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ADVERTISING DEVELOPMENT<br />
IN MALAYSIA<br />
ISSN 1985 – 0522<br />
Catch<strong>in</strong>g Eyeballs In Chang<strong>in</strong>g Media<br />
Mobile Advertis<strong>in</strong>g<br />
Global Advertis<strong>in</strong>g<br />
Global Advertis<strong>in</strong>g Market and Trends<br />
Regional Advertis<strong>in</strong>g<br />
Global Advertis<strong>in</strong>g<br />
Broadcast<strong>in</strong>g Broadcast<strong>in</strong>g<br />
Broadcast<strong>in</strong>g<br />
Mobile Advertis<strong>in</strong>g<br />
Ads as Bus<strong>in</strong>ess<br />
Measur<strong>in</strong>g Advertis<strong>in</strong>g<br />
Network Environment<br />
Television Media<br />
Global Advertis<strong>in</strong>g<br />
Mobile Advertis<strong>in</strong>g<br />
Global Advertis<strong>in</strong>g<br />
Digital Media<br />
Agency Relationships<br />
Advertis<strong>in</strong>g Effectiveness<br />
Global Advertis<strong>in</strong>g<br />
Global Advertis<strong>in</strong>g<br />
Advertis<strong>in</strong>g Opportunities<br />
Global Advertis<strong>in</strong>g<br />
Advertis<strong>in</strong>g Market<br />
Global Advertis<strong>in</strong>g<br />
Global Advertis<strong>in</strong>g<br />
Digital Media<br />
Broadcast<strong>in</strong>g<br />
Ads as Bus<strong>in</strong>ess<br />
Digital Media<br />
Ads on Vehicles<br />
Ads as Bus<strong>in</strong>ess<br />
Global Advertis<strong>in</strong>g<br />
Global Advertis<strong>in</strong>g<br />
Digital Media<br />
Onl<strong>in</strong>e Advertis<strong>in</strong>g<br />
Mobile Advertis<strong>in</strong>g<br />
Broadcast<strong>in</strong>g<br />
Global Advertis<strong>in</strong>g Agency Relationships<br />
Suruhanjaya Komunikasi dan Multimedia Malaysia<br />
<strong>Malaysian</strong> <strong>Communications</strong> and Multimedia Commission
<strong>Malaysian</strong> <strong>Communications</strong> and Multimedia Commission (SKMM), 2009<br />
The <strong>in</strong>formation or material <strong>in</strong> this publication is protected under copyright and save<br />
where otherwise stated, may be reproduced for non commercial use provided it is reproduced<br />
accurately and not used <strong>in</strong> a mislead<strong>in</strong>g context. Where any material is reproduced,<br />
SKMM as the source of the material must be identified and the copyright status acknowledged.<br />
The permission to reproduce does not extend to any <strong>in</strong>formation or material the copyright of<br />
which belongs to any other person, organisation or third party. Authorisation or permission to<br />
reproduce such <strong>in</strong>formation or material must be obta<strong>in</strong>ed from the copyright holders concerned.<br />
This work is based on sources believed to be reliable, but SKMM does not warrant the<br />
accuracy or completeness of any <strong>in</strong>formation for any purpose and cannot accept<br />
responsibility for any error or omission.<br />
Published by:<br />
<strong>Malaysian</strong> <strong>Communications</strong> and Multimedia Commission<br />
Off Persiaran Multimedia<br />
63000 Cyberjaya, Selangor Darul Ehsan<br />
T: +60 3 86 88 80 00 F: +60 3 86 88 10 06<br />
Toll Free: 1- 800-888-030<br />
W: www.skmm.gov.my
Co n t e n t s<br />
Foreword 2<br />
Executive Summary 3<br />
Global Advertis<strong>in</strong>g Landscape: Market and Trends 5<br />
Regional Advertis<strong>in</strong>g Trends 7<br />
Traditional Media Transformation 8<br />
Chang<strong>in</strong>g Advertis<strong>in</strong>g-Agency Relationships 8<br />
S<strong>in</strong>k or Swim – In Sync with Chang<strong>in</strong>g Times 9<br />
Brands <strong>in</strong> Digital Media 11<br />
Ads <strong>in</strong> New Media – US Examples 12<br />
Introduction 12<br />
Broadcast<strong>in</strong>g 12<br />
Digital TV 12<br />
Films 12<br />
Onl<strong>in</strong>e Advertis<strong>in</strong>g 13<br />
Onl<strong>in</strong>e Debates – Go<strong>in</strong>g Green 14<br />
Onl<strong>in</strong>e Media Cross<strong>in</strong>g Sectors 14<br />
Wireless/Wired 16<br />
Social Network Environment 16<br />
Mobile 18<br />
Mobile Advertis<strong>in</strong>g 19<br />
Emergent New Media Advertis<strong>in</strong>g 23<br />
Digital Signage 23<br />
Floor Graphics 25<br />
Ads <strong>in</strong> Light Emitt<strong>in</strong>g Capacitor (LEC) 25<br />
Next Generation of Advertisements 26<br />
AdPod 26<br />
Creative Ads as Bus<strong>in</strong>ess 26<br />
Measur<strong>in</strong>g Advertis<strong>in</strong>g Effectiveness 27<br />
Advertis<strong>in</strong>g Market <strong>in</strong> Malaysia 29<br />
Malaysia Adex Trends 29<br />
The Emerg<strong>in</strong>g Media <strong>in</strong> Malaysia 30<br />
Introduction to Digital Advertis<strong>in</strong>g Opportunities 30<br />
New Types of Media Advertis<strong>in</strong>g 31<br />
Onl<strong>in</strong>e Behaviour <strong>in</strong> Malaysia 31<br />
Social Network Scenario <strong>in</strong> Malaysia 33<br />
<strong>Malaysian</strong> Mobile Ads 35<br />
Digital Signage 35<br />
Floor Graphics 37<br />
Table Talk 39<br />
Ads on Vehicles 41<br />
Out of Home Television Media 41<br />
Brand<strong>in</strong>g 42<br />
Industry Bodies 43<br />
Conclusion 44<br />
Acronyms 45<br />
1
2<br />
Fo r e w o r d<br />
The <strong>Malaysian</strong> <strong>Communications</strong> and Multimedia Commission (SKMM) publishes a<br />
number of topical reports planned for the year of 2008 and it is my great pleasure<br />
to present to you the report on Advertis<strong>in</strong>g Development <strong>in</strong> Malaysia – Catch<strong>in</strong>g<br />
Eyeballs <strong>in</strong> Chang<strong>in</strong>g Media.<br />
The report features the <strong>market</strong> and trends <strong>in</strong> global and regional <strong>advertis<strong>in</strong>g</strong> spend<br />
and trends, <strong>in</strong>clud<strong>in</strong>g comparisons with selected developed countries, ASEAN and<br />
Asia Pacific countries. There is <strong>advertis<strong>in</strong>g</strong> spend highlights on growth; its global<br />
share and <strong>in</strong>vestment; a comparison of revenue streams today and forecasts;<br />
plus a look at the <strong>market</strong> players, <strong>market</strong> size and <strong>market</strong> share <strong>in</strong> the <strong>advertis<strong>in</strong>g</strong><br />
<strong>in</strong>dustry.<br />
A discussion on digital media <strong>advertis<strong>in</strong>g</strong> is highlighted; relat<strong>in</strong>g the new trend of<br />
digital <strong>advertis<strong>in</strong>g</strong> <strong>in</strong> digital TV, films, video game and onl<strong>in</strong>e video. Also discussed<br />
are the Internet and other emergent new media that extends traditional medium<br />
<strong>advertis<strong>in</strong>g</strong> such as digital signage. There is emphasis to review or change exist<strong>in</strong>g<br />
bus<strong>in</strong>ess models to suit <strong>market</strong> demand; and the importance of measur<strong>in</strong>g<br />
advertisements effectiveness. Furthermore, the report also highlights <strong>advertis<strong>in</strong>g</strong><br />
<strong>in</strong> social network environment, digital <strong>advertis<strong>in</strong>g</strong> opportunities, brand<strong>in</strong>g and the<br />
role of <strong>in</strong>dustry bodies <strong>in</strong> the <strong>Malaysian</strong> and global <strong>market</strong>.<br />
The analysis <strong>in</strong> the report is based on various <strong>in</strong>formation sources – from <strong>in</strong>ternal<br />
<strong>in</strong>formation provided by SKMM, to external data obta<strong>in</strong>ed from <strong>in</strong>dustry research<br />
report, database sources, newswires, economic reports and company reports.<br />
A soft copy of this report can be obta<strong>in</strong>ed from the SKMM website at:<br />
http://www.skmm.gov.my/what_we_do/Research/<strong>in</strong>dustry_studies.asp<br />
I trust this report will provide useful <strong>in</strong>formation to readers and <strong>in</strong>deed can serve<br />
as a catalyst to constructive bus<strong>in</strong>ess ideas and perspectives that can propel the<br />
communications and multimedia <strong>in</strong>dustry development.<br />
SKMM welcomes any comments and feedback that will help us improve this report<br />
<strong>in</strong> the future. Please send your comments to webmaster@skmm.gov.my<br />
Thank you.<br />
Datuk Dr. Halim Shafie<br />
Chairman<br />
<strong>Malaysian</strong> <strong>Communications</strong> and Multimedia Commission (SKMM)
ex e C u t i v e su m m a r y<br />
The <strong>advertis<strong>in</strong>g</strong> <strong>in</strong>dustry today is show<strong>in</strong>g a change <strong>in</strong> the traditional media to <strong>in</strong>clude the digital<br />
media <strong>in</strong> order to reach audience more effectively. The <strong>in</strong>teractive media of Internet, mobile and<br />
gam<strong>in</strong>g as well as <strong>in</strong>creased use and availability of improved handsets, less expensive laptops,<br />
faster broadband, and extensive Wireless Fidelity (Wi-Fi) connections, provide support for<br />
expectations of further growth <strong>in</strong> global digital <strong>advertis<strong>in</strong>g</strong>. This type of <strong>advertis<strong>in</strong>g</strong> share of the<br />
total <strong>advertis<strong>in</strong>g</strong> spend is expected to rise from 6% <strong>in</strong> 2005 to 15% <strong>in</strong> 2009.<br />
Although the global economy is fac<strong>in</strong>g <strong>in</strong>creased economic pressures, analysts forecast that global<br />
<strong>advertis<strong>in</strong>g</strong> spend is to grow 6.7% <strong>in</strong> 2008 from 5.3% <strong>in</strong> 2007. The Asia Pacific region is expected<br />
to post <strong>advertis<strong>in</strong>g</strong> spend growth of almost 10%. Meanwhile, the first quarter of 2008 showed<br />
global <strong>advertis<strong>in</strong>g</strong> spend grew over 4% with ma<strong>in</strong> contributors com<strong>in</strong>g from the television medium<br />
– represent<strong>in</strong>g 60% of the global <strong>advertis<strong>in</strong>g</strong> <strong>market</strong> share.<br />
The chang<strong>in</strong>g <strong>advertis<strong>in</strong>g</strong>-agency relationship sees the <strong>advertis<strong>in</strong>g</strong> process today evolv<strong>in</strong>g from<br />
exist<strong>in</strong>g models of plann<strong>in</strong>g and negotiat<strong>in</strong>g purchase of media space to meet<strong>in</strong>g the clients’ or<br />
advertisers’ communication needs. This is by provid<strong>in</strong>g clients with <strong>in</strong>sights on brand, consumer<br />
media and <strong>in</strong>tegrated solutions and strategies to engage consumers. Advertis<strong>in</strong>g agencies are<br />
required to explore and deepen creative content to be <strong>in</strong> sync with consumers’ targeted lifestyle<br />
and communicat<strong>in</strong>g these across multiple platforms and formats. A study <strong>in</strong>dicated that the<br />
<strong>advertis<strong>in</strong>g</strong> value cha<strong>in</strong> is expected to enter a new phase that will benefit consumers, advertisers<br />
and <strong>in</strong>teractive players. Digital <strong>advertis<strong>in</strong>g</strong> allows changes <strong>in</strong> the relationship between advertisers<br />
and customer from traditional one-way broadcast to <strong>in</strong>teractive media formats. Consequently,<br />
share of <strong>advertis<strong>in</strong>g</strong> spend is expected to see traditional media slowly lose out <strong>in</strong> many ways<br />
from audience reach to revenue opportunities as advertisers shift <strong>advertis<strong>in</strong>g</strong> spend to <strong>in</strong>teractive<br />
<strong>market</strong><strong>in</strong>g opportunities onl<strong>in</strong>e and across platforms offer<strong>in</strong>g mobility. A study by Taylor Nelson<br />
Sofres (TNS) po<strong>in</strong>ts out the different Asian <strong>market</strong>s and different digital channels have markedly<br />
different levels of credibility towards digital channels. Malaysia marked higher level of trust <strong>in</strong><br />
digital advertisement, compared to S<strong>in</strong>gapore and Hong Kong.<br />
The new media environment is able to offer sophisticated measurement and consumer-target<strong>in</strong>g<br />
capabilities to reach the exact consumer segments desired. Examples from the US <strong>market</strong> for<br />
advertisements <strong>in</strong> the new media, <strong>in</strong>dicate the potential for onl<strong>in</strong>e TV with TV content watched<br />
daily switch<strong>in</strong>g to time-shifted, on-demand, on the Web or on a mobile device. This could reap<br />
enhanced returns for advertisers. eMarketer estimates that by the end of 2009, more than twothirds<br />
of the US population or 200 million people go onl<strong>in</strong>e, directly open<strong>in</strong>g avenues for <strong>market</strong>ers.<br />
Onl<strong>in</strong>e <strong>advertis<strong>in</strong>g</strong> <strong>in</strong> formats such as search <strong>advertis<strong>in</strong>g</strong>, display <strong>advertis<strong>in</strong>g</strong>, video <strong>advertis<strong>in</strong>g</strong>,<br />
classified <strong>advertis<strong>in</strong>g</strong>, e-mail <strong>market</strong><strong>in</strong>g, affiliate <strong>market</strong><strong>in</strong>g, mobile Internet <strong>advertis<strong>in</strong>g</strong> and<br />
<strong>advertis<strong>in</strong>g</strong> on social networks is expected to be a key factor driv<strong>in</strong>g onl<strong>in</strong>e <strong>advertis<strong>in</strong>g</strong>. Onl<strong>in</strong>e<br />
media advertisements are also expected <strong>in</strong> ga<strong>in</strong> traction <strong>in</strong> the automotive <strong>in</strong>dustry, campaigns<br />
such as for US elections, video game, sport sites and news onl<strong>in</strong>e.<br />
3
4<br />
ex e C u t i v e su m m a r y<br />
In the social media websites such as blogg<strong>in</strong>g, <strong>in</strong>stant messag<strong>in</strong>g and social network<strong>in</strong>g,<br />
advertisers are target<strong>in</strong>g to sell products and services to a new generation of young viewers who is<br />
passionate, enjoys <strong>in</strong>teract<strong>in</strong>g, who connects and shares with each other. Accord<strong>in</strong>g to comScore,<br />
as at June 2008, social network<strong>in</strong>g worldwide grew 25% s<strong>in</strong>ce June 2007. The phenomenon of<br />
social network<strong>in</strong>g is grow<strong>in</strong>g rapidly <strong>in</strong> Asia Pacific with 23% growth, while <strong>in</strong> North America<br />
(up 9%), it is beg<strong>in</strong>n<strong>in</strong>g to reach maturity. Bus<strong>in</strong>ess-to-Bus<strong>in</strong>ess (B2B) <strong>market</strong>ers and web widgets<br />
and applications have made social network<strong>in</strong>g sites <strong>in</strong>creas<strong>in</strong>gly popular.<br />
A recent study <strong>in</strong>dicates that 60% of mobile Internet users are more likely to be open to mobile<br />
<strong>advertis<strong>in</strong>g</strong> than the average mobile data users. Mobile <strong>advertis<strong>in</strong>g</strong> comes <strong>in</strong> various formats<br />
such as banner <strong>advertis<strong>in</strong>g</strong>, sponsored <strong>advertis<strong>in</strong>g</strong>, location-based <strong>advertis<strong>in</strong>g</strong> and idle screen<br />
<strong>advertis<strong>in</strong>g</strong>. Growth for mobile <strong>advertis<strong>in</strong>g</strong> spend will come when there are more <strong>in</strong>vestments of<br />
money, time, talent and negotiation among brands, agencies, mobile carriers and mobile service<br />
providers <strong>in</strong> the <strong>market</strong>. Mobile content categories <strong>in</strong>clude mobile video and TV, gam<strong>in</strong>g, mobile<br />
music, search and mobile social network which can create better opportunity for advertisers to<br />
<strong>in</strong>teract with consumers.<br />
Digital signage, floor graphics and Light Emitt<strong>in</strong>g Capacitor (LEC) advertisement are a few of<br />
the emergent new media <strong>advertis<strong>in</strong>g</strong>. These essentially are derived from traditional formats of<br />
<strong>advertis<strong>in</strong>g</strong>, but us<strong>in</strong>g the latest technology and creative <strong>in</strong>novation. Also creat<strong>in</strong>g enhanced<br />
impact all around is the next generation of advertisements rang<strong>in</strong>g from Three Dimensional (3D)<br />
<strong>advertis<strong>in</strong>g</strong> pod that projects 3D images <strong>in</strong>to free space to advertisements specialists who go<br />
beyond communicat<strong>in</strong>g advertisements to generate ideas <strong>in</strong> bus<strong>in</strong>ess ad formats; entic<strong>in</strong>g audience<br />
<strong>in</strong> unique ways. Meanwhile, the track<strong>in</strong>g and measur<strong>in</strong>g of advertisements effectiveness <strong>in</strong> the<br />
new media are expected to be more targeted. A set of standard measurements us<strong>in</strong>g <strong>in</strong>puts from<br />
<strong>advertis<strong>in</strong>g</strong> agencies and wireless carriers worldwide is be<strong>in</strong>g planned by a collaborative work<strong>in</strong>g<br />
group for mobile <strong>advertis<strong>in</strong>g</strong> by the end of 2008.<br />
Total <strong>advertis<strong>in</strong>g</strong> spend <strong>in</strong> Malaysia rose 22% <strong>in</strong> the first half of 2008 amounted to RM2.9 billion<br />
from the same period <strong>in</strong> 2007. Advertisements spent on the Internet medium <strong>in</strong> the first half of<br />
2008 was worth RM14.9 million. Traditional medium still drives the bulk of <strong>advertis<strong>in</strong>g</strong> spend <strong>in</strong><br />
Malaysia. Newspapers have the largest portion with total amount of <strong>advertis<strong>in</strong>g</strong> spend reach<strong>in</strong>g<br />
RM1.6 billion, a growth of 16% from the first half of 2007. The Advertis<strong>in</strong>g Standards Authority<br />
(ASA) Malaysia believes that, <strong>advertis<strong>in</strong>g</strong> spend can reach RM6 billion or 11% growth from RM5.4<br />
billion <strong>in</strong> 2007. This growth is expected to come from outdoor media and digital <strong>advertis<strong>in</strong>g</strong> and<br />
the grow<strong>in</strong>g potential <strong>in</strong> TV and creative production.<br />
Digital <strong>advertis<strong>in</strong>g</strong> opportunities have transformed traditional media such as newspapers,<br />
magaz<strong>in</strong>es, TV and radio to take content to the onl<strong>in</strong>e channel. A study noted that 61% of the<br />
<strong>Malaysian</strong> Internet users have more than five years experience onl<strong>in</strong>e. Also, Friendster is the<br />
number one social network website <strong>in</strong> Malaysia, four times bigger than Facebook and MySpace<br />
(as at May 2008). Although still nascent, total mobile <strong>advertis<strong>in</strong>g</strong> revenues <strong>in</strong> Malaysia are forecast<br />
to rise from RM10.4 million <strong>in</strong> 2008 to RM175.5 million by 2012. Digital signage, floor graphics,<br />
table talk <strong>advertis<strong>in</strong>g</strong>, mov<strong>in</strong>g ads and out-of-home TV media are seen as grow<strong>in</strong>g new <strong>advertis<strong>in</strong>g</strong><br />
platforms <strong>in</strong> Malaysia. In brand<strong>in</strong>g, Maybank was voted the number one brand <strong>in</strong> Malaysia for the<br />
year 2007, while Coca-Cola was voted world’s most valuable brand <strong>in</strong> 2007.
