ADMA Yearbook Provides Insights on Digital Marketing Trends in Asia Pacific Region
1. www.asiadma.com
Edited by Rachel Oliver
ASIA PACIFIC
Digital Marketing Yearbook 2009
The imperative for marketers now is to join networks and
interact directly with their communities of customers online.
“
“
2.
3. asia pacific digital marketing yearbook
The ears, eyes
and voice of digital
marketing in Asia
The Asia Digital Marketing Association (ADMA)
is the voice of, and advocate for, the digital
marketing industry in Asia (excluding Japan).
The ADMA is guided by senior executives in the
industry and is charged with gaining consensus
and providing leadership on key industry issues.
The ADMA actively promotes the benefits of
using mobile and the Internet as channels to
communicate with consumers as well as lobbying
and public relations assistance for member
companies.
The ADMA is a non-profit organisation with a
membership base representing online publishers/
portals, agencies, research companies, technology/
service companies and marketers/advertisers.
Why join the ADMA?
Being a member gives you access:
• Unified voice for the industry to promote the use of
digital and the Internet (in the media and with potential
customers)
• Forum for standards and best practice sharing
• Spokespeople to represent members and respond to
criticism
• Industry contacts and networking opportunities
• Sponsorship opportunities to raise awareness of your
brand
• Discounted rates for regional events
• Notification of relevant speaking opportunities
• Professional digital marketing qualifications – discounted
enrolment fees for members
• Entry in the online Membership Directory and annual
Asia Pacific Digital Marketing Yearbook
• Job matching service to help you find staff
How to join the ADMA
Membership fees are set low enough to encourage
universal membership among industry players, and taken
together provide sufficient revenues to underwrite regular
activities. Other activities are funded by sponsorship (cash
and in kind) and by charging admission fees for some
events.
Visit www.asiadma.com/membership/join and
complete the online registration form.
❚
❚
ABOUT THE ASIA DIGITAL MARKETING ASSOCIATION
Visit www.asiadma.com for more details.
The ADMA gives heartfelt thanks all our members for their support and contributions:
ADMA Patrons:
ADMA Corporate members:
ad:tech, Admax Network, Adobe Systems Hong Kong, AGENDA Group Asia, BBC.com, Coremetrics, draftFCB China,
Dow Jones Publishing Company (Asia), Edipresse, eyeblaster, G2 Hong Kong, Grif.inter@ctive, Google Hong Kong,
The Hyperfactory, ICLP, Johnson Johnson Vision Care Asia Pacific, MRM Worldwide, NDS Asia Pacific, Nielsen Online,
OgilvyOne Worldwide, Omnicom Group, Omniture, Premiere Global Services, Profero, Responsys, SCMP.com,
SingTel Digital Media, Sohnar Software, TIME Fortune, Travelzoo, Universal McCann, The Upper Storey, Wunderman,
wwwins Consulting, ZUJI.
And all our Individual members.
4. One way to
reach millions
BBC.com is one of the worlds largest news websites, reaching a
passionate and engaged audience of 29 million unique users* outside
the UK. In Asia, BBC.com reaches 8.7 million unique users* per month
excluding UK – more than twice the number of our closest competitor.
BBC.com users are affluent, professional, educated and international.They
are influentual opinion formers with a global mindset who lead active and
cultured lives.
Join the list of over 800 great brands that have successfully advertised on
BBC.com since the introduction of advertising on the site in November 2007.
To find out more about how you can reach your target audience on
BBC.com, please contact:
Sunita Rajan | VP – Sales, Asia Australasia
Work | +(65) 6296 0864
Mobile | + (65) 9836 4153
Email | sunita.rajan@bbc.com
Inez Albert, Digital Sales Director, Asia
Work | +(852) 2248 0060
Mobile | + (852) 9469 9540
Email | inez.albert@bbc.com
CindyTan, Regional Director, Asia
Work | +(65) 6296 7903
Mobile | +(65) 9836 4151 / +(65) 8100 0858
Email | cindy.tan2@bbc.com
Seema Mohapatra Regional Director, South Asia
Work | +(91) 22 3065 2121
Mobile | +(91) 98 2116 8167
Email | seema.mohapatra@bbc.com
John Williams Account Director, Australasia Korea
Work | +612 8923 4203
Mobile | +61406 420 582
Email | john.williams@bbc.com
* comScore, Jan-March 2009 monthly average. comScore competitive set includes
5. asia pacific digital marketing yearbook
Asia Pacific 6
Australia 10
China 16
Hong Kong 24
India 30
❚
❚
❚
❚
❚
Indonesia 36
Japan 38
Malaysia 42
NEW ZEALAND 46
THE PHILIPPINES 50
❚
❚
❚
❚
❚
Singapore 54
South Korea 58
Taiwan 62
Thailand 66
Vietnam 70
❚
❚
❚
❚
❚
Contents
6. asia pacific digital marketing yearbook
I
n the past year, the development of digital marketing
took some exciting new turns, reaching not only
new levels of growth and penetration, but also
new levels of sophistication. Marketers who started
with websites, banner ads and email now have an
increasingly wide choice of platforms on which to engage
their target customers. Search, social media, blogs,
sponsored content, mobile, email, and gaming all offer
opportunities for innovation and differentiation online.
Online media is increasingly gaining the trust of Asian
consumers. A recent TNS survey revealed that of the top
25 most trusted forms of media, 14 were online. And
increasingly, trusted online media includes user-generated
content. The third most trusted overall are expert product
reviews from websites, with consumer product reviews
from websites at #5 and consumer opinions on blogs and
message boards at #7 and #12 respectively.
In the early days of digital marketing, offline advertising
was used as the model: interruptive messages were placed
in front of (or disrupted) the content in ways that grabbed
the user's attention. Now we're seeing a truly interactive
model arise, in which brands engage their consumers
online, either by joining the conversation, or creating a
platform for a community to gather around the brand.
Some of this new online communication looks more like PR
than advertising, and clearly the lines are blurring between
sales promotion, CRM and brand-building. Whatever it will
eventually develop into, it's exciting.
It's clear that Internet users have adopted new
media faster than most advertisers trying to reach them.
Advertisers need to do some catching up. Although there
are some definitive case studies that demonstrate the
power of using social media, the ADMA 2009 Survey of the
region's advertisers, marketers and agencies uncovered
that most marketers and advertisers still predominantly
use websites, online ads and email. Why these relatively
conservative approaches when the Internet changes
continuously and offers so many opportunities for
innovation? In some cases, advertisers may be concerned
about the relative lack of control over their messaging
and positioning on social media platforms, and in other
cases they may not yet have discovered a credible way to
connect with their target customers online.
In any event, there is no doubt that 2009 is the year of
social media. Social media platforms have not figured out a
way to make money from the huge communities they have
created online, but even brands with no clear social media
strategy know that they must engage by joining networks
and conversations. Facebook, Twitter, Friendster, Bebo,
MySpace and LinkedIn have built large-scale user bases
in Asia Pacific but these global players don't dominate in
every market. New patterns of usage and local behaviour
are emerging across the region, with clear distinctions from
country to country where consumers spend time online,
and how they behave. For example, 48% of all South
Koreans have a Cyworld account, and the site has nearly
18 million users, of whom 30% are in their 20s. China's
51.com has 14 million average weekly unique browsers,
and 150 million Qzone users actively update their accounts
at least once a month. In the Philippines more than 74%
of the online population participates in social networking;
Friendster has 10.7 million subscribers and Facebook has
more than one million.
The imperative for marketers now is to join these
networks and interact directly with their communities of
customers online. Rich media, banner ads, pop-up ads,
sponsored content and search may continue to command
the lion's share of online ad dollars, but brands must now
It's here!The third Asia Digital Marketing Association (ADMA) Yearbook has more pages
and more data and more insights than ever. It's also available without charge
online at www.asiadigitalmarketingyearbook.com.
We've had fantastic feedback on the usefulness of past editions from marketers, advertisers,
media buyers and people throughout the digital industry. Just about every marketing director, agency
executive or business executive has to develop digital strategies or give a presentation on what's
happening online in the Asia Pacific region. That's where the ADMA Yearbook comes in. We've
gathered a wealth of the most relevant information and insight available, some of which cannot
readily be found anywhere else, along with case studies that showcase some of the most innovative
and effective digital work being done now. The Yearbook covers demographics, user behaviour, online
advertising, mobile, online gaming, e-commerce, and much more. Many thanks are due to all the
companies that contributed data, to our editor Rachel Oliver, and to ADMA Director Kay Bayliss.
2009: Connections
Triumph Over
Interruption
7. asia pacific digital marketing yearbook
master the art of connecting with consumers, as well as
-- or in many cases instead of -- interrupting their online
experience with advertising messages. Two years ago,
the big news in digital marketing was the scale of the
opportunity, as the number of users in Asia surpassed all
other regions for the first time. Last year the dominant
theme was putting the consumer back at the centre of
the equation, as marketers and advertisers refocused on
customers' profiles and needs, rather than the tools and
technologies available to reach them. In 2009, the focus is
on connecting brands and consumers, and deeply engaging
with target audiences across a wide variety of platforms.
Gaming too can be considered part of the social media
phenomenon: in a survey more than 50% of respondents
said meeting other gamers online was important for
their overall experience, and more than 60% of users said
they also kept in touch with these friends on other social
networking platforms. The numbers for online gaming
are big and growing. Games.com attracts nearly 200,000
unique visitors a month in Asia Pacific, each of whom
spends an average 86.8 minutes on the site, and QQ.com
in China draws more than 44,000 visitors monthly, each
spending an average of 46.5 minutes there.
Looking beyond social media, online advertising
continues to become more mainstream and sophisticated,
despite the recession. Yahoo! predicts Asia's annual online
ad spend will eclipse western Europe's by 2010 to reach
US$122 billion. According to the TNS survey, dedicated
websites (53%), sponsored content (50%), pop-up ads
(46%), banner ads (39%) and email (19%) are the most
common types of digital media seen being used in Asia.
Online branding efforts appear to be paying off, with nearly
a third of users saying that the brand advertising they have
seen significantly increased their interest in using the brand
in question.
China is number one in search, with 12.8 million
searches performed in a month by nearly 150,000 searchers
- that's 85 searches per searcher. Japan is the second
largest search market, with 5.9 million searchers. However,
Korea's searchers are most prolific, with 109 searches per
searcher, Singapore not far behind with 106.
Mobile continues to gain, both as a text messaging and
voice call channel, but also for Internet access. Asia Pacific
(ex Japan) has 97.6 million mobile online gamers, and
50% of them are in in China. There is 60% mobile phone
penetration in the Philippines. Filipinos send the highest
number of SMS messages per subscriber in the world.
Mobile site page views grew 1120% YOY. 2008 Asia Pacific-
wide mobile data revenues topped US$65 billion, and an
estimated 473 million handsets were sold.
With usage of all elements of the online marketing
mix growing and becoming more sophisticated, all the
stakeholders in the digital marketing industry -- from
marketers and advertisers to publishers, agencies,
hardware and technology solutions providers -- have a
unique opportunity in 2009 to pioneer new ways to engage
consumers and build their brands and sales online.
David Ketchum is Chairman, Asia Digital Marketing
Association and CEO Upstream Asia
l Asia Pacific is home to the majority of the world's
Internet users, with 41% of the total
l 32% of Asian users say the online advertising they saw
significantly increased their interest in using the brand
l Online advertising is expected to have compound
annual growth rates of 25% from 2007 to 2011
l 82% of Asia's online ad spending in 2008 was in
Japan, South Korea and China
l More than 450 million consumers across the region
participate in social media and Facebook's Asia Pacific
visitors to the site jumped 458% between mid-2007
and mid-2008
l 44% of Asia Pacific Internet users have shopped
online in the last three years, and 76% intend to shop
online again in the next six months
l More than half of the region's entire Internet traffic is
from users making repeat visits to gaming sites, and
online gaming is expected to account for 75% of the
US$9.2 billion premium and paid content market by
2013
l 17 trillion SMS messages originated in Asia Pacific in
2008 (74% of the world total)
The Yearbook is packed with relevant and sometimes surprising data.
Here's a sample of what you'll find inside:
8. asia pacific digital marketing yearbook
DEMOGRAPHICS
The majority of the world's Internet users live in Asia,
which is now home to 41% of the world's online
population, as at the beginning of 2009. Out of the one
billion online visitors globally, more than 431 million of
them come from the Asia Pacific region.
(SOURCE: COMSCORE)
Other sources put Asia's online population at a much
higher number - as many as 530 million Asians could now
be actively online.
(SOURCE: DIGITAL ECONOMY FACTBOOK 2008/9)
Despite rapid increases in broadband connectivity and
the number of users coming online across the region,
Asia Pacific's Internet penetration rates still average out at
around 15% in comparison to 30% in the rest of the world.
(SOURCE: btrax )
Asia Pacific's online penetration rate is the second lowest in
the world on a regional basis, Africa being the lowest.
