mInteraction, WPP owned and part of GroupM Thailand, the nation’s largest digital agency in terms of billings and organization works alongside GroupM agencies (Maxus, MEC, MediaCom, Mindshare) to provide premium digital solutions under 180 digital specialists.
THAILAND DIGITAL PLAYBOOK 2014
TABLE OF CONTENTS 01
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Mobile data usage hits mass penetration • Unleashing new consumer behavior Empowerment through communication • Social news is new entrusted news The democratization of social media • The rise of new idols Transforming from a nobody to somebody Online video to reach critical mass • Digital + mobile screen The next big fad • Full advantage of new communication technology The world is smaller Performance marketing & optimization is a must • The Abdul era (The know it all world) A gateway to the mad mad world • Direct response campaign Remarketing with retargeting Digital turns ‘phygital’ • Fool-proof predictions Beyond the intelligence and indefinable • The Internet of things Smart devices and more • The You & Me generation Whatever we do is to show + share • The health-activist boomer Fitness and lifestyle tracking
Preface Moving forward - 2014 Digital perspective
Despite the plethora of new media choices, gadgets, and services transforming interaction between brands and the consumer, mInteraction sees the next 12 months, starting from the 2nd half of 2014 as the threshold year - from behind the typical traditional media, the onslaught of new media forms and moving ahead, digital engagement trends. Marketers have the edge to stand out and stay in touch with Thai consumers.
This year marked a special year. With the launch of digital television in Thailand, marketers were 3G/4G ready with the vastly evolutionized communication landscape following the rise of mobile and Internet television. As we ride out the digital boom for the remaining 2014, we explore the post-effects and reflect on 2013. It was an excellent year as online ad spending grew 53.1% whilst overall advertising increased 1.2% (Nielsen Media Research, 2013) and digital spending is expected to grow by approximately 6% (DAAT, 2013). There are 68.2 million Thais in the Kingdom with 92.7 million mobile (96%) and tablet users (4%) with 22 million smart phone users (Office of National Broadcasting and Telecommunication Commission).
Here are GroupM’s digital guidelines for brand advertisers in Thailand.
2012 - 2014 Digital Spending
5.863 4.248
1. Mobile data hits mass penetration 2. Online video to reach critical mass 3. Performance marketing and optimization is a must 4. Digital turns ‘phygital’
2.783
2012
2013
2014
Source: DAAT Report 2013-2014
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01 MOBILE DATA HITS MASS PENETRATION
Mobile is more than the new desktop and nears critical mass. Smartphones and tablets have effectively become the center and integrating components of consumers’ multiplatform lives. The rise of cheap smartphones with high mobile data usage, popularity of chat and social services as well as apps will make the next phone that much smarter. The mobile Internet is expanding to other usages and ‘Mobilization’ is not just taking place on the social network but on search, video, shopping, banking among other things as Thai consumers are becoming passionate about this device. The digital consumer will expect free flow of communication throughout free WiFi spots, responsive design for each mobile screen, and stability of services at affordable price points. 3
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Unleashing new consumer behavior Empowerment through communication The SMS era is a graveyard. The new year in 2013 officially marked the end of SMS greetings as they dramatically disappeared from the screen. In lieu of text messaging, free apps such as Whatsapp, LINE, and Facebook-chat are the spotted emerging trends. Rather than a traditional text message, consumers are now engaging in more full-fledged customizable and unique content.
This allows the developers to enhance their customizable and unique content.
LINE Users in Thailand
24
million users
Source: Line Thailand, March 2014
Developers can expand their products into the e-commerce arena with the likes of LINE Sticker, Games, or Pictures instead of being haunted by the past. This type of adaptive marketing is filling the overlooked niche for highly personalized and responsive brands that can create a new league of interaction with consumers. Recently, apps such as ‘BeeTalk’, a matchmaking tool for users are contributing to people’s lifestyles and the mobile Internet is improving the lives of Thai users. This ‘medium’ for mobile Internet is becoming an all-purpose tool - an elevated lifestyle.
Social news is new entrusted news The democratization of social media
The democratization of the social network and instant messaging is changing consumer’s time consumption methods. The proliferation of individual’s generated feeds, reports and opinions with all the massive buzz-worthy stories generated travel across the social landscape and induce immediate engagement within mere seconds. Case in point: the anti-YingLuck’s government protest and the great giraffe challenge, we know the drill. Such content creation and sharing ranges from photos, videos, and music. Influencers, celebrities, and branded products distributed throughout such social channels via owned and earned media are valuable assets for marketers. The mobilization of all Internet assets with the products, services, and technology are creating an integrated brand experience for consumers and improving their lives.