Gl o b a l advertis<strong>in</strong>G la n d s C a p e:<br />
ma r k e t a n d tr e n d s<br />
The goal of any <strong>advertis<strong>in</strong>g</strong> is ultimately to <strong>in</strong>itiate action for monetary return. To maximise<br />
impact and audience reach, therefore, advertisements are tuned to be relevant to the customers.<br />
Given advanc<strong>in</strong>g technology, shifts <strong>in</strong> consumer consumption patterns and lifestyle, the platforms<br />
for communications are apparently becom<strong>in</strong>g more complex. Hence, today’s <strong>market</strong>s illustrate<br />
<strong>advertis<strong>in</strong>g</strong> to be radically different from that of past years, where new means and ways coupled<br />
with <strong>in</strong>novative ideas have not only transformed traditional media <strong>advertis<strong>in</strong>g</strong>, but have also<br />
transcended to the new media, to ga<strong>in</strong> better reach of the audience.<br />
Total<br />
Ch<strong>in</strong>a<br />
Japan<br />
India<br />
Asia Pacific<br />
Russia<br />
Emerg<strong>in</strong>g Europe<br />
UK<br />
Sweden<br />
Denmark<br />
Western Europe<br />
Lat<strong>in</strong> America<br />
US<br />
North America<br />
Interactive Media Share of Measured Advertis<strong>in</strong>g Investment<br />
3%<br />
2%<br />
1%<br />
1%<br />
0.5%<br />
6%<br />
8%<br />
11%<br />
10%<br />
6%<br />
7%<br />
9%<br />
0 5 10 15 20 25 30 35<br />
Digital % of Total Ad Investment<br />
(f): forecast (e): estimate<br />
Base: 35 Countries<br />
Source: “Digital Media on the Rise Globally” by GroupM, June 2008<br />
4%<br />
6%<br />
7%<br />
5%<br />
7%<br />
5%<br />
6%<br />
3%<br />
2%<br />
7%<br />
4%<br />
6%<br />
3%<br />
2%<br />
4%<br />
3%<br />
6%<br />
6%<br />
8%<br />
8%<br />
8%<br />
Today, the global <strong>advertis<strong>in</strong>g</strong> foray is evolv<strong>in</strong>g from the traditional communications of advertisements<br />
to digitally led content advertisements. The <strong>in</strong>dustry is see<strong>in</strong>g new growth that extends beyond<br />
traditional revenue streams. This is <strong>in</strong> regards to the <strong>in</strong>clusion of the onl<strong>in</strong>e medium of the Internet<br />
or new media, which is tak<strong>in</strong>g content to mass audiences us<strong>in</strong>g digital media communications<br />
channels and devices. Industry observers predict that by year 2010, the Internet will become the<br />
world’s third-largest <strong>advertis<strong>in</strong>g</strong> medium, overtak<strong>in</strong>g most of the other media1 .<br />
Given the <strong>in</strong>teractive media of Internet, mobile, and gam<strong>in</strong>g as well as by the <strong>in</strong>creased use<br />
and availability of improved handsets, <strong>in</strong>expensive laptops, faster broadband, and extensive Wi-Fi<br />
connections, global digital <strong>advertis<strong>in</strong>g</strong> share of total advertisement <strong>in</strong>vestment is expected to rise<br />
from 6% <strong>in</strong> 2005 to 15% <strong>in</strong> 20092 .<br />
1 “Global Ad Market to Accelerate <strong>in</strong> 2008 Despite Credit Squeeze” by ZenithOptimedia, December 2007<br />
2 “Digital Media On The Rise Globally” by GroupM, June 2008<br />
9%<br />
9%<br />
9%<br />
10%<br />
10%<br />
10%<br />
10%<br />
11%<br />
12%<br />
12%<br />
12%<br />
12%<br />
13%<br />
13%<br />
13%<br />
13%<br />
14%<br />
14%<br />
15%<br />
15%<br />
15%<br />
16%<br />
16%<br />
16%<br />
17%<br />
17%<br />
18%<br />
18%<br />
20%<br />
20%<br />
23%<br />
24%<br />
25%<br />
30%<br />
2009 (f)<br />
2008 (e)<br />
2007<br />
2006<br />
2005<br />
5
6<br />
Gl o b a l advertis<strong>in</strong>G la n d s C a p e:<br />
ma r k e t a n d tr e n d s<br />
As consumers shift to view content on new<br />
media screens such as mobile devices,<br />
digital television and radio, and laptops,<br />
strategies to gradually change <strong>market</strong><strong>in</strong>g<br />
and <strong>advertis<strong>in</strong>g</strong> bus<strong>in</strong>ess models to sync with<br />
chang<strong>in</strong>g communications services landscape<br />
and accompany<strong>in</strong>g consumer behaviour<br />
patterns are viewed as critical for advertisers<br />
to optimise their return on <strong>in</strong>vestments.<br />
Research by Alcatel-Lucent predicts that, total<br />
<strong>in</strong>vestments <strong>in</strong> global <strong>advertis<strong>in</strong>g</strong> will roughly<br />
grow at 33% from USD600 billion a year<br />
<strong>in</strong> 2007 to USD800 billion a year <strong>in</strong> 2011 3 ,<br />
com<strong>in</strong>g a long way as compared to USD400<br />
billion range <strong>in</strong> the period between 2000 and<br />
2004.<br />
(e): estimate<br />
Source: Datamonitor<br />
Although the global economy is fac<strong>in</strong>g <strong>in</strong>creased economic pressures, ZenithOptimedia has forecasted<br />
global <strong>advertis<strong>in</strong>g</strong> spend to grow 6.7% <strong>in</strong>2008 from 5.3% <strong>in</strong> 2007. Also, <strong>in</strong>dicat<strong>in</strong>g positive trend<br />
<strong>in</strong> <strong>advertis<strong>in</strong>g</strong> is The Nielsen Company’s Global AdView Pulse report, show<strong>in</strong>g global <strong>advertis<strong>in</strong>g</strong><br />
growth at over 4% <strong>in</strong> the first quarter of 2008. Further growth is expected, cit<strong>in</strong>g events such as the<br />
Olympic Games, US elections and European Football Cup. While post-Olympics <strong>advertis<strong>in</strong>g</strong> spend<br />
are not yet available, estimates are that each of the top 12 sponsors of the 2008 Beij<strong>in</strong>g Olympics<br />
has spent about USD70 million to have their brand associated with this global event 4 .<br />
On a global basis, the four major media compris<strong>in</strong>g television, newspapers, magaz<strong>in</strong>es and radio<br />
are the ma<strong>in</strong> contributors to the first quarter growth <strong>in</strong> 2008. Out of this, television is the highest<br />
revenue media for <strong>advertis<strong>in</strong>g</strong> spend, record<strong>in</strong>g a growth rate of 6.9% globally from the first<br />
quarter <strong>in</strong> 2007 and represent<strong>in</strong>g 60% of the global <strong>advertis<strong>in</strong>g</strong> <strong>market</strong> share. Newspapers and<br />
radio recorded 0.4% and 1.1% growth represent<strong>in</strong>g 12% and 4% of global <strong>advertis<strong>in</strong>g</strong> spend<br />
respectively. Magaz<strong>in</strong>es, however, have posted a slight decl<strong>in</strong>e (-0.9%) so far.<br />
Television<br />
60%<br />
Share Global Advertis<strong>in</strong>g<br />
1Q 2008<br />
Radio<br />
4%<br />
Magaz<strong>in</strong>es<br />
12%<br />
Newspapers<br />
24%<br />
Source: “First Quarter Global Advertis<strong>in</strong>g Up 4% from 2007” by<br />
The Nielsen Company, July 2008<br />
USD (billion)<br />
Source: “First Quarter Global Advertis<strong>in</strong>g Up 4% from 2007” by The<br />
Nielsen Company, July 2008<br />
3 “Break<strong>in</strong>g the Rules: F<strong>in</strong>d<strong>in</strong>g New AVPU through Click-Throughs” by Enrich<strong>in</strong>g <strong>Communications</strong>, Volume 2, Issue 2, 2008<br />
4 “Beij<strong>in</strong>g Olympics Sponsors Br<strong>in</strong>g Home Gold Both Brand Attitude and Brand Recommendation Score Higher for Sponsors Though Spons”<br />
http://shusai.com/article.cfm/id/367852, September 2008<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
8<br />
6<br />
4<br />
2<br />
-0<br />
-2<br />
Global Advertis<strong>in</strong>g Market Value<br />
430.8<br />
413.0<br />
419.2<br />
436.3<br />
460.2<br />
483.6<br />
509.2<br />
536.5<br />
2000 2001 2002 2003 2004 2005(e) 2006(e) 2007(e)<br />
Global Rate of Global Advertis<strong>in</strong>g<br />
1Q 2008<br />
-0.9%<br />
Magaz<strong>in</strong>es<br />
0.4%<br />
1.1%<br />
6.9%<br />
Newspapers Radio Television
e G i o n a l advertis<strong>in</strong>G tr e n d s<br />
Research house, ZenithOptimedia<br />
forecasted that <strong>in</strong> 2008, the Asia-<br />
Pacific region is expected to post<br />
<strong>advertis<strong>in</strong>g</strong> spend growth of<br />
almost 10%, while <strong>advertis<strong>in</strong>g</strong><br />
spend <strong>in</strong> Africa is expected to<br />
grow over 16%.<br />
Furthermore, ZenithOptimedia<br />
<strong>in</strong>dicated that the more developed<br />
regions of North America and<br />
Western Europe would be<br />
record<strong>in</strong>g slower growth 5 <strong>in</strong> 2009<br />
of 3.2% and 4.7% respectively.<br />
There is also forecast that<br />
<strong>advertis<strong>in</strong>g</strong> spend <strong>in</strong> develop<strong>in</strong>g<br />
<strong>market</strong>s of Central and Eastern<br />
Europe region, Africa and the<br />
Middle East would reach double<br />
digit rates until 2010 rang<strong>in</strong>g<br />
from 15% to 18%.<br />
20<br />
15<br />
10<br />
5<br />
-0<br />
Note: ROW is Rest Of the World<br />
Source: “Global Ad Market to Accelerate <strong>in</strong> 2008 Despite Credit<br />
Squeeze” by ZenithOptimedia, December 2007<br />
Advertis<strong>in</strong>g Expenditure by Region (USD billion)<br />
(e): estimate<br />
Note: Major media (newspapers, magaz<strong>in</strong>es, television, radio, c<strong>in</strong>ema, outdoor, Internet);<br />
ROW is Rest of the World<br />
Source: “Global Ad Market to Accelerate <strong>in</strong> 2008 Despite Credit Squeeze” by<br />
ZenithOptimedia, December 2007<br />
Not unexpectedly, growth <strong>in</strong> <strong>advertis<strong>in</strong>g</strong> <strong>in</strong> the Asia Pacific region is expected to slow down <strong>in</strong><br />
2009 after the Olympic Games. However, there is nevertheless still expected encourag<strong>in</strong>g growth<br />
towards 2010. ZenithOptimedia sees the new develop<strong>in</strong>g countries such as Russia to become one<br />
of the fastest grow<strong>in</strong>g <strong>advertis<strong>in</strong>g</strong> <strong>market</strong>s to emerge <strong>in</strong> 2010.<br />
5 “First Quarter Global Advertis<strong>in</strong>g Up 4% from 2007” by The Nielsen Company News Release, July 2008<br />
182.6<br />
102.4<br />
88.9<br />
23.8<br />
13.7<br />
20.6<br />
Growth of Advertis<strong>in</strong>g Expenditure<br />
by Region<br />
18.49<br />
15.33<br />
8.25<br />
5.96<br />
4.88<br />
2.52<br />
7.17<br />
16.46<br />
16.67<br />
4.11<br />
9.02<br />
4.84<br />
5.84<br />
16.85<br />
15.81<br />
6.28<br />
4.71<br />
187.2<br />
107.4<br />
94.2<br />
28.2<br />
15.8<br />
22.3<br />
Africa/Middle East/ROW<br />
Asia Pacific<br />
2007 2008 2009 2010<br />
Africa/Middle East/ROW Lat<strong>in</strong> America Central & Eastern<br />
Europe<br />
Asia Pacific<br />
Western Europe North America<br />
194.9<br />
112.6<br />
102.7<br />
32.9<br />
18.4<br />
23.9<br />
Lat<strong>in</strong> America<br />
Western Europe<br />
201.1<br />
117.9<br />
108.7<br />
38.1<br />
21.5<br />
25.4<br />
Note: Growth <strong>in</strong> ad spend (%); U.A.E. is United Arab Emirates<br />
Source: “Global Ad Market to Accelerate <strong>in</strong> 2008 Despite Credit<br />
Squeeze” by ZenithOptimedia, December 2007<br />
207.5<br />
123.9<br />
116.6<br />
2006 2007(e) 2008(e) 2009(e) 2010(e)<br />
15.81<br />
13.39<br />
7.27<br />
5.09<br />
3.18 3.18<br />
5.51<br />
155.2%<br />
Kazakhstan<br />
43.2<br />
26.8<br />
24.9<br />
Central & Eastern Europe<br />
North America<br />
The ten fastest-grow<strong>in</strong>g ad <strong>market</strong>s<br />
2010 versus 2007<br />
101.8% 101.1% 100.1%<br />
90.2% 89.6% 85.4% 84.6%<br />
77.8% 75.0%<br />
Belarus<br />
Serbia<br />
Egypt<br />
Russia<br />
Moldova<br />
Indonesia<br />
U.A.E.<br />
Ukra<strong>in</strong>e<br />
PanArab<br />
7
8<br />
tr a d i t i o n a l me d i a tr a n s F o r m a t i o n<br />
Chang<strong>in</strong>g Advertis<strong>in</strong>g-Agency Relationships<br />
The <strong>advertis<strong>in</strong>g</strong>-agency relationship refers to the way <strong>in</strong> which advertisements are presented to the<br />
targeted <strong>market</strong> by <strong>advertis<strong>in</strong>g</strong> agencies. This relationship is chang<strong>in</strong>g as traditional ways to reach<br />
mass <strong>market</strong>s shift <strong>in</strong>to the digital era. The <strong>advertis<strong>in</strong>g</strong> process today is evolv<strong>in</strong>g from the exist<strong>in</strong>g<br />
models of plann<strong>in</strong>g and negotiat<strong>in</strong>g purchase of media space to meet<strong>in</strong>g clients’ or advertisers<br />
communication needs. Over the last two centuries, <strong>advertis<strong>in</strong>g</strong> agencies have been brokers<br />
of media space, buy<strong>in</strong>g pages <strong>in</strong> newspapers and periodicals and sell<strong>in</strong>g them to advertisers 6 .<br />
Today, the bus<strong>in</strong>ess environment is more complex. For example, simple products have become<br />
multi-faceted products such as bank<strong>in</strong>g services that previously provided loans to customers would<br />
now also provide <strong>in</strong>surance facilities that can be accessed through onl<strong>in</strong>e means for servic<strong>in</strong>g.<br />
If <strong>in</strong> the 19th century, revenues were based on commission, today we see <strong>advertis<strong>in</strong>g</strong> mov<strong>in</strong>g to<br />
a results-based revenue model of fees, time costs, supervision fees and profit-shar<strong>in</strong>g. Also, there<br />
is a need to devise ways to rema<strong>in</strong> consistently appeal<strong>in</strong>g <strong>in</strong> deliver<strong>in</strong>g results <strong>in</strong> order to compete<br />
with other <strong>advertis<strong>in</strong>g</strong> agencies.<br />
Orig<strong>in</strong>al Advertis<strong>in</strong>g<br />
Agency<br />
Early 19th Century<br />
Early 19th and<br />
20th Century<br />
21st Century<br />
Shift <strong>in</strong> Advertis<strong>in</strong>g-Agency Relationship<br />
New agency, sell<strong>in</strong>g stories to newspapers.<br />
Advertis<strong>in</strong>g agents sell space for regional newspapers to national advertisers. In<br />
return, they obta<strong>in</strong> a percentage of the sale <strong>in</strong> commission.<br />
New advertisers requir<strong>in</strong>g space <strong>in</strong> newly emerge national newspapers and magaz<strong>in</strong>es.<br />
A large number of clients required <strong>advertis<strong>in</strong>g</strong> <strong>in</strong> a more concentrated media <strong>market</strong>.<br />
Instead of represent<strong>in</strong>g the newspapers, the agents switched to report<strong>in</strong>g the clients<br />
but are still paid commission by the media owner.<br />
Meet<strong>in</strong>g clients’ communication needs <strong>in</strong> the digital environment.<br />
Provid<strong>in</strong>g clients with <strong>in</strong>sights (brand, consumer, media) and provid<strong>in</strong>g <strong>in</strong>tergrated<br />
Solutions and strategies to engage consumer.<br />
Source: “The Advertis<strong>in</strong>g Handbook” by Sean Brierley, published by Taylor & Francis Group, 1995<br />
Traditional distributors (multisystem operators such as broadcasters and telcos) and newer<br />
<strong>in</strong>teractive players (Internet and mobile providers) are also affected by the change. Hav<strong>in</strong>g<br />
platforms that can create new <strong>advertis<strong>in</strong>g</strong> capabilities such as <strong>in</strong>teractive <strong>advertis<strong>in</strong>g</strong> <strong>in</strong> Video<br />
on Demand (VoD), and mobile and Internet platforms, could further entice advertisers of the<br />
full potential that these distributors have to reach consumers. Advertis<strong>in</strong>g agencies are required<br />
to explore and deepen creative content to be <strong>in</strong> sync with consumers’ targeted lifestyle and<br />
communicat<strong>in</strong>g these across multiple platforms and formats. This could be one of the reasons that<br />
<strong>advertis<strong>in</strong>g</strong> agencies are now known as brand or creative agencies.<br />
Nevertheless, <strong>advertis<strong>in</strong>g</strong> agencies today are reported to be not engag<strong>in</strong>g the advertisers’ needs<br />
for necessary effect on consumers. A recent report called The Connected Agency by Forrester<br />
Research, Inc. sees that <strong>advertis<strong>in</strong>g</strong> agencies connection are not engag<strong>in</strong>g with consumers. It seems<br />
that advertisers are look<strong>in</strong>g for a “Connected Agency” – one that nurtures consumer connections,<br />
that is, from deliver<strong>in</strong>g push to creat<strong>in</strong>g pull <strong>in</strong>teractions. This shift, accord<strong>in</strong>g to the report, is<br />
expected to happen with<strong>in</strong> five years, where traditional agencies will start connect<strong>in</strong>g with consumer<br />
communities and eventually become an <strong>in</strong>tegral part of them. This leads to transformation on<br />
how <strong>advertis<strong>in</strong>g</strong> and <strong>market</strong><strong>in</strong>g budgets will be spent, with whom and to what effect, mak<strong>in</strong>g the<br />
<strong>advertis<strong>in</strong>g</strong> relevant, contextual, personalised and localised.<br />
6 Advertiser refers to a person, firm or company whose products, goods or services are the subject matter of the advertisement<br />
(www.skynews<strong>in</strong>ternational.com/docs/Advertis<strong>in</strong>g-Sales-Terms-and-Conditions.doc) while an <strong>advertis<strong>in</strong>g</strong> agencies deals with evaluat<strong>in</strong>g the<br />
advertiser’s product or service and develop an effective <strong>advertis<strong>in</strong>g</strong> strategy to assist advertisers <strong>in</strong> their <strong>market</strong><strong>in</strong>g efforts to present to the<br />
public on the best possible light. Sometimes, “advertisers” are used <strong>in</strong>terchangeably with “<strong>market</strong>ers”
tr a d i t i o n a l me d i a tr a n s F o r m a t i o n<br />
S<strong>in</strong>k or Swim – In Sync with Chang<strong>in</strong>g Times<br />
Given the economics of the chang<strong>in</strong>g <strong>market</strong>place, the <strong>in</strong>dustry is see<strong>in</strong>g <strong>advertis<strong>in</strong>g</strong> and the<br />
<strong>advertis<strong>in</strong>g</strong> stakeholders transform<strong>in</strong>g <strong>in</strong> unique ways to meet <strong>market</strong> needs. An International<br />
Bus<strong>in</strong>ess Mach<strong>in</strong>e (IBM) study7 <strong>in</strong>dicates the <strong>advertis<strong>in</strong>g</strong> value cha<strong>in</strong> will enter a new phase that<br />
will benefit consumers, advertisers and <strong>in</strong>teractive players over the other players <strong>in</strong> the value cha<strong>in</strong><br />
such as broadcasters.<br />
This is expected to be so for the broadcasters, especially if they do not recognise the need to<br />
transform their l<strong>in</strong>ear television8 <strong>advertis<strong>in</strong>g</strong> to new digital content distribution opportunities. For<br />
example, broadcasters need to start deliver<strong>in</strong>g <strong>in</strong>tegrated, cross-platform <strong>advertis<strong>in</strong>g</strong> programmes<br />
tied to their exist<strong>in</strong>g programm<strong>in</strong>g assets.<br />
Advertiser<br />
Advertiser<br />
Creative<br />
Advertis<strong>in</strong>g<br />
Agency<br />
Media<br />
Plann<strong>in</strong>g and<br />
Buy<strong>in</strong>g<br />
Full service media/<strong>advertis<strong>in</strong>g</strong> agency<br />
Traditional direct <strong>market</strong><strong>in</strong>g<br />
Traditional<br />
media buy<strong>in</strong>g,<br />
plann<strong>in</strong>g and<br />
measurement<br />
Advertis<strong>in</strong>g Value Cha<strong>in</strong><br />
Interactive<br />
media buy<strong>in</strong>g,<br />
plann<strong>in</strong>g and<br />
measurement<br />
Content Owner<br />
Producer<br />
Content owners<br />
and producers<br />
Relative economic value creation: Premier Moderate Non-differentiated<br />
Source: Adapted from “The End of Advertis<strong>in</strong>g as We Know it” by IBM Global Bus<strong>in</strong>ess Services, 2007<br />
Media<br />
Aggregator/<br />
Distributor<br />
Traditional<br />
distributor<br />
(MSO, Telco)<br />
Broadcaster<br />
Interactive<br />
distributor<br />
(Internet, mobile)<br />
Consumer<br />
Consumer<br />
Arrow represents change<br />
<strong>in</strong> position from 2007<br />
With the rise of digital <strong>advertis<strong>in</strong>g</strong>, traditional <strong>advertis<strong>in</strong>g</strong> agencies are expected to ga<strong>in</strong> the most<br />
by be<strong>in</strong>g creative; and the onl<strong>in</strong>e search companies have the most to deliver <strong>in</strong> view of the <strong>market</strong><br />
reach to the <strong>in</strong>dividual and to <strong>in</strong>dividuals worldwide. Digital <strong>advertis<strong>in</strong>g</strong> changes the relationship<br />
between advertisers and customers from traditional one-way broadcast to <strong>in</strong>teractive media<br />
formats. Digital media services such as onl<strong>in</strong>e and mobile service platforms, enable advertisers to<br />
target <strong>advertis<strong>in</strong>g</strong> to specific consumer segments, thus mak<strong>in</strong>g the l<strong>in</strong>k to consumer preferences,<br />
<strong>in</strong>terests and usage habits, for example, communications from any location as seen <strong>in</strong> mobile<br />
<strong>advertis<strong>in</strong>g</strong>.<br />
Advertisers, be it traditional or new media, need to adapt to the new wave of technology revolution<br />
to stay competitive <strong>in</strong> their value cha<strong>in</strong> as the digital media is expected to be the primary media<br />
form <strong>in</strong> about five years9 . Consequently, share of <strong>advertis<strong>in</strong>g</strong> spend will see traditional media<br />
slowly lose out <strong>in</strong> many ways, such as audience reach or revenue opportunities as advertisers shift<br />
<strong>advertis<strong>in</strong>g</strong> spend to <strong>in</strong>teractive <strong>market</strong><strong>in</strong>g opportunities <strong>in</strong> onl<strong>in</strong>e and platforms offer<strong>in</strong>g mobility.<br />
7 “The End of Advertis<strong>in</strong>g as We Know it” by IBM Global Bus<strong>in</strong>ess Services, 2007<br />
8 L<strong>in</strong>ear TV is historical TV programm<strong>in</strong>g that is not <strong>in</strong>teractive and is available to viewers at a particular time on a particular channel. The<br />
