1. Look East
Customer Media Congress, 17 November 2010
Characteristics of media consumption in Asia and what it means for custom content
2. What I‟d like to share with you
Some “fast facts” about the growth of the region
How media consumption habits are shaping the landscape for marketers
and communications companies in the Asia region
A brief overview of the state of the custom media industry and how the
industry is evolving
Thoughts and observations on custom content in the battle for loyalty in a
rapidly changing landscape
3. About the presenter
Co-founder and CEO of Novus Media Solutions , a Singapore-based custom
content and communications company set up at the end of 2009 with the
aim of delivering great content solutions across all channels
19 years in Asia – Hong Kong and Singapore – working as COO of the
Economist Group and then MD of Reader’s Digest Asia
Started career in PR and marketing for high tech industry in UK and France
7. Consumption increasing across Asia‟s emerging markets
In 2010, China, India, Vietnam and Egypt will see
the highest annual increase in per capita
consumer expenditure in the EMEs in real terms
rising by 8.6%, 7.1%, 5.7% and 5.5%
respectively;
The new middle class is keen to consume.
Vietnam's, India's and Philippines' consumer
markets are fuelled by young professionals who
spend on electronic goods, communications and
transportation
But there is no such thing as “the Asian
consumer” !
http://www.economist.com/node/13900125?story_id=13900125
8. Magzines
3.0 hours
TV 16.9 hours
Newspapers 4.2
hours
Radio 10.5
hours
Internet 18.5
hours
Aged 25-35
Media Consumption across Asia
http://advertising.microsoft.com/asia/SupportCenter/ResearchLibrary.as
px?pageid=2588&Adv_ResearchReportID=597
Top/middle management
show high engagement
of internet.
15 hours a week on the
Internet VS leading position
of TV (18 hours).
Magzines
3.7 hours
TV 15.2 hours
Newspapers 5.9
hours
Radio 10.6
hours
Internet 20.8
hours
Top/Middle Management
9. Asian consumers‟ digital diet
Activities
Asians
can‟t live
without 75%
49%
4%
21%
52%
66%
26%
26%
43%
51%
11%
44%
6%
42%
13%
48%
Using instant messenger
Usingweb-based email
Contributing to a social networking website
Watching TV
China (a) India (b) Singapore (c ) Japan (d)
10. Digital natives in china
These people are
very comfortable
with digital
content
Older generations
may still like print
12. Internet penetration in Asia vs. rest of world
http://www.internetworldstats.com/stats3.htm
Internet in Asia .
Top 10 countries
2009
Pop.
(2010 est.)
% Pop.
of World
Internet users,
latest data
Penetration
(% Pop.)
User Growth
( 2000-2010 )
Users %
of World
Asia Only 3,834,792,852 56.0 % 825,094,396 21.5 % 621.8 % 42.0 %
Rest of the
World
3,010,817,108 44.0 % 1,141,420,420 37.9 % 362.7 % 58.0 %
WORLD
TOTAL
6,845,609,960 100.0 % 1,966,514,816 28.7 % 444.8 % 100.0 %
42.2%
57.6%
Asia, 42.4%
Rest of the World
57.6%
No. of internet
users
14. Defining the industry
No industry body in any Asian market
No formal data
Publishers and agencies offer content and to varying degrees the
platforms
More established companies grew out of the in-flight market
New entrants through start-ups and international expansion
Increasing demand for custom content – everything from
magazines thru’ to video, digital and mobile but no “hard” data
Difficult to find case studies documented
15. Revenue vs loyalty
One of the greatest challenges for the
industry is that there is a still a
significant number of clients in Asia
that regard custom publishing as a
magazine which exists to raise
revenue.
Minimum guarantees can be
onerous and damaging
Selling in custom
publishing as loyalty
medium is
challenging
16. Postal reach
One of the major barriers in launching
custom publishing in Asia has been
incomplete data and very limited
databases, as well as challenges with
postal services to reach readers.
Online and
mobile provide
opportunities to
circumvent this
problem.
18. Spend online vs traditional
Source: Neo@Ogilvy
The digital
divide
19. Cost of digital publishing
Online gives marketers reach to an
enormous Asian audience, but won‟t
necessarily be cheaper to deliver.
Clients still need to invest in the
technologies and quality content
Budget spend needs to
cover different formats
and platforms
20. Growing number of authors Indirect
competition has
grown
-INTERNAL
CONTENT
29. Portion of internet users who have published blogs,
web pages, articles, stories, videos, or audio / music on social platforms
Asians love
creating content
35. Custom publishing
Very niche – which works well for custom content.
Small, exclusive, high quality villas
Target experiences that Sheraton and Shangri-La groups could not
provide.
Created a loyal customer base – exposed their differentiation
through custom content.
39. Custom publishing
Very successful sponsorship deal for Caltex
Caltex created a custom content comic book (free + no ads)
Available only at Caltex service stations
Kids „pester power‟ drove parents to garages to pick up the freebie
While parents are there they refuel with Caltex pumps.
40. Growing competition
Supa Strika
content is
available in
printed booklet,
video and
events.
This example in
Thailand, where
Redbull hold the
sponsorship
rights
42. Growing competition
IKEA globally prides itself on its instore experience and
comprehensive catalogue.
Communications are generically rolled out across all
markets.
In Singapore however, IKEA introduced a loyalty component
called Friends.
http://www.ikea-friends.com/home/default.asp
46. The opportunities are significant for both brands and custom media but
there are challenges for both marketers and content companies alike.
Rising consumption and the development of the mass affluent
segment offers opportunity for brands but this is juxtaposed by limited
brand loyalty
Traditionally lower levels of trust for anything that is perceived as
advertising means that understanding and leveraging social media is
key to success as part of the overall channel mix. No-one necessarily
has all the answers – brands and publishers alike are learning
Clients still need to be “educated” on the need to see quality content
as key to more effective communications. It‟s getting both the
channels and the content right that will deliver the winning formulas
for both brands and the custom media business.
47. If you do not change direction, you may end up where you are heading.
Lao Tzu