Percent of Web Users Visiting a Social Networking Site
93.9%
March 2013 Source: comScore, July 2013
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The rise of new idols Transforming from a nobody to somebody
The mobile Internet also gives consumers the tools and unlimited imagination.
567.7K
Facebook likes
78K
Talking about this
Other than Baitoey and Ying Lii, known for their unconventionally catchy music and dance moves, once the content went viral, many parodies and cover videos were made and posted digitally nationwide by fans. Also, it’s become the era for new net idols who are able to present themselves through the power of social media intentionally such as Jay the Rabbit, Fedfe, and VRZO. These net idols become more famous and garner fans. However, they are faced with competition with the real deal idol and stars, who jump into the digital arena such as Boy, Aum, Chompoo, and Dome. Marketers should take their content and integrate it into the product experience, in this case, more entertaining. Why not have net idols play a personal concert entwined into the product experience?
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02 ONLINE VIDEO TO REACH CRITICAL MASS
Video is the next frontier for advertisers and the growing popularity of online video is astounding. With the high demand for more quality variety of content along with better access, online video consumption will increase not only in terms of watching hours but also in terms of penetration. YouTube launched a localized site for Thailand in May and its partner program to encourage more Thai talent to join online and make it easier for Thai communities to find and fall in love with more native content. 11
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Digital + mobile screen The next big fad
In early April, Thailand was introduced to digital TV with more channels and content changing TV viewing habits of the Thai forever. Viewers have more channels and broadcasters are expected to produce quality and greater variety of content.
Thanks to the proliferation of 3G and 4G service, video advertising is expected to grow by 20-30% (Google Thailand, 2014). We see a shift towards premium (branded) content including YouTube or Internet TV in long form to support a variety of screen sizes with reponsive design. Wider mobile network coverage and higher Internet speeds means consumers can catch up with their favorites including Hormones, Club Friday the Series, and music videos as they look for quality content at its best.
112.55
YouTube milliion views
Among the multitude of video forms including pre-roll, mid-roll, and post-roll and increased lengthy full clips, series, webisodes, and mobisodes, reach opportunities and time spend is significant for paid video. YouTube Thailand will also broaden opportunities for local online video creators and copyright owners to earn ad revenues.
16.3 YouTube milliion views
13
3.4
YouTube million views
14
3.9
YouTube million subscribers
2.3
Full advantage of new communication technology The world is smaller 3G spirals into slow speed creating the one caveat for faster and transferable data to further satiate smartphone users. This year, leading mobile operation networks TrueMove H, AIS, and dtac began test-introducing 4G services within Bangkok trimming borders between consumers and whichever information based on their curiosity to embrace this trend or not. The six degrees of seperation in reality is out and being virtually connected with everyone means there are no barriers making the nation and the world go round bringing even strangers and friends together.
3. Faster and richer entertainment enabling HD multimedia services to deliver content satisfying consumer trends. 4. Premium content is the next big thing. Optimize visual content across screens. Recommendations for advertisers: Become data-centric and make budget allocations to mobile as these budget devices become the norm.
Presently all common Wifi devices are able to connect to the Internet via 4G with faster speeds and larger capacity with the following mainly: 1. Real-Time Video Interactive experience as communications will come with High Definition (HD) multimedia. 2. Telecommunications start incubators and turn into venture capitalists helping the local startup ecosystem get into shape globally.
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03 PERFORMANCE & MARKETING OPTIMIZATION IS A MUST The Internet is more than a communication platform but a marketing tool. Video is transforming awareness to action (real-time marketing) and analytics software is targeting where the audiences are (measurement marketing). Traditional media does not come with such powerful promise. Greater competition and the current economic situation will force marketers to be more sales-oriented and more efficient, together with the newer smarter ad products in the market. Performance marketing will be the answer. Seafood Aroy Delivery’s Facebook page is making waves by offering authentic Thai food delivery with the real deal seafood thanks to the sea of Bangkok’s motorcyle messengers (346.7.k likes since its inception last September and climbing).