broadcaster is <strong>in</strong> control of when and where content is viewed. DVRs and VoD offer the opposite environment – the viewer is <strong>in</strong> control<br />
9 “Fac<strong>in</strong>g the Digital Reality: the Path to Future High Performance <strong>in</strong> Advertis<strong>in</strong>g” by Accenture, 2007<br />
9
10<br />
tr a d i t i o n a l me d i a tr a n s F o r m a t i o n<br />
This is reflected <strong>in</strong> a survey conducted <strong>in</strong> Europe and North America by The BPRI Group on behalf<br />
of Accenture 10 , which <strong>in</strong>dicates that 43% of the survey respondents sees traditional <strong>advertis<strong>in</strong>g</strong><br />
agencies have the most to lose <strong>in</strong> the transition to digital <strong>advertis<strong>in</strong>g</strong> followed by broadcasters at<br />
33%, while onl<strong>in</strong>e search companies have the most to ga<strong>in</strong>.<br />
Telecom Companies<br />
Cable operators<br />
Broadcasters<br />
Advertis<strong>in</strong>g Agencies<br />
Enterta<strong>in</strong>ment<br />
Software Providers<br />
Most to W<strong>in</strong> Most to Lose<br />
Other<br />
Content Developers<br />
Web Portals and Social Media<br />
Digital Advertis<strong>in</strong>g Specialist<br />
Onl<strong>in</strong>e Search Companies<br />
1%<br />
1%<br />
1%<br />
1%<br />
4%<br />
5%<br />
10%<br />
12%<br />
19%<br />
While old is given way to new media to certa<strong>in</strong> extent, there are complementary benefits exist<strong>in</strong>g. For<br />
example, accord<strong>in</strong>g to Net<strong>in</strong>sight 11 , there is an <strong>in</strong>terest<strong>in</strong>g overlap between television and Internet<br />
surf<strong>in</strong>g activities <strong>in</strong> the case of Malaysia. This suggests that Internet users are simultaneously<br />
consum<strong>in</strong>g both forms of media. This uncovered the fact that 81% of Internet users surveyed<br />
cont<strong>in</strong>ue to watch television. Internet has impacted the way consumers use the traditional media,<br />
but appears no critical threat of the Internet replac<strong>in</strong>g the traditional media.<br />
Source: “Break<strong>in</strong>g the Rules: F<strong>in</strong>d<strong>in</strong>gs New AVPU Through Clickthroughs”<br />
by Alcatel-Lucent, 2008<br />
46%<br />
Onl<strong>in</strong>e Search Companies<br />
Enterta<strong>in</strong>ment<br />
Software Providers<br />
Digital Advertis<strong>in</strong>g Specialist<br />
Web Portals and Social Media<br />
Content Developers<br />
Telecom Companies<br />
Source: “Fac<strong>in</strong>g the Digital Reality: The Path to Future High<br />
Performance <strong>in</strong> Advertis<strong>in</strong>g” – Accenture Global Digital Advertis<strong>in</strong>g<br />
Study, 2007” by Accenture, 2007<br />
However, as often is the case <strong>in</strong> any transformation, there are always challenges ahead. The Accenture<br />
study 12 has <strong>in</strong>dicated that 25% of respondents cit<strong>in</strong>g cultural and technology changes would create<br />
pessimistic views from traditional <strong>advertis<strong>in</strong>g</strong> agencies to face this disruptive change.<br />
10 “Digital Disruption – Where have all the Ads Gone?” by Emily O’Halloran and Charles N. Symmons for Accenture Outlook, May 2008<br />
11 Net<strong>in</strong>sight is a study of Internet users, age 13 years old to 64 years old <strong>in</strong> Malaysia. The survey covered 1,000 respondents <strong>in</strong> Klang Valley,<br />
Penang, Ipoh and Johor Bahru<br />
12 “Fac<strong>in</strong>g the Digital Reality: The Path to Future High Performance <strong>in</strong> Advertis<strong>in</strong>g” by Accenture, 2007<br />
Other<br />
Cable Operators<br />
Broadcasters<br />
Advertis<strong>in</strong>g Agencies<br />
Note: Based on survey for first quarter of 2007 conducted <strong>in</strong> Europe and North America by The BPRI Group on behalf of Accenture<br />
Source: “Digital Disruption – Where have all the Ads Gone?” by Accenture, May 2008<br />
Consumer Target<strong>in</strong>g<br />
Low High<br />
Primary Segmentation<br />
of Advertis<strong>in</strong>g Channels<br />
Direct Mail<br />
Yellow Pages<br />
In-Store<br />
Newspapers<br />
Magaz<strong>in</strong>es<br />
Out of Home<br />
Shift<br />
<strong>in</strong> ad<br />
spend<strong>in</strong>g<br />
Onl<strong>in</strong>e<br />
Mobile<br />
IPTV<br />
TV<br />
Radio<br />
Low High<br />
Consumer Experience<br />
4%<br />
10%<br />
12%<br />
0%<br />
0%<br />
0%<br />
1%<br />
3%<br />
4%<br />
6%<br />
10%<br />
Challenges Transition to a Digital<br />
Advertis<strong>in</strong>g Bus<strong>in</strong>ess<br />
4%<br />
4%<br />
3%<br />
16%<br />
25%<br />
22%<br />
Cultural Changes<br />
Digital Personnel<br />
Advertisers<br />
Partner<strong>in</strong>g Ability<br />
Onl<strong>in</strong>e Experience<br />
Investment Capital<br />
Round<strong>in</strong>g<br />
33%<br />
Technology Excellence<br />
43%<br />
Management Commitment
tr a d i t i o n a l me d i a tr a n s F o r m a t i o n<br />
Brands <strong>in</strong> Digital Media<br />
The study on Top Brand Us<strong>in</strong>g Digital 13 explores consumers’ awareness on digital <strong>advertis<strong>in</strong>g</strong> and<br />
reveals lead<strong>in</strong>g digital advertisers across Asia such as Nokia, which is a top brand <strong>in</strong> four of the<br />
countries cited <strong>in</strong> the study (see graph). For <strong>in</strong>stance, mobile devices and operators are the most<br />
frequently recalled. Nokia tops the list <strong>in</strong> Malaysia, Hong Kong and S<strong>in</strong>gapore. The <strong>in</strong>ternational<br />
brands of Sony and Coca-Cola are amongst the next most brands recalled.<br />
Air Asia<br />
71%<br />
Celcom<br />
71%<br />
Maxis<br />
75%<br />
Digi<br />
78%<br />
Nokia<br />
84%<br />
Malaysia<br />
Ch<strong>in</strong>a<br />
Top 5 Digital Advertisers <strong>in</strong> Asia<br />
Hong Kong<br />
S<strong>in</strong>gapore<br />
Taiwan<br />
Source: “TNS Reveal Asia’s lead<strong>in</strong>g Digital Advertisers” by ADOI Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e, April 2008<br />
Dedicated Websites<br />
Sponsored Contents<br />
Banner Ads<br />
Popup Ads<br />
Mobile Phones<br />
Email<br />
Ads <strong>in</strong> Video Games<br />
Ads <strong>in</strong> Virtual Worlds<br />
Others<br />
Olay<br />
68%<br />
Samsung<br />
69%<br />
Ch<strong>in</strong>a Unicom<br />
70%<br />
Coca Cola<br />
74%<br />
Ch<strong>in</strong>a Mobile<br />
76%<br />
Coca-Cola<br />
67%<br />
McDonald’s<br />
68%<br />
Sony<br />
73%<br />
HSBC<br />
77%<br />
Nokia<br />
82%<br />
Source: “TNS Reveal Asia’s lead<strong>in</strong>g Digital Advertisers” by ADOI Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e, April 2008<br />
Thailand<br />
The study also highlights that the different Asian <strong>market</strong>s and different digital channels have<br />
markedly different levels of credibility towards digital channels. Malaysia marked higher level of<br />
trust <strong>in</strong> digital advertisement, compared to S<strong>in</strong>gapore and Hong Kong.<br />
Almost 64% of Malaysia respondents recall hav<strong>in</strong>g seen dedicated websites from a number of<br />
top brand names and 83% of the respondents are more <strong>in</strong>terested <strong>in</strong> a brand after view<strong>in</strong>g the<br />
advertisement.<br />
DBS<br />
68%<br />
Sony<br />
70%<br />
Star Hub<br />
72%<br />
S<strong>in</strong>gTel<br />
78%<br />
Nokia<br />
80%<br />
Types of Digital Media Seen Be<strong>in</strong>g Used<br />
7%<br />
7%<br />
17%<br />
Nokia<br />
63%<br />
Coca-Cola<br />
63%<br />
McDonald’s<br />
64%<br />
Sony<br />
65%<br />
7-Eleven<br />
73%<br />
Pepsi<br />
56%<br />
Siam<br />
Commercial<br />
Bank 62%<br />
Sony<br />
69%<br />
Nokia<br />
87%<br />
True Movie<br />
73%<br />
0% 10% 20% 30% 40% 50% 60% 70%<br />
Percentage (%)<br />
13 “TNS Reveals Asia’s Lead<strong>in</strong>g Digital Advertisers – Nokia Takes Top Slot <strong>in</strong> Malaysia” by ADOI Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e, April 2008<br />
32%<br />
31%<br />
35%<br />
50%<br />
55%<br />
64%<br />
11
12<br />
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Introduction<br />
Revenue patterns are expected to shift for advertisers. They are now be<strong>in</strong>g drawn to a number<br />
of extremely attractive capabilities of digital <strong>advertis<strong>in</strong>g</strong>. The new media environment enables<br />
richer media forms and provides <strong>in</strong>teractive functionality that engages consumers effectively.<br />
The networked media would be able to offer sophisticated measurement and consumer-target<strong>in</strong>g<br />
capabilities to reach exactly the targeted consumer segments.<br />
As such, technology could change bus<strong>in</strong>ess models too. For example, consumers would be able to<br />
skip or speed through commercials on TV. In a recent survey 14 , it was found that 9% of US adults<br />
are most <strong>in</strong>terested <strong>in</strong> <strong>advertis<strong>in</strong>g</strong> delivered through such non-traditional media as mobile devices<br />
and product placement <strong>in</strong> video games, movies and <strong>in</strong> TV shows. Advertisements on wireless and<br />
wired platform <strong>in</strong> example below show that although <strong>in</strong>dustry is at an immature stage, growth is<br />
expected to surge <strong>in</strong> near future.<br />
Broadcast<strong>in</strong>g<br />
Digital TV<br />
VoD, Digital Video Recorders (DVRs), the<br />
broadband Web and 3G mobile phones are<br />
provid<strong>in</strong>g TV consumers new ways to access<br />
and watch TV. eMarketer estimates that by 2012<br />
nearly 25% of all TV content watched each day <strong>in</strong><br />
US will be time-shifted, on-demand, on the Web<br />
or on a mobile device. This, however, does not<br />
spell the end of the traditional live TV broadcast<br />
or the traditional 30 seconds <strong>advertis<strong>in</strong>g</strong> break,<br />
but clearly, TV <strong>advertis<strong>in</strong>g</strong> will need to evolve if it<br />
is to keep pace with consumer usage.<br />
Similarly <strong>in</strong> UK and throughout Europe, the<br />
potential for onl<strong>in</strong>e TV is huge. It is predicted that<br />
60% of homes will have broadband connections<br />
<strong>in</strong> 2008 and will rise to 74% <strong>in</strong> 2012. Advertisers<br />
could reap potential returns from this as well.<br />
Films<br />
Today, virtually every film <strong>market</strong><strong>in</strong>g campaign<br />
leverages on both traditional and new media<br />
channels, with applications such as social<br />
network profiles, widgets and recommendation<br />
eng<strong>in</strong>es 15 , becom<strong>in</strong>g an <strong>in</strong>tegral part of the<br />
mix 16 .<br />
In 2007, studios of the Motion Picture Association<br />
of America (MPAA) and their subsidiaries, spent<br />
USD754 million <strong>advertis<strong>in</strong>g</strong> films onl<strong>in</strong>e. By 2012,<br />
that figure will <strong>in</strong>crease to USD2.4 billion.<br />
Average Annual Onl<strong>in</strong>e TV Advertis<strong>in</strong>g<br />
Spend<strong>in</strong>g per US TV Viewer<br />
and Internet User<br />
2007 and 2012<br />
Average Onl<strong>in</strong>e Ad<br />
Spend<strong>in</strong>g per<br />
Internet User<br />
Average TV Ad<br />
Spend<strong>in</strong>g per<br />
250<br />
TV Viewer<br />
237<br />
2012<br />
2007<br />
0 50 100 150 200 250<br />
User (million)<br />
CAGR 2007 - 2012<br />
55%<br />
CAGR 2007 - 2012<br />
15.8%<br />
Note: Nielsen Media Research as cited <strong>in</strong> press release, August 2007<br />
Source:”Average Annual Onl<strong>in</strong>e and TV Advertis<strong>in</strong>g Spend<strong>in</strong>g per<br />
US TV Viewer and Internet User 2007 and 2012” by eMarketer, 2008<br />
Source: “US Onl<strong>in</strong>e Advertis<strong>in</strong>g Spend<strong>in</strong>g by MPAA-Member Studies<br />
and their subsidiaries 2007-2012” by eMarketer, September 2008<br />
14 “I Want It My Way” by Mediamark Research & Intelligence (MRI) Fall 2007 Survey, August 2008<br />
15 “Recommendation eng<strong>in</strong>es” refer to <strong>in</strong>formation websites for movies, music, books and news that are likely to be of <strong>in</strong>terest to users<br />
16 “US Onl<strong>in</strong>e Advertis<strong>in</strong>g Spend<strong>in</strong>g by MPAA-Member Studios and their subsidiaries 2007 to 2012” by eMarketer, September 2008<br />
3,000<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
754<br />
X<br />
1,014<br />
113<br />
X<br />
1,250<br />
Onl<strong>in</strong>e Ad Spend<strong>in</strong>g<br />
235<br />
US Onl<strong>in</strong>e Advertis<strong>in</strong>g Spend<strong>in</strong>g by MPAA -<br />
Member Studios and Their Subsidiaries<br />
2007 – 2012<br />
Onl<strong>in</strong>e Ad Spend<strong>in</strong>g<br />
(<strong>in</strong> million)<br />
34.6<br />
23.2<br />
25.7 25.3<br />
X X<br />
1,572<br />
X<br />
1,970<br />
22.6<br />
X<br />
% Change<br />
2,416<br />
2007 2008 2009 2010 2011 2012<br />
40<br />
30<br />
20<br />
10<br />
0<br />
Change (%)
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Onl<strong>in</strong>e Advertis<strong>in</strong>g<br />
Behaviourally targeted <strong>advertis<strong>in</strong>g</strong> promises more revenues for Web publishers. By the end of 2009,<br />
more than two-thirds of the US population or 200 million people will be go<strong>in</strong>g onl<strong>in</strong>e. Accord<strong>in</strong>g<br />
to eMarketer 17 , the most popular onl<strong>in</strong>e video content, watched by 40% or more of the US onl<strong>in</strong>e<br />
video audience, is short pieces of five m<strong>in</strong>utes or less <strong>in</strong>clud<strong>in</strong>g news clips, jokes, movie trailers,<br />
music videos, clips from TV shows and enterta<strong>in</strong>ment news.<br />
eMarketer estimates that US spend<strong>in</strong>g for<br />
behaviourally targeted onl<strong>in</strong>e <strong>advertis<strong>in</strong>g</strong> will<br />
reach USD775 million <strong>in</strong> 2008, while project<strong>in</strong>g<br />
that behaviourally targeted <strong>advertis<strong>in</strong>g</strong> spend<br />
will reach USD4.4 billion by the end of 2012.<br />
Ma<strong>in</strong>stream adoption of onl<strong>in</strong>e video <strong>advertis<strong>in</strong>g</strong><br />
will be the key factor driv<strong>in</strong>g behaviourally<br />
targeted <strong>advertis<strong>in</strong>g</strong> spend to nearly 25% of all<br />
US display <strong>advertis<strong>in</strong>g</strong> spend <strong>in</strong> 2012.<br />
Similarly, <strong>in</strong> the UK, onl<strong>in</strong>e <strong>advertis<strong>in</strong>g</strong> reached<br />
USD5.3 billion <strong>in</strong> 2007, up more than 30%<br />
from 2006, partly due to grow<strong>in</strong>g agency<br />
expertise and advertiser understand<strong>in</strong>g of<br />
digital channels and is forecasted to grow and<br />
approach USD8.7 billion <strong>in</strong> 2012 18 .<br />
Onl<strong>in</strong>e <strong>advertis<strong>in</strong>g</strong> exists <strong>in</strong> formats such as<br />
search <strong>advertis<strong>in</strong>g</strong>, display <strong>advertis<strong>in</strong>g</strong>, video<br />
<strong>advertis<strong>in</strong>g</strong>, classified <strong>advertis<strong>in</strong>g</strong>, e-mail<br />
<strong>market</strong><strong>in</strong>g, affiliate <strong>market</strong><strong>in</strong>g, mobile Internet<br />
<strong>advertis<strong>in</strong>g</strong> and <strong>advertis<strong>in</strong>g</strong> on social networks.<br />
A study <strong>in</strong>dicated that <strong>in</strong> US, the percentage<br />
of Internet users who use search eng<strong>in</strong>es on a<br />
typical day has been steadily ris<strong>in</strong>g from about<br />
one-third of all users <strong>in</strong> 2002, to a new high of<br />
49% <strong>in</strong> 2008 while 60% of Internet users use<br />
email on a typical day 19 . Marketers can optimise<br />
their <strong>market</strong><strong>in</strong>g efforts if they <strong>in</strong>tegrate with<br />
offl<strong>in</strong>e channels as well. However, it was found<br />
<strong>in</strong> a study that just over half of search eng<strong>in</strong>e<br />
<strong>market</strong>ers (55%) <strong>in</strong>tentionally <strong>in</strong>tegrate their<br />
efforts with at least one offl<strong>in</strong>e <strong>market</strong><strong>in</strong>g<br />
channel and that <strong>in</strong>tegration most often takes<br />
place with direct mail (34%) and magaz<strong>in</strong>e/<br />
newspaper <strong>advertis<strong>in</strong>g</strong> (29%), while both<br />
television (12%) and radio <strong>advertis<strong>in</strong>g</strong> (12%)<br />
trail beh<strong>in</strong>d 20 .<br />
2006 2007 2008 2009 2010 2011 2012<br />
Note: Advertis<strong>in</strong>g displayed to a select audience whose <strong>in</strong>terest or<br />
<strong>in</strong>tentions are revealed by Website or ISP track<strong>in</strong>g data, audience<br />
segmentation and/or predictive analysis; excludes ads targeted us<strong>in</strong>g<br />
adware<br />
Source: “Behaviourally Targeted Onl<strong>in</strong>e Advertis<strong>in</strong>g Spend<strong>in</strong>g<br />
2006 – 2012” by eMarketer, June 2008<br />
17 “Types of Onl<strong>in</strong>e Video Content that US Onl<strong>in</strong>e Video Viewers Watch Monthly or More Frequently, 2007” by eMarketer, February 2008<br />
18 “UK Onl<strong>in</strong>e Advertis<strong>in</strong>g Spend<strong>in</strong>g” by eMarketer, March 2008<br />
19 “Daily Search Eng<strong>in</strong>e Users Clos<strong>in</strong>g <strong>in</strong> On Email Users” by Pew Internet & American Life Project, August 2008<br />
20 “¡Search Marketers Fail To Integrate With Offl<strong>in</strong>e Channels” by iProspect, August 2008<br />
Advertis<strong>in</strong>g Spend<strong>in</strong>g<br />
(<strong>in</strong> million)<br />
5,000<br />
4,000<br />
3,000<br />
2,000<br />
1,000<br />
-0<br />
Behaviourally Targeted<br />
Onl<strong>in</strong>e Advertis<strong>in</strong>g Spend<strong>in</strong>g<br />
2006 – 2012<br />
350<br />
525<br />
775<br />
1,100<br />
1,700<br />
2,700<br />
4,400<br />
Integrated Offl<strong>in</strong>e Market<strong>in</strong>g Chanels<br />
<strong>in</strong>to Search Market<strong>in</strong>g Efforts<br />
(April - June 2008, % of Responders)<br />
Search Market<strong>in</strong>g Budget<br />
USD250 mil+<br />
14<br />
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Onl<strong>in</strong>e video <strong>advertis<strong>in</strong>g</strong> requires<br />
high bandwidth for users to view<br />
and connect with the product <strong>in</strong><br />
formats of <strong>in</strong>-stream ads, <strong>in</strong>-text<br />
and <strong>in</strong>-banner ads. This <strong>market</strong> has<br />
exceptionally grown <strong>in</strong> developed<br />
countries specifically <strong>in</strong> US, Asia and<br />
Europe.<br />
Accord<strong>in</strong>g to ABI Research, Asia is<br />
expected to sh<strong>in</strong>e further <strong>in</strong> onl<strong>in</strong>e<br />
video <strong>advertis<strong>in</strong>g</strong> spend at USD3.3<br />
billion <strong>in</strong> 2012 compared to Europe<br />
and US at USD2.5 billion and USD2.1<br />
billion respectively.<br />
Advertis<strong>in</strong>g Spend<strong>in</strong>g<br />
(<strong>in</strong> million)<br />
Onl<strong>in</strong>e Video Advertis<strong>in</strong>g Spend<strong>in</strong>g <strong>in</strong><br />
Asia, Europe and US<br />
2008 and 2012<br />
3,500<br />
3,000<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
Onl<strong>in</strong>e Debates – Go<strong>in</strong>g Green<br />
Internet is also fast becom<strong>in</strong>g a great platform for discussion forums and blogs on current issues;<br />
l<strong>in</strong>k<strong>in</strong>g experts worldwide virtually and almost <strong>in</strong>stantaneously at cheaper costs than physical<br />
forums. One example is us<strong>in</strong>g Internet to discuss environmental issues. On a similar note, the<br />
Green Onl<strong>in</strong>e report quoted by eMarketer shows, how an environment awareness project named<br />
We Campaign has allocated a substantial portion of its USD300 million budget towards onl<strong>in</strong>e<br />
<strong>advertis<strong>in</strong>g</strong>. Also, a survey <strong>in</strong>dicated 44% of US adult onl<strong>in</strong>e buyers view as very important that<br />
companies be environmentally conscious21 .<br />
Onl<strong>in</strong>e Media Cross<strong>in</strong>g Sectors<br />
The automotive <strong>in</strong>dustry is another sector advertisers have taken notice. Accord<strong>in</strong>g to a research<br />
by eMarketer, eight out of 10 consumers <strong>in</strong> US now consult the Internet at least once dur<strong>in</strong>g the<br />
car buy<strong>in</strong>g process and it is predicted that onl<strong>in</strong>e <strong>advertis<strong>in</strong>g</strong> spend for this sector will reach as<br />
high as USD3 billion <strong>in</strong> 2008. Similarly, the bank<strong>in</strong>g sector is also engag<strong>in</strong>g consumers onl<strong>in</strong>e for its<br />
many promotions of their products and services. In the US, 53% of Internet users have done onl<strong>in</strong>e<br />
bank<strong>in</strong>g as of September 200722 . This could open doors for <strong>market</strong>ers on banks websites.<br />
Campaigns for US elections have attracted huge amounts of <strong>in</strong>vestment <strong>in</strong> onl<strong>in</strong>e <strong>advertis<strong>in</strong>g</strong>. In<br />
the US, it is estimated that onl<strong>in</strong>e <strong>advertis<strong>in</strong>g</strong> from political campaigns and advocacy groups will<br />
reach USD50 million <strong>in</strong> 2008, with most of Internet budgets spend<strong>in</strong>g on websites and e-mail<br />
<strong>market</strong><strong>in</strong>g. However, this represents only 1% to 2% of political ad budgets, compared with 50% to<br />
80% on broadcast TV <strong>advertis<strong>in</strong>g</strong>23 .<br />
21 “Forty-N<strong>in</strong>e Percent of Consumers Search for Green Product. Can They F<strong>in</strong>d Your Green Company?”, http://www.performics.com/th<strong>in</strong>k-tank/<br />
orig<strong>in</strong>al-research/white-papers/Green-Market<strong>in</strong>g-Onl<strong>in</strong>e-Consumer-Research-Survey/793, May 2008; “Green Market<strong>in</strong>g Study” provided to<br />
eMarketer, April 2008; Paul Verna, June 2008<br />
22 “Onl<strong>in</strong>e Shopp<strong>in</strong>g” by Pew Internet & American Life Project, February 2008<br />
23 “Politics ’08 Onl<strong>in</strong>e report” by eMarketer, May 2008<br />
500<br />
0<br />
3,300<br />
2,460<br />
202 200 260<br />