(SOURCE: DIGITAL ECONOMY FACTBOOK 2008/9)
Asian markets possess the highest percentage of
households with broadband fibre connections, led by
South Korea with 31.4% of its households linked up to the
Internet via fibre-optic connections.
(SOURCE: DIGITAL ECONOMY FACTBOOK 2008/9)
❚ Asia Pacific Internet Population and Usage
Internet Users Penetration User Growth Users (% of)
Latest Data (% Population) (2000-2008) in Asia
China 298,000,000 22.4% 1,224.4% 45.8%
Hong Kong 4,878,713 69.5% 113.7% 0.8%
India 81,000,000 7.1% 1,520.0% 12.5%
Indonesia 25,000,000 10.5% 1,150.0% 3.8%
Japan 94,000,000 73.8% 99.7% 14.5%
South Korea 36,794,800 76.1% 93.3% 5.7%
Malaysia 15,868,000 62.8% 328.9% 2.4%
Philippines 14,000,000 14.6% 600.0% 2.2%
Singapore 3,104,900 67.4% 158.7% 0.5%
Taiwan 15,140,000 66.1% 141.9% 2.3%
Thailand 13,416,000 20.5% 483.3% 2.1%
Vietnam 20,834,401 24.2% 10,317.2% 3.2%
TOTAL ASIA 650,361,843 17.2% 469.0% 100.0%
(Source: InternetWorldStats December 2008)
How Long Asia Pacific Spends Online
Total Unique Total Minutes Average Minutes Average Visits
Visitors (000) (m) per Visitor per Visitor
WorldWide 1,078,911 1,442,534 1,337.0 44.3
Asia Pacific 431,091 412,611 957.1 34.1
China 187,822 155,039 825.5 34.2
Japan 62,052 60,777 979.5 36.1
India 32,930 18,988 576.6 19.8
South Korea 27,685 43,923 1,586.5 49.8
Australia 11,921 13,561 1,137.5 35.3
Taiwan 11,192 10,906 974.4 32.1
Malaysia 9,033 7,441 823.7 25.9
Hong Kong 3,814 4,234 1,110.1 35.9
Singapore 2,523 3,144 1,245.9 35.5
New Zealand 2,414 2,004 830.2 29.2
Source: comScore Media Metrix; February 2009; Audience: All Persons 15+ at Home/Work
Locations)
ASIA PACIFIC
9. asia pacific digital marketing yearbook
USER BEHAVIOUR
Social networking is big in Asia. More than 450 million
consumers across the region participate in social media.
(SOURCE: OGILVYONE)
Asia Pacific is the biggest region in the world for social
networking with 169 million unique visitors - and it's
growing the fastest too at a rate of 29%.
(SOURCE: DIGITAL ECONOMY FACTBOOK 2008/9)
Such is the pull of social media in Asia that seven
out of the world's 10 top markets that rely most on
recommendations from consumers are in this region.
(SOURCE: OGILVYONE)
Social networking site Friendster has Asia to thank for its
popularity - out of its 30 million monthly visitors globally,
nearly 28 million of them are in the Asia Pacific region.
(SOURCE: TECHCRUNCH/FRIENDSTER)
Facebook's 153% visitor growth which it recorded between
mid-2007 and mid-2008 was higher than any other social
network in the world - and it had Asia Pacific to thank for
it, the number of the region's visitors to the site jumping
by 458% in that period.
(SOURCE: BRANDREPUBLIC)
More than half of the region's Internet traffic is down to
users making repeat visits to gaming sites: 51% of Asia
Pacific's online population visited gaming sites in August
2008 on average 11.5 times, each spending on average 87
minutes there. The keenest players of the lot? The South
Koreans, who spent around three hours per visit.
(SOURCE: COMSCORE)
A key motivating factor for Asian online gamers is
socialising. In a survey, more than 50% of respondents
said meeting other gamers online was important for their
overall experience. And these friendships can last - more
than 60% of users said they also kept in touch with these
friends on other online social networking platforms.
(SOURCE: IDC)
Asia Pacific's Online Gaming Usage
% Reach Total Unique Average Minutes Average Visits
Visitors (000) per Visitor per Visitor
Asia Pacific** 51.1 199,081 86.8 11.5
China 54.9 90,292 69.8 13.0
Singapore 49.6 1,172 140.0 13.0
Australia 44.7 5,032 125.2 11.3
Taiwan 42.4 4,465 151.0 15.5
New Zealand 41.1 926 134.5 9.9
South Korea 40.5 10,715 189.6 13.0
Malaysia 40.2 3,463 130.8 11.9
Japan 39.8 22,830 76.1 10.0
Hong Kong 36.9 1,388 142.9 13.1
India 27.4 8,295 45.4 4.3
(Source: comScore World Metrix; August 2008; Total Asia-Pacific Internet Audience*, *Excludes
searches from public computers such as Internet cafes or access from mobile phones or PDAs.
Age 15+ - Home Work Locations)
Asia-Pacific's Search Usage Patterns
Country Searches (m) Unique Searches Per
Searchers (000) Searcher
Asia Pacific 28,967 341,850 84.7
China 12,758 149,219 85.5
Japan 5,879 61,130 96.2
Korea 2,303 21,072 109.3
India 1,169 22,931 51.0
Australia 977 8,523 114.6
❚
Taiwan 618 9,735 63.5
Malaysia 405 6,207 65.2
Hong Kong 199 2,773 71.8
Singapore 171 1,617 105.6
New Zealand 135 1,500 90.1
(Source: comScore qSearch; Total Asia-Pacific Internet Audience*, *Excludes searches from
public computers such as Internet cafes or access from mobile phones or PDAs; Age 15+ - Home
Work Locations; September 2008)
Asia's Social Media Market
Country Population Forecast Internet Internet Estimated
2008 Users 2008 penetration 2008 Social
Media Users
China 1,330,044,605 253,000,000 19.0% 202,400,000
Hong Kong 7,018,636 4,878,713 69.5% 3,902,970
India 1,147,995,898 60,000,000 5.2% 48,000,000
Indonesia 237,512,355 25,000,000 10.5% 20,000,000
Japan 127,288,419 94,000,000 73.8% 75,200,000
South Korea 49,232,844 34,820,000 70.7% 27,856,000
Malaysia 25,274,133 14,904,000 59.0% 11,923,200
Pakistan 167,762,040 17,500,000 10.4% 14,000,000
Philippines 92,681,453 14,000,000 15.1% 11,200,000
Singapore 4,608,167 4,026,400 87.4% 3,221,120
Taiwan 22,920,946 15,400,000 67.2% 12,320,000
Thailand 65,493,298 13,416,000 20.5% 10,732,800
Vietnam 86,116,559 20,159,615 23.4% 16,127,692
Asia 3,363,949,353 571,625,328 - 456,883,782
(SOURCE: OgilvyOne)
Bloggers in Asia vs USA
% of respondents Asia USA
Male 73% 57%
Ages 18-34 73% 42%
Ages 35+ 27% 58%
Single 57% 26%
Employed full-time 45% 56%
Household income US$75,000 9% 51%
College graduate 69% 74%
Average blogging tenure (months) 30 35
Median annual investment $30 $80
Median annual revenues $120 $200
% of blogs with advertising 60% 52%
Average monthly unique visitors 26,000 18,000
(SOURCE: EMarketer; july/august 2008)
ONLINE ADVERTISING
Online advertising spending in Asia (ex-Japan) will
experience dramatic growth going forward, with compound
annual growth rates of 25.4% over the 2007-2011 period.
(SOURCE: IDC)
Online ads may be informing customers in Asia Pacific
about their choices - but it doesn't means they are
persuading them to buy anything. More than 60% of users
in one survey said they saw online ads as informative yet
TV ads were more likely to make them want to buy the
product that was being advertised.
(SOURCE: IDC)
If advertisers do want to increase their persuasive abilities
online, the best thing to do is make them laugh. According
to one survey, nearly 70% of Asian online users watch
online video ads, with 60% of users saying they would be
highly interested if that ad was funny.
(SOURCE: IDC)
Together, Japan, South Korea and China took up nearly
82% of Asia's online ad spending in 2008.
(SOURCE: SOZON)
Asia's online ad spend should eclipse western Europe's by
2010 to reach US$122 billion.
(SOURCE: YAHOO!)
❚
10. asia pacific digital marketing yearbook
Online ad spend in south east Asia alone will net almost
US$200 million by 2010, led mostly by increases in display
advertising activities. And three markets - Vietnam,
Indonesia and the Philippines - will be responsible for
as much as 90% of the south east Asia region's market
growth over the next five years.
(SOURCE: MARKETING-INTERACTIVE/NIELSEN/YAHOO!)
Online branding efforts appear to be paying off in the
region, with nearly one third (32%) of users around Asia -
from Hong Kong, China, Taiwan, Singapore, Malaysia and
Thailand - saying the brand advertising they have seen
across all forms of digital media significantly increased
their interest in using the brand in question.
(SOURCE: TNS/MEDIA)
Nearly half - 45% - of Asia Pacific's advertisers and
marketers surveyed said they used online games as part of
their digital marketing strategies in 2008.
(SOURCE: adma digital marketing survey 2008)
So much for the financial crisis - 59% of Asia Pacific
advertisers surveyed actually increased their digital
marketing budgets in 2008 while only 10% made cutbacks.
(SOURCE: adma digital marketing survey 2008)
Internet Advertising Revenues Forecast by Region
Region 2007 ($m) 2008 *($m) 2010 *($m)
North America 188,415 194,990 207,570
Western Europe 119,976 124,420 135,781
Asia Pacific 102,807 111,534 127,916
Central Eastern Europe 31,563 37,041 48,424
Latin America 26,329 30,924 38,920
Rest of World 16,490 18,606 25,938
Worldwide 485,580 517,515 584,550
(Source: ZenithOptimedia *Projections)
Types of Digital Media Seen Being Used in Asia
Media % of users
Dedicated websites 53%
Sponsored content 50%
Pop-up ads 46%
Banner ads 39%
Email 29%
Mobile phones 19%
Ads in video games 6%
Ads in virtual worlds 4%
Other 11%
(Source: TNS/Media; represents China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand)
Trust in Media Channels in Asia
Media channel % who trust the channel completely
Recommendations from friends and family 54%
Independent reviews in publications 25%
Expert product review from websites 28%
Product labels on packaging 27%
Consumer product review from websites 22%
Manufacturers/brands websites 22%
Consumer opinion in blogs 18%
TV ads 18%
Products/brands that appear in movies or within TV programmes 19%
Magazine ads 16%
Newspaper ads 16%
Consumer opinion on message boards 15%
Email newsletters 15%
Consumer opinion in chat rooms 15%
Ads on posters, buses/bus shelters 13%
Ads at the cinema before the movie starts 14%
Radio ads 12%
Recommendations from other consumers who you do not personally know 11%
Ads that appear on search engines 12%
Banner ads on websites 11%
Ads that have been sent to you by email 9%
Pop-up or pop-under web ads 7%
Ads in virtual worlds 7%
Ads via mobile SMS 6%
Ads in video games 6%
(SOURCE: TNS/Media; represents China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand)
MOBILE
An estimated 472.5 million mobile phones were sold in Asia
in 2008, a 17.9% increase on 2007.
(SOURCE: MARKETINGVOX)
By 2013 more than 50% of the world's projected 5.63
billion mobile connections will come from the Asia Pacific
region. Not surprisingly the two markets leading the charge
will be China and India.
(SOURCE: TRENDSNIFF/OVUM)
Excluding Japan, Asia now has around 97.6 million mobile
online gamers. More than half of them are in China.
(SOURCE: IDC)
Mobile data revenues in Asia Pacific in 2008 came to
US$65.1 billion - in 2003 they stood at just US$21.9 billion.
(SOURCE: FROST SULLIVAN/ZDNETASIA)
On a regional basis, Asia Pacific is the largest mobile
gaming market on earth, generating an estimated US$2.3
billion in end-user spending in 2008, which is estimated to
rise to US$3.4 billion in 2011.
(SOURCE: GARTNER)
In 2008, 1.7 trillion out of an estimated 2.3 trillion mobile
SMS messages sent around the world came from Asia.
(SOURCE: DIGITAL ECONOMY FACTBOOK 2008/9)
By 2012 more than US$880 million of Asia Pacific's mobile
music revenues will come from ad-supported business
models.
(SOURCE: EMARKETER)
By the end of 2008 there were an estimated 91.4 million
mobile social networking users in the world - 50% of them
living in the Asia Pacific region.
(SOURCE: INFORMA TELECOMS MEDIA)
Asia Pacific's 3G population is set to explode. The region
was home to an estimated 158.4 million 3G subscribers in
2008. By 2013 that figure could mushroom to 564 million.
(SOURCE: INTELLASIA/FROST SULLIVAN)
Mobile TV revenues in Asia Pacific (ex Japan) are
anticipated to reach US$1.88 billion by 2013, a dramatic
increase from the US$440 million earned in 2007.