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The Abdul era (The know it all world) A gateway to the mad mad world
Google & Wikipedia is referred to as the holy grail of information. We are in an entirely different era and the information and knowledge alone is accessible within just one click. As predicted and confessed, more than 75% of young Thai college students cite their most go-to entrusted source of information to be Google and Wikipedia out of convenience and has since become their standard (mInteraction Intelligence 2014). There are copious amounts of search engines and information sharing sites that can offer services in more ways than one and unlike any other experience offline to otherwise heavy textbooks and backpacks.
Searches per Searcher
Growth in Unique Searchers 9.5 MM
10 MM
143.3
119.7 122.1
120.8 97.3
91.1
83.9
+6%
March 2012
March 2013
ide
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rl Wo
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na
t Vie
es nd pore sia sia ne pin alay ga do ilip M n h I Sin P
ila
a Th
Source: comScore, July 2013
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Direct response campaign Remarketing with retargeting In tandem with advanced search engine optimization, when deciding to run a direct response campaign advertisers should ideally use retargeting as a means of driving more conversions.
What’s next? Retargeting on mobile is the next key focus with up to 25% of traffic and 10% of transactions already coming from mobile. By 2017, mobile is expected to drive 50% of transactions. Investing in mobile web and app is key (Komli, 2014). Ultimately, retargeting leads to more conversions by precisely tracking user behavior and marketers should strategize sales via online channels. Thailand is an attractive e-commerce market with the beauty, fashion, food, and SMEs sector rather than visitng physical stores. Real time orders, mobile shopping, and quick service restaurants (QSR) will save the day for consumers anytime and anywhere.
What is retargeting? Retargeting is a form of online advertising that can help you keep your brand in front of potential customers when they leave your website without converting. For most websites, only 2% of web traffic converts on the first visit. Retargeting is a tool designed to help companies reach the 98% of users who don’t convert right away.
Drop cookie on user machine
What are the benefits of retargeting?
User visit your website
Retargeting gives advertisers the opportunity to re-engage with those users again and create targeted ads. E.g. If you knew a user was about to buy a product and dropped off the shopping basket you would want to reach those users again perhaps with a 10% off discount message before they go to your competitors site and convert.
Leaves without converting
RE-TARGET TO CAPTURE USER INTEREST
User convert
This method of targeting is effective because it allows you to focus your advertising spend on visitors who are familiar with your brand and shown an intent to buy or convert. It is recommended for direct response campaigns especially for users to complete a transaction or an action successfully.
Show ad to cookied user when you see them online
Source: Xaxis, February 2014
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In just 21 days, one of Singapore’s renowned airlines aimed to target people with travel intent to Australia, as opposed to travel interest. Through using Xaxis Audience and Xaxis Response, additional inventory was included to the media plan.
Xaxis hoped to reach a wider audience within a short span of 3 weeks and boost sales of a renowned development corporation’s island membership card, with a clear objective of maximizing both target audience reach and ROI. They were also keen to see audience insights from the campaign and utilize these users for re-targeting in future campaigns with them. By using Xaxis Response, the addition of Xaxis inventory to the media plan lifted the performance of the campaign. It also provided large scale access to brand-safe inventory for maximum unduplicated reach, and drove conversions through re-targeting from their sign-up page. Facebook Exchange and re-targeting users from previous campaigns they have ran.
There was large scale access to brand-safe inventory for maximum reach. Xaxis also drove conversions through re-targeting from the landing page, as well as through audience segment targeting. Xaxis yieled the highest return on investment due to large scale “always on” reach, continuous optimization and by targeting the right audience segments.
The Xaxis campaign reached about 3,000,000 unique visitors at a low CPM. It also delivered 1,200 landing page arrivals and 113 conversions - the highest among channels.
To sum it up, Xaxis delivered 25% of total ticket sales and achieved the lowest cost per ticket on the media plan. Facebook Exchange accounted to half of Xaxis’ ticket sales. More impressively, Xaxis provided the best return on investment of 12,000% versus the campaign average of 6,300%.
What’s more, they drive consumers from the offline outlet to the Internet with product availability when searching online finding better deals, promotions, coupons, sales redemptions, product reviews, and influencers.