Asia Europe US<br />
2008 2012<br />
2,100<br />
Note: Based on ABI Research as cited by F<strong>in</strong>ancial Times, 15 July 2007<br />
Source: “Onl<strong>in</strong>e Video Advertis<strong>in</strong>g Spend<strong>in</strong>g <strong>in</strong> Asia, Europe and US” by eMarketer,<br />
April 2008
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
The video game medium<br />
is another new <strong>advertis<strong>in</strong>g</strong><br />
platform for <strong>market</strong>ers.<br />
In the US, the <strong>in</strong>-game<br />
<strong>advertis<strong>in</strong>g</strong> spend is<br />
expected to grow 120%<br />
from USD295 <strong>in</strong> 2007 to<br />
USD650 <strong>in</strong> 2012. This is<br />
buoyed by vibrant growth<br />
<strong>in</strong> the video game <strong>market</strong><br />
and web-based games<br />
alone are gett<strong>in</strong>g <strong>market</strong>ers<br />
to advertise sponsored<br />
sessions and display ads <strong>in</strong><br />
or around the onl<strong>in</strong>e game<br />
space.<br />
US sports sites have large<br />
and loyal fan bases and are<br />
evolv<strong>in</strong>g <strong>in</strong>to major league<br />
<strong>advertis<strong>in</strong>g</strong> avenue. With<br />
emphasis on ad-supported<br />
models sports content as<br />
opposed to paid content,<br />
eMarketer estimates that<br />
total revenues for US sports<br />
sites will reach USD2.96<br />
billion <strong>in</strong> 2012, up from<br />
USD1.49 billion <strong>in</strong> 2007. To<br />
illustrate, as a percentage<br />
of overall revenues on<br />
sports sites, <strong>advertis<strong>in</strong>g</strong><br />
will grow from 55% <strong>in</strong> 2007<br />
to 66% <strong>in</strong> 2012.<br />
Percent (%)<br />
Advertis<strong>in</strong>g Spend<strong>in</strong>g<br />
(<strong>in</strong> million)<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
Source: “Ad Advantage of Local onl<strong>in</strong>e media” by Onl<strong>in</strong>e Publishers<br />
Association, August 2008<br />
0<br />
295<br />
403<br />
Note: Includes static ads, dynamic ads, product placements, game portal display ads and<br />
sponsored sessions <strong>in</strong> console-based, PC-based and Web-based games; excludes advergames<br />
and <strong>advertis<strong>in</strong>g</strong> on mobile games<br />
Source: “US In-Game Advertis<strong>in</strong>g Spend<strong>in</strong>g 2007 – 2012” by eMarketer, February 2008<br />
Revenues<br />
(<strong>in</strong> million)<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
Percent Of Consumers Tak<strong>in</strong>g Action after<br />
View<strong>in</strong>g Local Ads<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
46%<br />
Local<br />
Newspaper<br />
Site<br />
44%<br />
Local<br />
Television<br />
Site<br />
0<br />
US In-Game Advertis<strong>in</strong>g Spend<strong>in</strong>g<br />
2007 – 2012<br />
2007<br />
2007<br />
2008<br />
2008<br />
* Includes display, video, paid search and rich media <strong>advertis<strong>in</strong>g</strong><br />
Source: “US Sports Site Revenues by Segment 2007 – 2012” by eMarketer, July 2008<br />
42%<br />
Local<br />
Magaz<strong>in</strong>e<br />
Site<br />
39%<br />
User<br />
Review<br />
Site<br />
819<br />
37%<br />
Portal<br />
511<br />
2009<br />
2009<br />
589<br />
2010<br />
2010<br />
625<br />
2011<br />
US Sports Site Revenues by Segment<br />
2007 – 2012<br />
372<br />
298<br />
1,000<br />
414<br />
310<br />
1,150<br />
Onl<strong>in</strong>e Advertis<strong>in</strong>g *<br />
Percent (%)<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
434<br />
302<br />
1,350<br />
450<br />
343<br />
2011<br />
Paid Content Other<br />
650<br />
2012<br />
2012<br />
Source: Based on “2008 Biennial News Consumption Survey” by<br />
Pew Research Center, August 2008<br />
1,575<br />
476<br />
391<br />
Four Dist<strong>in</strong>ct Segments <strong>in</strong><br />
Today’s News Audience<br />
23%<br />
Integrators<br />
13%<br />
Net-Newsers<br />
Segments<br />
46%<br />
Traditionalists<br />
1,950<br />
532<br />
473<br />
14%<br />
Disengaged<br />
15
16<br />
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Impact of advertisements to consumers is crucial. Consumers trust <strong>advertis<strong>in</strong>g</strong> on local<br />
advertisements <strong>in</strong> newspaper, magaz<strong>in</strong>e and television websites and are very likely to take action<br />
after view<strong>in</strong>g them on these sites. A study by Onl<strong>in</strong>e Publishers Association found that newspapers<br />
rank first, with 46% of consumers tak<strong>in</strong>g action, <strong>in</strong>clud<strong>in</strong>g mak<strong>in</strong>g a purchase, go<strong>in</strong>g to a store and<br />
conduct<strong>in</strong>g research after view<strong>in</strong>g a local advertisement, as compared to 37% of consumers act<strong>in</strong>g<br />
after view<strong>in</strong>g a local advertisement on a portal 24 . Furthermore, newspapers are now the most<br />
popular source of <strong>in</strong>formation as the number of people gett<strong>in</strong>g news onl<strong>in</strong>e has surged. A survey<br />
<strong>in</strong> the US found four dist<strong>in</strong>ct segments <strong>in</strong> today’s news audience 25 .<br />
Four Dist<strong>in</strong>ct Segments <strong>in</strong> Today’s News Audience<br />
Integrators Like web-oriented news consumers, affluent and highly educated, spend more time with the news on<br />
a typical day than do those who rely more on either traditional or Internet sources.<br />
Net-Newsers Youngest of the news user segments (median age: 35), affluent and even better educated than the<br />
News Integrators, more than eight-<strong>in</strong>-ten have at least attended college, rely primarily on the Internet<br />
for news, lead<strong>in</strong>g the way <strong>in</strong> us<strong>in</strong>g new web features and other technologies.<br />
Traditionalists Largest segment of the overall news audience, compared with the Integrators and Net-Newsers, 43%<br />
are not employed, 60% have no more than a high school education.<br />
Disengaged Very much bystanders when it comes to news consumption, less educated on average than even the<br />
Traditionalists and exhibit extremely low <strong>in</strong>terest <strong>in</strong>, and knowledge of, current events, 55% of the<br />
Disengaged get any news on a typical day, 20% know that the Democrats have a majority <strong>in</strong> the<br />
House of Representatives.<br />
Source: “2008 Biennial News Consumption Survey” by Pew Research Center, 2008<br />
Wireless/Wired<br />
Social Network Environment<br />
When advertisers promote their products and <strong>market</strong> <strong>in</strong> the social media websites, advertisers<br />
are target<strong>in</strong>g to sell products and services to a generation of viewers who are passionate,<br />
demographically young audience, who enjoy <strong>in</strong>teract<strong>in</strong>g, who connect and share with each other<br />
and use blogg<strong>in</strong>g, <strong>in</strong>stant messag<strong>in</strong>g and social network<strong>in</strong>g to communicate with friends and family.<br />
This social network media offers many <strong>advertis<strong>in</strong>g</strong> opportunities and an ideal platform for digital<br />
applications to amplify brand messages to target <strong>market</strong>s.<br />
Social Media (Web 2.0)<br />
Social Media Category Def<strong>in</strong>ition Examples<br />
Ma<strong>in</strong>stream and Large<br />
Scale Network<br />
Onl<strong>in</strong>e communities of people that typically provide<br />
a variety of ways for users to <strong>in</strong>teract, through chat,<br />
messag<strong>in</strong>g, email, video, voice chat, file-shar<strong>in</strong>g,<br />
blogg<strong>in</strong>g, and discussion groups.<br />
Widgets and Add-on A portable chunk of code that can be <strong>in</strong>stalled and<br />
executed with<strong>in</strong> any separate HTML-based web page by<br />
an end user without requir<strong>in</strong>g additional compilation.<br />
Social News and Social<br />
Bookmark<strong>in</strong>g<br />
Shar<strong>in</strong>g and discover<strong>in</strong>g great websites and news<br />
irrespective of sources.<br />
Photo Shar<strong>in</strong>g Photo shar<strong>in</strong>g websites complete with customised<br />
homepages, messag<strong>in</strong>g, network of friends,<br />
bookmark<strong>in</strong>g, photo rat<strong>in</strong>g and lots more.<br />
Video Shar<strong>in</strong>g Free onl<strong>in</strong>e space to publish and share video, complete<br />
with video rat<strong>in</strong>gs, video response, comments from<br />
viewers and community.<br />
Music Social network provides Internet radio services,<br />
connect<strong>in</strong>g fans and artists.<br />
Source: Malaysia Media Congress<br />
24 “Ad Advantage to Local Onl<strong>in</strong>e Media” by Onl<strong>in</strong>e Publishers Association, August 2008<br />
25 “News Junkies Tune In All Media” by Pew Research Center for the People & the Press, September 2008<br />
Facebook, Bebo, Multiply,<br />
MySpace, Friendster<br />
Z<strong>in</strong>gfu, Stickam, Zw<strong>in</strong>ky,<br />
MyBlogLog, Slide.com, Snocap<br />
StumbleUpon, Digg, del.icio.<br />
us., Trailfire<br />
Twango, Flickr, Zooomr,<br />
Webshots, Imageshack,<br />
Tabblo, Pickle<br />
MetaCafe, Revver, Gotuit,<br />
Stupid Video, Jumpcut,<br />
Grouper, YouTube, Blip.tv<br />
Pandora, ReverbNation,<br />
Last.fm, MOG, Rapspace,<br />
MusicHawk, ProjectOpus
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Total Unique Visitors<br />
(<strong>in</strong> million)<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
Social Network<strong>in</strong>g Visitors by<br />
Worldwide Region<br />
(+25%)<br />
580.5<br />
464.4<br />
Worldwide<br />
(+23%)<br />
200.6 (+35%)<br />
162.7<br />
165.3<br />
122.5 120.8 131.3<br />
(+9%)<br />
Asia<br />
Pacific<br />
Europe<br />
North<br />
America<br />
40.1 53.2<br />
(+33%)<br />
Lat<strong>in</strong><br />
America<br />
Source: “Social Network<strong>in</strong>g Explodes Worldwide as Sites Increase their Focus on Cultural Relevance” by comScore World Metrix, August 2008<br />
Accord<strong>in</strong>g to comScore 26 , as at June 2008, social network<strong>in</strong>g worldwide grew 25% s<strong>in</strong>ce June<br />
last year. The phenomenon of social network<strong>in</strong>g is still grow<strong>in</strong>g rapidly <strong>in</strong> Asia Pacific with 23%<br />
growth, while beg<strong>in</strong>n<strong>in</strong>g to reach maturity <strong>in</strong> North America (up 9%). In other regions, the<br />
growth of social network<strong>in</strong>g has recorded well-above average rates such as the Middle East-Africa<br />
(up 66%), Europe (up 35%) and Lat<strong>in</strong> America (up 33%). Many of the top social network<strong>in</strong>g sites<br />
have demonstrated rapid growth <strong>in</strong> their global user base. Although MySpace has the largest visitor<br />
base among the social network<strong>in</strong>g sites, it is Facebook that leads <strong>in</strong> global annual visitor growth<br />
of 153% <strong>in</strong> 2008, followed by Hi5 that <strong>in</strong>creased 100%. Many social network<strong>in</strong>g sites such as<br />
Friendster and Facebook have <strong>in</strong>creased user base by becom<strong>in</strong>g more culturally relevant to local<br />
<strong>market</strong>s through local language <strong>in</strong>terface translation <strong>in</strong> order to capture local <strong>market</strong> outside US.<br />
With more new social communities form<strong>in</strong>g every day, diversification of social media has also<br />
<strong>in</strong>creased, creat<strong>in</strong>g a range of opportunities for <strong>market</strong>ers. For example, SagaZone and Wanobe,<br />
both launched <strong>in</strong> 2007, specifically appeal to those above 50 years old.<br />
Given the popularity of Facebook,<br />
MySpace, Friendster and the like,<br />
bus<strong>in</strong>ess audience on onl<strong>in</strong>e social<br />
networks is steadily grow<strong>in</strong>g. As the<br />
number of bus<strong>in</strong>ess users of social<br />
networks <strong>in</strong>creases, <strong>advertis<strong>in</strong>g</strong> spend<br />
<strong>in</strong> the US is expected to rise accord<strong>in</strong>gly,<br />
reach<strong>in</strong>g an estimated USD210 million<br />
<strong>in</strong> 2012. B2B <strong>market</strong>ers will spend far<br />
more over the next few years to create<br />
and manage their own social networks<br />
for bus<strong>in</strong>ess customers, partners,<br />
suppliers and vendors.<br />
June-07<br />
June-08<br />
18.2 30.2<br />
(+66%)<br />
Middle<br />
East Africa<br />
Advertis<strong>in</strong>g Spend<strong>in</strong>g<br />
(million)<br />
Note: Includes display, rich media, search, widgets, applications and other<br />
forms of <strong>advertis<strong>in</strong>g</strong> targeted to a bus<strong>in</strong>ess audience on any social network<br />
Source: “US B2B Onl<strong>in</strong>e Social Network Advertis<strong>in</strong>g Spend<strong>in</strong>g, 2007 – 2012” by<br />
eMarketer, August 2008<br />
26 “Social Network<strong>in</strong>g Explodes Worldwide as Sites Increase their Focus on Cultural Relevance” by comScore, August 2008<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
Total Unique Visitors<br />
(<strong>in</strong> million)<br />
150<br />
120<br />
90<br />
60<br />
30<br />
-0<br />
Selected Social Network<strong>in</strong>g Sites<br />
Worldwide by Total Visitors<br />
114.4 117.6<br />
(+153%)<br />
MySpace.com<br />
(+3%)<br />
132.1<br />
52.1<br />
Facebook.com<br />
(+100%)<br />
56.4<br />
28.1<br />
Hi5.com<br />
(+50%)<br />
37.1<br />
24.7<br />
Friendster.com<br />
(+41%)<br />
34.0<br />
24.1<br />
Orl.ut<br />
18.2 24.0<br />
(+32%)<br />
Bebo.com<br />
June-07<br />
June-08<br />
17.6 21.0<br />
(+19%)<br />
Skyrock Network<br />
US B2B Onl<strong>in</strong>e Social Network Advertis<strong>in</strong>g Spend<strong>in</strong>g<br />
2007 – 2012<br />
15<br />
40<br />
169%<br />
80<br />
80%<br />
125<br />
165<br />
55% 32% 27%<br />
2007 2008 2009 2010 2011 2012<br />
Revenue Growth (%)<br />
210<br />
1.8<br />
1.6<br />
1.4<br />
1.2<br />
1.0<br />
0.8<br />
0.6<br />
0.4<br />
0.2<br />
0.0<br />
Change (%)<br />
17
18<br />
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Similarly <strong>in</strong> the UK, onl<strong>in</strong>e social network <strong>advertis<strong>in</strong>g</strong> spend is expected to take off. In 2008,<br />
spend<strong>in</strong>g is expected to rise 77% to USD225 million. In 2012, <strong>market</strong>ers are projected to spend<br />
USD533 million, a 148% <strong>in</strong>crease over 2008. The UK currently dom<strong>in</strong>ates social network <strong>advertis<strong>in</strong>g</strong><br />
spend <strong>in</strong> Western Europe, with 68% of the <strong>market</strong>.<br />
Web widgets and applications 27 have made social network<strong>in</strong>g sites <strong>in</strong>creas<strong>in</strong>gly popular. S<strong>in</strong>ce<br />
Facebook opened up to third party applications <strong>in</strong> May 2007, nearly 15,000 applications have been<br />
developed. Overall, almost 100,000 developers are work<strong>in</strong>g on widgets and applications worldwide.<br />
eMarketer estimates that US companies will spend USD40 million <strong>in</strong> 2008 to create, promote and<br />
distribute widgets, up from USD15 million <strong>in</strong> 2007 28 .<br />
Blogg<strong>in</strong>g is another onl<strong>in</strong>e social <strong>in</strong>teraction network and as with any engagement of high mass<br />
level, comes potential <strong>advertis<strong>in</strong>g</strong> opportunities. US is estimated to have over 104 million people<br />
read<strong>in</strong>g blogs this year, at least once a month, and this is expected to reach 145 million people<br />
by 2012. Meantime, blog <strong>advertis<strong>in</strong>g</strong> spend is expected to reach USD746 million <strong>in</strong> 2012 29 .<br />
The <strong>in</strong>creas<strong>in</strong>g phenomena of User Generated Content (UGC) have spurred vibrant community<br />
connection onl<strong>in</strong>e by connect<strong>in</strong>g friends, colleagues, form<strong>in</strong>g old school reunion groups and many<br />
other social groups.<br />
In US, the number of UGC creators is projected to rise to 108 million <strong>in</strong> 2012, from 77 million <strong>in</strong><br />
2007 30 . As such, UGC medium is attract<strong>in</strong>g <strong>advertis<strong>in</strong>g</strong> as well. In 2006, Sony Electronics showed<br />
a user-generated ad <strong>in</strong> which the creator won a contest on cable network, Current TV, for its first<br />
viewer-created ad message. This has also been done for the Toyota User-Generated Ad Contest<br />
and Blog.<br />
Mobile<br />
Today, the mobile phone is a very <strong>in</strong>tegral part of a consumer’s life. Furthermore, there are various<br />
types of devices for consumers to have access to the mobile Internet. Nielsen Company’s research<br />
revealed that <strong>in</strong> the US, Motorola RAZR series phones were the most owned devices among the<br />
mobile Internet users for this feature; followed by Apple’s first generation iPhone. However <strong>in</strong> the<br />
EU, Motorola phones were the third used phones by mobile Internet users, which were overtaken<br />
by Nokia N95 and N70.<br />
Top Devices – Mobile Internet Users, 1Q 2008<br />
Rank<strong>in</strong>g US EU*<br />
1 Motorola RAZR/RAZR2 Nokia N95<br />
2 Apple iPhone Nokia N70<br />
3 RIM Blackberry 8100 series (Pearl) Motorola RAZR/RAZR2<br />
4 RIM Blackberry 8800 series (8820, 8830) Sony Ericsson K800i<br />
5 Motorola Q Series (Moto Q, 9h, 9c, 9m, Q Glo) Nokia N73<br />
*Includes France, Germany, Italy, Spa<strong>in</strong>, Sweden and UK mobile Internet users<br />
Source: “ Critical Mass: The Worldwide State of the Mobile Web” by The Nielsen Company, July 2008<br />
The media habits of mobile phone will evolve over time. Many handsets <strong>in</strong> Japan already function<br />
as cash, keys, credit cards and personal ID, all <strong>in</strong> one. The latest <strong>in</strong>vention is Three Screen Trial by<br />
ioglobal. Three Screen Trial is a “live-lab” trial of <strong>in</strong>tegrated mobile-TV-PC <strong>market</strong><strong>in</strong>g measurement<br />
practices <strong>in</strong> support<strong>in</strong>g the effectiveness of mobile <strong>in</strong> a cross media environment.<br />
27 An element of a graphical user <strong>in</strong>terface that displays <strong>in</strong>formation or provides a specific way for a user to <strong>in</strong>teract with the operat<strong>in</strong>g system and<br />
application. Widgets <strong>in</strong>clude icons, pull-down menus, buttons, selection boxes, progress <strong>in</strong>dicators, on-off checkmarks, scroll bars, w<strong>in</strong>dows,<br />
w<strong>in</strong>dow edges (that let you resize the w<strong>in</strong>dow), toggle buttons, forms, and many other devices for display<strong>in</strong>g <strong>in</strong>formation and for <strong>in</strong>vit<strong>in</strong>g,<br />
accept<strong>in</strong>g, and respond<strong>in</strong>g to user actions<br />
28 “US Web Widget and Application Advertis<strong>in</strong>g Spend<strong>in</strong>g 2007 and 2008” by Debra Aho Williamson, February 2008<br />
29 “US Blog Readers (2007 to 2012)” by eMarketer, May 2008<br />
30 “US User-Generated Content Creators (2007 to 2012)” by eMarketer, April 2008
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Gartner, Inc., predicted worldwide sales<br />
of mobile phones will reach 1.28 billion<br />
units <strong>in</strong> 2008, an 11% <strong>in</strong>crease from 1.15<br />
billion units <strong>in</strong> 2007. Emerg<strong>in</strong>g <strong>market</strong>s<br />
are expected to boost the <strong>in</strong>creas<strong>in</strong>g<br />
mobile phone sales growth as mature<br />
regions such as Japan reach saturation.<br />
Mobile phone sales <strong>in</strong> the Asia Pacific and<br />
North America are projected to <strong>in</strong>crease<br />
17.9% and 5.3% respectively. But <strong>in</strong><br />
Western Europe, the sales are predicted<br />
to have decl<strong>in</strong>ed 1.5% from last year;<br />
and the same for Japan, at an estimated<br />
9.1% decrease from 2007.<br />
Mobile Advertis<strong>in</strong>g<br />
With <strong>in</strong>creas<strong>in</strong>g devices, advanced data<br />
services and media-focus, <strong>advertis<strong>in</strong>g</strong> is<br />
expected to become a common part of<br />
the mobile Internet experience. A survey<br />
<strong>in</strong>dicates that, 60% of mobile Internet<br />
users are more likely to be open to mobile<br />
<strong>advertis<strong>in</strong>g</strong> than the average mobile data<br />
user31 . Moreover, there is a high level of<br />
awareness of mobile ads, where 26% of<br />
mobile Internet users recall see<strong>in</strong>g some<br />
form of <strong>advertis<strong>in</strong>g</strong> on their phone. Mobile<br />
<strong>advertis<strong>in</strong>g</strong> can deliver personalised,<br />
targeted ad messages. Hence, ads<br />
should have personalisation, location<br />
sensitivity and be contextually relevant to<br />
receivers. Relevancy is a key to consumer<br />
acceptance.<br />
The Direct Market<strong>in</strong>g Association (DMA)<br />
says 70% of consumers who respond to<br />
a mobile <strong>market</strong><strong>in</strong>g offer, also respond to<br />
a <strong>market</strong><strong>in</strong>g text message, compared to<br />
42% who respond to a survey and 30%<br />
to email offers32 .<br />
31 “Critical Mass: The Worldwide State of the Mobile Web” by The Nielsen Company, July 2008<br />
32 “Text<strong>in</strong>g Gets Best Response on Mobile Offers” by Direct Market<strong>in</strong>g Association, July 2008<br />
Units (<strong>in</strong> million)<br />
600<br />
400<br />
200<br />
0<br />
Mobile Phone Sales Forecast<br />
2008<br />
472.5<br />
Asia Pacific<br />
188 185.7<br />
Western Europe<br />
North America<br />
Source: “Mobile Phone Sales Forecast 2008” by www.<strong>market</strong><strong>in</strong>gcharts.com,<br />
2008<br />
Mobile Market<strong>in</strong>g Offer Responses<br />
(% of Responders to a Mobile Offer)<br />
Responded to an email offer for a<br />
product or service<br />
Responded to a web offer on mobile<br />
phone's Internet browser<br />
Responded to a text message for<br />
a product or service<br />
Responded to a coupon offer for<br />
a product or service<br />
Participated <strong>in</strong> surveys sent<br />
to mobile phone<br />
30%<br />
0% 10% 20% 30% 40% 50% 60% 70% 80%<br />
Source: “Text<strong>in</strong>g Gets Best Response on Mobile Offers (% of Responders to a<br />