(SOURCE: EMARKETER/FROST SULLIVAN)
Mobile Data Revenues by Region
Region Mobile data % of total mobile Monthly mobile
revenues (m) revenues data ARPU
Asia Pacific $20,272.57 24.57% $4.74
Western Europe $13,065.12 21.13% $7.92
North America $8,636.30 19.76% $10.48
Eastern Europe $2,866.93 15.70% $2.45
Latin America $2,384.20 13.02% $1.84
Middle East $927.63 8.21% $1.73
Africa $881.74 6.62% $0.93
Total $49,034.48 19.68% $5.07
(SOURCE: Emarketer; Q1 2008)
❚
11. asia pacific digital marketing yearbook
Mobile Advertising Spending in Asia Pacific
2007-2012
2007 2008 2009 2010 2011 2012
($m) ($m) ($m) ($m) ($m) ($m)
Mobile message ads 700 1,229 1,827 3,100 4,309 5,320
Mobile display ads 12 36 91 182 293 397
Mobile search ads 26 72 190 373 732 1,160
Total 738 1,336 2,108 3,655 5,344 6,877
(SOURCE: EMarketer)
Mobile Music Spending in Asia Pacific, by Format,
2007-2012
2007 2008 2009 2010 2011 2012
(m) (m) (m) (m) (m) (m)
Mastertones, ringback tones and other* $654 $843 $1,110 $1,579 $2,311 $3,450
Full-track downloads $535 $747 $1,067 $1,644 $2,606 $4,216
Total mobile music spending $1,189 $1,590 $2,177 $3,223 $4,918 $7,666
of which: ad-supported mobile music $42 $80 $142 $258 $566 $882
(SOURCE: EMarketer; excludes monophonic and polyphonic ringtones; includes China,
India, Japan, South Korea; *other includes music videos and streams)
E-COMMERCE
Online shopping throughout Asia is a growing trend, with
44% of users having shopped online for the past three
years; and 63% of respondents saying they now shop
online at least occasionally. Over a three month period,
regional shoppers bought an average of 3.1 purchases
online, spending on average $612.40 on their purchases
over that period. More than three-quarters of them (76%)
intend to shop online again in the next 6 months.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
In general, online shopping seems to be a pleasurable
experience for Asia's consumers, with 71% finding it
convenient; 66% finding it easy; and 62% of users finding
it simpler than catalogue or telephone shopping.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
Price and security matter to online shoppers across Asia.
A sizeable 87% of shoppers cite secure payment facilities
as an important factor affecting their online purchasing
decisions, with 87% also citing price and 85% noting
convenient payment methods. Equally, for those who are
less keen to shop online, the key reason is security again,
with 65% of online shoppers across the region fearing
online transactions are unsafe. And when asked how
online shopping can be improved, almost three quarters of
the region's online consumers - 74% - said they wanted
to see enhanced payment security.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
Asia Pacific's (ex Japan) paid online content market was
expected to grow by 21% in 2008 from 2007 to reach
a market size of US$4.67 billion. By the end of 2013
that number is expected to grow to US$9.2 billion. The
key driver behind this growth is online gaming, which
is expected to represent 75.1% of all premium or paid
content revenues in 2013, representing US$6.9 billion.
(SOURCE: FROST SULLIVAN)
❚
Asia Pacific Online Shopping Revenues
Country 2007 (US$bn) 2010 (US$bn)
Australia 27.2 37.3
China 297.8 1415.7
Hong Kong 5.5 10
India 70.8 734.3
Japan 168.9 185.3
South Korea 82 114.7
Singapore 4.5 6.6
Thailand 5.9 20.8
(SOURCE: MasterCard Worldwide)
Asia Pacific Online Shopping Market Outlook
Country Online Shopping Online Shopping
Penetration Rate Population
2007 (%) 2010 (%) 2007 (m) 2010 (m)
Australia 67 72.1 10.4 12
China 70 74.8 147.1 480.4
Hong Kong 50 62.5 2.4 3.5
India 47 59.2 28.1 203.1
Japan 83 83.1 72.7 75.1
South Korea 83 88.9 29 33
Singapore 60 67.7 1.5 1.8
Thailand 43 57.5 3.6 10.5
(SOURCE: MasterCard Worldwide)
CASE STUDY
Client: AirAsia
Agency: Yahoo! Mobile
Campaign: AirAsia brand building campaign
Objective: AirAsia wanted to increase awareness of the
company and its promotions throughout the region.
Strategy: Encourage interaction and allow users to
immerse themselves with the AirAsia brand. Evoke interest
in AirAsia's Sleepless in 3 cities and Beautiful island
getaways campaigns.
Details: Partner with Yahoo! Mobile to help drive traffic to
the AirAsia mobile website by placing ad banners on the
Yahoo! Mobile homepage, Yahoo! Mail, Yahoo! Messenger
and Yahoo! oneSearch. Engage users with a rich mobile
experience on the AirAsia mobile website.
Results: • AirAsia became the first-ever company on
Yahoo! mobile in Malaysia.
• In just 28 days AirAsia garnered 6,091,490 impressions
on mobile phones across Malaysia, Singapore, Thailand,
Indonesia, Philippines, Taiwan and Hong Kong.
• 108,405 clicks were obtained (CTR of 1.78%) from
mobile users.
• Average CPC on market value was $0.56.
❚
12. 10 asia pacific digital marketing yearbook
DEMOGRAPHICS
Nearly three quarters (73%) of Australian homes are now
connected to the Internet. At the end of June 2008 there
were 6.21 million active Internet households in the country.
(SOURCE: ABS/ACMA)
Broadband's popularity surged in Australia in 2008, with
household penetration rates rising to 97% last year, up
from 84% in 2007.
(NIELSEN ONLINE)
You can tell a lot about a person by their Internet
connection it appears - Australians with post-graduate
degrees are 83% more likely to have broadband access
than those without tertiary qualifications.
(SOURCE: ABS/ACMA)
The Internet also appears to be the domain of the wealthy
- households with an income of more than AU$2,000 or
more a week are three times more likely to have broadband
than those with less than AU$600 per week. Indigenous
households are around half as likely to have broadband.
(SOURCE: ABS/ACMA)
How Australians Connect
Connection '000
Dial-up
Analog 1,298
ISDN/other 13
All dial-up connections 1,311
❚
Non dial-up (b)
ISDN/other 19
DSL 4,208
Fixed wireless 164
Mobile wireless 1,298
Satellite 80
Cable 916
All non dial-up connections 6,685
Total access connections 7,996
Download Speeds
Speed '000
Less than 256kbps 1,319
Broadband
256kbps to less than 512kbps 1,458
512kbps to less than 1.5Mbps 1,181
1.5Mbps to less than 8Mbps 2,012
8Mbps to less than 24Mbps 1,653
24Mbps or greater 373
Total broadband (256kbps+) 6,678
Total download speeds 7,996
(SOURCE: abs; q4 2008)
USER BEHAVIOUR
Australians now spend more time consuming media and
this is largely thanks to the Internet: Australians were
spending 16.1 hours a week online in 2008, up from 13.7
hours in 2007.
(SOURCE: NIELSEN ONLINE)
The average Australian spends one and a half hours of
their leisure time online every day.
(SOURCE: TNS)
❚
AUSTRALIA
Uluru (Ayer's Rock) in the Australian Outback
13. asia pacific digital marketing yearbook 11
Australian men in general spend more time online than
their female counterparts - amongst heavy Internet users
62% are male and 48% are female.
(SOURCE: ABS/ACMA)
More media consumption means more multi-tasking: 61%
of online users watch TV while they are online and 50%
use the Internet while they listen to the radio. For all users
who do multi-task, the Internet is most commonly cited as
the primary focus.
(SOURCE: NIELSEN ONLINE)
More Australians are using the Internet to make voice calls,
with traffic for Skype and other types of voice over Internet
protocol (VoIP) services increasing by 27% in the year
ending April 2008.
(SOURCE: AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY)
VoIP's growth potential in Australia is such that now nearly
half (47%) of all ISPs offer VoIP as part of their bundled
broadband packages.
(SOURCE: AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY)
Australians are high adopters of social networking sites -
65% of online users in the country use them.
(SOURCE: IBM INSTITUTE FOR BUSINESS VALUE)
The Internet is now the preferred medium for
entertainment and leisure in Australian homes. In a survey
of media habits of Australian gamers, 87% of them ranked
using the Internet first as their preferred media activity
ahead of watching TV, watching DVDs, reading books,
newspapers or magazines and listening to music.
(SOURCE: IEAA)
Perhaps because of their preference for the Internet as a
leisure activity, gamers are more likely than non-gamers to
use newer online services: 23% of gamers blog compared
to 11% of non-gamers; 51% of gamers engage in social
networking against 37% of non-gamers; and 35% of
gamers download TV shows/movies compared to 18% of
non-gamers.
(SOURCE: IEAA)
Awareness of blogging in Australia is high, with 93% of
Australians aware of them, yet only 40% access them and
only 13% contribute to them.
(SOURCE: TNS)
Australian online users rate the Internet as their most
trusted source of information (27%), above newspapers
(20%) or the television (17%).
(SOURCE: NIELSEN ONLINE)
Australian Online Activities by Internet Connection
Activity Broadband Dial up
Banking 75% 53%
Maps/directions 64% 47%
News, sports or weather updates 73% 58%
Auctions 39% 25%
Making payments for government services 21% 8%
Subscribe/sign up to email newsletters 37% 25%
Online radio 13% 2%
Streaming video 11% 0%
Streaming audio 10% 0%
Reading blogs 17% 7%
Downloading video 22% 12%
Airline ticket purchase 45% 35%
Bill payment 68% 58%
Online social networking (e.g. Facebook, MySpace, LinkedIn) 27% 18%
Directories (Yellow/WhitePages) 60% 52%
Submitting forms or information to government websites 29% 22%
Voice over IP/Internet telephony 9% 2%
Accommodation bookings 39% 32%
Adult services/websites 10% 3%
Local/community information 25% 18%
Gambling 10% 3%
Instant Messaging 39% 33%
Health and medicine sites 31% 25%
Education/study sites 29% 35%
(SOURCE: ACMA/Nielsen Online)
Australian Online Activities by Gender
Activity Female Male
Adult services/websites 3% 20%
Downloading Audio 21% 35%
Downloading Video 15% 28%
News, sports or weather updates 67% 79%
Streaming Video 6% 15%
Gambling 6% 14%
Making payments for government services 17% 24%
Streaming Audio 6% 13%
Auctions 34% 41%
Maps/directions 60% 65%
Health medicine sites 32% 27%
Education/study sites 31% 25%
(SOURCE: ACMA/Nielsen Online)
Activities of Australian Gamers vs Non-Gamers
online Activity % of Non-Gamers % of Gamers
Self-publishing/Blogging 11% 23%
Downloading Computer or Video Games 8% 43%
Downloading TV Shows or Movies 18% 35%
Other 32% 32%
Voice Over Internet Telephone 33% 33%
Playing Computer or Video Games 0% 64%
Social Networking 37% 51%
Watching Streaming Media 39% 60%
Chatting 44% 57%
Downloading Music 41% 63%
Study 56% 62%
Work 66% 70%
Booking Travel/Holidays 86% 81%
Shopping/Banking/Paying Bills 90% 91%
Reading the News 90% 90%
Product Information 93% 95%
Browsing/Surfing 94% 97%
Email 99% 100%
(SOURCE: IEAA)
ONLINE ADVERTISING
Expenditure on online advertising in Australia in 2008 came
to a sizeable $1.7 billion, representing a 27.1% increase on
2007, or an additional AU$364.25 million.
(SOURCE: IAB/PRICEWATERHOUSECOOPERS)
Of the AU$1.7 billion of Australia's online ad expenditure,
AU$465 million was spent on display advertising; $439
million on classified advertising; and $807 million on search
and directories.
(SOURCE: IAB/PRICEWATERHOUSECOOPERS)
Behind the increase in online ad spending in Australian
has been strong annual increases across all categories: a
30% increase in search and directories; a 27% increase
in general display advertising; and a 23% increase in
classified ads.
(SOURCE: IAB/PRICEWATERHOUSECOOPERS)
Most online Australians seem happy with ad-supported
online video content, with 75% of them saying they would
watch ads either before or after quality, free content. The
❚
14. 12 asia pacific digital marketing yearbook
remaining 25% of them however dislike ads so much that
they would actually pay to avoid advertising messages.
(SOURCE: IBM INSTITUTE FOR BUSINESS VALUE)
Australians are split straight down the middle when it
comes to how they feel about sharing information about
themselves with advertisers in exchange for something of
value - 50% of that said they were willing to do this.