Marketers should focus on changing their advertising model with an eye on Data Management Platforms (DMPs) going from impressions to actionable results that correlate with actual sales. 23
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04 DIGITAL TURNS ‘PHYGITAL’
Pure digital campaigns could hardly attract consumers as there will be many real-life, on/off integrated, physical objects that will be a part of digital campaigns. Marketers should ladder up these opportunities, which paint a positive picture of the upcoming digital future. Real-time marketing is of utmost importance where technology and experience come together. Real life experiences are gaining more poularity as marketers realize the significance of more usage with new technology and bringing it to life in the form of ‘selfies’, location check-ins, and event happenings from the home and office to locations on the go making each an eventful experience. The first step is integrated marketing campaigns and how to integrate digital into the consumer journey. 25
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Fool-proof predictions Beyond the intelligence and indefinable Based on search-related results of consumer’s past usage and behavior on the web, this has spurred developers to invent fantastic applications that could predict the informative, elusive, and indefinable in the process such as a nearby recommended restaurant, the taxi trapper, and bus/train time predictors. Not only that, new pop cultural trends and terminology are being created online such as ‘meme’s and new words searched for on their own literally such as ‘Twerking’. We can witness brand campaigns inventing new catch-phrases quickly becoming viral phenomena.
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The Internet of things Smart devices and more
Disregard your carry-on heavy external drives or teensy thumb drives. The answer is new technology software such as iCloud, Fileapp or Dropbox, which are instantly becoming a necessity over convenience. With zero electric chords, any created deck, file or information can be called on through Internet waves no matter where you are as long as you are connected. The camera, iPad, music docks, all technology has infinite possibilities. That along with programmed sensors not only enable information sharing but track the location of lost items (remote controls), adjust room temperatures, and drive smart cars. Vint Cerf, the father of the Internet and chief evangelist at Google, has the world’s best wine cellar with a seriously cool thermometer.
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The You & Me generation Whatever we do is to show + share
We live in a self-created content safari. Other than being the second most popular Instagram check-in city after New York, being unique is in the gene of the Bangkokian. We can see the big infiltration of self-photo enhancing applications, turning a simple picture into stunning works of visual masterpieces through ‘Camera 360’, the ideal ‘Instagram’ filters, and ‘Photowonder’ or ‘Perfect 365’, which all capture the most beautiful photos. In addition, global trends from successful me-marketing campaigns can also be a good trial execution for the Thai market to borrow. Exhibition: Share a Coke and other ‘selfie’ marketing campaigns that attract the ‘me, me, me’ Millennial.
Percent Reach of Photos Category
Minutes Spent per Visitor on Photos Category
41.9%
Minutes Thailand Source: comScore, July 2013
Thailand Source: comScore, July 2013
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The health-activist boomer Fitness and lifestyle tracking Nobody can deny the signs from marathon events, ‘selfie’ pictures of muscular meatheads at the front of fitness mirrors, to groups of cyclists in midnight around town, or even a group of friends having good fun in a boxing room. It’s clear that health and fitness activities have become the big trend for Thais and an ideal validation to show off on their social networks. Other than ‘RunKeeper’, ‘Nike+Running’, ‘FitBit’ or ‘Fuelband’, we foresee the flurry of smart wearable gadgets to help monitor one’s sleep, track daily activities, observe food intakes, or even record your own bowel movements then afterwards translate those into shareable content (sharing is caring, right?).
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Fitness makers aka ‘braggies’ use their smartphones and tablets as ideal tools to show off their physical achievements. 34
Facing challenges of the digital age mInteraction dives into these trends outlining the shifts that define and shape the next 12 months. New forms of entertainment, narrative content and brand experiences are hot on the heels of marketers as evolved online media, TV, and mobile become all crucial. Expectations for faster and convenient experience are increasing exponentially. For Thailand, the mobile screen with the advent of 4G will become an integral channel for business, education, health care, finance, and more. Taking full advantage of new technology, trusting social news, relying on the information gateway and sure-fire predictions via smart devices, viewing Internet TV, net idols in the making, the unapologetic digital ‘braggies’ and ‘selfies’ - are a few trend drivers to name for the coming year. Brands need to become naturally adept, personalized, and rise to the challenge to be relevant to consumer’s devices, new user experiences, performance marketing, and measurement tools. The future never looked this good. For further information contact Hazel.Han@groupm.com Neil.Mavichak@groupm.com
mInteraction Ploenchit Centre, 1st Floor, 2 Sukhumvit Road, Klongtoey, Bangkok 10110, Thailand www.minteraction.com A WPP Company