Mobile Offer)” by Direct Market<strong>in</strong>g Association, 2008<br />
7%<br />
5%<br />
4%<br />
10%<br />
17%<br />
22%<br />
18%<br />
42%<br />
% of Responders to a Mobile Offer N=196 Total N=800<br />
70%<br />
19
20<br />
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Orange UK Consumer Research<br />
found that the mobile phone<br />
has the potential to be the most<br />
accessible media as it is most used<br />
dur<strong>in</strong>g the middle part of the day.<br />
Mobile <strong>advertis<strong>in</strong>g</strong> may become<br />
the media channel of choice for<br />
<strong>advertis<strong>in</strong>g</strong> because people keep<br />
their mobiles with them and the<br />
mobile is switched on all the time.<br />
This creates better opportunity<br />
for the advertisers to <strong>in</strong>teract with<br />
consumers, compared to Internet<br />
and TV.<br />
In Japan, South Korea and Ch<strong>in</strong>a,<br />
the majority of web access comes<br />
from mobile phone, <strong>in</strong>stead of<br />
PCs. It is worth not<strong>in</strong>g that 85% of<br />
Japanese mobile users subscribe<br />
to mobile Internet services.<br />
Given the launch of iPhone early<br />
2007 and other smart phones alike<br />
<strong>in</strong> the <strong>market</strong>, mobile <strong>advertis<strong>in</strong>g</strong><br />
spend is at best, nascent. However,<br />
analysts see that full-blown<br />
growth can come when there is<br />
more <strong>in</strong>vestments of money, time,<br />
talent, and negotiation among<br />
brands, agencies, mobile carriers<br />
and mobile service providers <strong>in</strong><br />
this <strong>advertis<strong>in</strong>g</strong> <strong>market</strong>.<br />
eMarketer forecasts that worldwide<br />
mobile <strong>market</strong><strong>in</strong>g and <strong>advertis<strong>in</strong>g</strong><br />
spend will reach USD19 billion<br />
by 2012 with mobile message<br />
<strong>advertis<strong>in</strong>g</strong> form<strong>in</strong>g the bulk of<br />
<strong>advertis<strong>in</strong>g</strong> spend of more than<br />
USD14 billion.<br />
Note: This research study was shared by Orange with MobiAD News<br />
Source: “Exposure” by Orange UK, MobiAD News, November 2007<br />
Music Spend<strong>in</strong>g<br />
(<strong>in</strong> million)<br />
15,000<br />
12,000<br />
9,000<br />
6,000<br />
3,000<br />
0<br />
Mobile Advertis<strong>in</strong>g Spend<strong>in</strong>g Worldwide<br />
by Format 2007 to 1012<br />
52 83<br />
2,560<br />
Mobile Display Advertis<strong>in</strong>g*<br />
Mobile Search Advertis<strong>in</strong>g**<br />
Mobile Message Advertis<strong>in</strong>g***<br />
142 244<br />
4,200<br />
597<br />
338<br />
6,440<br />
1,290<br />
629<br />
9,260<br />
2,345<br />
2007 2008 2009 2010 2011 2012<br />
Note: Numbers may not add up to total due to round<strong>in</strong>g<br />
*spend<strong>in</strong>g on display banners, l<strong>in</strong>ks or icons placed on WAP, mobile HTML sites or<br />
embedded <strong>in</strong> mobile applications such as maps or enterta<strong>in</strong>ment services (e.g., games<br />
or video);<br />
**spend<strong>in</strong>g on sponsored display ads and text l<strong>in</strong>ks that appear alongside mobile<br />
search results, as well as spend<strong>in</strong>g on audio ads played to mobile phone callers mak<strong>in</strong>g<br />
a directory <strong>in</strong>quiry;<br />
***spend<strong>in</strong>g on placement <strong>in</strong> text messages, <strong>in</strong>cludes direct spend<strong>in</strong>g on message<br />
campaigns as well as spend<strong>in</strong>g on promotional coverage of end-user messag<strong>in</strong>g costs<br />
Source: “Mobile Advertis<strong>in</strong>g Spend<strong>in</strong>g Worldwide by Format, 2007-2012” by eMarketer,<br />
March 2008<br />
945<br />
11,960<br />
3,773<br />
1,203<br />
14,173<br />
!
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Banner Advertis<strong>in</strong>g<br />
Location Based Advertis<strong>in</strong>g<br />
Well accepted due to its similarity to<br />
Internet <strong>advertis<strong>in</strong>g</strong>, but consumers do<br />
not have a good understand<strong>in</strong>g of what<br />
will happen after consumer click the ads,<br />
whether it will lead to WAP page, trigger<br />
download, or other.<br />
More personally relevant <strong>advertis<strong>in</strong>g</strong> is<br />
needed to <strong>in</strong>crease consistency of the<br />
user <strong>in</strong>terfaces of ads.<br />
High level of <strong>in</strong>terest because consumers<br />
do not m<strong>in</strong>d hav<strong>in</strong>g brand names or logos<br />
appear on a map. The ads provide rich<br />
experience to the consumers as they<br />
engage with brands <strong>in</strong> highly relevant<br />
situations.<br />
However, the ads need to balance<br />
between “push” <strong>advertis<strong>in</strong>g</strong> versus “pull”<br />
<strong>advertis<strong>in</strong>g</strong>.<br />
Note: This research study were shared by Orange with MobiAD News<br />
Source: “Exposure” by Orange UK, MobiAD News, November 2007<br />
Percentage (%)<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
!<br />
Recall <strong>in</strong> Brand Advertised<br />
34%<br />
1Q 2007<br />
Source: “Mobile Advertis<strong>in</strong>g Report” by Limbo, First Quarter 2008<br />
Formats of Mobile Advertis<strong>in</strong>g<br />
41%<br />
1Q 2008<br />
Sponsored Advertis<strong>in</strong>g<br />
Idle Screen Advertis<strong>in</strong>g<br />
Consumers view the advertisements<br />
as l<strong>in</strong>ked to exist<strong>in</strong>g TV models, thus<br />
the ads receive positive response from<br />
the consumers. The ads display logos,<br />
videos and static messages from the<br />
advertisers.<br />
However, users likely to develop the<br />
expectation to experience the same<br />
standard TV experience on the mobile<br />
more and more over time.<br />
Idle screen <strong>advertis<strong>in</strong>g</strong> is where sponsored<br />
content shown on the phone when it is<br />
not <strong>in</strong> use. The ads create good brand<strong>in</strong>g<br />
for the advertisers and most favorable to<br />
the consumers<br />
But the common question related to the<br />
guidel<strong>in</strong>e for users to set the services.<br />
Accord<strong>in</strong>g to the Mobile Advertis<strong>in</strong>g Report<br />
by Limbo, 41% of consumer remembers<br />
mobile <strong>advertis<strong>in</strong>g</strong> – at least one brand,<br />
which represents a 20% <strong>in</strong>crease from<br />
2007. Survey from <strong>market</strong> research firm,<br />
Dynamic Logic on the success of mobile<br />
campaign for film The Golden Compass<br />
showed 67% of viewers remember<strong>in</strong>g ads<br />
seen. Both the studies reveal the high level<br />
of awareness of mobile ads. Therefore,<br />
the potential mobile <strong>advertis<strong>in</strong>g</strong> offers<br />
to build brand awareness, <strong>in</strong>terest and<br />
consideration.<br />
Various reports have <strong>in</strong>dicated that a common challenge for mobile <strong>advertis<strong>in</strong>g</strong> to take off<br />
successfully is the issue of standardisation of formats <strong>in</strong> mobile <strong>advertis<strong>in</strong>g</strong>. On the other hand, a<br />
factor encourag<strong>in</strong>g view<strong>in</strong>g of mobile ads is a flat rate usage charge. For example, mobile <strong>advertis<strong>in</strong>g</strong><br />
<strong>in</strong> South Africa and US have taken off successfully because both countries deploy flat rate tariffs.<br />
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Games have some of the best engagement metrics among mobile content categories. Research<br />
shows, users spend several m<strong>in</strong>utes a session with a mobile game and frequently re-visit to play<br />
some more. Moreover, consumers consistently report gam<strong>in</strong>g as one of their favorite mobile<br />
activities. However, <strong>in</strong> develop<strong>in</strong>g <strong>market</strong>s, mobile phones are already the de facto gam<strong>in</strong>g platform<br />
and millions more consumers will start experienc<strong>in</strong>g mobile games with the <strong>in</strong>troduction of new and<br />
improved handsets. This could possibly be a potential <strong>advertis<strong>in</strong>g</strong> platform. Analysts predict that<br />
<strong>in</strong> 2012, there would be 500 million mobile gamers globally, of which ad-supported mobile game<br />
spend<strong>in</strong>g (<strong>in</strong>cludes ad on mobile game websites and <strong>in</strong>-game <strong>advertis<strong>in</strong>g</strong>) could reach USD1.3<br />
billion33 .<br />
Nevertheless, <strong>advertis<strong>in</strong>g</strong> models for mobile video and TV are still at nascent stage. A major barrier<br />
to consumer adoption of mobile video and TV is the current technical immaturity surround<strong>in</strong>g<br />
handsets, networks and the distribution of mobile video content. In short, technology takes time<br />
to evolve and advance <strong>in</strong> consensus, especially <strong>in</strong> cases which require some level of <strong>in</strong>tegration and<br />
<strong>in</strong>teroperability across networks and systems. This also <strong>in</strong>cludes conflict<strong>in</strong>g bus<strong>in</strong>ess models among<br />
mobile carriers, content owners and broadcasters. But, with the right comb<strong>in</strong>ation of technology,<br />
economics and <strong>market</strong><strong>in</strong>g, the situation could change.<br />
eMarketer forecasts worldwide<br />
mobile music revenues will<br />
exceed USD13 billion by 2012,<br />
up from USD2.4 billion <strong>in</strong> 2007.<br />
Marketers will account for a<br />
greater proportion of spend<strong>in</strong>g<br />
as the ad-supported model for<br />
mobile music is expected to<br />
reach USD1.5 billion worldwide <strong>in</strong><br />
2012.<br />
Besides mobile music, mobile<br />
search revenue ads have also<br />
made their mark <strong>in</strong> 2007. With<br />
variety of searches done on mobile<br />
phones, analyst forecasted its<br />
revenue up from USD83 million<br />
<strong>in</strong> 2007 to USD3.8 billion by<br />
2012, with US expected to lead<br />
this medium at USD1.5 billion <strong>in</strong><br />
2012.<br />
*other <strong>in</strong>cludes music video and streams<br />
Note: excludes monophonic and polyphonic r<strong>in</strong>gtones; <strong>in</strong>cludes Canada, Ch<strong>in</strong>a, France,<br />
Germany, India, Italy, Japan, South Korea, Spa<strong>in</strong>, UK, US;<br />
Source: “Worldwide Mobile Music Spend<strong>in</strong>g by Format 2007-2012” by eMarketer, July<br />
2008<br />
33 “Mobile Gamers and Mobile Game Spend<strong>in</strong>g Worldwide (2007 to 2012)” by eMarketer, August 2008<br />
Music Spend<strong>in</strong>g<br />
(<strong>in</strong> million)<br />
10,000<br />
8,000<br />
6,000<br />
4,000<br />
2,000<br />
Worldwide Mobile Music Spend<strong>in</strong>g by Format<br />
2007 – 1012<br />
0<br />
1,796<br />
Mastertones R<strong>in</strong>gback Tones and Other*<br />
Full-Track Downloads<br />
Ad-Supported Mobile Music<br />
631<br />
42<br />
2,352<br />
961<br />
116<br />
3,084<br />
1,451<br />
227<br />
4,254<br />
2,191<br />
419<br />
5,845<br />
3,433<br />
835<br />
8,069<br />
5,379<br />
2007 2008 2009 2010 2011 2012<br />
1,547
Users<br />
(<strong>in</strong> million)<br />
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
Mobile Social Network Users Worldwide<br />
2007 – 2012<br />
82<br />
406<br />
147<br />
490<br />
243<br />
596<br />
* Registered users (identifies by their mobile number) who create, edit and view personal<br />
content us<strong>in</strong>g their phones<br />
Source: “Mobile Social Network Users Worldwide, 2007 to 2012” by eMarketer, April 2008<br />
369<br />
757<br />
With estimates of more than 1.2 billion mobile<br />
Internet users worldwide <strong>in</strong> 2012, there are<br />
ample avenues for <strong>market</strong>ers to promote their<br />
products and services through mobile social<br />
network<strong>in</strong>g. Most research firms forecast<br />
mobile social network users worldwide to<br />
reach more than 100 million users <strong>in</strong> 2012.<br />
This follows from the expectation of onl<strong>in</strong>e<br />
social network<strong>in</strong>g sites such as Facebook and<br />
MySpace go<strong>in</strong>g mobile and new mobile social<br />
network<strong>in</strong>g pure plays entities <strong>in</strong> the future.<br />
Emergent New Media Advertis<strong>in</strong>g<br />
Mobile Internet Users<br />
Mobile Social Network Users *<br />
554<br />
982<br />
Onl<strong>in</strong>e Social<br />
Network<strong>in</strong>g<br />
Goes Mobile<br />
Mobile Social Network Users<br />
Worldwide Forecasts<br />
Source<br />
Expected<br />
(million<br />
users)<br />
Digital Signage<br />
Digital signage, deemed the outdoor <strong>advertis<strong>in</strong>g</strong> platform of the future, provides consumers with<br />
display screen <strong>in</strong>stalled <strong>in</strong> public spaces to <strong>in</strong>form, enterta<strong>in</strong> or to deliver advertisements more<br />
reliably to target audience at specific location, at specific time. Digital signage is <strong>in</strong>creas<strong>in</strong>gly<br />
sought after by advertisers to utilise the medium and reach consumers <strong>in</strong> ways that conventional<br />
advertisements are unable to accomplish. It is also convenient for advertisers to carry out a quick<br />
copy change of their advertisements, without limitation of location and effort.<br />
Accord<strong>in</strong>g to a study by Onl<strong>in</strong>e Test<strong>in</strong>g Exchange (OTX), respondents found digital <strong>advertis<strong>in</strong>g</strong> to be<br />
<strong>in</strong>terest<strong>in</strong>g (53%), attracted their attention (63%), unique (58%) and less annoy<strong>in</strong>g (26%), than<br />
other traditional and onl<strong>in</strong>e media. Indication is that, 75% of 18 to 34 years old group <strong>in</strong> the US<br />
take notice of digital signage <strong>in</strong> seven different locations <strong>in</strong> a week. This provides opportunity to<br />
the advertisers for <strong>in</strong>tercept for ads and reach<strong>in</strong>g young people at various locations.<br />
803<br />
1,228<br />
2007 2008 2009 2010 2011 2012<br />
Year<br />
ABI Research 140 2013<br />
Juniper Research 600 2012<br />
Pyramid Research 950 2012<br />
eMarketer 800 2012<br />
Mobile Social<br />
Network<strong>in</strong>g<br />
Pure-Plays<br />
Mobile Social<br />
Network<strong>in</strong>g<br />
Enablers<br />
MySpace airG Ovi from Nokia<br />
Facebook Mocospace<br />
itsmy.com<br />
myGamma<br />
Yahoo!<br />
oneConnect<br />
Intercast<strong>in</strong>g<br />
Corporation<br />
Source: eMarketer, April 2008; John du Pre Gauntt, May 2008<br />
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Media<br />
Media<br />
Media<br />
Media<br />
Digital Signage<br />
Magaz<strong>in</strong>e<br />
TV<br />
Billboard<br />
Internet<br />
Newspaper<br />
Radio<br />
Digital Signage<br />
TV<br />
Magaz<strong>in</strong>e<br />
Billboard<br />
Internet<br />
Newspaper<br />
Radio<br />
TV<br />
Digital Signage<br />
Magaz<strong>in</strong>e<br />
Radio<br />
Billboard<br />
Internet<br />
Newspaper<br />
Magaz<strong>in</strong>e<br />
Newspaper<br />
TV<br />
Digital Signage<br />
Radio<br />
Billboard<br />
Internet<br />
Digital-Out-of-Home Media Awareness and Attitude Study<br />
Interest<strong>in</strong>g<br />
0 10 20 30 40 50 60<br />
Percentage of people (%)<br />
Unique<br />
23%<br />
23%<br />
37%<br />
34%<br />
33%<br />
33%<br />
Digital Signage<br />
Billboard<br />
Magaz<strong>in</strong>e<br />
Internet<br />
Newspaper<br />
Mobile Phone<br />
Source: “Digital Out-of-Home Media Awareness and Attitude Study” by Onl<strong>in</strong>e Test<strong>in</strong>g Exchange (OTX), 2007<br />
53%<br />
51%<br />
51%<br />
0 10 20 30 40 50 60<br />
Percentage of people (%)<br />
Enterta<strong>in</strong><strong>in</strong>g<br />
21%<br />
29%<br />
33%<br />
39%<br />
37%<br />
0 10 20 30 40 50 60<br />
Percentage of people (%)<br />
Informative<br />
32%<br />
31%<br />
35%<br />
36%<br />
35%<br />
39%<br />
43%<br />
48%<br />
58%<br />
56%<br />
0 10 20 30 40 50 60<br />
Percentage of people (%)<br />
51%<br />
50%<br />
55%<br />
59%<br />
Media<br />
Media<br />
Media<br />
Media<br />
TV<br />
Radio<br />
Internet<br />
Radio<br />
TV<br />
Magaz<strong>in</strong>e<br />
Digital Signage<br />
Billboard<br />
Newspaper<br />
Newspaper<br />
Magaz<strong>in</strong>e<br />
Digital Signage<br />
TV<br />
Radio<br />
Internet<br />
Billboard<br />
TV<br />
Magaz<strong>in</strong>e<br />
Digital Signage<br />
Radio<br />
Newspaper<br />
Billboard<br />
Attention<br />
10%<br />
40%<br />
37%<br />
47%<br />
58%<br />
57%<br />
56%<br />
0 10 20 30 40 50 60 70 80<br />
Percentage of people (%)<br />
Annoy<strong>in</strong>g<br />
26%<br />
26%<br />
23%<br />
33%<br />
52%<br />
51%<br />
Percentage of people (%)<br />
63%<br />
67%<br />
0 20 40 60 80<br />
Credible<br />
19%<br />
27%<br />
25%<br />
33%<br />
32%<br />
0 10 20 30 40 50<br />
Percentage of people (%)<br />
Percentage of people (%)<br />
37%<br />
Pay “Some” or “A Lot of” Attention to<br />
Advertis<strong>in</strong>g on the Media<br />
33%<br />
40%<br />
40%<br />
45%<br />
44%<br />
41%<br />
52%<br />
0 10 20 30 40 50 60
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Floor Graphics<br />
Floor graphics <strong>advertis<strong>in</strong>g</strong> is not the latest <strong>in</strong>novation, but it has come a long way from the traditional<br />
flat floor <strong>advertis<strong>in</strong>g</strong> to the illusion of pop-up illusionary images on the floor which consumers<br />
probably have seen at local grocery stores, convenience stores, gas stations, shopp<strong>in</strong>g malls,<br />
airports, park<strong>in</strong>g lots or retail outlets.<br />
Floor graphics are able to create and promote brand awareness, especially <strong>in</strong> retail environments<br />
where most customers do not choose the brand until they are <strong>in</strong> the store. Strategically placed floor<br />
graphics can grab customers attention and <strong>in</strong>fluence buy<strong>in</strong>g decision. For <strong>in</strong>stance, the <strong>advertis<strong>in</strong>g</strong><br />
agency, Aap!Global, managed to attract consumers from the park<strong>in</strong>g lot to Starbucks by putt<strong>in</strong>g<br />
such floor graphics on the park<strong>in</strong>g lot floor.<br />
Source: Based on Spot Study by Aap! Global<br />
! !<br />
Ads <strong>in</strong> Light Emitt<strong>in</strong>g Capacitor (LEC)<br />
CeeLite is an <strong>in</strong>novator <strong>in</strong> research<strong>in</strong>g, develop<strong>in</strong>g and commercialis<strong>in</strong>g Light Emitt<strong>in</strong>g Capacitor<br />
(LEC) technology. LEC technology is dist<strong>in</strong>ct from the older technology known as Electrolum<strong>in</strong>escence<br />
(EL) and is considered to be a separate category of products from anyth<strong>in</strong>g currently available <strong>in</strong><br />
the light<strong>in</strong>g <strong>in</strong>dustry. CeeLite LEC technology is named one of TIME Magaz<strong>in</strong>e’s “Best Invention of<br />
2006”.<br />
LEC light<strong>in</strong>g technology is environmentally friendly by its very nature and process. The technology<br />
is extremely energy efficient, long-lived and can potentially have substantial positive impact <strong>in</strong><br />
reduc<strong>in</strong>g by 22% the national energy usage consumed by light<strong>in</strong>g. The technology has been used<br />
for numerous commercial and private requirements. Trade booth, broadcast desk, d<strong>in</strong><strong>in</strong>g rooms,<br />
bars, staircases, trade shows, even catwalks have been us<strong>in</strong>g LEC <strong>in</strong> numerous creative ways to<br />
maximum effect. LEC is also <strong>in</strong>novatively used <strong>in</strong> a variety of fields such as enterta<strong>in</strong>ment, motor<strong>in</strong>g,<br />
manufactur<strong>in</strong>g and cloth<strong>in</strong>g. For example, jackets, vests, pullovers and accessories from American<br />
Light are embedded with LEC technology to create unique apparel. Also, a rock band <strong>in</strong> the US,<br />
called Red Hot Chili Peppers, uses sound-activated LEC illum<strong>in</strong>ated drums for highlights and special<br />
effects. With this trend and its potential usage, LEC could soon replace exist<strong>in</strong>g fluorescent, Light<br />
Emitt<strong>in</strong>g Diode (LED) and neon light<strong>in</strong>g.<br />
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The architectural design of LEC enables the technology to light advertisements on flat or curve<br />
surfaces on such mediums as buses, billboards, po<strong>in</strong>ts of sale and floors. Companies us<strong>in</strong>g these<br />
for <strong>advertis<strong>in</strong>g</strong> <strong>in</strong>clude H&M, House of Fraser, FedEx, Virg<strong>in</strong> Atlantic, Starbucks and Motorola.<br />
Source: www.blueoceanworldwide.com<br />
Next Generation of Advertisements<br />
! ! !<br />
AdPod<br />
The AdPod is a medium scale, modular, 3D <strong>advertis<strong>in</strong>g</strong> pod that projects 3D images <strong>in</strong>to free<br />
space. The capability of the AdPod to establish one-to-one communication with the consumer<br />
through displays of realistic, 3D mov<strong>in</strong>g images makes AdPod an ideal for real engagement and<br />
re-engagement of the consumers at po<strong>in</strong>t of sales environments such as retail outlets, shopp<strong>in</strong>g<br />
malls, c<strong>in</strong>ema foyers, railway station and airports. In Malaysia, Wonderworks expects to <strong>in</strong>stall<br />
AdPods at 20 to 30 retail site locations with<strong>in</strong> the Klang Valley.<br />
Source: www.wonderworks-media.com<br />
Creative Ads as Bus<strong>in</strong>ess<br />
Trend <strong>in</strong> <strong>market</strong><strong>in</strong>g has audibly changes from us<strong>in</strong>g words to persuade consumers towards us<strong>in</strong>g<br />
action, with the philosophy of “Actions speak louder than words”. The creative <strong>in</strong>dustry companies<br />
such as R/GA, Crisp<strong>in</strong>, Farfar and Droga5 <strong>in</strong> the US, specialise <strong>in</strong> brilliant bus<strong>in</strong>ess ideas, not just<br />
communicat<strong>in</strong>g the ads. These companies approach consumers where they would be least able<br />
to resist the message, maximis<strong>in</strong>g consumer <strong>in</strong>volvement and creates engagement by comb<strong>in</strong><strong>in</strong>g<br />
multiple bus<strong>in</strong>ess channels.<br />
!
