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Adventures in New Retail: The Subscription Flash Sales Platform

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Diego Dultzin Lacoste & Delphine Lefay, Founders, OnTheList

The OnTheList flash sale platform fills a crucial gap in the Asian retail industry. By serving as a third-party vendor of members-only flash sales, it not only offers brands an environmentally friendly way to get rid of past-season stock, it also gives brands access to a growing consumer database with a more direct, D2C-style subscription consumer relationship. The two founders of OnTheList, Diego Dultzin Lacoste and Delphine Lefay, talked to Digital in Asia about their online and offline retail platform.

Digital in Asia: How did OnTheList find a niche in the Hong Kong premium retail industry?

Diego & Delphine: Prior to launching OnTheList, we worked in regional and international luxury/premium retail brands in Europe and in Hong Kong. With such a fast moving industry led by seasonal trends, there is often a lot of past-season stock occupying valuable warehouse space with few options to get rid of them. For many brands in Hong Kong, the only options available were either burning or burying the stock – both of which are not environmentally sustainable options.

That was when we saw an opportunity to launch an independent, third-party platform that would work directly with such brands to host flash sales and give life to old inventory that would have otherwise been destroyed. While this has been a concept well established and received in fashion capitals across Europe, we found that there was no such option in Hong Kong. OnTheList was the first of its kind in Asia. We have since held over 150 flash sales in partnership with over 250 premium brands in Hong Kong.

The “secret” here we believe, is our approach. Through the flash sales we host, we are able to offer consumers access to premium products at attractive prices, and brands the opportunity to clear past-season items and connect with new customers. While our sales are members-only, membership is free for sign up. Additionally, we cater to current consumer habits and preferences – opening sales from 8am to 8pm, making it convenient for shoppers popping in before work.

We also bucked the trend of going digital first – we started with an offline channel as we have always believed that physical presence creates a sense of desire for purchase – our physical flash sales are held over a short time frame of usually just four days, with stock replenished daily and sale mechanics changing. We have since extended our reach online for sales in Hong Kong, but our entrance into the Singapore market will similarly begin with sales happening in physical spaces as a priority.

DIA: Why is now the right time for expansion across Asia?

D&D: In the past two years since the inception of OnTheList, we have worked with a variety of brands, from fashion and cosmetics to wine and lifestyle, from mid-range to luxury. We have also kicked off our online platform. While our flash sales platform is well-grounded in Hong Kong, our regional brand partners are always asking for our services in neighbouring countries where there are few options to dispose of old inventory. With that, we decided it was definitely worthwhile exploring options in Asia.

Singapore was our first country in mind due to similar customer shopping behaviour and general lifestyle similarities. This coupled with Singapore’s strong economy and economic policies, makes it a great country for our first step overseas.

DIA: How are consumer retail habits across Asia changing? Any differences to the West?

D&D: There has definitely been a shift in consumer premium retail habits. Many studies state that millennials are proving to be the strongest demographic segment spending on luxury – brands must cater to this change and understand millennial shopping behaviour both in-store and online. While millennials enjoy finer products, they are also a price sensitive demographic and brand loyalty is not as easy to maintain as it was once before. In recent years, both retailers in Asia and Europe have enjoyed huge profits accelerated by Chinese shoppers, whilst Western counterparts who enjoy the luxury as well have a vastly different spending behaviour.

DIA: How do you help minimise the environmental impact of fashion retail?

D&D: On average, 217,000 kg of textiles would be sent to landfills daily in Hong Kong. Through flash sales, brands are able to dispose of old inventory in a more sustainable form as the old stock would not go to waste and brands would still receive some returns on the unwanted inventory. In the past two years, we assisted over 250 brands, across premium fashion, homeware, and cosmetics, in holding over a hundred flash sales and selling over a million items that would have otherwise gone to waste. For items that remain after our flash sales, we always encourage the brand to donate them to charity and continue to help people in need worldwide.

