Look East

Customer Media Congress, 17 November 2010

Characteristics of media consumption in Asia and what it means for custom content

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

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

The rise of the mass affluent across Asia

Disposable incomes US$5,000-15,000

2000

http://blog.euromonitor.com/2010/03/emerging-focus-rising-middle-class-in-emerging-markets.html

Low % of population in

emerging economies

with disposable income

Disposable incomes US$5,000-15,000

2010

http://blog.euromonitor.com/2010/03/emerging-focus-rising-middle-class-in-emerging-markets.html

% of disposable income

within middle class

increased in last 10

years

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

Magzines3.0 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 5.9hours

Radio 10.6 hours

Internet 20.8 hours

Top/Middle Management

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)

Digital natives in china

These people are

very comfortable

with digital

content

Older generations

may still like print

Internet penetration

http://www.internetworldstats.com/stats3.htm

Internet in Asia .

Top 10 countries

2009

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

Custom publishing in Asia

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

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 damagingSelling in custom

publishing as loyalty

medium is

challenging

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.

Diverging media

Custom Magazine

Newsletter

eNewsletter

eBook Program

White Paper Programs

Web Content Portal

Webcasts

Blogs

Social Communities

Custom

publishing has

become

fragmented

Spend online vs traditional

Source: Neo@Ogilvy

The digital

divide

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

Growing number of authors Indirect

competition has

grown

-INTERNAL

CONTENT

Converging

platforms

No matter what

the media, its all

going mobile

Penetration of 3g in South East Asia

Penetration of 3g in Singapore

Digital strategyNo matter what

the media, its all

going mobile

If everything is going digital, what are

the most influential online sources?

Linear influence model

Once upon a time

when it was

simple

Disrupted influence model

Influence can

come from

anywehere, any

time.

Asians are participating in social media

%population of

men and women

Portion of internet users who have published blogs,

web pages, articles, stories, videos, or audio / music on social platforms

Asians love

creating content

Influence of social media

Asians trust

social media

above traditional

What does social media

mean for custom

publishing?

Key industries influenced by social media% of those who

searched before

purchasing

Asians share brand messages online

Have forwarded

a link from an

online ad

Example of custom publishing

Banyan Tree

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.

Asians share brand messages online

http://www.banyantree.com/en/

No advertising.

Maximised

photography

budget.

Asians share brand messages online

http://www.banyantree.com/en/

Experiential

content

Example of custom publishingCaltex Supa Strikas

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.

Growing competition

Supa Strika

content is

available in

printed booklet,

video and

events.

This example in

Thailand, where

Redbull hold the

sponsorship

rights

Example of custom publishing

IKEA friends newsletter

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

Growing competition

http://www.ikea-friends.com/home/default.asp

Cover of

enewsletter

Growing competition

http://www.ikea-friends.com/home/default.asp

Retail, but

effective.

Products are

sold through

experiences and

ideas.

3 take awaysfrom this presentation

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.

If you do not change direction, you may end up where you are heading. Lao Tzu