ad s <strong>in</strong> ne w me d i a – us ex a m p l e s<br />
Cannes Lions International Advertis<strong>in</strong>g Festival, the world’s foremost <strong>advertis<strong>in</strong>g</strong> awards event,<br />
<strong>in</strong>troduced Titanium Lion award. This award is created to recognise campaigns that break with<br />
tradition and ideas that are “bigger than <strong>advertis<strong>in</strong>g</strong>”. Last year, Droga5 won the award for “Tap<br />
Project”, a campaign developed for United Nations Children’s Fund (UNICEF) to help provide<br />
children <strong>in</strong> third world countries with clean dr<strong>in</strong>k<strong>in</strong>g water. The campaign took place on World Water<br />
Day, where restaurants across New York began charg<strong>in</strong>g d<strong>in</strong>ers a mere USD1 for the privilege of<br />
dr<strong>in</strong>k<strong>in</strong>g tap water that they had previously been able to dr<strong>in</strong>k for free. The idea beh<strong>in</strong>d the artistry<br />
is to keep a child alive simply by provid<strong>in</strong>g a glass of clean water. The proceeds were donated 100%<br />
to UNICEF. After reach<strong>in</strong>g over 80 million people through media outlets, earn<strong>in</strong>g praise and action<br />
from celebs and politicians, the <strong>in</strong>itial effort earned UNICEF over USD5 million, the equivalent of<br />
1.7 million days’ worth of water for children. The campaign successfully generated far greater<br />
awareness and funds, and the project has cont<strong>in</strong>ued to thrive and will expand <strong>in</strong>ternationally <strong>in</strong> 2009.<br />
For additional <strong>in</strong>formation on Tap Project, please visit www.tapproject.org.<br />
Measur<strong>in</strong>g Advertis<strong>in</strong>g Effectiveness<br />
The trend is mov<strong>in</strong>g towards actual discounted rate measurement, with more matured <strong>market</strong>s<br />
<strong>in</strong>clud<strong>in</strong>g Europe and Australia hav<strong>in</strong>g already adopted this. IAB Europe/Pricewaterhouse Coopers<br />
(PwC) created a measure “spend per user” to illustrate the value of one Internet user to an<br />
advertiser <strong>in</strong> the different <strong>market</strong>s. The more mature the <strong>market</strong>, the higher the value placed<br />
on the Internet user by the advertisers. In the mobile <strong>advertis<strong>in</strong>g</strong> <strong>in</strong>dustry, M:Metrics launched<br />
M:Ad that captures who’s <strong>advertis<strong>in</strong>g</strong> what, where and when on the mobile web. By the end<br />
of 2008, a work<strong>in</strong>g group consist<strong>in</strong>g of Vodafone (VOD), Telefonica O2 Europe, T-Mobile International,<br />
FT/Orange Group and 3, planned to develop a set of standard measurements by us<strong>in</strong>g <strong>in</strong>puts from<br />
ad agencies and wireless carriers worldwide.<br />
Track<strong>in</strong>g of Advertisements <strong>in</strong> Industry Sectors<br />
Industry Sector Ads tracked (%) Examples of Companies<br />
Internet Retail 39.1 Electronic Arts, Ebay, Glu<br />
Broadcast<strong>in</strong>g and Cable TV 29.7 Sky, Channel4<br />
Publish<strong>in</strong>g 9.8 EMAP, Facebook<br />
Automobile Manufacturers 5.4 BMW, Citroen<br />
Internet Software and Services 4.2 Yahoo!, Microsoft<br />
Movies and Enterta<strong>in</strong>ment 2.9 Paramount<br />
Specialised Consumer Services 1.5 Avis<br />
Computer Hardware 0.9 IBM, Sun<br />
Food Retail 0.3 Cadbury’s<br />
Home Furnish<strong>in</strong>g 0.3 Harveys<br />
Note: Based on January 2008’s f<strong>in</strong>d<strong>in</strong>gs from the M:Ad <strong>in</strong> US<br />
Source: “Track<strong>in</strong>g Mobile Ads <strong>in</strong> US and UK” by MobiAD, 2008<br />
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Platforms Measurement<br />
Companies<br />
Pr<strong>in</strong>t Audit Bureau of<br />
Circulation (ABC)<br />
Approach<br />
Selected Measurement Companies Worldwide<br />
Collects pr<strong>in</strong>t circulation statistics from the distribution records.<br />
Unica Delivers Enterprise Market<strong>in</strong>g Management (EMM) capabilities to:<br />
• Analyse and predict customer behaviours and preferences based on monetary value over time, attributions,<br />
likel<strong>in</strong>ess to respond or relate to specific types of advertisements, and forecast what each customer is<br />
likely to buy and <strong>in</strong> what order.<br />
Television Navic Network • Obta<strong>in</strong>s its <strong>in</strong>formation through the set-top box, tracks tuner position anonymously and collects data<br />
through bandwidth-efficient use of exist<strong>in</strong>g return path. Data is cross-referenced to programme l<strong>in</strong>eup<br />
<strong>in</strong>formation for a detailed record of view<strong>in</strong>g behaviours.<br />
TiVo Collects a daily random sample of TiVo units by:<br />
• Demographics such as age, <strong>in</strong>come, marital status and ethnicity.<br />
• View<strong>in</strong>g habits and effectiveness of advertisements by network, genre, day-part, time slot, day of week<br />
and commercial pod position.<br />
• Assessment and analysis of impact of fast-forward<strong>in</strong>g, rew<strong>in</strong>d<strong>in</strong>g, replay<strong>in</strong>g, paus<strong>in</strong>g and other behaviours.<br />
Web Google Analytics Uses first-party cookies and JavaScript code to:<br />
• Track visitors’ <strong>in</strong>teractions with their websites (<strong>in</strong>clud<strong>in</strong>g e-commerce data, users’ geographically, network<br />
location), transactions, what they do on site, and whether they complete any of the site conversion<br />
goals).<br />
• Track down visitor behaviours such as visitor loyalty, new visitor, average page view, time on site (length of<br />
visit), page per view, bounce rate, entrance path, entrance sources, entrance keywords, effective ad text.<br />
comScore Provides details of onl<strong>in</strong>e media usage by:<br />
• Demographics segments and onl<strong>in</strong>e buy<strong>in</strong>g power of home, work and universities audiences.<br />
• Details of communication to and from <strong>in</strong>dividual’s computer on <strong>in</strong>dividual specific basis (<strong>in</strong>clud<strong>in</strong>g site<br />
visited, page viewed, ad seen, promotion used, product or service bought, site traffic, usage <strong>in</strong>tensity,<br />
search eng<strong>in</strong>e usage, onl<strong>in</strong>e video consumption, widget consumption and price paid).<br />
Film Teletrax Evaluates, responds and manages broadcast details of video footage based on:<br />
• Digital watermark<strong>in</strong>g technology embedded then adds identify<strong>in</strong>g data to the watermark, for example<br />
time, date, station, location, section of footage used and duration of the broadcast.<br />
• Evaluate the reach and performance of video assets.<br />
• Confirm and prove air<strong>in</strong>g of content.<br />
• Reconcile revenue by determ<strong>in</strong><strong>in</strong>g actual airplay versus contract.<br />
Rentrak Develops advertisement track<strong>in</strong>g verification system by:<br />
• Collect<strong>in</strong>g data at Po<strong>in</strong>t of Sale (POS), daily or weekly uploads, and data directly from digital set-top<br />
boxes.<br />
• Utilis<strong>in</strong>g tags on the customer’s site servers as well as tags embedded with<strong>in</strong> the video itself.<br />
• Track<strong>in</strong>g record of rental and sales of DVDs across multiple retail outlets.<br />
• Digital Download Essentials track<strong>in</strong>g sales and rentals (streams, downloads or time-based downloads with<br />
a DRM-based “ext<strong>in</strong>ction” feature).<br />
• Profile <strong>in</strong>dividual network performance, adm<strong>in</strong>ister national and local estimates, and provide an evaluation<br />
of <strong>in</strong>fluenc<strong>in</strong>g factors (i.e. psychographics, demographics, weather, etc.).<br />
Mobile M:Metrics The company measures:<br />
• Monthly surveys to user based on handset capabilities, content merchandis<strong>in</strong>g and distribution, and<br />
consumer behaviours.<br />
• Patented meter <strong>in</strong>stalled <strong>in</strong> smartphones that collects users’ mobile activities.<br />
• Automated tool that collects and catalogs <strong>in</strong>formation from <strong>advertis<strong>in</strong>g</strong> placed across the mobile web.<br />
Radio Arbitron • Major rat<strong>in</strong>gs products <strong>in</strong>clude cume (the cumulative number of unique listeners over a period), Average<br />
Quarter Hour (AQH - the average number of people listen<strong>in</strong>g every 15 m<strong>in</strong>utes), Time Spent Listen<strong>in</strong>g<br />
(TSL), and <strong>market</strong> breakdowns by demographic.<br />
• Collects data by ask<strong>in</strong>g select<strong>in</strong>g sample to ma<strong>in</strong>ta<strong>in</strong> a written diary describ<strong>in</strong>g each radio program listened<br />
to for each week. The method called Diary Measurement.<br />
Source: “Be Counted” by PricewaterhouseCoopers (PwC), January 2008; Company websites<br />
The problem <strong>in</strong> measur<strong>in</strong>g <strong>advertis<strong>in</strong>g</strong> spend generated by new media <strong>advertis<strong>in</strong>g</strong> is that, the<br />
<strong>market</strong> across different k<strong>in</strong>ds of <strong>advertis<strong>in</strong>g</strong> platforms is still very much a <strong>market</strong> under development<br />
with almost no f<strong>in</strong>ancial data, and it is even much harder to measure the revenue size of smaller<br />
national <strong>market</strong>s. The hurdle of the issue lies <strong>in</strong> the fact that data available is not provided <strong>in</strong> a way<br />
that is easy to use. The measurement systems need to be set up <strong>in</strong> a way that br<strong>in</strong>gs “date” <strong>in</strong>to<br />
the exist<strong>in</strong>g measurement and only after that, the report<strong>in</strong>g processes will become more usable.
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Malaysia Adex Trends<br />
The <strong>Malaysian</strong> <strong>advertis<strong>in</strong>g</strong> landscape is gradually shift<strong>in</strong>g its traditional media forms to the emergent<br />
new media <strong>advertis<strong>in</strong>g</strong> but still at a nascent stage. The latter shows much room for growth, as the<br />
<strong>in</strong>dustry fuels to content digitisation on web applications. This has shown when RM14.9 million<br />
worth of advertisements was spent on the Internet medium <strong>in</strong> the first half of 200834 . Propell<strong>in</strong>g<br />
further to this, the TV medium is creat<strong>in</strong>g new media technologies to <strong>in</strong>clude ads on applications of<br />
mobile video stream<strong>in</strong>g and broadcast mobile TV services. However, this might dampen if Malaysia’s<br />
broadband penetration and Information and Communication Technologies (ICT) literacy does not<br />
improve. With Government’s various <strong>in</strong>itiatives to push the take-up of broadband, perhaps the<br />
<strong>advertis<strong>in</strong>g</strong> <strong>market</strong> could <strong>in</strong>itiate more eyeballs.<br />
In the first half of 2008, Malaysia’s total <strong>advertis<strong>in</strong>g</strong> spend rose 22% from the first half of 2007,<br />
amount<strong>in</strong>g to RM2.9 billion. Accord<strong>in</strong>g to Nielsen Media Research Service, this is due to on-flow<br />
from last year of new product and service launch campaigns, as well as local <strong>market</strong> events like<br />
the general election, Beij<strong>in</strong>g Olympics and Euro 2008.<br />
RM (billion)<br />
6<br />
5<br />
4<br />
3<br />
2<br />
1<br />
0<br />
28.1<br />
0.5<br />
24.8 25.4<br />
0.6<br />
0.8<br />
34.9<br />
1.1<br />
12.1<br />
1.2<br />
15.2<br />
1.4<br />
16.6<br />
1.7<br />
20.9<br />
2.0<br />
Note: Includes ASTRO net adex s<strong>in</strong>ce 2003<br />
Source: Nielsen Media Research Service; Media Specialists Association; “Newspaper and TV Ads Drive Strong Adex Growth” by The Star,<br />
16 August 2008<br />
Traditional medium still drives the bulk of adex <strong>in</strong> Malaysia. Newspapers represent 54% of the<br />
total adex <strong>market</strong> share <strong>in</strong> Malaysia, tak<strong>in</strong>g the largest portion with total amount of <strong>advertis<strong>in</strong>g</strong><br />
spend reach<strong>in</strong>g RM1.6 billion, a growth of 16% from the first half of 2007. The highest growth for<br />
the first half of 2008 was the TV media (+37%), represent<strong>in</strong>g 33% of the adex <strong>market</strong> share and<br />
generat<strong>in</strong>g ads worth RM947.5 million. The top three brands are from the telecommunications<br />
sector, rema<strong>in</strong><strong>in</strong>g as the top consistent spenders <strong>in</strong> <strong>advertis<strong>in</strong>g</strong>, hence also lead<strong>in</strong>g <strong>in</strong> product<br />
categorisation at RM177.3 million.<br />
34 “Newspaper and TV Ads Drive Strong Adex Growth” by The Star 16 August 2008; Media Specialists Association<br />
2.4<br />
<strong>Malaysian</strong> Adex<br />
1988 - June 2008<br />
19.8<br />
2.6<br />
8.8<br />
2.1<br />
-17.8<br />
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1H<br />
2008<br />
16.6<br />
2.5<br />
24.4<br />
3.1<br />
3.2<br />
3.2<br />
3.4<br />
6.2<br />
3.7<br />
Adex RM (billion) Adex Growth (%)<br />
8.8<br />
4.4<br />
18.9<br />
4.6<br />
4.5<br />
4.7<br />
2.2<br />
5.5<br />
17.0<br />
2.9<br />
40<br />
30<br />
20<br />
10<br />
0<br />
-10<br />
-20<br />
-30<br />
Growth (%)<br />
29
30<br />
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Despite the current economic global slowdown, the Advertis<strong>in</strong>g Standards Authority (ASA) Malaysia<br />
believes that adex can reach RM6 billion or 11% growth from RM5.4 billion <strong>in</strong> 2007 by the end of<br />
2008. The growth for this would be expected to come from outdoor media and digital <strong>advertis<strong>in</strong>g</strong><br />
and the huge potential <strong>in</strong> TV and creative production 35 .<br />
Other<br />
RM163.6 million<br />
6%<br />
Radio<br />
RM135.8 million<br />
5%<br />
TV<br />
RM947.5 million<br />
33%<br />
Malaysia Adex 1H 2008 Market Share<br />
Po<strong>in</strong>t of Sale<br />
RM38.2 million<br />
1%<br />
Source: Nielsen Media Research Service; Media Specialists Association; “Newspaper and TV Ads Drive Strong Adex Growth” by The Star,<br />
16 August 2008<br />
Rank Top 10 Ad spend by Brand April 2008 March 2008 April 2008 vs. March 2007 (%)<br />
1 Celcom 18,116 11,843 53<br />
2 DiGi 7,907 6,830 16<br />
3 Maxis 7,690 3,785 103<br />
4 KFC 6,317 1,318 379<br />
5 Grand Brilliance 5,584 5,057 10<br />
6 Toyota 3,731 2,530 47<br />
7 TM 3,729 2,974 25<br />
8 Sunsilk 3,487 1,904 83<br />
9 Colgate 3,140 2,019 55<br />
10 Walls 2,990 5,959 50<br />
Note: Ranked as at February 2008<br />
Source: ADOI Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e, April 2008<br />
The Emerg<strong>in</strong>g Media <strong>in</strong> Malaysia<br />
Internet<br />
RM14.9 million<br />
1%<br />
Newspapers<br />
RM1,600.0 million<br />
54%<br />
Top Product Categorisation RM (million)<br />
Mobile L<strong>in</strong>e Services 177.3<br />
Local Government Institutions 95.5<br />
Female Facial Care 71.8<br />
Top Brands<br />
Celcom 95.0<br />
DiGi 51.0<br />
Maxis 44.7<br />
Barisan Nasional 27.9<br />
Introduction to Digital Advertis<strong>in</strong>g Opportunities<br />
The digital world is chang<strong>in</strong>g not only consumers’ habits, but also encourag<strong>in</strong>g <strong>advertis<strong>in</strong>g</strong><br />
opportunities <strong>in</strong> Malaysia. Onl<strong>in</strong>e media has transformed traditional media such as newspapers,<br />
magaz<strong>in</strong>es, TV and radio to take content <strong>in</strong> the onl<strong>in</strong>e channel, which has created a rapid grow<strong>in</strong>g<br />
Internet audience <strong>in</strong> Malaysia.<br />
35 Excerpts from the Association of Accredited Advertis<strong>in</strong>g Agents Malaysia (4As) president, Datuk V<strong>in</strong>cent Lee <strong>in</strong> “<strong>Malaysian</strong> Adex to Reach<br />
RM6 billion This Year with 8% Increase” <strong>in</strong> Bernama.com, 12 August 2008
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Pr<strong>in</strong>t media for example, has taken its content onl<strong>in</strong>e and has made local paper Utusan, one of the<br />
most popular Malay newspapers viewed by users, with an average 40 million monthly page views,<br />
which is a tremendous reach for advertisers.<br />
Sites Average Monthly Page Views Average Monthly Unique Users<br />
Utusan Onl<strong>in</strong>e 40,000,000 3,300,000<br />
Kosmo Onl<strong>in</strong>e 6,700,000 440,000<br />
Mangga Onl<strong>in</strong>e 2,800,000 102,000<br />
ManggaTV 2,000,000 40,000<br />
Kareer.com.my 274,000 110,000<br />
Tutor Onl<strong>in</strong>e 198,000 60,000<br />
Source: “Perfisio – The Mak<strong>in</strong>gs of a Challenger Brand” by ADOI Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e, April 2008<br />
Another grow<strong>in</strong>g ad opportunity is the radio. This medium has reached 14 million listeners<br />
(aged 10 years and above), represent<strong>in</strong>g 54% of Malaysia’s 26 million population. Out of the total<br />
adex <strong>in</strong> 2007 (RM5.46 billion), radio <strong>advertis<strong>in</strong>g</strong> revenue amounted to 4.4%. However, Malaysia’s<br />
<strong>advertis<strong>in</strong>g</strong> revenue is still below regional average of 8%.<br />
Accord<strong>in</strong>g to Survey 1 of Nielsen’s Radio Audience Measurement (RAM) 2008, radio adex <strong>market</strong><br />
share <strong>in</strong>creased to 5.5% (January to April 2008), and AMP holds 50% of its <strong>market</strong> share with 10.4<br />
million listeners (71% of overall radio listeners on weekly basis). The number one radio channel <strong>in</strong><br />
the country is ERA which tops at 4.7 million listeners (29.5%), followed by MyFM with 2.1 million<br />
listeners and Hitz at 1.1 million listeners.<br />
Advertis<strong>in</strong>g rates are still low compared with TV and pr<strong>in</strong>t, hence companies should take advantage<br />
of this avenue. Today, radio can take listeners from car to mobile and onl<strong>in</strong>e. In fact, morn<strong>in</strong>g show<br />
programmes command more listeners than any other time of the day. Accord<strong>in</strong>g to the Survey 2 of<br />
Nielsen’s RAM 2008, AMP alone reaches 73% of 14.4 million listeners <strong>in</strong> the morn<strong>in</strong>g, ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g<br />
the number one spots across the four primary languages of Malay, English, Ch<strong>in</strong>ese and Tamil<br />
stations.<br />
Across the Asia Pacific region, radio advertisements <strong>in</strong>creased an average of 32% <strong>in</strong> 2007, ahead<br />
of other media of TV and pr<strong>in</strong>t. Comparatively, <strong>in</strong> UK, 31.4% listened to radio digitally (that is,<br />
through DAB, DTV or Internet) while 11.6% listened through their mobile phones.<br />
New Types of Media Advertis<strong>in</strong>g<br />
Onl<strong>in</strong>e Behaviour <strong>in</strong> Malaysia<br />
A study on onl<strong>in</strong>e behaviour <strong>in</strong> Malaysia notes that, 61% of the <strong>Malaysian</strong> Internet users have<br />
more than five years experience onl<strong>in</strong>e 36 . These Internet users have been identified <strong>in</strong> five different<br />
segments of onl<strong>in</strong>e users namely; Embracers, Fun Explorers, Info Hounds, Onl<strong>in</strong>e Transactions and<br />
Socials.<br />
36 “Omnicom, Yahoo! Identify Onl<strong>in</strong>e Behaviour of Malaysia” by ADOI Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e, June 2008; “Billion this Year with 8%<br />
Increase” by Bernama.com, 12 August 2008<br />
31
32<br />
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
The profiles of these onl<strong>in</strong>e users will help advertisers reach each segment more effectively and <strong>in</strong><br />
the most relevant way, us<strong>in</strong>g different factors to appeal to different groups. Embracers for <strong>in</strong>stance,<br />