(SOURCE: IBM INSTITUTE FOR BUSINESS VALUE)
Australians are becoming less tolerant of advertising
across social media, with 38% of users saying they
considered advertising an intrusion, compared to 29%
who said the same in 2007. Equally while 51% said they
didn't mind advertising in 2007, a lower number - 47% -
now say that is the case.
(SOURCE: NIELSEN ONLINE)
Member community sites - including blogs and social
networking sites - now reach 59% of Australian online
users, compared to 55% in 2007.
(SOURCE: NIELSEN ONLINE)
Australia's Top Online Ad Spend Categories in 2008
Category Online Display All Media
AU$m Share % AU$m
Finance 85.6 14.1 606.3
Communications 65.2 18.0 362.2
Motor Vehicles 56.9 5.1 1,118.5
Travel/Accommodation 35.4 6.7 525.3
Media 25.8 8.1 319.8
Retail 21.9 1.1 2,084.3
Entertainment Leisure 19.7 2.6 771.0
Services 19.3 7.6 254.6
Insurance 18.4 6.6 278.8
Computers 17.7 20.9 84.6
Total for all Others
not in Top 10 84.1 11.2 112.5
Total Ad Spend
estimates for 2008 450 4.5 10,063
(SOURCE: Nielsen AIS Australia)
Australia's Top 10 Sites
Total Unique % Reach Total Minutes (MM)
Visitors (000)
Google Sites 9,708 81.4% 1,220
Microsoft Sites 9,071 76.1% 3,931
FACEBOOK.COM 5,331 44.7% 758
Yahoo! Sites 5,254 44.1% 370
eBay 4,810 40.3% 340
Fox Interactive Media 4,218 35.4% 565
News Interactive Pty Limited 3,992 33.5% 186
Telstra Corporation Limited 3,877 32.5% 101
Wikimedia Foundation Sites 3,731 31.3% 53
Apple Inc. 3,624 30.4% 24
(SOURCE: ComScore Media Metrix; February 2009; Audience: All Persons 15+ at Australia Home/
Work Locations)
Australia's Top Online Retail Sites
% Reach
Amazon Sites 38.9%
Apple.com Worldwide Sites 26.2%
Shopping.com Sites 17.0%
Coles Group 16.0%
Woolworths 12.6%
AmericanGreetings Property 7.7%
ninemsn Shopping 7.3%
Ticketek 7.2%
DEALSDIRECT.COM.AU 7.0%
GETPRICE.COM.AU 6.9%
(SOURCE: ComScore Media Metrix; February 2009; Audience: All Persons 15+ at Australia Home/
Work Locations; heavy Internet users)
Australia's Top Online Gaming Sites
Site % Reach
WildTangent Network 6.9%
MINICLIP.COM 6.3%
MSN Games 4.6%
ADDICTINGGAMES.COM 3.3%
Disney Games 3.0%
(SOURCE: ComScore Media Metrix; February 2009; Audience: All Persons 15+ at Australia Home/
Work Locations)
Australia's Top Technology News Sites
% Reach
NetShelter Technology Media 26.8%
CNET 22.9%
About.com Technology Network 5.8%
ZDNet 3.3%
Bestofmedia Group 2.9%
GRAYSONLINE.COM.AU 2.5%
Comment Ca Marche 2.4%
WIRED.COM 2.4%
Scientific American Network 2.2%
SLASHDOT.ORG 2.2%
(SOURCE: ComScore Media Metrix; February 2009; Audience: All Persons 15+ at Australia Home/
Work Locations; heavy Internet users)
Australia's Top Entertainment Sites
% Reach
YOUTUBE.COM 74.1%
iTunes Software (App) 45.1%
CBS Interactive 44.1%
Viacom Digital 27.4%
Gorilla Nation 23.9%
MSN Video 23.3%
IMDB.COM 23.2%
ARTISTdirect Network 20.1%
MySpace Music 19.4%
Break Media 17.6%
(SOURCE: COMSCORE SEGMENT METRIX; feb 2009; Audience: All Persons 15+ at Australia Home/Work
Locations; heavy Internet users)
Online Advertising Expenditure - Total Spend by
Category by Period (AU$M)
12 months General Classifieds Search and % Year/ Year
ended Display Directories Total Growth
December 2008 $464.5 $439.2 $806.2 $1,710.2 27%
December 2007 $367.0 $356.7 $622.2 $1,346.0 34%
December 2006 $303.0 $299.0 $399.0 $1,001.0 61%
December 2005 $194.0 $206.0 $220.0 $620.0 60%
(SOURCE: IAB/PRICEWATERHOUSECOOPERS)
Online Advertising Expenditure by Industry
Advertiser Industry Category 2008 2007 2006
Finance 20.82% 21.31% 23.15%
Computers Communications 15.13% 16.58% 16.96%
Motor Vehicles 14.94% 14.47% 14.73%
Travel/Accommodation 6.30% 6.93% 6.72%
Entertainment Leisure 7.18% 6.15% 6.13%
Media 4.00% 4.33% 5.09%
FMCG 4.20% 4.66% 3.33%
Real Estate 2.91% 2.37% 2.53%
Retail 3.31% 3.10% 3.47%
Insurance 3.41% 3.70% 2.00%
Health/Beauty/Pharmaceuticals 4.04% 3.18% 2.65%
Government 2.93% 3.47% 2.78%
Other 4.04% 4.01% 2.90%
Recruitment 1.84% 1.81% 3.69%
Alcoholic Beverages 1.28% 1.15% 0.74%
Education Learning 1.60% 1.17% 1.03%
Home Products Services 0.76% 0.72% 0.87%
Community/Public Service 0.88% 0.62% 0.85%
Office Business Equipment 0.43% 0.27% 0.38%
(SOURCE: IAB/PwC)
MOBILE
Mobile phone revenues in Australia increased by 6.9% in
the 2007-08 period generating AU$11 billion in revenues.
(SOURCE: AUSTRALIAN COMMUNICA TIONS AND MEDIA AUTHORITY)
❚
15. asia pacific digital marketing yearbook 13
Mobile phone penetration rates remain high in Australia
with 83% of adults using a mobile phone service. Other
sources place it much higher, as high as 108%.
(SOURCE: AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY/BUSINESS MONITOR)
By 2013 it is estimated there will be more than 25.8 million
subscribers in Australia, representing a penetration rate of
117.4%.
(SOURCE: BUSINESS MONITOR)
Nearly all Australian mobile phone user (97% of them)
use their mobile for more than just making phone calls. Of
those, 61% use their phones for information services; 57%
for entertainment purposes; 99% for communication type
services; while 31% used their phone to make purchases.
(SOURCE: MNET/TELECOMPAPER)
Nearly a third of Australians (31%) have now gone online
via their mobiles, on average doing this 1.9 times a week.
(SOURCE: MYSPACE.COM/SWEENEY RESEARCH)
The cost of using mobile data services is proving a
deterrent for Australian mobile phone users. A sizeable
69% of mobile users take photos with their phone, costing
them nothing, while only 39% forward them on to friends,
a service which they need to pay for. Equally, while 39% of
mobile users have gone down the 3G route, only 27% of
those people have used their phones to go online.
(SOURCE: AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY)
Mobile Internet activity is on the increase in Australia -
between September and December 2008, the number
of page views across mobile Internet sites increased by
17.3%, representing a compound annual growth rate of
89.3%.
(SOURCE: AiMiA)
For Australian mobile users, SMS is now as much of a key
expenditure each month as voice services with 84% of
users in each category saying this was the case, followed
by MMS (22%), buying content (9%) and email (7%).
(SOURCE: AiMiA)
More than a third (36%) of Australian mobile phone users
have purchased and/or subscribed to information services
via their mobiles in the past 12 months, while 33% had
purchased mobile content. More than 50% of them became
aware of new mobile content via the Internet.
(SOURCE: AiMiA)
Nearly half (48%) of mobile users bought content online via
their PC; 17% bought it from their mobile carrier's portal;
while 12% bought it from their mobile phone menu.
(SOURCE: AiMiA)
The most popular types of content purchased by Australian
mobile users are games (43%), true tones (42%) and
wallpapers (33%), the first two items having grown
significantly in popularity in the past two years - the
popularity of true tones growing by 173% and games by
171%. The number of mobile users purchasing digital music
downloads has jumped by 113% over the past two years.
(SOURCE: AiMiA)
Looking ahead, Australians want more of the same, with
the most popular requests for future mobile content
being digital music downloads (30%), games (27%) and
wallpapers (25%).
(SOURCE: AiMiA)
The key types of information Australian mobile Internet
users access are news (53%), weather (50%) and sport
(34%). Compared to last year's data the greatest growth
in the type of information accessed has been maps (347%
increase), restaurant/cafe guides (174%) and TV listings
(93%).
(SOURCE: AiMiA)
For mobile users who don't use their phones for anything
other than voice or SMS, 10% of them say they do this
because they don't know what it does; 26% meanwhile
say they don't get any value out of it; 10% don't know
how to connect to the Internet; 7% don't know how to
access content when connected; and a sizeable 60% of
users just don't care.
(SOURCE: AiMiA)
For mobile users that share their mobile content, by far
and away the most popular type of content is photos with
96% of users saying they share this, compared to 41%
who share videos; 32% who share music; and just 3% that
share blog posts.
(SOURCE: AiMiA)
Half of those who share their content tend to do it once a
month or more. And users aged under 25 are more likely to
create content to share with other users.
(SOURCE: AiMiA)
The two main methods Australians use to share content are
MMS (63% of users) and Bluetooth (61%).
(SOURCE: AiMiA)
Community Services Used by Australian Mobile Users
% oF Respondents
Service Via PC Via Mobile
MSN Messenger 57% 8%
YouTube 46% 2%
Facebook 45% 5%
MySpace 28% 3%
Yahoo! Messenger 23% 2%
Skype 22% 2%
Google Talk 12% 2%
FlickR 10% 1%
Linked In 7% 1%
Chat Rooms 7% 1%
RSS Feed Reader 7% 2%
Apple iChat 2% n/a
AOL Messenger 2% 1%
CyWorld 1% 1%
(SOURCE: AiMiA)
Australians' Usage of Mobile Devices
Technology % of device % of device
enabled used
Camera 82% 69%
MMS 66% 39%
Mobile Internet 60% 27%
Bluetooth 57% 36%
Video Recorder 47% 25%
MP3 Player 40% 23%
Video Calls 37% 10%
Document Reader 16% 5%
GPS 10% 4%
(SOURCE: Nielsen Online/ACMA)
16. 14 asia pacific digital marketing yearbook
and when?
Relevant, timely email communications help your customers feel recognised, connected and valued.
Epsilon International offers the industry’s most robust and powerful email platform and combines it
with comprehensive agency services to help assure every interaction builds your relationship, results
and marketing ROI.
17. asia pacific digital marketing yearbook 15
Content Australian Mobile Users Purchase
Content % of Respondents*
Games 43%
True Tones 42%
Wallpapers 33%
Poly Tones 30%
SMS alerts 19%
Screensavers 15%
Digital Music Download 14%
Video 7%
Sound FX 5%
Greeting Cards 3%
Mono Tones 3%
Logos 2%
(SOURCE: AIMiA; * as % of those that purchased content)
E-COMMERCE
E-commerce has now become a prevalent activity amongst
Australian online users - 80% of them now shop online.
(SOURCE: THE NIELSEN COMPANY)
When Australians shop online 37% of them choose online
payment system PayPal rather than Visa (22%) as their
preferred payment method.
(SOURCE: THE NIELSEN COMPANY)
Carrying on a trend from previous years, when Australians
shop online, it is mainly to book their travel arrangements,
with 37% of users booking airline tickets and 31% booking
accommodation. The next popular shopping item is book
purchases, with 29% of users typically making these
purchases.
(SOURCE: THE NIELSEN COMPANY)
When it comes to the online retailer who attracts the
most Australian shoppers, there is one clear market
leader - eBay, with 56% of online shoppers having bought
something from the site.
(SOURCE: THE NIELSEN COMPANY)
Australians spend on average half that of the Americans
online, spending on average US$37.86 per order against
US$77.94 in the U.S.
