to shop online.

Fig 1: % consumers who have made a purchase using a smartphone
2014 2013 2012
Asia Pacific 46% 39% 35%
Korea 54% 48% 40%
China 70% 59% 54%
Thailand 59% 51% 51%
Hong Kong 38% 40% 41%
Taiwan 62% 45% 28%
Singapore 37% 31% 40%
Vietnam 45% 35% 34%
Indonesia 55% 47% 55%
India 63% 47% 30%
Malaysia 46% 32% 25%
Philippines 34% 33% 21%
Japan 26% 23% 26%
New Zealand 21% 15% 18%
Australia 20% 25% 19%

In addition to using their mobile phones to make purchases, shoppers in the region are also using it to compare prices between physical and online stores. Close to half (45%) of respondents have conducted price comparisons, with a similar proportion (44%) also stating that they have conducted research online prior to making a purchase in-store.

Overall, consumers from China (70%), India (63%) and Taiwan (62%) are the most likely to shop using their smartphones with the most popular mobile shopping purchases amongst Asia Pacific shoppers include clothing and accessories (27%), followed by apps (21%) and daily deal coupons (19%).

Asia Pacific consumers are also adopting new mobile technologies, with 28% of respondents saying that they use mobile banking apps. Group buying apps (40%) and digital wallets (28%) are the most popular amongst Chinese consumers.

Increased smartphone ownership is clearly having a massive impact on the way people across Asia Pacific shop and spend. Brands and online shopping portals need to continue to develop easy and simple ways to browse and pay, as convenience remains paramount to consumers whether they are shopping on their phones or in-store.

Consumer Electronics Path to Purchase in Asia Pacific

Two in every three Asian shoppers has already researched and made a decision regarding which brand of consumer electronics product they will buy before they approach point-of-sale, online or offline, according to Text100’s Digital Index: APAC Consumer Electronics Study.

The research looks at how different information sources vary in importance at each stage of the customer journey for the consumer electronics sector. Continue reading Consumer Electronics Path to Purchase in Asia Pacific

Mobile Marketing in Asia

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

Ecommerce in Emerging Asia

Ecommerce is very much in the news at the moment, with Rocket Internet launching their month long online promotion across Lazada, Zalora and Foodpanda, ebay launching in Indonesia, and mobile ecommerce projected to hit $2.4bn revenue in Singapore by 2015. Continue reading Ecommerce in Emerging Asia

Asia’s Digital Future in Focus

The comScore Digital Future in Focus reports provide some of the most comprehensive coverage of Asia’s Digital landscape. Industry leading research across a series of Asian markets, with insight into search, social, online advertising, mobile and e-commerce. Continue reading Asia’s Digital Future in Focus

Mobile Consumer Insights and Research for Asia

It is not easy to find Mobile research, consumer insights and stats for Asia. However, there are two sources that stand out in terms of their comprehensive coverage of Mobile for the region, including local markets. Continue reading Mobile Consumer Insights and Research for Asia

Digital Benchmarking and Measurement

“How much should we be paying per like on Facebook?” or “What is a good CTR for a display campaign?” are questions that will be familiar to anyone working in Digital. Benchmarks are a constant topic of discussion, and it’s only natural that we want to understand whether we are doing better or worse than everyone else.

It is not easy to find Asia specific benchmarks, but this post is a fairly comprehensive list of all the resources available. Where there are no local benchmarks, more general industry specific or global benchmarks can still help us understand performance, so we have included the best of these. Continue reading Digital Benchmarking and Measurement