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.
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.
What are the biggest changes you have seen in digital technology across APAC over the past 10 years?
There is greater customer demand for first-rate user experiences compared to a decade ago. Brands have to evolve their strategies to keep up with the customer, providing seamless interactions and a consistent experience across a wide range of platforms. This is resulting in marketers shifting their focus from the transaction to the experience, where the customer and their lifetime engagement with the brand are at the centre of every marketing strategy.
From a technological viewpoint, this customer-centric focus requires marketers to bring together the vast number of digital solutions used to optimize the customer journey over the last few years into a more manageable stack. It is also leading to an increased focus on granular first-party data to help understand the customer and their needs through detailed profiles. Where brands may once have acted on instinct, or what they felt was right, they now use data to ensure they are making the best decisions.
How has regulation such as GDPR impacted businesses in APAC and their ability to manage and use consumer data?
GDPR covers any organization that handles the data of EU citizens — and in today’s global economy, this means it impacts most companies; including those in APAC. Yet attitudes towards the regulation remain mixed. On the one hand, there is an appreciation that complying with the new rules brings many advantages: by giving individuals power over data and more visibility into usage, the GDPR can reduce privacy concerns, increase trust, and build lasting customer relationships. But on the other, following legislation that goes beyond regional law is difficult. Ahead of enforcement, more than half of firms in Singapore weren’t ready and one month later, only a quarter of Japanese companies had met fundamental rules.
Businesses must keep working towards compliance and recognize that the GDPR doesn’t necessarily require a total internal overhaul – a common misconception. Companies will often find they can make existing systems adherent by connecting them, instead of replacing them.
What can businesses do to better leverage the explosion of customer data we’ve seen as a result of the digital age?
In short, it means putting the data created by greater connectivity into action. As adoption of smartphones, tablets and wearable technology has grown — with 8.6 billion devices set to be in use across Asia by 2020 — the quantity of data produced by consumers has exploded. So, brands now have a larger pool of transactional, demographic, and behavioural information to draw upon than ever. But before they can harness this data as a basis for tailoring customer experiences, companies need to translate it into cohesive and usable insight. And this is no simple task; in fact, 34% of marketers state that the difficulty of unifying data sources is the greatest barrier to better understanding customer journeys.
The evolution from brands talking about DMPs to CDPs as their primary consumer data tool has been very apparent over the past few years in marketing. What’s the difference between these platforms from your perspective?
The answer to this lies in the history of both tools. DMPs were originally designed to gather information about online activity, categorize it and build audience segments, which then fed into other systems such as DSPs. As the complexity of consumer journeys increased, DMPs tried to meet the need for a persistent view of individuals. But because they were only able to store third-party cookies, it was difficult to effectively resolve the many identifiers created by different channels and devices. And this is where CDPs come in. CDPs can collate, synchronize, and activate data from varied sources: generating one centralized store of insight marketers can use to understand and trace individuals across touchpoints. This results in the capability to take consistent and relevant action in real time across an organization’s entire tech stack from a universal data foundation.
This isn’t, however, to say CDPs supersede DMPs; the two can be effective when used in partnership. For example, a CDP can give marketers a ‘single source of truth’ and a complete picture of customer journeys. This insight can then be shared with DMPs to produce better audience segments that ultimately boost ad targeting precision and results.
What can brands do to get closer to the holy grail of a true 360-degree view of their customers in real time?
If brands want to obtain a real-time 360-degree customer view, they must ensure data is well orchestrated. And this means following several core stages that aim to continuously harmonize data. To start, customer interaction data must be collected from every possible source — such as apps, sites, and stores — combined into a single layer, standardized, and cleansed. Simultaneously, this information should also be stitched and enriched; with smart tools used to assess incoming data and transform it into individual profiles that are linked with data from particular devices, once owners are identified.
Because all of this is done in real time, the end product is a complete up-to-date customer profile. Exactly the insight marketers need to understand customers and deliver engaging experiences across channels. Though it’s worth noting that to accommodate ever-evolving individual preferences and habits, they must also check that their orchestration platform integrates with other systems and constantly ingests new data.
How are AI and machine learning changing the way brands engage with their customers?