(SOURCE: EMARKETER)
Australia's B2C E-Commerce Sales: 2007-2011
Year Sales (AU$ billion) % change from previous year
2007 $18.1 (US$13.6) 45%
2008 $24.5 (US$20.4) 35%
2009 $30.6 (US$26.4) 25%
2010 $37.3 (US$28.7) 22%
2011 $44.8 (US$31.1) 20%
(SOURCE: EMarketer)
What Australians Buy Online
Items bought online % who bought a product in this
category within last 3 months
Travel (tickets/accommodation) 28%
Other 17%
DVDs/videos 16%
Books/magazines/newspapers 16%
Gifts 15%
None in the last three months 15%
Toys or games 13%
Computer software 13%
Other clothing/shoes 13%
Other entertainment (e.g. shows, events) 13%
Music to download 12%
Sports equipment/clothing 10%
CDs/tapes 9%
Computer hardware 9%
❚
Communications equipment
(e.g. mobile phone, fax, pager) 4%
Shares or financial information 4%
Supermarket shopping 3%
Alcohol (e.g. wine, beer, spirits) 2%
Adult entertainment 2%
Cannot say 1%
(SOURCE: ACMA/Roy Morgan; Items directly bought online in the previous three months, January
to March 2008)
Where Australians Shop Online
Online retailer % of users
eBay 56%
Dealsdirect.com.au 23%
Virgin Blue 15%
Ticketek 12%
Amazon 11%
QANTAS 12%
Jetstar 12%
iTunes (Music) 6%
Ticketmaster7 6%
Flight Centre 6%
Wotif 7%
Dstore 5%
Doubleday Books 4%
OO.com.au 7%
ezyDVD 5%
(SOURCE: The Nielsen Company; 1H 2008)
CASE STUDY
Client: Hasbro Transformers
(Australia)
Agency: OMD
Campaign: Create the
Transformer Hero of your
Dreams
Objective: To establish a
wholly unique integrated
campaign enabling children
to have direct interaction
with the Transformers brand
and products.
Strategy: Capitalise on
Cartoon Network's popularity
among boys aged five to 12
by driving brand awareness
and interaction through an integrated on-air, online and on
the ground promotion.
Details: Cartoon Network developed a promotional micro-
site which included a drag and drop interaction that
allowed children to design their very own Transformer.
The campaign ran across three weeks on the Cartoon
Network Australia site, and was supported by additional
advertising banners linking to the micro-site and on-air
advertising. A panel of Cartoon Network and Hasbro judges
chose five of the best submissions, and the winners were
given the opportunity to meet Hasbro Transformer artist
Eric Seibenhaler in person at participating Kmart Stores.
Seibenhaler presented each of the winners a personalised
Transformer illustration based on their designs.
Results: • More than 4,000 children participated in the
promotion.
• The promotion generated over 45,000 page views over
the three-week campaign period.
• Over a half million impressions were booked.
❚
18. 16 asia pacific digital marketing yearbook
CHINA
DEMOGRAPHICS
In terms of unique visitors, China is the largest Internet
market on earth, representing 18% of the world's online
population.
(SOURCE: COMSCORE)
China currently is home to around 253 million Internet
users overall, an online population growth of 1,024.4%
from 2000.
(SOURCE: BTRAX)
That number could be higher however - as high as 298
million users, representing an annual growth rate of 41.9%.
(SOURCE: CNNIC)
And that number could mushroom to 389 million Internet
users in 2009.
(SOURCE: BDA)
More than two thirds (68.6%) of Chinese online users are
below the age of 30.
(SOURCE: TRENDSSPOTTING)
Despite the large numbers of Internet users in China,
Internet penetration rates are still proportionately low
ranging anywhere from 15.9% to 22.6% depending on
what source you believe. That being said, on the higher
side, that figure of 22.6% is above the world average level
of 21.9%.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS/CNNIC)
❚ China is home to the highest number of broadband users
in the world - 270 million people, representing 90.6% of all
Chinese online users, and an increase of 100 million new
broadband users from 2007.
(SOURCE: CNNIC)
There were 84.76 million households with Internet
connections in China in 2008.
(SOURCE: BTRAX)
In terms of gender, China's online population is pretty
evenly balanced with 52.5% of users being male, 47.5%
female. The number of Chinese women going online has
increased from last year when only 42.8% of online users
were female.
(SOURCE: CHINAInternetWATCH.COM/CNNIC)
The most prolific Internet users in China are teenagers -
35.2% of the online population are aged between 11 and
19 years old.
(SOURCE: CHINAInternetWATCH.COM/CNNIC)
One third of all Chinese Internet users (33.2%) are
students.
(SOURCE: CNNIC)
Time Spent Online Per Week
Overall time spent online Time spent per week (hours)
Less than a year 12.7
1-2 years 12.4
2-4 years 13.8
4-6 years 16.2
6-8 years 19.9
More than 8 years 26.4
(SOURCE: CNNIC)
The Great Wall of China
19. asia pacific digital marketing yearbook 17
China's Internet Users 2008
Age % of users
Under 10 0.4%
Age 10-19 35.2%
Age 20-29 31.5%
Age 30-39 17.6%
Age 40-49 9.6%
Age 50-59 4.2%
Age 60 and above 1.5%
Education
Primary school/below 5.4%
Junior middle 28%
Senior middle/technical school 39.4%
College 12.2%
Master's degree/above 1%
Profession
Others 0.5%
Unemployed 5.5%
Retirees 2%
Agricultural, forestry, husbandry, fishery labourers 2.3%
Freelancers 6.4%
Self-employed 7.3%
Industry/service industry workers 2%
Rural migrant workers 2.6%
Technical professionals 8.7%
Enterprise staff 15%
Managers 4.5%
Party/government/institute employees 10.3%
Students 33.2%
Income (Yuan) per month
Above 8,000 1.9%
5,001-8,000 2.9%
3,001-5,000 8%
2,001-3,000 13.7%
1,501-2,000 13.8%
1,001-1,500 16%
501-1,000 16.2%
Under 500 26%
No income 1.5%
Places of access
Home 78.4%
Internet cafe 42.4%
Office 20.7%
Campus 11.3%
Public area 2.7%
Others 1.3%
Access equipment
Desktops 89.4%
Laptops 27.8%
Mobile phones 39.5%
PDA 1.4%
(SOURCE: CNNIC Jan 2009)
USER BEHAVIOUR
Chinese online users are spending more of their time
online, which is on average 16.6 hours per week.
(SOURCE: BDA)
China has the largest Internet audience in the world with
180 million regular viewers of online video content.
(SOURCE: CASBAA)
Chinese online users like to watch video content online
frequently too. When asked how often do you use the
Internet to watch video clips, 33% of them said they do
pretty much every time they go online.
(SOURCE: CASBAA/SINA/CHINA YOUTH DAILY)
Social networking has formed a stronghold on the Chinese
online community, particularly so when it comes to video
content. Because of the country's strong grassroots
culture nearly two thirds of video content in China (63.7%)
❚
is discovered through social connections. And 94.1% of this
content is shared via instant messaging tools like QQ and
MSN.
(SOURCE: CASBAA)
Chinese online users prioritise the Internet over TV as
their main source of entertainment, with more than 80%
of young Chinese saying they placed the Web as their
primary source of entertainment.
(SOURCE: CASBAA/SINA/CHINA YOUTH DAILY)
Blogging is picking up in China - 107 million Chinese online
users say they use blogs, representing 42.3% of the
overall Internet user population.
(SOURCE: OGILVYONE)
More Chinese actually have become bonafide bloggers
themselves however - as much as 162 million now consider
themselves bloggers.
(SOURCE: CHINAInternetWATCH.COM/CNNIC)
Chinese broadband users love to express themselves online,
with more than nine out of 10 'broadbanders' contributing
at least one kind of content online every month.
(SOURCE: NETPOP)
Perhaps for this reason eight out of 10 'broadbanders'
see the Internet as liberating, efficient, fulfilling, fun and
creative.
(SOURCE: NETPOP)
Of all China's Internet users, almost all of them read news
online - 234 million of them are online news users.
(SOURCE: CHINAInternetWATCH.COM/CNNIC)
There might be a lot of news out there that the vast
majority of Chinese Internet users are reading but a lot of
them appear to feel wary of it: 70% of them think that at
best only half the information retrieved on the Internet is
reliable.
(SOURCE: BDA/WORLD Internet PROJECT)
China was home to an estimated 202.4 million social media
users in 2008.
(SOURCE: OGILVYONE)
Bulletin Board Systems (BBS) are at the heart of China's
social media attracting 10 million posts every day, with
80% of all Chinese websites hosting their own BBS.
(SOURCE: OGILVYONE)
Such is the stronghold social media has on China's online
population that more than 50% of Chinese Internet users
are making new friends online.
(SOURCE: OGILVYONE)
When the Chinese want to connect with these friends, they
overwhelmingly choose instant messaging - 90% of them
use IM to do this.
(SOURCE: OGILVYONE)
The Chinese love listening to music online, with Internet
music usage rates of 84.5%, representing 214 million
people. The next favourite form of online entertainment
20. 18 asia pacific digital marketing yearbook
is online video with 71% usage rates; followed by online
gaming (58.3% usage rates).
(SOURCE: OGILVYONE)
The longer Chinese Internet users spend online, the longer
they spend online - those Internet users who have only
been online for less than a year spend on average 12.7
hours per week on the Internet, while those who have
been online for more than eight years spend on average
26.4 hours online a week.
(SOURCE: CNNIC)
China is renowned for its tight controls over Internet
content. The country's online users don't seem to mind
however - 85% of them approve of Internet censorship.
Perhaps the reason being is that 93% of them feel that
much of Internet content to be unsuitable for children.
(SOURCE: TRENDSSPOTTING)
China's Web 2.0 market is expected to be worth US$645.8
million by 2011.
(S OURCE: IDC/TRENDSSPOTTING)
China MMORPG Market Forecast
2007 2008E 2009E 2010E 2011E
MMORPG gamers (m) 34.4 44.7 55.9 66.0 75.9
Game users penetration 19.7% 22.3% 25.3% 27.6% 29.4%
Average ARPU per month (RMB) 20.7 21.7 22.4 22.8 23.3
Market size (RMB million) 8,544 11,663 15,016 18,073 21,200
MMORPG Market size (US$M) 1,124 1,535 1,976 2,378 2,789
Growth Rate 54% 37% 29% 20% 17%
(SOURCE: JP MORGAN)
China Casual Game Market Forecast
2007 2008E 2009E 2010E 2011E
Casual game players (million) 42.4 50.9 59.0 66.1 71.4
Casual players penetration 24.2% 25.4% 26.7% 27.7% 27.6%
Assumed Ratio of paying users 25% 27% 29% 30% 31%
APRU per month (Rmb) 12.2 13.5 14.5 15.6 16.7
Market size (RMB million) 1,563 2,227 2,996 3,714 4,435
Casual Market size (US$M) 206 293 394 489 584
Growth Rate 56% 43% 35% 24% 19%
What Chinese Internet Users do online
(% of groups)
Middle/primary College Office Rural Total
school students students employees migrant
workers
Network news 68.1% 89.9% 83.1% 73.4% 78.5%
Search engines 63.5% 84.4% 71.9% 56.6% 68.0%
Online recruitment 8.9% 29.5% 23.0% 23.7% 18.6%
Email 52.2% 81.4% 60.4% 38.9% 56.8%
Instant messaging 77.5% 91.1% 75.0% 66.5% 75.3%
Having blogs 64.0% 81.4% 50.9% 43.1% 54.3%
Forum/BBS 24.1% 55.5% 34.6% 17.2% 30.7%
Friend-making Websites 16.8% 26.0% 20.2% 18.2% 19.3%
Network music 86.9% 94.0% 83.4% 78.2% 83.7%
Network video 67.4% 84.4% 68.1% 57.3% 67.7%
Network games 69.7% 64.2% 60.6% 55.5% 62.8%
Online shopping 16.2% 38.8% 29.4% 11.7% 24.8%
Online selling 2.1% 5.2% 4.4% 0.8% 3.7%
Online payment 9.6% 30.5% 22.4% 7.9% 17.6%
Travel reservation 2.0% 6.8% 6.8% 2.5% 5.6%
Online banking 7.7% 29.9% 25.5% 7.4% 19.3%
Online stock speculation 4.7% 4.7% 15.5% 4.1% 11.4%
Online education 16.2% 25.6% 17.3% 7.8% 16.5%
(SOURCE: CNNIC)
Use of Online Apps by Chinese users: 2007 vs 2008
End of 2007 End of 2008 Change Growth
Use rate Size of Use rate Size of Increase rate
users users
(10,000) (10,000)
Network news 73.6% 15,500 78.5% 23,400 7,900 51.0%
Search engine 72.4% 15,200 68.0% 20,300 5,100 33.6%
Network job seeking 10.4% 2,200 18.6% 5,500 3,300 150.0%
Email 56.5% 11,900 56.8% 16,900 5,000 42.0%
Instant messaging 81.4% 17,100 75.3% 22,400 5,300 31.0%
Having blogs - - 54.3% 16,200 - -
Updating blogs 23.5% 4,900 35.2% 10,500 5,600 114.3%
Forum/BBS - - 30.7% 9,100 - -
Friend-making websites - - 19.3% 5,800 - -
Network games 59.3% 12,500 62.8% 18,700 6,200 49.6%
Network music 86.6% 18,200 83.7% 24,900 6,700 36.8%
Network video 76.9% 16,100 67.7% 20,200 4,100 25.5%
Online shopping 22.1% 4,600 24.8% 7,400 2,800 60.9%
Online selling - - 3.7% 1,100 - -
Online payment 15.8% 3,300 17.6% 5,200 1,900 57.6%
Travel reservation - - 5.6% 1,700 - -
Online banking 19.2% 4,000 19.3% 5,800 1,800 45.0%
Online stock
Speculation 18.2% 3,800 11.4% 3,400 -400 -10.5%
Online education 16.6% 3,500 16.5% 4,900 1,400 40.0%
(SOURCE: CNNIC, Jan 2009)
How spending time online makes Chinese users feel
Sentiment
Level of Acceptance Without the Internet, I cannot work or study 39.0%
Without the Internet, my entertainment life will be very monotonous 59.1%
Handling business online saves me a lot of trouble from visiting a place
in person 69.3%
Generally I read major news first on the Internet 61.8%
When encountering a problem, I will first go to the Internet to seek answers 64.6%
I make many new friends on the Internet 65.4%
The Internet strengthens my contact with friends 82.5%
In the age of the Internet, I feel more lonely 19.9%
The Internet reduces my time spent with my family 29.0%
The registration information I fill in on the Internet is true 47.5%
It is safe to have transactions online 27.6%
The Internet is my primary channel for airing my views 41.9%
After having access to the Internet, I am more concerned with social
events than before 76.9%
(SOURCE: CNNIC)
ONLINE ADVERTISING
China's online advertising market was valued at RMB17
billion, or US$2.4 billion in 2008, representing year on
year growth of 53%. Online advertising is now the fastest
growing advertising sector in China.