Chinese Tourists Driving New Wave of Mobile Payment Adoption

In 2017, China became Singapore’s top market for both tourism receipts and visitor arrivals, contributing 3.2 million tourists. As one in a series of parallel moves seen worldwide, mobile payment provider Alipay also launched it’s payment platform to allow Chinese tourists to pay in the way they know best.

Alipay is China’s largest mobile and online payment platform, with over 520 million active users. Alipay has evolved from a digital wallet to a lifestyle enabler where users can hail a taxi, book a hotel, buy movie tickets, pay utility bills, make appointments with doctors, or purchase wealth management products directly from within the app.

With mobile payment already dominant within China it is naturally gaining momentum as the Chinese travel overseas. According to a recent Nielsen report, 65% of Chinese tourists used mobile payment platforms during their overseas travels, in comparison to only 11% of non-Chinese tourists.

Nielsen Outbound Chinese Tourism and Consumption Trends

China is just back from the two-month-long 2018 summer holiday, during which millions of Chinese travelled abroad for pleasure. With Alipay’s growing presence outside of the Chinese mainland, Alipay overseas spending skyrocketed, with the platform processing 2.6 times as many in-store overseas transactions this summer as compared to 2017.

Asia continued to dominate the list of Top 10 countries and regions in terms of summertime overseas Alipay transactions. Hong Kong topped the list, followed by Thailand and South Korea.

In Singapore, the average spending per Alipay user was 1759.13 RMB (approx. 352.35 SGD) in the summer of 2018. This was a 32% average increase in spending per Alipay user and a 320% total increase in spending for the same period in 2017. The number of Alipay transactions in Russia also increased by over 5000%, as Chinese travellers flocked there in July for the FIFA World Cup.

Of the 80+ airports that support instant tax refunds via Alipay, airports in South Korea recorded the highest amount of tax refunded, followed by airports in Europe.

Agents of Change: Programmatic Pain Points and Priorities in APAC

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By Ryan Pestano, APAC General Manager at IPONWEB

58% of agencies in APAC say programmatic buying lets them drive greater ROI for brand partners, compared to only 40% and 33% for their North American and EMEA cohorts. While APAC typically lags behind other regions in digital and programmatic adoption and ad spending, this finding from new IPONWEB and Exchangewire research, Agents of Change: The Rise of the Programmatic Media Agency, could indicate why programmatic is set to take off in the region.

The report surveyed 129 professionals working in programmatic media at marketing agencies across APAC, EMEA, and North America (NA). It explores the challenges and opportunities the shift to programmatic media trading is creating for agencies, the impact this has on their relationships with clients and publishers, and how they are leveraging technology to create differentiation and provide new value to partners.

Technology Ownership

Despite programmatic’s ability to drive greater ROI for brands, APAC agencies have yet to take the plunge into owning and operating their own programmatic stack; 66% use either third-party technology exclusively or a combination of third and first party technologies, considerably higher than their EMEA (42%) and NA (44%) counterparts. But building their own ad tech stack is a top priority in the next 12 months for 46% of APAC agencies. So what is driving this change?

Building Bridges to Publishers

Surprisingly, agency respondents from APAC claimed that increased use in programmatic buying technology has resulted in improved relationships with both publishers (75%) and brand clients (85%). In fact, 33% of APAC agencies cited a more direct relationship with publishers as one of the major benefits of programmatic, along with access to a greater total number of publishers (45%). Building strong partnerships with relevant publishers is seen as critical to ensuring that clients get a disproportionate advantage in the marketplace, beyond pricing. Interestingly, and probably helping cement better relations between publishers and agencies, only 12% of respondents cite lower CPMs as an expectation from brands for moving more spend to programmatic channels.

Brand Safety

Whereas programmatic has been blamed for the rapid rise of ads appearing in brand unsafe environments in NA and Europe, the story in APAC is different. 39% of agency respondents in APAC cited brand safety as one of the major benefits of programmatic technology, and 35% touted strong fraud and brand safety rates as one of their core differentiators, more than any other region.