are most likely to shop occasionally dur<strong>in</strong>g sales with a tendency to trust advertised product, but<br />
for Fun Explorers, they are carefree and not particularly <strong>in</strong>fluenced by brands or sales.<br />
Types of Digital Media Seen Be<strong>in</strong>g Used<br />
Ads <strong>in</strong> Video Games 7%<br />
Ads <strong>in</strong> Virtual Words<br />
Others<br />
Email<br />
Mobile Phones<br />
Popup Ads<br />
Banner Ads<br />
Sponsored Contents<br />
Dedicated Websites<br />
7%<br />
17%<br />
31%<br />
32%<br />
35%<br />
50%<br />
55%<br />
64%<br />
Note: All mentioned types of digital media seen be<strong>in</strong>g used<br />
Source: “TNS Reveals Asia’s Lead<strong>in</strong>g Digital Advertisers” by ADOI<br />
Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e, April 2008<br />
Embracers<br />
Fun Explorers<br />
Info Hounds<br />
Segments of Onl<strong>in</strong>e User <strong>in</strong> Malaysia<br />
Segments Characteristics<br />
Onl<strong>in</strong>e Transactions<br />
Source: “Omnicom, Yahoo ! Identify Onl<strong>in</strong>e Behaviour of Malaysia”<br />
by ADOI Market<strong>in</strong>g Comunications Magaz<strong>in</strong>e, June 2008<br />
Embracers • Young, optimistic, twenty- someth<strong>in</strong>g, tendency to trust advertised products<br />
• Onl<strong>in</strong>e almost four hours a day and engage <strong>in</strong> general onl<strong>in</strong>e activities such as <strong>in</strong>stant<br />
messag<strong>in</strong>g, blogg<strong>in</strong>g and social network<strong>in</strong>g, which consist of shopp<strong>in</strong>g occasionally dur<strong>in</strong>g<br />
sales.<br />
Fun Explorers • Mostly teenage boys who are carefree and spendthrift <strong>in</strong> nature, with no particular brand<br />
or sales <strong>in</strong>fluence.<br />
• Spend close to 3.21 hours per day ma<strong>in</strong>ly on game onl<strong>in</strong>e and digital media.<br />
Onl<strong>in</strong>e Transactors • Older group <strong>in</strong> their 30s who use Internet ma<strong>in</strong>ly for functional purposes such as bank<strong>in</strong>g<br />
transactions, search and onl<strong>in</strong>e purchases.<br />
• The group are <strong>in</strong>fluenced by sales but have occasional impulse buys.<br />
Socials • Mostly comprised Ch<strong>in</strong>ese females <strong>in</strong> their 20s who enjoy communicat<strong>in</strong>g with people.<br />
• Onl<strong>in</strong>e habits spend about 4.5 hours daily engag<strong>in</strong>g <strong>in</strong> <strong>in</strong>stant messag<strong>in</strong>g and social network<br />
activities.<br />
Info Hounds • Group who use Internet to seek <strong>in</strong>formation, knowledge and news.<br />
• More likely to do research before mak<strong>in</strong>g a purchase and trust onl<strong>in</strong>e recommendation<br />
from other consumers through blogs and forums.<br />
Source: “Omnicom, Yahoo ! Identify Onl<strong>in</strong>e Behaviour of Malaysia” by ADOI Market<strong>in</strong>g Comunications Magaz<strong>in</strong>e, June 2008<br />
Differences <strong>in</strong> Internet behaviour by ethnic groups also exist. 81% of Malay Internet users access<br />
the Internet <strong>in</strong> places such as public Internet facilities, Internet cafes, workplaces and schools. In<br />
the meantime, 75% of Ch<strong>in</strong>ese Internet users access the Internet <strong>in</strong> their homes.<br />
(%)<br />
Segments of Onl<strong>in</strong>e Users <strong>in</strong> Malaysia<br />
Socials<br />
24% 21% 15% 21% 19%
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Messenger popular amongst Malay<br />
Internet users<br />
Yahoo! Search as Malay Internet<br />
users favourite search ehg<strong>in</strong>e<br />
Malay Internet users access the<br />
Internet outside home<br />
Source: “Omnicom, Yahoo ! Identify Onl<strong>in</strong>e Behaviour of Malaysia” by ADOI Market<strong>in</strong>g Comunications Magaz<strong>in</strong>e, June 2008<br />
Social Network Scenario <strong>in</strong> Malaysia<br />
Friendster is the number one social network website <strong>in</strong> Malaysia accord<strong>in</strong>g to Internet measurement<br />
company, comScore. As at May 2008, Friendster is four times bigger than Facebook and MySpace<br />
<strong>in</strong> Malaysia. Friendster leads the social networks by be<strong>in</strong>g the first to offer a complete social<br />
network<strong>in</strong>g experience <strong>in</strong> Malay, and a new mobile site, also <strong>in</strong> Malay.<br />
10 Most Popular Sites on Malaysia Web<br />
1 Yahoo 6 Google<br />
2 Google.com.my 7 W<strong>in</strong>dows Live<br />
3 Friendster 8 Facebook<br />
4 YouTube 9 Microsoft Network (MSN)<br />
5 Blogger 10 MySpace<br />
Source: “Top Sites <strong>in</strong> Malaysia” by www.alexa.com<br />
Malay Internet Users Behaviour<br />
56%<br />
With over 2.4 million visitors <strong>in</strong> the age range of 15 to 34 years old, and about 70% of Facebook<br />
users and 80% of MySpace users visited Friendster, the site has become a new power of onl<strong>in</strong>e<br />
social network for brands, advertisers and <strong>market</strong>ers to promote their products and services to this<br />
large demographic segment, us<strong>in</strong>g community pages called Official Profiles.<br />
Whilst the number of fans the brand won over speaks as the basic tool of the campaign success,<br />
there is a number of options available to measur<strong>in</strong>g the effectiveness of the campaign. For example,<br />
Cl<strong>in</strong>ique measured the total number of referrals, testimonials and product samples requested.<br />
Rexona tracked the number of widget <strong>in</strong>stalled with<strong>in</strong> users’ profile, along with brand testimonials<br />
and actual sales made by users.<br />
73%<br />
81%<br />
33
34<br />
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Monthly Unique Users<br />
(<strong>in</strong> thousands)<br />
3,500<br />
3,000<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
0<br />
Advertisers<br />
Age of User of Malaysia Visitor<br />
May 2008<br />
1,681<br />
325 385<br />
Friendster<br />
Facebook<br />
MySpace<br />
727<br />
253 156<br />
348<br />
Age of Users<br />
Note: Data excludes Internet café-only users and mobile Internet users. Actual number of visitors is much higher, but is not provided by<br />
comScore or available from any reliable source consistently across these sites.<br />
Source: “Friendster is the 1# Social Network <strong>in</strong> Malaysia”, www.friendster.com, July 2008<br />
Successful Campaign Launched on Friendster <strong>in</strong> Malaysia Us<strong>in</strong>g Official Profiles<br />
Cl<strong>in</strong>ique Malaysia<br />
http://profiles.friendster.com/cl<strong>in</strong>ique<strong>malaysia</strong><br />
Loreal Studio L<strong>in</strong>e<br />
http://profiles.friendster.com/studiol<strong>in</strong>e<br />
Celcom<br />
http://profiles.friendster.com/channelx<br />
Rexona by Unilever<br />
http://profiles.friendster.com/rexteen<br />
110 105 131<br />
Chipster by Danone<br />
http://profiles.friendster.com/twistieschipster<br />
47 37<br />
3,024<br />
758 735<br />
15 - 24 25 - 34 35 - 44 45 - 54 All Ages<br />
Total Number<br />
of Fans<br />
Malaysia Visitor to Top Social<br />
Network<strong>in</strong>g Sites<br />
May 2008<br />
Advertis<strong>in</strong>g Campaign Specification<br />
10,082 Serves as an <strong>in</strong>formation centre that supports<br />
sampl<strong>in</strong>g and database collection of the users. There<br />
are also special promotions such as e-coupons,<br />
contests, freebies and vouchers offer to the users.<br />
The brand uses the “Comments” segment as a<br />
platform for Questions and Answers (Q&As) with<br />
users/consumers and slide shows to share pictures<br />
of Cl<strong>in</strong>ique’s current event with users.<br />
7,627 Allows users to get to know the brands better as<br />
well as to share them with friends. There is also<br />
contest for fans to enter. The media box <strong>in</strong> the<br />
profile displays advertisement of the product.<br />
389 The custom profile known as Dex Ter. The <strong>in</strong>teractive<br />
profile features today’s latest hit music, games,<br />
r<strong>in</strong>gtones, and more. Also featured the videos of<br />
Celcom advertisement, which play as Channel X TVC.<br />
14,143 The official profile allows users to <strong>in</strong>teract with<br />
Rexy who is represent<strong>in</strong>g Rexona <strong>in</strong> a number<br />
of ways such as become a fan, give testimonials<br />
about the products, receive product <strong>in</strong>formation,<br />
and participate <strong>in</strong> contest. The profile also launched<br />
Widget, an application of virtual room decoration<br />
game that can be added to the fans profile to allow<br />
users to express their <strong>in</strong>dividuality and creativity.<br />
8,316 The brand <strong>in</strong>troduces the product under “About<br />
Me” segment. Fans use the “Comments” segment<br />
to voice out their op<strong>in</strong>ions about product and to<br />
tell friends about Chipster. The official profiles also<br />
feature attractive feature such as blog, downloads,<br />
and create wallpapers.<br />
Note: Number of total fans as at September 2008<br />
Source: www.friendster.com; “3.6 million <strong>Malaysian</strong> Ready to be Your Friends(ter)” by ADOI Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e, March<br />
2008; Pixel Media Asia<br />
Monthly Unique Users<br />
(<strong>in</strong> billion)<br />
4<br />
3<br />
2<br />
1<br />
0<br />
3.024<br />
Friendster<br />
0.758 0.735<br />
Facebook<br />
MySpace
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
<strong>Malaysian</strong> Mobile Ads<br />
Accord<strong>in</strong>g to Frost & Sullivan, mobile <strong>advertis<strong>in</strong>g</strong> revenues37 would represent 3.1% of estimated<br />
total adex <strong>in</strong> Malaysia by the end of 2008. Total mobile <strong>advertis<strong>in</strong>g</strong> revenues <strong>in</strong> Malaysia are<br />
forecasted to rise from RM10.4 million at the end of 2008 to RM175.5 million by 2012. Mobile<br />
multimedia stream<strong>in</strong>g services (audio and video) are anticipated to become one of the significant<br />
channels <strong>in</strong> the delivery of mobile <strong>advertis<strong>in</strong>g</strong> by 2012.<br />
Mobile Advertis<strong>in</strong>g Market: Revenue Forecast (2008-2012)<br />
200<br />
60 Messag<strong>in</strong>g<br />
180<br />
WAP<br />
160<br />
50<br />
Video<br />
140<br />
Performance<br />
120<br />
40<br />
In-application<br />
100<br />
80<br />
30<br />
60<br />
40<br />
20<br />
20<br />
0<br />
10<br />
2008 2009<br />
On-deck Mobile Ad Revenues<br />
2010 2011 2012<br />
Year<br />
Off-deck Mobile Ad Revenues<br />
0<br />
2008 2009 2010<br />
Year<br />
2011 2012<br />
Note: Off-deck is known as “Direct-to-Consumer” (D2C) services which are developed, offered and billed for without much <strong>in</strong>volvement of<br />
the mobile operator. On-deck refers to ad or content <strong>market</strong>ed and sold through the mobile operators’ content storefront (or decks)<br />
Source: Adapted from “Mov<strong>in</strong>g Ads for Mov<strong>in</strong>g Bus<strong>in</strong>ess: Trends, Opportunities and Challenges <strong>in</strong> the Mobile Advertis<strong>in</strong>g Industry” by Frost<br />
& Sullivan 2008<br />
Revenue (RM Million)<br />
Among the key factor mobile <strong>advertis<strong>in</strong>g</strong> has the potential to grow are the availability of <strong>in</strong>creased<br />
adoption of premium mobile content, more sophisticated handsets, flat rate pric<strong>in</strong>g for mobile<br />
broadband, development <strong>in</strong> mobile video and broadcast mobile TV services and <strong>in</strong>creased 3G<br />
network coverage.<br />
There are several significant barriers that must be overcome before mobile <strong>advertis<strong>in</strong>g</strong> become<br />
an important part of <strong>advertis<strong>in</strong>g</strong> campaign. One of the major challenges is consumer behaviour.<br />
Consumers’ will<strong>in</strong>gness to accept or reject <strong>in</strong> campaign depends heavily on how they perceived<br />
the value of the ads and the amount of control consumers have on their <strong>in</strong>volvement with the ads<br />
and protection on personal <strong>in</strong>formation. Lack of transparency <strong>in</strong> data pric<strong>in</strong>g causes consumer<br />
hesitance. Ultimately, the ability to ensure a satisfactory end-use experience is the most important<br />
success factor.<br />
Digital Signage<br />
In McDonald’s restaurant throughout Ch<strong>in</strong>a and the Philipp<strong>in</strong>es, the LCD TV sets <strong>in</strong>stalled feature<br />
McDonald’s promotions and advertisements from other companies as the customers’ wait for their<br />
orders. In Malaysia, similar digital signage systems are <strong>in</strong>stalled at local restaurants of the Kayu<br />
Restaurant cha<strong>in</strong>; Malaysia’s premier shopp<strong>in</strong>g dest<strong>in</strong>ation – Suria KLCC; and Aquaria KLCC.<br />
37 Advertis<strong>in</strong>g revenue is the amount of revenue earned by media platforms/ distributors; <strong>advertis<strong>in</strong>g</strong> spend is the amount of advertisement spent<br />
by the advertisers/ <strong>market</strong>ers<br />
Revenue (RM Million)<br />
35
36<br />
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Source: www.clickgrafix.com<br />
! ! !<br />
The demand for digital signages has been boosted by two reasons; improved economics and<br />
improved technology. Rapid dropp<strong>in</strong>g costs of the display devices and network costs, and the<br />
availability and reliability of networks <strong>in</strong>crease the attractiveness of digital signage. In Malaysia,<br />
the digital signages are mov<strong>in</strong>g towards DSL technology, which is becom<strong>in</strong>g affordable and able to<br />
cover more coverage.<br />
Asia Media Sdn Bhd, one of the largest digital out-of-home media owners <strong>in</strong> Malaysia, <strong>in</strong>stalled<br />
TransNet, the company’s digital signage network consist<strong>in</strong>g over 2,000 LCD screens on 1,000 transit<br />
vehicles such as RapidKL buses. Advertis<strong>in</strong>g and programm<strong>in</strong>g are transmitted automatically to the<br />
vehicle us<strong>in</strong>g a wireless Internet network, with 30 m<strong>in</strong>utes cycle basis offer<strong>in</strong>g audiovisual loop of<br />
custom content, m<strong>in</strong>i advertorial and advertisements.<br />
Source: Asia Media Sdn Bhd<br />
Asia Media - TransNet (the Largest Transit-TV Network)<br />
A digital signage facility called TransNet allows advertisers to deliver customised <strong>advertis<strong>in</strong>g</strong><br />
campaigns directly towards a more selective segment of consumers such as commuters on buses.<br />
Accord<strong>in</strong>g to the TNS Report December 2006 for RapidKL’s Bus operation coverage <strong>in</strong> Klang Valley<br />
area, 70% of RapidKL travelers are under 35 years old, split between 51% <strong>in</strong> the 16 to 24 years<br />
old group and 19% <strong>in</strong> the 25 to 34 years old group. The “captive” nature of the audience <strong>in</strong> bus<br />
expla<strong>in</strong>s the high recall rate for ads.<br />
Johor Bahru is the latest city where Asia Media plans to <strong>in</strong>stall TransNet. With 1.6 million <strong>in</strong>habitants<br />
and estimated weekly bus ridership of one million, Johor Bahru represents a significant <strong>market</strong><br />
for advertisers. The plan is to <strong>in</strong>stall 500 LCD on 250 Handal Indah buses that operate 16 bus
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Number of Users<br />
(<strong>in</strong> million)<br />
Source: “Bus Pax and Ridership January 2008-May 2008”; “ Usage and Awareness: Public Transport Services <strong>in</strong> Klang Valley” both reports<br />
from www.asiamedia.net.my, 2008<br />
routes cover<strong>in</strong>g Johor Bahru city centre, suburban areas, and across borders service to S<strong>in</strong>gapore.<br />
Alongside <strong>advertis<strong>in</strong>g</strong> from companies such as Body Shop, Telekom, Exxon Mobil, Maybank, and<br />
Bernama, the company also educates the public on crime updates and community programme,<br />
called Crime Watch.<br />
Floor Graphics<br />
The grow<strong>in</strong>g proliferation of hyper<strong>market</strong> cha<strong>in</strong>s has transformed the momentum of floor <strong>advertis<strong>in</strong>g</strong><br />
<strong>in</strong> Malaysia <strong>market</strong>place. With 221,000 shoppers a day and 265,000 shopp<strong>in</strong>g transactions a day38 ,<br />
hyper<strong>market</strong> cha<strong>in</strong> premises have become an opportunity for advertisers to reach consumers at<br />
the po<strong>in</strong>t when they are buy<strong>in</strong>g. Generally, time spent by a family <strong>in</strong> hyper<strong>market</strong> varies from an<br />
hour to three hours, depend<strong>in</strong>g on the occasion, and the decisions are usually made by family<br />
members. Almost 94% of <strong>Malaysian</strong> shoppers do not prepare a shopp<strong>in</strong>g list and end up buy<strong>in</strong>g<br />
product that catches their eye.<br />
Traffic (<strong>in</strong> million)<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
4<br />
3<br />
2<br />
1<br />
0<br />
Bus Pax and Ridership<br />
January 2008 to May 2008<br />
12.3<br />
6.2<br />
Jan<br />
Feb<br />
Monthly Bus Pax<br />
(<strong>in</strong> million)<br />
3.60<br />
Carrefour<br />
11.4<br />
12.0 11.8<br />
5.7 6.0 5.9 5.7<br />
Mar<br />
Apr<br />
Monthly Bus Ridership<br />
(<strong>in</strong> million)<br />
Note: Based on advert from MagiqADs <strong>in</strong> ADOI Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e, January 2008<br />
Source: ADOI Market<strong>in</strong>g <strong>Communications</strong> Magaz<strong>in</strong>e<br />
11.4<br />
May<br />
Between 16-24<br />
years old<br />
Malay are the<br />
major riders<br />
Reaches more<br />
females<br />
Most riders are<br />
s<strong>in</strong>gle<br />
Household <strong>in</strong>come<br />
below RM 3,000<br />
Profile of RapidKL’s Riders<br />
0% 20% 40% 60% 80%<br />
Monthly Traffic Yearly Traffic<br />
2.55<br />
Tesco<br />
3.13<br />
Giant<br />
0.96<br />
Cold Storge<br />
Hyper<strong>market</strong>s Cha<strong>in</strong>s Hyper<strong>market</strong> Cha<strong>in</strong>s<br />
38 Extracted from “Magiqads Bags Exclusive Media Representation <strong>in</strong> Jusco Malls” and “Magiqads Spreads Media Magic” both article from<br />
www.adoimagaz<strong>in</strong>e.com, August 2008<br />
Traffic (<strong>in</strong> million)<br />
50<br />
45<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
43.20<br />
Carrefour<br />
30.60<br />
Tesco<br />
37.50<br />
Giant<br />
51%<br />
55%<br />
59%<br />
64%<br />
66%<br />
11.52<br />
Cold Storage<br />
37
38<br />
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Source: Magiqads Sdn Bhd<br />
Examples of Floor Graphics<br />
Floor graphics take advantage of shoppers with more leisure time and shop more frequently, and<br />
this <strong>in</strong>creases the opportunity for <strong>market</strong><strong>in</strong>g efforts on them. Location, price and range of products<br />
are placed as the top three most important factors for these visitors <strong>in</strong> decid<strong>in</strong>g the location for<br />
their grocery shopp<strong>in</strong>g. From these perspectives, hyper<strong>market</strong>s present potential opportunities for<br />
both shoppers and advertisers alike.<br />
17%<br />
23%<br />
20%<br />
14%<br />
Visitors by Age<br />
26%<br />
Super/Hyper<strong>market</strong> Visitor Profile<br />
15 - 19 Years Old<br />
20 - 29 Years Old<br />
30 - 39 Years Old<br />
40 - 49 Years Old<br />
50 Years Old<br />
Number of Children Under 15 Years Old<br />
<strong>in</strong> the Household<br />
31%<br />
9%<br />
21%<br />
39%<br />
No Children<br />
1 Child<br />
2 - 3 Children<br />
4+ Children<br />
!<br />
! !<br />
Average Monthly Household Income<br />
41%<br />
27%<br />
22%<br />
6%<br />
51%<br />
53%<br />
RM2,000 and below<br />
RM2,001 - RM4,000<br />
RM4,000 and above<br />
Number of Adults Aged Above 15 Years Old<br />
<strong>in</strong> the Household<br />
1 - 3 Adults<br />
4 - 6 Adults<br />
7+ Adults<br />
!