(SOURCE: BDA)
Online advertising represented 5% of China's advertising
market in 2008.
(SOURCE: BDA)
China's online advertising market is expected to grow by
20% in 2009.
(SOURCE: BDA)
Online display advertising in China was expected to grow
by 41% year on year in 2008, generating RMB6.4 billion
in revenues. Growth is anticipated to slow down in 2009
however to around 18% year on year growth, representing
RMB7.58 billion in earnings.
(SOURCE: JP MORGAN)
By 2012 online ad revenues in China are expected to reach
US$3.4 billion.
(SOURCE: EMARKETER)
This growth has something to do with the increase in
number of online advertisers in the country, numbering
600,000 in 2008. In 2009 this number could reach 900,000.
(SOURCE: BDA)
The advertisers that will spur this growth are likely to come
from the top three industries for online advertising - IT,
automotives and real estate. Other sectors to watch out for
in 2009 are telecoms, online services and FMCG.
(SOURCE: BDA)
❚
21. asia pacific digital marketing yearbook 19
Economic hardships could actually prove a boon for the
online advertising market in China, with expectations of
28% year on year growth in 2009 for the online ad market,
and 37% year on year growth in 2010, representing
US$2.9 billion.
(SOURCE: JP MORGAN)
China currently has 2.87 million websites registered within
its territory, an increase of 91.4% from 2007. The total
number of web pages passed the 16 billion mark at the
end of 2008.
(SOURCE: CNNIC)
Half of the top 20 sites in Asia Pacific by traffic are based in
China, led by Baidu.com, Tencent, SINA.com and NetEase.
(SOURCE: TRENDSSPOTTING)
Of all advertisers in China using search engine marketing,
86% use Baidu and 60.2% use Google.
(SOURCE: CHINA Internet WATCH)
Baidu is the clear market leader in China's search market
with 64.4% market share, followed by Google with 25%
and Yahoo! with 8% share.
(SOURCE: COMSCORE/TRENDSSPOTTING)
Search advertising will experience strong growth in China's
online advertising market in 2009, generating an estimated
RMB6.61 billion, up from RMB4.66 billion in 2008.
(SOURCE: JP MORGAN)
User-generated content is very powerful in China, with
58% of all purchasing decisions being influenced by online
consumer reviews, rating sites, blogs, forums and bulletin
boards.
(SOURCE: NETPOP)
The most influential source for online Chinese when
making purchasing decisions is the search engine - 46%
of 'broadbanders' consult a search engine to make their
shopping decisions, compared to just 25% of American
'broadbanders'.
(SOURCE: NETPOP)
The Chinese online gaming market grew by 63% in 2008
making it worth US$2.8 billion - by 2012 it will be worth $5.5
billion.
(SOURCE: PEARL RESEARCH/BUSINESS Internet CHINA)
Forget Facebook, China's Qzone could be the largest
social network in the world. Ranked number one in China
(Facebook doesn't even make it into the top 15), Qzone
claims to have more than 200 million users, compared to
Facebook's 150 million.
(SOURCE: WEB2ASIA)
Not only is Qzone the biggest social networking site in the
world, it could also be the most active - 150 million of its
users actively update their accounts every month at least;
4 million users upload photos daily totalling on average
60 million photos a day; and 9.5 million new blog entries
appear on it each day.
(SOURCE: WEB2ASIA)
In China, the biggest search engine marketing advertisers
are in manufacturing (49.3% of advertisers); the next
biggest group being IT (12.5%); then Trade (10.3%);
Service Industries (6%); Pharmaceuticals (5%) and
Chemical Industry (5%).
(SOURCE: CHINA Internet WATCH)
Chinese online users respond well to viral messages,
particularly the 25-29 age group, 85% of which have
received viral messages containing an ad or a link to an ad
at one time, with 71% of them saying they had passed it
on.
(SOURCE: TNS/MEDIA)
Most Popular Chinese Sites
Rank Site Name Unique Visitors (000) Major Business
1 QQ.Com 62,248 IM
2 Baidu.Com 60,174 Online Ad
3 Sina.Com.Cn 48,373 Portal (Online Ad)
4 163.Com 40,805 Portal (Online Game)
5 Yahoo.Com.Cn 38,852 PaidSearch
6 Google.Cn 34,882 Paid Search
7 Sohu.Com 31,184 Online Games MVAS
8 Soso.Com 30,602 Paid Search
9 Microsoft.Com 27,999 Online Ad, SNS
10 Taobao.Com 25,778 Online Auction
(SOURCE: ComScore/Trendsspotting)
China Online Advertising Market Forecast
Type of Advertising (RMB m) 2007 2008E 2009E 2010E
Brand Advertising 4,559 6,428 7,585 10,013
Search Advertising 2,851 4,663 6,614 9,438
Other Online Format 122 135 148 163
Total Online ad market (RMB M) 7,533 11,226 14,347 19,614
Total Online ad market (US$ M) 999 1,627 2,092 2,860
Growth Rate 53% 49% 28% 37%
Total China ad market 116,422 155,074 178,336 203,303
Growth Rate 10% 11.0% 15.0% 14%
Ad market as % of GDP 0.47% 0.49% 0.49% 0.50%
Online ad as % of total ad market 6.5% 8.0% 9.3% 11.0%
(SOURCE: JP Morgan)
China Branded Ad Segment Forecast
2007 2008E 2009E 2010E
Branded Advertising (RMB m) 4,559 6,428 7,585 10,013
Branded Advertising (US$ m) 605 932 1,106 1,460
Growth rate (RMB, %) 35% 41% 18% 32%
Branded ad as % of total ad market 3.9% 4.6% 4.9% 5.6%
(SOURCE: JP Morgan)
China Search Market Forecast
2007 2008E 2009E 2010E
Avg. Internet users (m) 174 239 295 348
Number of search (bn) 123 161 209 254
Coverage 21% 24% 26% 29%
Click through rate 24.3% 25.5% 25.5% 26.2%
Price per click (RMB) 0.40 0.44 0.45 0.47
PPC Market (RMB m) 2,472 4,299 6,234 9,039
PPC Market (US$m) 328 623 909 1318
Growth rate (RMB, %) 133% 74% 45% 45%
Total Search Market (RMB m) 2,851 4,663 6,614 9,438
Total Search Market (US$ m) 378 676 964 1,376
Growth rate (RMB, %) 98% 64% 42% 43%
Search ad as % of total ad market 2.4% 3.3% 4.3% 5.3%
(SOURCE: JP Morgan)
China's Most Popular Social Networks
Rank Social Network Average Weekly Unique Browsers in
December 2008 (million)
1 51.com 14.0
2 xiaonei.com 9.5
3 chinaren.com 7.0
4 kaixin001.com 3.5
5 myspace.cn 2.0
6 5460.net 1.0
7 wangyou.com 1.0
8 ipart.cn 1.0
9 360quan.com 0.9
10 cyworld.com.cn 0.8
(SOURCE: CR-Nielsen)
23. asia pacific digital marketing yearbook 21
Top 20 Advertisers Using Digital Media in China
Advertiser % of users
KFC 80%
Coca Cola 77%
Nike 76%
Nokia 75%
Li Ning 69%
China Mobile Telecom 69%
Lenovo 68%
Sony 67%
McDonald's 67%
Adidas 66%
VISA 65%
Pizza Hut 64%
Motorola 64%
Haier 62%
Smartone-Vodafone 62%
Pepsi-Cola 62%
Olay 62%
Tsingtao Beer 60%
Philips 60%
Samsung Electronic Group 59%
(SOURCE: TNS/MEDIA; Q: Which of the following brands have you seen advertised via digital
media?)
Trust in Media Channels in China
Media channel % who trust the channel completely
Recommendations from friends and family 66%
Consumer product review from websites 29%
Product labels on packaging 24%
Expert product review from websites 22%
Consumer opinion in blogs 21%
Independent reviews in publications 21%
Consumer opinion on message boards 18%
Consumer opinion in chat rooms 18%
Manufacturers/brands websites 15%
Email newsletters 14%
Magazine ads 13%
TV ads 12%
Products/brands that appear in movies or within TV programmes 12%
Ads that appear on search engines 10%
Newspaper ads 10%
Radio ads 9%
Recommendations from other consumers who you do not personally know 9%
Ads at the cinema before the movie starts 9%
Ads on posters, buses/bus shelters 9%
Ads that have been sent to you by e-mail 8%
Banner ads on websites 8%
Ads in virtual worlds 7%
Ads in video games 6%
Ads via mobile SMS 6%
Pop-up or pop-under web ads 5%
(Source: TNS/Digital Media)
MOBILE
In mid-2008, China had 595 million mobile phone
subscribers, representing mobile penetration rates of
44.7%.
(SOURCE: EMARKETER)
By the end of 2008 China was estimated to have had 640
million mobile users.
(SOURCE: ROA)
China currently has 85 million mobile Internet subscribers -
approximately 14.3% of all mobile phone subscribers in the
country.
(SOURCE: EMARKETER)
Other sources put China's mobile Internet population as
high as 117.6 million, marking a 133% jump from 2007.
(SOURCE: CHINAInternetWATCH.COM/CNNIC)
There were 106.1 million 3G subscribers in China in 2008.
(SOURCE: BTRAX)
❚
The most prolific mobile Internet users are students,
43.5% of them using their mobile devices to read the
news, download music and check their email.
(SOURCE: BBC/CNNIC)
Chinese Internet users have embraced their mobiles as
music devices, with nearly three quarters (73%) of all
digital music revenues being mobile generated.
(SOURCE: EMARKETER)
Chinese Internet users are more likely to access the
Internet via their mobile devices than their American
counterparts, with 58% of them using their phones for this
purpose.
(SOURCE: NETPOP)
Top 10 Mobile Sites
Rank Site
1 Kong
2 Baidu
3 Google
4 Sina
5 QQ
6 Hao123
7 Xiaonei
8 Paojiao
9 Ruanj
10 3g
(SOURCE: Friendster/Opera)
Top Mobile Internet Website Categories
Category % Mobile Internet Users
Entertainment 55%
Games 36%
Music 31%
News/Politics 26%
Business/Finance 18%
(Source: Nielsen)
Chinese Users' Preferred Mobile Content/
Applications
Content/App % of users
News 69%
Downloads 62.4%
IM 51.1%
Search 44.5%
Email 38.9%
Games 21%
SNS 20.5%
Others 1.7%
(SOURCE: InStat)
E-COMMERCE
One third of China's Internet population engage in
e-commerce.
(SOURCE: JP MORGAN)
One brand rules China's e-commerce market - Taobao, with
a market share of 76%.
(SOURCE: JP MORGAN)
China generated US$297.8 billion in online shopping
revenues in 2007 - 44.9% of the region's total online
shopping revenue turnover. By 2010 it is expected to bring
in US$1,415.7 billion.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
❚
25. asia pacific digital marketing yearbook 23
China is home to the largest potential online shopping
market in Asia/Pacific representing 147.1 million people,
or 49.9% of the region's e-commerce population. By 2010
the country will be home to 480.4 million online shoppers,
representing 58.6% of the region's online shopping
community.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
China may have low penetration rates but this small group
of people likes to spend - the country's online shopping
penetration rates are proportionately very high at 70%.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
Chinese online users are no stranger to shopping online,
with 87% of them intending to make a purchase online in
the next 6 months.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
Chinese online users may like shopping over the Internet
but that does not mean they like spending a lot of money,
averaging out at US$506.10 spent over a period of three
months.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
That being said, a significant and extraordinarily
large amount of what the Chinese spend on personal
consumption (32.8%) goes on online purchases.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
Security concerns are a major issue for Chinese online
shoppers, with 87% of them saying they are reluctant
to make online purchases because they believe online
transactions are unsafe.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
For those Chinese who do make purchases online, only
25% of them prefer using credit cards as their online
payment method, compared to 35% who prefer debit cards
and 32% who prefer electronic transfers.