This could be due to fraud being directly proportionate to media CPMs. With the exception of Australia and Japan, some of APAC’s largest media markets have a significant supply skew, leading to reduced CPMs and from there lower fraud rates than in other parts of the world where it is harder to balance scale, quality and value.

Transparency Disconnect

Despite the increased use of automated technology for media buying and reporting, there remains a transparency disconnect for APAC agencies; 67% of respondents say transparency around programmatic ROI is a major benefit to their clients, but 64% still cite a lack of transparency around media execution as their biggest challenge. To compound the issue, 58% of respondents say the growth in programmatic is causing brand clients to demand still greater transparency from them.

What’s on the Horizon?

The shift to digital, and more recently to programmatic, has enabled brands and their agency partners to pull off ever more impressive marketing feats and tactics. However, perceived shortcomings in data activation and audience segmentation are compelling many agencies to turn inward to assess how they can fill gaps through proprietary technology solutions and capabilities. According to the research, priorities for APAC agencies over the next year focus on driving even stronger ROI and delivering real business outcomes through furthering omnichannel capabilities, securing and ring-fencing client data, and building out data science teams and custom buying algorithms. But understanding cost implications and having the build vs buy conversation is critical, as 62% of APAC agencies cite cost of maintenance as the number one criteria for evaluating tech ownership decisions.

In an industry and region where things shift rapidly, one thing feels certain: growth in digital will continue unhindered. And what goes digital eventually goes programmatic. The agency that adopts tools, strategies, and mindsets today that maximize programmatic’s strengths and solve its challenges will be well positioned to deliver greater value to brands and create strategic moats for their own businesses for the foreseeable the future.

Download the full research here.

Inside China’s Mobile Payments War

In 2018, China is an almost entirely cashless consumer economy, where popular mobile payment apps such as WeChat Pay and Alipay have enabled consumers to go straight from cash, to smartphone payments, leapfrogging the use of credit cards and cheques.

One of the world’s leading players in mobile or e-payment, China saw $15.4 trillion worth of mobile payments handled by third-party platforms in 2017 – more than 40 times the amount processed in the US.

Chinese consumers can buy a pancake at a roadside breakfast stall, order food online, pay credit card bills, or manage stock accounts, all with just their smartphone. In fact, mobile payments are so prevalent that use of cash fell from 63% of transactions in 2011 to just 33% by 2016.

When Alibaba founder Jack Ma carved out his payments business from the ecommerce giant in 2010, he pulled off a coup with multibillion dollar implications. But it was a move by WeChat a few years later that really set the category alight.

The sending and receiving of red packets containing cash (also called lai see in Cantonese, and hongbao in Mandarin) at Lunar New Year is an important tradition across China. But historically red packets were always tangible items, real cash in a paper envelope. Then, in 2014, WeChat introduced digital red packets. The ability to send festive cash to family and friends using just the WeChat Pay mobile payment platform. It was a revolution, and 4 years later in 2018, the idea of digital red packets had caught on to such an extent, that 80% of Chinese consumers sent a red packet via WeChat. This year only 69% sent a physical red packet.

WeChat’s success with digital red packets introduced and popularised the mobile payments category with Chinese consumers, and built a platform for the adoption of wider mobile payments functionality across money transfer, taxi ordering, online shopping, bill settlement, wealth management, for both WeChat – and it’s competitors.

Wireless Payment Methods

In fact, Alipay, owned by Alibaba, now handles nearly 54% of total mobile payment transactions, with WeChat Pay, owned by Tencent, processing around 39%. Across the category, the number of transactions made through non-banking mobile apps increased from 3.8 billion to more than 97 billion over the period 2013 to 2016, and research firm eMarketer recently estimated that more than 61% of global mobile payment users in 2018 are located in China.

Alipay and WeChat Pay have also made their presence felt abroad. Both companies extended their payments services to hundreds of thousands of merchants in regions like Southeast Asia and Europe, targeting outbound Chinese travellers and encouraging them to settle their overseas shopping bills with the apps. Adoption is still low, but merchants are keen to  facilitate easier transactions for high volume and wealthy Chinese tourists.