AI and subsets such as machine learning are already beginning to broaden the horizons of customer interaction by adding new channels to the mix. The best-known examples of this are chatbots — used to provide instant 24/7 services by major brands from Starbucks to MasterCard — and the growing presence of digital tools in physical stores. As recently seenwith the Guess and AlibabaFashionAIstore, which trialled blending real shopping and a range of intelligent tech; facial recognition, smart touchscreen mirrors, RFID-tagged items.
But it’s also important to highlight the applications that are making a sizeable difference to customer experience behind the scenes. Machine learning, in particular, is fuelling advances in data processing; giving brands the means to collect and analyze customer information at scale, and extract valuable insight. This in turn, means data can be quickly harnessed toimprove interactions by enhancing contextual relevance and personal resonance. So long as marketers are taking adequate measures to keep quality and accuracy high, including avoiding bias among the human teams driving AI and data fragmentation.
What are the biggest challenges you see with brands getting to grips with big data in APAC?
One of the most significant challenges is providing communications that keep pace with omnichannel activity. According to a Google study, the majority of APAC consumers prefer to research online and buy in store; with 70% doing so while browsing real shelves. But activity varies by market; Australia and Japan, for example, have large numbers of digital shoppers – especially Japan, where e-commerce revenue is currently more than $80 million.
So, there is no room for archetypes; marketers need all-inclusive insight into the behaviour of specific target audiences. Only by identifying which devices, shopping environments, and ad types work best for individuals can they provide personalized experiences that flow as part of a seamless cross-channel conversation. And that necessitates agile integrated tech, which can be problematic in certain markets that have historically relied on legacy systems. Despite its forward-looking approach to mobile, Japan still tends to use CRM databases that don’t necessarily have the capacity to work with other systems and therefore can’t share data easily.
Finally, how can brands intelligently pull all their data together to build a better, more personalised and more holistic customer experience for 2019 and beyond?
The role intelligent data plays in customer experience will continue to grow as more brands recognize the value of building communications around individuals. Forrester research has shown brands focused on customer experience achieve an annual growth rate of 23% and twice as much return on ad spend — and data is an integral element of this.
But to get every interaction right, brands mustn’t overlook the basics. Constructing a strong foundation of compliant, accurate, objective and perfectly orchestrated data is critical for communications to make a positive impact.
With the continued explosion of data from a wealth of connected devices, there is more focus than ever on the way companies collect, manage, and use their data. The last 12 months have seen some big names under the spotlight, but as we shift our attention to the year ahead, what lies in store for digital marketers?
There’s no denying, 2018 was probably one of the most significant years to date in terms of shaping the data landscape. In a year where more than 3.6million Asian Facebook users may have had personal information inappropriately shared with Cambridge Analytica, data has never been more prominent in the headlines.
And data isn’t set to fade into the background any time soon. Rightly, the world has woken up to the importance of data in our everyday lives and, for companies, the ability to mobilise insights from data to drive decisions across all areas of the business is firmly on the radar.
So, amid the introduction of stronger legislation and increasing opportunity – and responsibility – to harness the power of data, plus the potential lure of artificial intelligence (AI) and machine learning, what will the data landscape look like in 2019?
Customer-centricity is priority
In light of new privacy regulations – led by the EU’s General Data Protection Regulation (GDPR) launched in May 2018 – there’s been greater awareness from consumers regarding the use of their personal data. In a world where technology has fuelled rapid advances in all areas of life – from e-commerce to financial services – legislation has been somewhat slower to keep up.
But, thanks to high-profile breaches and changing laws, we’re transitioning to an era where the importance of personal data is much higher on the agenda. In turn, this is forcing companies to ensure they have a customer-centric strategy in place, which clearly places the user’s experience at the heart of all business decisions, with the power back in the hands of the individual.
Build a data foundation first
It’s tempting for companies to get caught up in an exciting digital future – we have already seen AI adoption rates across Southeast Asia grow from 8% in 2017 to 14% in 2018. And while some countries, like Singapore, are storming ahead in terms of innovations – with start-up companies such as CashShield creating noise on a global scale – the picture varies from country-to-country. Most are still working to get the data basics in place first; after all, even the most advanced of machine-learning algorithms are only as good as the data that fuels them. So, it follows that companies must concentrate on building a strong data foundation before implementing any ‘must-have’ technologies.