(SOURCE: MASTERCARD WORLDWIDE INSIGHTS)
Online banking experienced very minor growth levels in
2008, rising to 19.3% penetration rates from 19.2% in
2007. And fewer Chinese online users are speculating on
stocks online, down to 11.4% of users compared to 18.2%
in 2007.
(SOURCE: CNNIC)
There may be a lot of people online in China, but that
doesn't mean they have a lot of money to spend online.
The biggest group of users by income happen to be the
lowest earners - 30.5% of Chinese Internet users earn less
than 500 Yuan (US$68.50) per month.
(SOURCE: TRENDSSPOTTING)
The majority of China's online gaming revenues come from
massively multiplayer online role playing games (MMORPG)
representing around 84% of the total online gaming
market.
(SOURCE: JP MORGAN)
CASE STUDY
Client: eLong.com
Agency: Netconcepts Web Technologies
Campaign: Sales-building
Objective: Increasing natural search traffic and sales by
increasing rankings of targeted keywords.
Strategy: Carry out overall optimisation site-wide,
including website structure, contents, and backlinks.
Increase natural search traffic and sales by increasing both
head keywords traffic, and long tail keywords traffic.
Reduce eLong's PPC cost. Increase natural search sales
through gaining more visibility generated from effective
keywords that are able to bring relevant clicks and sales.
Details: Netconcepts researched approximately 100,000
keywords, which can be differentiated into grades including
primary keywords, secondary keywords and long tail
keywords. Netconcepts carried out an overall audit and
provided improvement solutions including programming
and content related changes according to the keyword
research. Focus on the optimisation for homepage and
channel pages, integrating with the optimisation of hotel
and flight section pages. In the second stage, the plan
was to increase the amount of static pages by generating
approximately 100,000 HTML hotel pages. In the mean
time, keyword optimisation was continued and integrated
with the overall optimisation strategy. Regular updates
of page content were carried out periodically. The next
stage was to maximise the use of Google map data by
categorising the hotels further and generating more hotel
pages according to attractions, hospitals and businesses
etc. It also improved the presentation of integration
between Google Maps and tourism products. The fifth stage
was to release approximately 200,000 flights related static
pages. The last stage in the plan was to create strategies
for eLong around travel blogging, which would enhance the
link building strategy and brand image.
Results: • Natural search traffic increased by 100%.
• Hotel bookings from natural search increased by 88%;
• PageRank increased from 5 to 8.
• Almost 1 million pages have been indexed on Google
network.
• Number of backlinks increased to approximate 8.5 million.
• The keyword rankings for eLong.com have been
significantly improved. For example, among the top 100
hotel terms, over 50% of the keywords are gaining the
Page 1 Ranking on both Baidu and Google. Terms such as
酒店预定 (hotel booking), 宾馆(hotels), 酒店查询
(hotel search), 北京酒店(Beijing hotels) and 上海酒
店预定(Shanghai hotel booking) are all ranked in the top
three position.
❚
26. 24 asia pacific digital marketing yearbook
DEMOGRAPHICS
Hong Kong has one of the highest Internet penetration
rates in the region at more than 72%.
(SOURCE: OGILVYONE)
Hong Kong currently is home to 3.8 million unique Internet
users.
(SOURCE: COMSCORE)
Hong Kong is a highly networked city with 83% of its
homes linked up to the Internet.
(SOURCE: HK Internet PROJECT 2000-2008)
Broadband is widespread in Hong Kong - at the end of
2008, 195 million homes had broadband Internet access,
representing penetration rates of 77.7%.
(SOURCE: OFTA HK)
More women were online in 2008, now representing 50%
of all Internet users compared to 48% in 2007.
(SOURCE: HK Internet PROJECT 2000-2008)
More than half (53%) of Hong Kong Internet users are
aged between 31 and 50 years old.
(SOURCE: HK Internet PROJECT 2000-2008)
The higher their education level the more likely Hong
Kongers are to be connected to the Internet - 97% of
degree holders or above are online compared to 29% with
middle school education.
(SOURCE: HK Internet PROJECT 2000-2008)
❚ Furthermore the money you have the more likely you are
to be an online user - 94% of Hong Kongers in the top
income bracket (HK$40,000 or more per month) have
Internet access compared with 53% of those in the lowest
(less than HK$20,000).
(SOURCE: HK Internet PROJECT 2000-2008)
Hong Kong's Internet Users 2008
Composition of Penetration in
the Users population
Sex
Male 50% 73%
Female 50% 65%
Age
18-24 15% 99%
25-30 14% 96%
31-35 13% 89%
36-40 14% 87%
41-50 27% 75%
51-60 14% 48%
61-74 4% 17%
Status
Married 59% 61%
Unmarried 41% 85%
Education
Middle School or below 14% 29%
High/Technical School 42% 79%
Associate Degree 13% 97%
University Degree 27% 97%
Postgraduate Degree 6% 95%
Profession
Civil Servant 4% 86%
Managerial/Professional 17% 95%
Worker/Shop Assistant 45% 77%
Self Employed 4% 91%
Student 10% 100%
Retired/Unemployed 21% 41%
(SOURCE: HK Internet PROJECT 2000-2008)
HONG KONG
Hong Kong's tallest building Two IFC rising above the city
27. asia pacific digital marketing yearbook 25
How Hong Kongers go Online
Access point % of users
Home 94%
Office 54%
School 71%
Internet Cafe/Library/public places 9%
Telephone dialup 6%
Broadband 82%
Cable Modem 14%
Wireless 22%
Desktop PC 92%
Notebook PC 37%
Mobile Phone 10%
PDA 5%
TV/other appliances 0.2%
Other devices 0.4%
(SOURCE: HK Internet PROJECT 2000-2008)
Internet Use in Hong Kong
Total Homes (000) Online Home PCs Dial-up Homes Broadband Homes
(000) (000) (000)
2,298 1,910 40 1,870
% of Total Homes 83% 2% 81%
% of Internet Homes 100% 2% 98%
(SOURCE: HK Internet PROJECT 2000-2008)
Hong Kong Online Users, by Income
(000) (% OF USERS)
Household Income Less than HK$8000 Per Month 317 8.6%
HK$8,000-9,999 Per Month 187 5.1%
HK$10,000-12,999 Per Month 349 9.4%
HK$13,000 - 14,999 Per Month 108 2.9%
HK$15,000 - 19,999 Per Month 401 10.8%
HK$20,000 - 29,999 Per Month 732 19.8%
HK$30,000 - 39,999 Per Month 453 12.2%
HK$40,000 - 49,999 Per Month 302 8.2%
HK$50,000 - 69,999 Per Month 327 8.8%
HK$70,000+ Per Month 492 13.3%
HK$0 Per Month 30 0.8%
(Source : Nielsen Media Index Hong Kong; Base population: Individuals aged 12 - 64; Recency Of
Using Internet [Past Week (Cum)])
Hong Kong Key 2009 Digital Indicators
Services No.
Mobile subscribers 11.4 million
2.5G and 3G mobile subscribers 3.3 million
Mobile subscriber penetration rate 163.1%
Public Wi-Fi access points 7,987
Household fixed line penetration rate 99.2%
Registered customer accounts with dial-up access 959,703
Registered customer accounts with broadband access 1.9 million
Household broadband penetration rate 77.8%
Internet service providers 167
Mobile network operators 5
(SOURCE: OFTA HK)
USER BEHAVIOUR
Online users in Hong Kong overwhelmingly favour word
of mouth when making purchasing decisions, with 93%
of them saying they rely most on recommendations from
consumers.
(SOURCE: OGILVYONE)
Nearly two thirds (65.8%) of Hong Kong's active Internet
population claim to have read a blog.
(SOURCE: OGILVYONE)
Hong Kong is home to some of the biggest media junkies
in the region with local youth aged up to 24 spending on
average 12.7 hours a day online, watching TV or DVD/VCD/
videos, reading newspapers/magazines and listening to the
radio.
(SOURCE: SYNOVATE)
❚
Hong Kong's online youth is pretty familiar with social
networking, with 53.2% of active users having their own
social network profile.
(SOURCE: OGILVYONE)
Many Hong Konger's have also embraced blogging, with
57% of them saying they are into blogging; 43% of
them spending some of their time reading blogs but not
commenting; just over one third (34%) actively comment
on the blogs they read.
(SOURCE: SYNOVATE)
When it comes to online forums and discussion groups,
Hong Kong's online youth are the most active in the region
with 45% of them reading as well as contributing to them.
(SOURCE: SYNOVATE)
Hong Kong's online youth are amongst the most prolific
bloggers in the region, with 35% of them creating and
updating their blogs in the past 30 days.
(SOURCE: SYNOVATE)
Hong Kong's online youth like seeing what their friends are
up to online: 43% of the read others' social network pages
on a variety of different social networking sites.
(SOURCE: SYNOVATE)
As many as 3.9 million Hong Kongers are estimated to be
social media users, out of an overall population of 7 million
people.
(SOURCE: OGILVYONE)
Two social networking sites pretty much own the market in
Hong Kong - Xanga with 1.8 million users, and Facebook
with 1 milion.
(SOURCE: OGILVYONE)
Hong Kongers are number three in the region, behind
Taiwan and South Korea when it comes to the length of
time online user spend on gaming sites, averaging 143
minutes per visitor over a month, visiting sites on average
13 times.
(SOURCE: COMSCORE)
What Hong Kongers do Online
Features Used (000) % OF USERS
EMail 2724 51%
Search Goods/Services Information 2001 37.5%
Read Newspapers/Magazines 1773 33.2%
Instant messenger 1643 30.8%
Play Online Games 1262 23.6%
Search Financial Information 1117 20.9%
Search/Download Information 1065 19.9%
Listen To Songs/Radio Programs 1036 19.4%
Use Online Banking Services 983 18.4%
Settle Payment 936 17.5%
Download Songs/Music 843 15.8%
Watch Video Programs 842 15.8%
Browse Blog 670 12.5%
Write Blog 635 11.9%
Download Software 619 11.6%
Trade Stock 534 10%
Search Job Vacancies 471 8.8%
Download Movies 449 8.4%
Make Reservation/Book Tickets 444 8.3%
Use Auction Services 341 6.4%
Purchase/Order Goods/Services 309 5.8%
Internet Phone 238 4.5%
Download Mobile Phone Ringtone 234 4.4%
Download Novel/Comic 200 3.7%
Request Customer Services 192 3.6%
28. 26 asia pacific digital marketing yearbook
Download Mobile Phone Game/Wallpaper 123 2.3%
Netmeeting 81 1.5%
Others 783 14.7%
(Source : Nielsen Media Index Hong Kong; Base population: Individuals aged 12 - 64)
Why Hong Kongers go Online
Primary purpose % of users
Information acquisition (e.g. search and web browsing) 85%
Leisure and entertainment 36%
Communication (e.g. email, IM, SMS, chat, etc.) 31%
Study 9%
Online banking, trading, payment, etc. 10%
Getting free resources (e.g. free email accounts, storage, downloads) 6%
Making friends (e.g. alumni sites) 1%
Online shopping 5%
Other 3%
(SOURCE: HK Internet PROJECT 2000-2008)
How Long Hong Kongers Spend Online
Average Time Spent Using Internet (000) % OF USERS
Less Than 30 Minutes 385 7.2%
30 Minutes-Less Than 1 Hour 697 13%
1 Hour-Less Than 2 Hours 905 16.9%
2 Hours-Less Than 3 Hours 699 13.1%
3 Hours-Less Than 4 Hours 436 8.2%
4 Hours-Less Than 5 Hours 269 5%
5 Hours-Less Than 6 Hours 121 2.3%
6 Hours Or More 435 8.1%
(Source : Nielsen Media Index Hong Kong; Base population: Individuals aged 12 - 64)
ONLINE ADVERTISING
Online advertising spend came to HK$702 million in 2008.
(SOURCE: MARKETING-INTERACTIVE/NIELSEN)
The most prolific online sector in Hong Kong is finance,
which spent HK$36.6 million online in Q4 2008 - 17% of
overall online ad spend.
(SOURCE: MARKETING-INTERACTIVE/NIELSEN)
Hong Kong's spam rate - 87% for September 2008 - is both
higher than the global rate of 78%, and that of China's
which was just 70% in September.
(SOURCE: COMPUTERWORLD/MESSAGELABS)
Hong Kong's online ad revenues in Q4 2008 marked an
increase of 33% on Q3, representing more than HK$208
million.
(SOURCE: NIELSEN ONLINE)
During the October-December period, 1,060 advertisers ran
3,062 online ad campaigns in Hong Kong, attracting more
than 6.7 billion ad impressions.