Within China however, the game is up. The dominance of mobile payment means not only that companies like Alibaba and Tencent manage consumer financial transactions, but as a by product they also control huge lakes of valuable personal data. Already this data is being used to close the loop on the consumer purchase cycle, and up-sell other financial products such as loans, or retail experiences. Alipay has also built Sesame Credit, a personal credit rating platform and Chinese government social rating system, linked to it’s mobile payments footprint. While English language media tends to describe Sesame Credit as an authoritarian system straight out of Black Mirror, Chinese social media users seem to focus more on the advantages than the burdens.

Ay, there’s the rub! As the West agonises over Cambridge Analytica and GDPR, WeChat and Alipay have already built the future of mobile payments. Convenience trumps all, if you let it.

Below we’ve collected key takeaway resources covering WeChat, Alipay and the mobile payments ecosystem in China.

Mobile Payment Usage in China 2017

Tencent: The Growth of the Digital Payment Ecosystem in China

Social Networks & Digital Payment in China

Alipay and WeChat Pay: Reaching Rural Users in China

Digital transformation in China – Take aways from the Alibaba Global Dreamer Program

 

Vietnam: Digital Trends & Consumer Landscape Overview

With a population of more than 96 million, a median age of 30 years, and internet penetration standing at 50 million, or just over 54% of local population, Vietnam is a young and dynamic market representing a huge commercial opportunity for brands, marketers and investors. Vietnam digital trends emerge fast in this exciting consumer space.

Since 2013, the last time we took a detailed look at Vietnam’s digital market landscape, so much has changed in terms of digital trends. Most notable has been the rise of mobile as a channel, driven by lower handset costs and faster 4G connections. The mobile internet experience now dominates in Vietnam, with consumers naming mobile as the second most important source of news after TV, the most important “big ticket” purchase and their second favourite daily activity after spending time with family and before hanging with friends.

Digital technologies and online connectivity promise to be a key driving force in the growth and transformation of the Vietnamese economy over the coming decades, with the IT industry expected to contribute up to 10% of the country’s GDP by 2020. Ho Chi Minh City is being touted as the Silicon Valley of Asia with blockchain, fin-tech, health-tech and digital accelerators playing a key role in the emerging start-up, hipster coffee shop and co-working space culture.

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.

Ethereum, Cats and Infinite Extensibility on the Blockchain

Last December, a new game became an overnight mega-trend in the blockchain world. CryptoKitties allowed users to buy, own, and trade unique collectible cartoon cats on the blockchain. Around the time of launch, CryptoKitties was so successful that it slowed the Ethereum network.

This is a big deal, as the Ethereum blockchain is, without a doubt, the most active smart contract platform in existence. Of the top 100 tokens by market cap, 94% are built on top of Ethereum. Of the top 800 tokens, 87% are built on Ethereum. Most of these tokens are ERC20 tokens, which made possible the majority of the $5.5 billion raised through ICOs in 2017 and the $6.5 billion raised in token sales during just the first quarter of this year.

The driving principle behind the creation of CryptoKitties was to demonstrate the potential of Ethereum and the blockchain ecosystem for trading and securing digital assets. In the white paper, the founders discuss the narrow focus of most blockchain projects on payments. Ultimately, they hoped CryptoKitties would help people expand their vision of what a blockchain could do.

A few weeks back Digital in Asia met with Benny Giang, the founder of CryptoKitties, to talk Ethereum, cats and art on the blockchain.

Digital in Asia: So Benny, where did the inspiration for CryptoKitties come from? How did it start?

Benny: We love cats, and we know it’s a fact that the internet and cats is just married, right? Basically any new internet technology always starts with cats.

