Tag Archives: trends

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.

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Interaction 2017: Group M Global Digital Forecasts

Each year GroupM publishes its overview and speculations on the state of digital marketing and its implications for advertisers. This year’s report – Interaction 2017  predicts that in 2017 digital’s share of ad investment in the developing world will at last have caught up with the developed world, to around 33%.

10 countries have already witnessed digital overtake TV, with a further five expected in 2017, two from APAC; France, Germany, Ireland, Hong Kong and Taiwan.

Interaction 2017

In 2017 it’s challenging to discriminate digital marketing from all marketing. Consumers barely separate their digital and analog lives; little media is published in only analog form and enterprises infuse digital processes into every aspect of their organisations.

However, it’s probably true to say that marketing strategy and marketing services remain more siloed than consumer behaviour, and equally true that marketing and sales organisations remain more separated than they should be given the collapse of the purchase funnel.

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.

Myanmar 33 million mobile users, smartphone usage 80%

The online population of Myanmar is growing at a rapid pace, with Telenor claiming 13.7m subscribers in a recent release. 52% of customers are active data users.

This matches MPT’s 14 million subscribers, and dwarfs Ooredoo’s reported 5 million subscribers.

Myanmar now has at least 33 million active mobile subscriptions in a country with an official population of 53 million. Smartphone usage rate is reported at 80%.

Viber estimates that it has 18 million active users in the country – meaning that almost 1 in 2 of all active cell phones in the country have Viber installed on them.

Myanmar Digital Future – Telenor [Infographic]

hks_telenor_myanmar_infographic_fa_20161219

More Facebook measurement errors – when will brands lose patience?

Facebook has admitted to misleading advertisers on key metrics for the third time in as many months.

On this occasion it’s a discrepancy between the number of likes and shares Facebook shows for web links, and also issues with the number of likes and reaction emojis that page owners see for their live videos.

In the first case in September it was revealed that the social network had been inflating a key video viewing metric for years.

In the second case, there were multiple errors:

  • A bug in Page Insights with the weekly and monthly summaries miscalculating the total numbers without taking into consideration the repeat visitors. This brought a reduced reach of 33% for the 7-day summary and 55% for the 28-day summary. According to Facebook, this didn’t affect the paid reach.
  • A small miscalculation to the length of the videos, with a difference of one to two seconds in the final result, due to occasional problems of syncing the audio and the video to each device.
  • There was an over-reporting of 7-8% on the time spent on Instant Articles since last August. Facebook reported that this issue is now fixed.
  • The “Referrals” metrics on Facebook Analytics for Apps was also miscalculated, as it didn’t simply track the links to the app or the site, but also the clicks to the posts via the app or the site, which also included the clicks to view photos and videos.

Facebook should be given credit for being upfront about its mistakes and rectifying its errors. But the more measurement errors and corrections it discloses, the more difficult it becomes to trust Facebook’s measurements.

It’s a dilemma that some brands and agencies have been wrestling with for a while, and it’s one that may not subside until Facebook allows independent firms to directly measure these previously faulty stats, rather than relying on Facebook for the raw, corrected data.

If Facebook ends the walled garden then many of these problems go away.

2015 in Preview: Top 10 APAC Digital Trends 2015

2015 promises to be an exciting year for Digital Marketing and Media in Asia. The core metrics won’t feel that different from 2014, but there will be increased focus in a number of areas, alongside raised expectations as Asia expands and matures from a Digital perspective.

Here are the ten trends that, in DIA’s view, will change how online marketers across the region do business in the year ahead: Continue reading 2015 in Preview: Top 10 APAC Digital Trends 2015

Digital Marketing and Consumer Trends Summary 2014

It’s that time of year again, as the industry gets out the crystal ball, and places bets for the next 12 months in Digital. Then of course waits to be proved wrong, as it doesn’t turn into the fabled “Year of Mobile”… yet again! (Disclaimer: It will probably actually be the “Year of Mobile” this year.)

With this in mind, below is the annual digital trends roundup for 2014.  Asia is covered in depth across the content, but many trends are global, and we have reflected that in the choice of material.

We will be returning to this topic in future months. For now, enjoy. Continue reading Digital Marketing and Consumer Trends Summary 2014