(SOURCE: NIELSEN ONLINE)
Consumption of the Internet increased in 2008 - while it
still ranks third behind TV and newspapers as engaging
Hong Kongers the most, more of them - 60%, compared to
53% in 2007 - had logged on in the previous day.
(SOURCE: NIELSEN ONLINE)
Dedicated brand websites seem to still be the best media
channel to reach Hong Kong consumers in 2008 - as it was
in 2007 - with 50% of Hong Kongers recalling their use by
online advertisers. Sponsored content was the next most
recognised form of advertising with 43% of Hong Kong
online users recalling its use; followed closely by pop-up
ads (42%).
(SOURCE: TNS/MEDIA)
❚
Digital marketing methods are proving themselves to be
persuasive in Hong Kong, but only to a degree, with 25%
of Hong Kong online users feeling digital media as a whole
significantly increased their interest in using the brand in
question, while 53% were somewhat interested.
(SOURCE: TNS/MEDIA)
If you really want to get an advertising message across in
Hong Kong, go viral. Nearly three-quarters (73%) of Hong
Kong online user have received a viral message at some
point and more than half (54%) of them have passed it on.
(SOURCE: TNS/MEDIA)
The most active in the viral message community in Hong
Kong are aged between 30 and 34 - 84% of people in this
age group have received a viral message at some point,
and 69% of them have passed it on.
(SOURCE: TNS/MEDIA)
Top 10 Hong Kong Online Advertisers: Q4 2008
Ranking Advertiser By Ad impressions (in 000's)
1 Citicorp 441,133
2 Global Beauty 283,440
3 PCCW 262,585
4 Sony 189,858
5 Dell 177,758
6 eBay 172,658
7 Wall Street Institute 166,714
8 The Hong Kong Jockey Club 147,070
9 Hong Kong Government 128,553
10 HSBC 127,140
(SOURCE: NIELSEN ONLINE)
Top 20 Advertisers Using Digital Media in Hong Kong
Advertiser % of users
Nike 69%
HSBC 69%
Cathay Pacific 67%
Nokia 67%
McDonald's 67%
Coca Cola 66%
Pizza hut 65%
Sony Ericsson 60%
PCCW 57%
Adidas 57%
Sony 56%
KFC 54%
Hang Seng Bank 52%
Samsung 52%
Canon 51%
Citigroup 51%
VISA 48%
SK-II 45%
Wellcome 45%
Carlsberg 44%
(SOURCE: TNS/MEDIA; Q: Which of the following brands have you seen advertised via digital
media?)
Top 20 Motivating Online Advertisers in Hong Kong
Advertiser Advertising significantly Advertising somewhat
increased interest in increased interest in
using brand (% of users) using brand (% of users)
Apple 40% 82%
Pizza hut 36% 92%
Wellcome 35% 93%
KFC 33% 89%
Sony Ericsson 33% 87%
Nike 31% 81%
Nokia 30% 91%
Sony 30% 85%
Canon 30% 86%
Coca Cola 30% 81%
McDonald's 29% 86%
Cathay Pacific 27% 85%
Adidas 25% 82%
SK-II 25% 73%
Johnson's Baby 24% 78%
Samsung 22% 83%
VISA 20% 64%
HSBC 18% 83%
Carlsberg 18% 58%
Dragonair 17% 93%
(SOURCE: TNS/MEDIA)
29. asia pacific digital marketing yearbook 27
Trust in Media Channels in Hong Kong
Media channel % who trust the channel completely
Recommendations from friends and family 56%
Product labels on packaging 25%
Expert product review from websites 24%
Independent reviews in publications 24%
Consumer product review from websites 20%
Products/brands that appear in movies or within TV programmes 18%
Manufacturers/brands websites 18%
TV ads 17%
Consumer opinion in blogs 17%
Consumer opinion in chat rooms 16%
Ads on posters, buses/bus shelters 16%
Newspaper ads 15%
Email newsletters 15%
Ads at the cinema before the movie starts 15%
Magazine ads 14%
Radio ads 13%
Consumer opinion on message boards 13%
Banner ads on websites 12%
Ads that appear on search engines 11%
Recommendations from other consumers who you do not personally know 11%
Ads that have been sent to you by e-mail 11%
Ads via mobile SMS 8%
Pop-up or pop-under web ads 8%
Ads in virtual worlds 7%
Ads in video games 7%
(Source: TNS/Digital Media)
Media Channels Seen as Untrustworthy
in Hong Kong
Media channel % who do not trust the channel
Ads in virtual worlds 53%
Ads in video games 48%
Ads via mobile SMS 42%
Pop-up or pop-under web ads 32%
Ads that have been sent to you by email 28%
Ads that appear on search engines 27%
Banner ads on websites 24%
Recommendations from other consumers 24%
who you do not personally know 20%
Ads at the cinema before the movie starts 18%
Magazine ads 18%
Radio ads 18%
Products/brands that appear in movies or within TV programmes 18%
TV ads 17%
Ads on posters, buses/bus shelters 16%
Email newsletters 16%
Newspaper ads 16%
Consumer opinion in chat rooms 15%
Manufacturers/brands websites 14%
Consumer opinion on message boards 14%
Expert product review from websites 12%
Consumer product review from websites 11%
Product labels on packaging 10%
Consumer opinion in blogs 10%
Independent reviews in publications 8%
Recommendations from friends and family 2%
(SOURCE: TNS/MEDIA)
Types of Digital Media Seen Being Used
Media % of users
Dedicated websites 50%
Sponsored content 43%
Pop-up ads 42%
Banner ads 40%
Email 31%
Mobile phones 15%
Ads in video games 5%
Ads in virtual worlds 2%
Other 7%
(Source: TNS/Media)
Hong Kong's Top 10 Sites
Total Unique Visitors (000) % Reach Total Minutes (MM)
Yahoo! Sites 3,077 80.7% 618
Microsoft Sites 2,487 65.2% 854
Google Sites 2,363 62.0% 255
FACEBOOK.COM 1,655 43.4% 195
DISCUSS.COM.HK 1,046 27.4% 16
Uwants Sites 985 25.8% 19
SINA Corporation 928 24.3% 26
Wikimedia Foundation Sites 836 21.9% 11
HSBC 760 19.9% 31
PCCW 736 19.3% 18
(SOURCE: COMSCORE MEDIA METRIX; February 2009; Audience: All Persons at Hong Kong Home/Work/
College-University Locations)
Hong Kong's Top Online Gaming Sites
% Reach
Yahoo! Games 6.2%
Travian Games 5.5%
TALESRUNNER.COM.HK 2.7%
MSN Games 2.1%
WildTangent Network 1.9%
(SOURCE: ComsCore Media Metrix; February 2009; Audience: All Persons at Hong Kong Home/Work/
College-University Locations)
Hong Kong's Top Online Retail Sites
% Reach
Amazon Sites 19.0%
Alibaba.com Corporation 18.3%
Apple.com Worldwide Sites 13.5%
Dell 9.9%
THREE.COM.HK 9.5%
CITYLINE.COM 8.5%
DCFEVER.COM 8.2%
BOOKS.COM.TW 8.2%
Sony Electronics 7.4%
PRICE.COM.HK 6.7%
(SOURCE: ComsCore Media Metrix; February 2009; Audience: All Persons at Hong Kong Home/Work/
College-University Locations; heavy Internet users)
Hong Kong's Top Technology News Sites
% Reach
CNET 12.9%
HKEPC.COM 9.2%
NetShelter Technology Media 8.9%
HACKEN.CC 7.2%
PHONEHK.COM 5.2%
AOL Tech 3.1%
REVIEW33.COM 2.4%
About.com Technology Network 1.7%
NEWHUA.COM 1.6%
ZDNet 1.5%
(SOURCE: ComsCore Media Metrix; February 2009; Audience: All Persons at Hong Kong Home/Work/
College-University Locations; heavy Internet users)
Hong Kong's Top Entertainment Sites
% Reach
YOUTUBE.COM 68.8%
Yahoo! Music 43.7%
TVB.COM 32.9%
Yahoo! Movies 30.0%
CBS Interactive 25.2%
Youku 20.7%
iTunes Software (App) 19.9%
Tudou Sites 19.6%
Sony Online 18.5%
RTHK.ORG.HK 17.7%
(SOURCE: ComsCore Media Metrix; February 2009; Audience: All Persons at Hong Kong Home/Work/
College-University Locations; heavy Internet users)
MOBILE
Hong Kong has the highest mobile penetration rate in the
world at 163.1%.
(SOURCE: OFTA HK)
Mobile phones are ubiquitous in Hong Kong - the number
of mobile subscribers now totals 11.37 million.
(SOURCE: OFTA HK)
Of the 11.37 million subscribers in Hong Kong, 2.81 million
are 3G or 3.5G users.
(SOURCE: OFTA HK)
Hong Kong youth love their mobile phones - 80% of them
own one, and typically are spending on average one hour
and 48 minutes every day chatting on them.
(SOURCE: SYNOVATE)
Hong Kongers up to the age of 24 do more than just chat
on their phones: 64% use them to listen to music; 63%
use them to take photos; and 50% play games on them.
(SOURCE: SYNOVATE)
❚
30. 28 asia pacific digital marketing yearbook
Become one of the most skilled digital
marketing practitioners in the world and have a
professional qualification to prove it!
For more information, and to request
your course prospectus, email to
education@asiadma.com or
visit www.theidm.com/adma
The Institute of
Digital Enlightenment
In association with:
31. asia pacific digital marketing yearbook 29
Hong Kongers have increased their love of texting, sending
almost 100 million additional SMS messages in the month
of December 2008 than in December 2007 - 436.6 million
compared to 334.7 million the previous year.
(SOURCE: OFTA HK)
Hong Kong leads the world in the take up of mobile instant
messaging (MIM) by its mobile phone users, with 23% of
its mobile Internet population using MIM.
(SOURCE: MARKETINGVOX.COM/TNS)
E-COMMERCE
Hong Kongers may not buy as much online as those in
other parts of the world but they tend to spend more.
Hong Kong visitors to online shopping sites on average
place 12.9 orders per 1,000 sessions, lower than the
global average of 29.6 orders - but they spend on average
US$191.76 on each order, much higher than the global
average of US$78.69.
(SOURCE: COREMETRICS)
Hong Kongers have traditionally spent less time making
their online purchases too, implying they are much more
targeted consumers. They typically spend nearly a minute
less (59 seconds) than the global average to browse, make
a purchase decision and then order. But in the period
October-December 2008 Hong Kongers spend more time
online than the global average, by 44 seconds.
(SOURCE: COREMETRICS)
As one of the world's leading financial centres it stands to
reason online banking would take off in Hong Kong. Here
the online banking market is among the most advanced in
the world with around 3.5 million banking customers, or
around 50% of the city's population.
(SOURCE: RESEARCHANDMARKETS.COM)
CASE STUDY
Client: Hong Kong Arts Festival Society Limited
Agency: wwwins Consulting Hong Kong
Campaign:The 37th Hong Kong Arts Festival Search
Engine Marketing Campaign
Objective: To increase traffic to Hong Kong Arts Festival
website among the major search engines in Hong Kong in
order to increase the online ticket reservations.
Strategy: As the leader of the performing arts industry,
Hong Kong Arts Festival was poised to become one of
the pioneers in the industry to leverage paid search
campaigns to generate public awareness and maximise
ticket reservations during the advanced booking and
counter booking periods. It was carried out by running an
integrated media campaign using traditional offline media,
as well as online search engines. To help the client achieve
their goals, wwwins/iProspect designed a search engine
marketing campaign to drive targeted visitors to the HKAF
website.
Details: Before the start of the paid search campaign,
the client provided wwwins/iProspect with detailed offline
❚
❚
marketing materials, as well as a media schedule in order
to help develop an integrated SEM strategy. Keyword lists
and ad copies were developed based on the early bird
discounts and promotional materials provided by HKAF.
They were centred around four key themes: performing
arts, events, musical, and family choice. The campaign
budget was allocated according to the booking period and
synchronised with the offline marketing strategies. The
paid search campaign was launched on both Google Hong
Kong and Yahoo! Hong Kong to help generate awareness
and momentum prior to the advanced booking period.
After the conclusion of the pre-booking period, targeted
keywords and ad copies were written to individually
highlight the eight selected programmes. The second
phase of the paid search campaign aimed to generate
online ticket sales during the advanced booking period
and ticket office sales during the counter booking period.
Throughout the entire campaign, wwwins/iProspect
provided day-to-day bid management for each keyword to
ensure maximum return-on-investment.
Results: • Over 36,000 visits to the website in five
months.
• Over 1,400 bookings were confirmed within one month
and achieved a stunning 4,000% return on investment.
• As a result of keywords and ad copies optimisation, the
click-through-rate (CTR) increased by 380%, compared to
the initial campaign launch period.