We also thought that blockchain seemed pretty interesting, but we wanted to make it more accessible. We saw so many ICOs happening, and we loved the variety. Some were solving really big interesting problems, like world hunger level. But there were some that were just … I don’t even know what they were doing. It’s just getting DJ Khaled to hype up their ICOs! It felt like what was missing was the education and accessibility piece. So we had the idea of putting cats on the blockchain to drive our education and accessibility agenda.

This turned our attention to a couple of existing crypto collectibles like CryptoPunks and Spells of Genesis. These were the first to use the ERC20 token standard from Ethereum, and then create a collectible on the blockchain. But the limitation with the existing collectibles was that they were only an image. We wanted to take it to the next level. So we started exploring the game play, and we arrived on this interesting idea of allowing people to breed their kitties on the blockchain.

We then spent a month on genetic simulations, trying to figure out how deep we could go and how we could evolve the idea. We established a 256 bit genome. That results in about 4 billion variations of kitties. In terms of human genetics, that’s nothing, it’s very controllable. But in game play, 4 billion potential kitties is quite a lot of variations. It was more of an experiment, playing around, and that was the initial genesis of CryptoKitties.

Digital in Asia: Where did you get started with blockchain? Because it seems as if you were already very familiar with the technology. CryptoKitties was more about doing something in blockchain, as opposed to doing CryptoKitties.

Benny: It started in the spring of 2017. I began reading more, specifically on Ethereum. Most of our team, except a couple of members, were already involved in blockchain, the Bitcoin side. They mined Bitcoin, they bought them, they sold them from way back.

From a more typical internet technology perspective, a lot of the product teams and my background was around building B2B Enterprise SaaS Software. I was interested in the concept of the world computer, and creating a decentralised app store to build real utility. That’s really fascinating, and the whole decentralised aspect really caught my attention.

But I love the quote: “Any disruptive technology starts off as a toy”. And in there I saw the opportunity to bring the educational piece forward, in a way that people could learn, but also have fun.

Digital in Asia: Crypto can be complicated. How long did you think it would take people to get their heads around digital wallets, Gas price and all the other complexities of blockchain, and Ethereum specifically.

Benny: In the first week about 80,000 people signed up. These are new users we had never interacted with, and probably don’t even know what a digital wallet is. So that was already a huge factor. 80,000 new people were so attracted to this game that they were willing to jump through all these hoops.

My biggest goals always involve optimizing the experience for the end user. That’s all I care about, that’s all our team cares about. But in blockchain, and Cryptokitties, we’re still pretty far away from having it where you click on the button and everything just works.

Are people scared of Gas and all these things? I would say they are. Sometimes Gas price goes up and they don’t understand why, but that’s kind of our role, and part of why we created the game. Right now we’re building a whole new onboarding process that will help educate: “Hey this is what Gas is, this is why we need it, this is why it keeps fluctuating.” So people will understand.

Digital in Asia: Why did you decide to build on the Ethereum blockchain? There are alternative blockchains out there like Neo, and as we’ve seen with Gas price increases, and congestion, it’s not always an easy environment.

Benny: It was a timing thing and also more of a mission alignment thing. We met some of the Ethereum team last year and saw that these people really do have the builder mentality, they’re very product focused and development focused. Looking at other blockchains there is potential scalability, but in terms of full production readiness, with thousands of dApps already built on top of it, and battle tested, I would say there is only one at this point.

There are some blockchains being talked about in terms of being Ethereum killers, and that may be true, but let’s see when they get full production ready. Practically, if we were to consider these other chains then we wouldn’t have launched CryptoKitties when we did, as we would’ve waited six more months. It was more of we need to do it now, and we need to ship the product because the timing was right, it was when ICOs were popping like crazy. But as you know we didn’t do an ICO. We actually did the reverse ICO where we built the product, and we sold people kitties!

Digital in Asia: Where is CryptoKitties going? What are your future plans?

Benny: We’re going to work towards deepening the user experience. That means more game play features and expanding to new ways of thinking about the platform. It’s very interesting the three areas we play in. One is crypto, the other one is gaming and the final area is art. We were invited to the Rare Art Festival New York, and we asked a bunch of people to basically talk about this new contemporary art form which is digital collectibles. And some people laughed, definitely.