Many businesses throughout Southeast Asia are still facing challenges with relying on legacy back-end systems, and their priorities at the moment are focused on connecting disparate data silos. In 2018 we saw the premise of Customer Data Platforms gather pace, as companies switched on to the need for a tool to help them collate, enrich, and manage the high volume of event-level data across multiple channels – both online and offline – to create a comprehensive view of the consumer. Putting these building blocks in place is fundamental to delivering a first-class customer experience, and it’s the point from which every other business decision should pivot.
Now is the time to talk about ethics
And what about the appeal of AI, with initiatives such as facial recognition, voice-activated search, and online chatbots? There’s no denying its potential and – while companies ready their datasets with clean and accurate data to get to a point where they can successfully adopt these technologies – now is the time to talk about the guidelines we need to ensure machine learning algorithms are unbiased and ethical – rather than waiting until mistakes have been made. It’s our responsibility, as an industry, to get this right.
We have already seen the creation of theSingapore Advisory Council on the Ethical Use of Artificial Intelligence (AI) and Data, set up with representatives from Google, Microsoft and Alibaba – designed to develop a trusted and vibrant AI ecosystem in Singapore. And with India releasing an AI strategy discussion paper, the UK creating a Centre for Data Ethics and Innovation, and worldwide issues being monitored through the AI Global Governance Commission, there are signs of a shift across the globe which will continue in 2019.
While this reflects the need for new and updated regulations that are relevant to today’s digital landscape, it also addresses a changing approach from companies about how they view consumers’ data. No longer just an ‘asset’, we are starting to see a real understanding and respect for its true value, with focus returned to the individual – rather than a collective audience segment.
The data landscape in 2019 may follow a theme of regulation – but at its heart will be a strong emphasis on the customer – regardless of what new tech may be dominating the headlines.
Leading app platform Smaato recently announced results from its Global Trends in Mobile Advertising H2 2018 report. The report reveals significant growth across key advertising metrics, including ad request volume and eCPMs.
As advertisers direct more money into mobile advertising and consumers continue to adopt smartphones around the world, demand and supply both increased year-over-year, indicating a healthy mobile ad market.
The highest growth region across all metrics was APAC. India stood out from the pack with a 425% growth in mobile ad requests. This was more than twice the growth rate of the fastest growing markets in EMEA and the Americas, which were led by Spain at 152% and the USA at 170% respectively. India’s meteoric ad request growth is characteristic of an emerging mobile market in which the number of mobile device owners, their time spent on mobile, and overall app downloads all rise quickly.
Ad Request Growth on the Smaato Platform
APAC – 44% Growth
EMEA – 23% Growth
Americas – 23% Growth
India – 425%
Spain – 152%
USA – 170%
South Korea – 177%
Netherlands – 87%
Colombia – 150%
Thailand – 77%
France – 82%
Argentina – 141%
Japan – 53%
UK – 70%
Mexico – 83%
Vietnam – 50%
Italy – 61%
Brazil – 54%
Asia Pacific also saw significant eCPM growth in addition to ad request growth. The top five countries in the region in terms of eCPM growth were:
Japan – 125%
Australia – 111%
Hong Kong – 99%
Indonesia – 96%
Alex Khan, Managing Director, APAC at Smaato explains, “The impressive ad request and eCPM growth in APAC are driven by app developers finding new ways to better monetize their content even as consumers are spending more time on apps. Advertisers from all verticals are realizing that apps are where consumers are — and they are directing more funds into this channel.”
He adds, “With app usage increasing across the region, there will also be more monetization opportunities for mobile publishers.”
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:
The friendly folks at Meltwater have just released a new report titled ‘E-commerce in SEA: Supercharging Holiday Sales Through Social Media’ analysing consumer sentiment across South East Asia during the year-end shopping period last year to help e-commerce companies better reach their audiences.
The report found that Christmas shopping pulled in 56% of chatter, while Black Friday represented 22% of buzz. Fast-growing Singles’ Day – a shopping holiday started by internet company Alibaba in 2009 – is credited with kicking off the nearly two-month shopping period, and accounted for 20% of social media conversations.
Within the region, Indonesia drove the highest volume of conversations (57%), which isn’t surprising considering the country’s increased internet penetration and smartphone usage in recent years. Philippines and Malaysia represented 30% and 12% respectively, while Singapore brought in 1% of the buzz.
While the top brands varied from country to country, it’s clear that the marketplace model emerged the real winner. In Singapore, Amazon dominated social media with 51% of online conversations; Shopee led the buzz in Indonesia; Qoo10 was the most talked about in the Philippines; and Lazada emerged triumphant in Malaysia.
There’s more at the full report below.
E-commerce in SEA: Supercharging Holiday Sales Through Social Media [PDF]
There’s been a lot of scepticism recently about where advertising is headed. Online advertising has seen massive growth over the past decade thanks to its flexibility, transparency and measurability—not to mention the ROI. But with this growth comes a new challenge: more than before, marketers must fight to break through the clutter and connect with their target audiences. The rise of obtrusive and irrelevant ads on the web has led to a concurrent surge in ad-blocking software as consumers become frustrated with or indifferent to the content bombarding them. In response, some of advertising’s biggest spenders have started to shift their focus back to real-world tactics such as experiential marketing. This leaves advertising at a tricky crossroads, and got me thinking: Will digital advertising always remain an important instrument in a company’s marketing toolbox? And as an advertising company, how can and should we push advertising to adapt if we believe it to be the way forward?
Xaxis wholeheartedly believes that digital advertising needs to deliver tangible results to continue to be relevant, and as such has repositioned to focus its entire offering on client outcomes. The best way to do this was to understand the client’s advertising goal that ties as closely as possible to the true business outcomes they are trying to drive. So what do marketers need to think about and do differently to truly engage consumers and drive measurable business results?
Artificial intelligence (AI) has completely changed what we can achieve in advertising, from media buying and planning, how to achieve set targets, and the metrics used to understand success. As my colleague Sara Robertson, VP of Product Engineering for Xaxis once said: “AI is like a spreadsheet on steroids”. The potential of AI lies in its ability to see the bigger picture. We’ve made AI and machine learning an integral part of our offerings, used to find and define audiences, refine our creative messaging, generate audience personas, and develop bidding strategies, all of which can transform a digital advertising strategy to drive remarkably improved results for clients.
And while it is true that consumers hate interruption, it’s never a bad thing when advertisers are forced to adapt by creating content that consumers enjoy. One example is a creative new type of ad that has emerged in China to play in breaks of TV dramas online. These ads utilize the TV shows’ original content and narrative arcs, and feature the same actors in their on-screen costumes, making the ad almost indistinguishable from the original content to hold the audience’s attention and pique their interest. This type of advertising is expected to surpass 2 billion yuan (US$311 million) in sales revenue this year, up from 800 million yuan in 2016.
Advertising with influencers also holds increasing importance in the marketing mix as a way for brands to create trust and credibility with consumers. Over the last few years, influencer marketing has skyrocketed to the point that it has become a category of its own. The premise for this is that consumers trust people they already follow rather than an obvious advertiser. Brands are therefore working to get attention from consumers by channelling their message through people with extensive and trusting networks, commissioning influencers to co-create ‘native’ content that advertisers can then amplify. All of this shows that content needs to mimic what consumers already enjoy in order to engage, but advertising itself won’t disappear.
At the end of the day, approaches such as experiential marketing can be a highly valuable way for many companies to increase brand exposure and customer loyalty. But they shouldn’t necessarily replace advertising altogether. Marketers need to look at the bigger picture and focus on reaching business objectives by quantifying success with real metrics and conversions—regardless of the marketing tactics they choose to convey their messages. That means connecting with your customers authentically and holistically, wherever they happen to be – though as we know, people are spending more time online now than ever.
For Xaxis, repositioning our offering to focus on client outcomes was the most logical move. To align with a client’s true marketing and business objectives—and deliver results to hit those objectives and maximize ROI—should be the goal of any marketing tactic. What really sets digital advertising apart is its ability to do exactly that, with more transparency, efficiency and measurability than any other approach. For this reason, we don’t see it dying out anytime soon.