Screenshot-2018-04-10-at-11.24.05

What’s interesting to me is these Kitties will live for thousands of years. What we have done is basically made history. No matter if we are alive, or the company is alive, these kitties will live. We have this concept of infinite extensibility which is related to the kitties as art form.

Digital in Asia: This is an interesting area. What do you mean by infinite extensibility?

Benny: You buy a painting, let’s say it’s the Mona Lisa. It’s pretty old. You just keep it, and you just look at it, right? And as it ages with time, it just deteriorates. But with the digital collectibles as an art form, as time passes, more functionalities can be added. Right now all you can do is buy and sell and breed. But what if you could walk it, what if this kitty could be a real kitty in your mind. So it’s like an art piece that you can continually interact with as time progresses.

Digital in Asia: It’s apparent you’re not actually a blockchain business, you’re a gaming or collectibles business. Blockchain is just the technology you’re building your business on, in the same way that the internet is the technology that Uber or Amazon build their business on. But we don’t – for the most part – talk about that any more. Every business built on the blockchain right now is called a blockchain business, and this is just about the early stage nature of the space really. What other projects do you feel are good enough to transcend blockchain, and become real businesses?

Benny: The whole blockchain gaming and collectibles category is going to be huge this year. In regards to ICOs, there are a few products I find interesting. They’re more related to AI blockchain, and the convergence of the two. But I don’t actively get involved with many ICOs because the space is almost too hot right now. I would rather hang around the people who are developers or product people, who focus on the end view. There is so much work to do on protocols, all these different things. If we want more businesses to transcend blockchain, we need better and more secure blockchain platforms.

Digital in Asia: Okay. On that, are there any ways in which Ethereum limits you?

Benny: Limitations? We really support the Ethereum ecosystem. We have a team of six that are focused on long term scaling of Ethereum, talking to other chains, working with side chains, trying to find the right solutions. Introducing Casper, or at least the MVP of Casper, will be a big milestone for Ethereum this year. If they pull it off without doing a super hard fork, and the community comes to a consensus, they’re going to be way ahead of other people. Because again, they really have the masses, they just need to move the masses to the next level.

Digital in Asia: Do you think there is a danger that they won’t successfully deliver, or build consensus around, sharding or proof-of-stake? We don’t want Ethereum Classic 2.

Benny: No, No, No. Nobody wants that. Ethereum is below 600 dollars right now, which is low compared to a few months back. When CryptoKitties started it was at 400 dollars. So it’s back to a level of normality for us. It’s good for everybody to calm down, and come together around common goals, because we need to think long term. We all know the market was bound for a correction, and while that’s sad because I own Ethereum, it’s good as it lowers costs to build and operate on the blockchain.

Digital in Asia: What plans do you have around mobile? Any sort of AR functionality? People think it would be cool to see your kitties.

Benny: We have launched a mobile version of CryptoKitties in Asia. There are Chinese focused collectibles, and we’re looking at Singapore, Taiwan, and Hong Kong. China feels a bit difficult to get into, but we’ll see.

Considering new features like AR as a blockchain gaming company who really believes in the philosophy of decentralisation is tricky. If you walk your cat, should that be on a blockchain? When you have a kitty for a thousand years, we think that entire history – including any AR excursions – should be logged. But that’s not easy, and we can’t handle all of the transactions yet. But we are brainstorming a bunch of these new gaming features because that will help keep the experience interesting.

Digital in Asia: Thanks for your time Benny. This has been an interesting conversation. Any final words of advice?

Benny: Blockchain is only just getting started. Thanks again.

Data to Drive the Next Era for Media Businesses

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Paula Minardi, Head of Content Strategy, Ooyala

A recent State of the Media Industry 2018 report from Ooyala confirmed data as one of the key driver for businesses and media organisations in the year ahead, with data-driven video top-of-mind for many marketers.

From consumer engagement and privacy to technological advances, content strategies and monetisation, data in its various forms is everywhere and companies are challenged with harnessing and analysing it smartly for greater returns.

Here are some of the top trends driving media companies:

  1. Mobile and Social – What Consumers Want

Audiences today expect video to be on mobile. According to Ooyala’s Q4 2017 video index, mobile’s share of video plays in Asia-Pacific surpassed 60% and the medium had the most share of plays amongst other devices in the region.

It is thus unsurprising that companies have evolved their digital strategies according to consumers’ media consumption habits. In the UK, The Guardian’s Mobile Innovation Lab has experimented with elements like offline mobile news content for commuters to improve mobile news delivery.

Social media video continues to grow, driving media companies to lean more on social to promote and enhance their content, and grow their audiences. Content, strategic partnerships, innovation and branding are key to their growth in the future.

  1. Data and AI for Greater Efficiency

For greater content production and publishing efficiencies, media organisations are looking at deep data, automation and artificial intelligence (AI). The BBC, for example, has turned to technology to help personalise content across India.

The focus on more granular applications of asset metadata has also led companies to AI capabilities. Modern data-driven media platforms connect and streamline content supply chains to help media companies search their content archives for video, audio or text files with facial recognition, language translation, visual text identification, and more.

  1. Immersion with AR and VR

With mobile devices getting more ubiquitous and advancements in 5G connectivity, we’re looking towards a future of more immersive video content, thanks to continuous progress developing virtual reality (VR), 360-degree video, and augmented reality (AR) technology.

A study confirmed that VR increases viewer engagement with journalism, particularly with larger-scale experiences. And VR360 ads were found to perform better than traditional ads, with advanced platforms supporting VR360 playback for VOD and live.

Interest for AR is rising within the wider industry. Consider The New York Times’ integration of AR into its stories, including features published during the 2018 Winter Olympics.

Data at the centre

As media companies strive to be innovative in monetising content and diversifying revenue streams, it is data that will increase their chances for success and lead them into the next era of media.

Lack of data in creativity leading cause of wasted digital ad spend

Data is a hot topic right now, with the upcoming impact of GDPR top of mind for marketers in the region right now, but according to the latest white paper from IAB Singapore, poor data application in the creative process is leading to a significant wastage in digital ad spend.

As the region’s digital ad spend grows, consumer data has become a massive by-product for brands, but lack of training in digital and data related skills is a key barrier to campaign success.

Research by Adobe Digital Insights reveals that gaps exist in the applications of data-led creativity in digital campaigns for Asia Pacific. 65% of 18 to 34-year-olds prefer ads based on their interests, with a third of the same demographic believing advertisers can do better in personalisation.

IAB_LinkedIn

Much of this can be attributed to brands appointing multiple agencies that end up working in silos focusing on distinct and individual KPIs. The lack of digital collaboration ultimately results in wasted advertising dollars.

“The challenge in tailoring digital campaigns lies in recognising where data originates and how they influence creative briefs to develop highly relevant and engaging content. Especially in Southeast Asia, where programmatic is only beginning to take off, brands must be quick to pick up on key learnings, ensuring advertising budget drives toward achieving business bottom lines,” said Miranda Dimopoulos, CEO & Ambassador to SEA, IAB Singapore.

To encourage a data-driven approach, it is imperative on brands to leverage a Creative Communications Process framework across the entire campaign development process.

“As data-driven marketing becomes the new normal, it is important to advocate data-inspired creativity among marketers, agencies and brand owners. Using the Creative Communications Process framework, digital campaigns can be readily optimised with insights from the data signals around us, to develop engaging and impactful creative platforms and campaign ideas,” said Deepika Nikhilender, Senior Vice President, Xaxis Asia Pacific.

Creativity Inspired by Data accounts for current industry needs, with contribution by senior representatives from BBH, Twitter, Digimind, Xaxis, Wavemaker and Unruly.

To get a copy of the Creativity Inspired by Data white paper, click here.

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.

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.

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Source: Updated Myanmar Research