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Jusco<br />
Tesco<br />
Carrefour<br />
Any Giant<br />
Giant Hyper <strong>market</strong><br />
Giant Super <strong>market</strong><br />
Factors <strong>in</strong> Decid<strong>in</strong>g Place for Regular Grocery Shopp<strong>in</strong>g<br />
84%<br />
78%<br />
77%<br />
76%<br />
77%<br />
74%<br />
Note: Based on visitors at Giant Super <strong>market</strong>, Giant Hyper <strong>market</strong>, any Giant, Carrefour, Tesco and Jusco<br />
Source: “Super/Hyper<strong>market</strong> Visitor Profile” from www.magiqads.com<br />
55%<br />
Location<br />
Range of Products<br />
Table Talk<br />
Table talk <strong>advertis<strong>in</strong>g</strong> not only creates awareness and provides <strong>in</strong>formation to consumers, but the<br />
medium also allows consumers a visual experience of products and services offered by advertisers.<br />
Table talk exposes consumers to the ads for duration of half an hour or more and is able to<br />
stimulate consumers’ curiosity and <strong>in</strong>terest. Further, Table talk <strong>advertis<strong>in</strong>g</strong> not only does its job<br />
when customers sit at the table, but also catches the eye of the pedestrians as they walk pass.<br />
Source: TableTalk Media<br />
Super/Hyper<strong>market</strong> Visitor Profile (cont<strong>in</strong>ued)<br />
69%<br />
71%<br />
72%<br />
73%<br />
72%<br />
In Malaysia, Tableview (M) Sdn Bhd acquired rights to sell <strong>advertis<strong>in</strong>g</strong> space on tabletops <strong>in</strong> most<br />
of the highly patronised Indian Muslim restaurants, coffee shops, hyper<strong>market</strong> foodcourts, cafes,<br />
delis, major colleges and universities <strong>in</strong> the Klang Valley and other major town centres. Rates are<br />
RM138 and RM150 per table a month at Indian Muslim restaurants and colleges or universities<br />
respectively.<br />
54%<br />
63%<br />
60%<br />
58%<br />
58%<br />
58%<br />
Price<br />
39
40<br />
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
! Campaign Name: DiGi Fun Tips<br />
Period: Mar - Jun 2008<br />
Source: www.tableview.com.my<br />
Campaign Name: Talian Nur<br />
Period: Dec 2007 - Feb 2008<br />
Campaign Name: TM iTalk Buddy<br />
“Non-Stop Excitement”<br />
Period: Dec 2007 - Jan 2008<br />
Accord<strong>in</strong>g to Project Panorama 3 a research done by Insight Research Sdn Bhd, table top<br />
advertisements have excellent awareness of 100% amongst Indian Muslim restaurant patrons,<br />
compared to other outlets. The survey revealed that out of 89% customers claimed to spend at<br />
least five seconds to read and to look at the ads, 23% of them discuss the product or brands on the<br />
table talk advertisements with other people. This shows that table talk advertisement can create a<br />
spontaneous action among customers, thus trigger<strong>in</strong>g their buy<strong>in</strong>g impulse.<br />
Food Court<br />
Western Café<br />
Fast Food<br />
Local Café<br />
Malay Restaurant<br />
Coffee Shop/Kopitiam<br />
Mamak Restaurant/Stall<br />
Base: 350 respondents<br />
Source: “Project Panorama 3”, www.tableview.com.my, 2008<br />
No<br />
11%<br />
Awareness of Table Talk Ads at Eat<strong>in</strong>g Place 2008<br />
4%<br />
7%<br />
7%<br />
9%<br />
Yes<br />
89%<br />
14%<br />
18%<br />
0 20 40 60 80 100<br />
Source: “Project Panorama 3”, www.tableview.com.my, 2008<br />
Incidence of Read<strong>in</strong>g Table Top Ads<br />
Yes<br />
23%<br />
Out of the 89% people who read the<br />
tabletop ads, 23% of them discuss the<br />
products/services advertised<br />
100%
advertis<strong>in</strong>G ma r k e t <strong>in</strong> ma l a y s i a<br />
Ads on Vehicles<br />
Ads on vehicles are an outdoor <strong>advertis<strong>in</strong>g</strong> medium that obta<strong>in</strong>s a lot of exposure for a relatively low<br />
price compared to, for example, television commercials or newspaper advertisements. Companies<br />
place advertisements on vehicles owned by the company themselves such as cars, vans, cruisers<br />
and lorries. The ads are also placed on vehicles, taxis or buses, and even private cars.<br />
With attractive colours and logos, the ads do capture the attention of the public. Ads on vehicles<br />
are also able to get the brand to areas where other <strong>advertis<strong>in</strong>g</strong> medium cannot reach such as<br />
residential streets, the workplace and schools. With the comb<strong>in</strong>ation of technological advancement<br />
that allows companies to pr<strong>in</strong>t the ads onto v<strong>in</strong>yl sheets and wrap the ads around vehicles, the<br />
<strong>market</strong> for mov<strong>in</strong>g ads is expected to cont<strong>in</strong>ue to grow and develop.<br />
Source: www.era.fm, MIX fm Sorento Road Runner<br />
! !<br />
Out of Home Television Media<br />
Out of Home television media is an outdoor screen – a comb<strong>in</strong>ation of television broadcast<strong>in</strong>g<br />
and outdoor strategic location. Accord<strong>in</strong>g to Nielsen Media Research, Media Index for the second<br />
quarter 2007, effectiveness of this type of <strong>advertis<strong>in</strong>g</strong> reached 3.4 million adults (15 years old and<br />
above) or 24%; and viewers across major cities such as Kuala Lumpur, Petal<strong>in</strong>g Jaya, Penang and<br />
Johor Bahru. For more detailed <strong>in</strong>formation on Out of Home television media <strong>in</strong> Malaysia, k<strong>in</strong>dly<br />
visit www.powerscreen.com.my.<br />
41
42<br />
br a n d i n G<br />
People are us<strong>in</strong>g numerous types of media to communicate, and from the <strong>advertis<strong>in</strong>g</strong> po<strong>in</strong>t of<br />
view, brands can and should be part of that conversation. The process of brand<strong>in</strong>g is still a process<br />
of differentiation, where consumers reserve a special place <strong>in</strong> their m<strong>in</strong>ds for particular brands,<br />
compared with the brands of competitors. Brand can be built through differentiation strategies. The<br />
same applies <strong>in</strong> new media <strong>advertis<strong>in</strong>g</strong>. As brand value usually deals at high quantum levels, there<br />
is seen ample opportunity for new media <strong>in</strong> brand<strong>in</strong>g efforts.<br />
THE GLOBAL 10 TOP BRANDS 2007<br />
Rank Brand Country of Ownership Brand Value (USD million)<br />
1 Coca-Cola US 65,324<br />
2 Microsoft US 58,709<br />
3 IBM US 57,091<br />
4 GE US 51,569<br />
5 Nokia F<strong>in</strong>land 33,696<br />
6 Toyota Japan 32,070<br />
7 Intel US 30,954<br />
8 McDonald’s US 29,398<br />
9 Disney US 29,210<br />
10 Mercedez-Benz Germany 23,568<br />
Source: “The 100 Top Brands” by Bus<strong>in</strong>essWeek, August 2007<br />
The top five world’s most valuable brands namely; Coca-Cola, Microsoft, IBM, GE and Nokia,<br />
orig<strong>in</strong>ate from the developed economies. These <strong>in</strong>ternational brands are recognised outside of their<br />
domestic customer base and create effective value for users <strong>in</strong> other <strong>market</strong>s. Although two-thirds<br />
of the global most valuable brands dom<strong>in</strong>ate from the western economies, many Asian brands such<br />
as Toyota and Honda are <strong>in</strong> the list of the 100 Top Brands as well.<br />
MALAYSIA’S TOP BRANDS 2007<br />
Rank Brand Industry Brand Value (USD million)<br />
1 Maybank Bank<strong>in</strong>g 2,764<br />
2 Public Bank Bank<strong>in</strong>g 1,967<br />
3 Maxis Telecoms 1,521<br />
4 Gent<strong>in</strong>g Leisure/ Enterta<strong>in</strong>ment 1,315<br />
5 Celcom Telecoms 1,167<br />
6 CIMB Bank<strong>in</strong>g 981<br />
7 ASTRO Media/ Enterta<strong>in</strong>ment 946<br />
8 Hong Leong Bank<strong>in</strong>g 888<br />
9 Perodua Automotive 700<br />
10 DiGi Telecoms 600<br />
Total Value of the Top 10 brands 12,849<br />
Note: This evaluation of Malaysia’s Most Valuable Brands 2007 was completed <strong>in</strong> March 2007<br />
Source: ”Top 30 Malaysia Brand Values”, www.aaaa.org.my, December 2007
<strong>in</strong> d u s t r y bo d i e s<br />
The steady growth <strong>in</strong> the number of <strong>advertis<strong>in</strong>g</strong> agencies, has also seen <strong>in</strong> parallel <strong>advertis<strong>in</strong>g</strong><br />
associations also formed to discuss and advance common <strong>in</strong>terests. This <strong>in</strong>cludes regulatory bodies<br />
as well. International associations such as Interactive Advertis<strong>in</strong>g Bureau (IAB), World Association<br />
of Newspapers, Public Broadcasters International and World Federation of Advertisers take center<br />
stage to fulfill the need to establish, regulate and standardise <strong>advertis<strong>in</strong>g</strong> practice.<br />
Interactive Advertis<strong>in</strong>g<br />
Bureau (IAB) Europe<br />
European Broadcast<strong>in</strong>g<br />
Union<br />
American Association<br />
of Advertis<strong>in</strong>g Agencies<br />
(AAAA)<br />
National Association of<br />
Broadcasters<br />
Motion Picture<br />
Association of America<br />
(MPAA)<br />
Source: Associations’ website<br />
Selected Media and Advertis<strong>in</strong>g Industry Associations <strong>in</strong> Europe and US<br />
Formed Objective/Role<br />
1998 Develops the <strong>in</strong>dustry’s standards and shap<strong>in</strong>g policy, coord<strong>in</strong>ates research,<br />
and lobbies for every media groups to help firms discover potential onl<strong>in</strong>e<br />
<strong>market</strong><strong>in</strong>g <strong>market</strong>ers.<br />
1950 Promotes public service values, help<strong>in</strong>g Members access valuable and diverse<br />
content and promotes open technical standards and <strong>in</strong>teroperability for<br />
the benefit of broadcasters and consumers, and explores the opportunities<br />
presented by new technologies.<br />
1917 Offers members the expertise, services and <strong>in</strong>formation regard<strong>in</strong>g the<br />
<strong>advertis<strong>in</strong>g</strong> agency bus<strong>in</strong>ess.<br />
1952 Provides its members with a strong national presence by provid<strong>in</strong>g a s<strong>in</strong>gle,<br />
unified voice on issues affect<strong>in</strong>g the cable and telecommunications <strong>in</strong>dustry.<br />
1922 Serves as the voice and advocate of the American motion picture, home video<br />
and television <strong>in</strong>dustries, domestically through the MPAA and <strong>in</strong>ternationally<br />
through the Motion Picture Association (MPA).<br />
Established <strong>in</strong> 1977, the Advertis<strong>in</strong>g Standards Authority (ASA) aimed to provide <strong>in</strong>dependent<br />
scrut<strong>in</strong>y of the self-regulatory system set up by the <strong>in</strong>dustry and to promote and enforce high<br />
ethical standards <strong>in</strong> advertisements <strong>in</strong> Malaysia. On August 2008, a revised of <strong>Malaysian</strong> Code<br />
of Advertis<strong>in</strong>g Practice was launched and ASA was assigned to adm<strong>in</strong>ister the code. The ma<strong>in</strong><br />
objectives of the code are to promote and enforce high standards <strong>in</strong> advertisements, to <strong>in</strong>vestigate<br />
compla<strong>in</strong>ts and to ensure that the system works <strong>in</strong> the public <strong>in</strong>terest. Members of ASA <strong>in</strong>clude<br />
<strong>Malaysian</strong> Advertisers Association (MAA), Association of Accredited Advertis<strong>in</strong>g Agents (4A’s),<br />
<strong>Malaysian</strong> Newspaper Publishers Association (MBPA) and Media Specialists Association.<br />
Association of Accredited<br />
Advertis<strong>in</strong>g Agents (4A’s)<br />
of Malaysia<br />
International<br />
Association of Bus<strong>in</strong>ess<br />
Communicators (IABC)<br />
Malaysia<br />
Institute of Market<strong>in</strong>g<br />
Malaysia (IMM)<br />
Magaz<strong>in</strong>e Publishers<br />
Association (MPA)<br />
Malaysia<br />
n.a.: not available<br />
Source: Associations’ website<br />
Selected Media and Advertis<strong>in</strong>g Industry Associations <strong>in</strong> Malaysia<br />
Formed Objectives/Roles<br />
1960 To promote the <strong>in</strong>terest of ad agencies with the advertisers, deals with <strong>in</strong>dustry<br />
issues, negotiates for better practices with the other <strong>in</strong>dustries and <strong>in</strong>dustry<br />
bodies and liaises with Government and other bodies on matters affect<strong>in</strong>g the<br />
work of <strong>advertis<strong>in</strong>g</strong> as a whole.<br />
1990’s Aims to promote an active local bus<strong>in</strong>ess fraternity, share new global<br />
communication practices, ideas and experiences and develop highly ethical<br />
and effective performance standards.<br />
1977 To organise, oversee, ma<strong>in</strong>ta<strong>in</strong>, promote, protect and assist by all lawful<br />
means the rights and <strong>in</strong>terests of <strong>market</strong><strong>in</strong>g practitioners of members of the<br />
<strong>in</strong>stitute.<br />
n.a. To support and promote <strong>in</strong>tegrity of the members, to be the <strong>market</strong><strong>in</strong>g force<br />
to <strong>in</strong>crease the share that magaz<strong>in</strong>es capture of <strong>advertis<strong>in</strong>g</strong> revenue, source of<br />
<strong>in</strong>formation and expertise about the publish<strong>in</strong>g <strong>in</strong>dustry for both its members<br />
and community.<br />
43
44<br />
Co n C l u s i o n<br />
The <strong>advertis<strong>in</strong>g</strong> <strong>in</strong>dustry is mov<strong>in</strong>g towards trends <strong>in</strong> creativity, personalisation, <strong>in</strong>teractivity,<br />
multiple distributors, consumer control and connectivity. Today, the changes and developments<br />
<strong>in</strong> technology allow consumers to have more control of what they want to see, <strong>in</strong>teract with,<br />
or purchase. Advertisers and <strong>advertis<strong>in</strong>g</strong> agencies recognis<strong>in</strong>g this are expected to grow more<br />
creatively and <strong>in</strong>novatively to meet the challenges of grow<strong>in</strong>g their <strong>advertis<strong>in</strong>g</strong> avenues and<br />
bus<strong>in</strong>esses, <strong>in</strong>clud<strong>in</strong>g the accompany<strong>in</strong>g <strong>advertis<strong>in</strong>g</strong> bus<strong>in</strong>ess models <strong>in</strong> ways and means that can<br />
grab the traditional as well as the digital viewers’ attention to maximise bus<strong>in</strong>ess opportunities<br />
aris<strong>in</strong>g.<br />
Traditional media distributors need to <strong>in</strong>fuse <strong>in</strong>novation and alertness to changes <strong>in</strong> the media<br />
environment <strong>in</strong>to their bus<strong>in</strong>ess models so as not to risk los<strong>in</strong>g significant revenue to the new media<br />
platforms such as the Internet, mobile device providers and <strong>in</strong>teractive home portals. Track<strong>in</strong>g and<br />
measur<strong>in</strong>g actual viewership, engagement and response to advertisements through the new media<br />
seem to be easier. Many companies are mov<strong>in</strong>g towards provid<strong>in</strong>g enhanced delivery capabilities<br />
across media platforms <strong>in</strong> l<strong>in</strong>e with targeted user behaviour such as mobile platforms.<br />
Meanwhile, the <strong>Malaysian</strong> <strong>advertis<strong>in</strong>g</strong> <strong>market</strong> holds much promise with ample <strong>advertis<strong>in</strong>g</strong><br />
opportunities <strong>in</strong> the chang<strong>in</strong>g traditional and new media platforms. There is a rapidly grow<strong>in</strong>g<br />
Internet audience <strong>in</strong> Malaysia, where <strong>market</strong>ers need to take stock of this avenue and seek ways to<br />
engage targeted audience. It is not likely that the digital media will totally transform and displace<br />
old media totally, but perhaps if players <strong>in</strong> the <strong>in</strong>dustry can leverage by <strong>in</strong>tegrat<strong>in</strong>g across media<br />
platforms empower<strong>in</strong>g the <strong>in</strong>teractive and rich media technology, audience could be engaged and<br />
communicated effectively.
aC r o n y m s<br />
3D Three Dimensional<br />
4A Association of Accredited Advertis<strong>in</strong>g Agents<br />
AAAA American Association of Advertis<strong>in</strong>g Agencies<br />
AQH Average Quarter Hour<br />
ASA Advertis<strong>in</strong>g Standards Authority<br />
ASEAN Association of Southeast Asian Nations<br />
B2B Bus<strong>in</strong>ess-to-Bus<strong>in</strong>ess<br />
D2C Direct-to-Consumer<br />
DAB Digital Audio Broadcast<strong>in</strong>g<br />
DMA Direct Market Association<br />
DRM Digital Rights Management<br />
DSL Digital Subscriber L<strong>in</strong>e<br />
DTV Digital Television<br />
DVD Digital Versatile Disc<br />
DVR Digital Video Recorder<br />
EL Electrolum<strong>in</strong>escence<br />
EU European Union<br />
HTML HyperText Markup Language<br />
IAB International Advertis<strong>in</strong>g Bureau<br />
IABC International Association of Bus<strong>in</strong>ess Communicators<br />
IBM International Bus<strong>in</strong>ess Mach<strong>in</strong>e<br />
ICT Information and Communication Technologies<br />
ID Identification<br />
IMM Institute of Market<strong>in</strong>g Malaysia<br />
KLCC Kuala Lumpur Convention Centre<br />
LCD Liquid Crystal Display<br />
LEC Light Emitt<strong>in</strong>g Capacitor<br />
LED Light Emitt<strong>in</strong>g Diode<br />
MAA <strong>Malaysian</strong> Advertisers Association<br />
MPAA Motion Picture Association of America<br />
MPA Magaz<strong>in</strong>e Publisher’s Association<br />
MPAA Motion Picture Association of America<br />
MSN Microsoft Network<br />
OTX Onl<strong>in</strong>e Test<strong>in</strong>g Exchange<br />
PC Personal Computer<br />
POS Po<strong>in</strong>t of Sale<br />
Q&As Questions and Answers<br />
RAM Radio Audience Measurement<br />
TNS Taylor Nelson Sofres<br />
TSL Time Spent listen<strong>in</strong>g<br />
TV Television<br />
UGC User Generated Content<br />
UNICEF United Nations Children’s Fund<br />
VoD Video on Demand<br />
WAP Wireless Application Protocol<br />
Wi-Fi Wireless Fidelity<br />
45
CONTACT US<br />
HEAD OFFICE<br />
SURUHANjAYA KOMUNIKASI DAN MULTIMEDIA MALAYSIA<br />
MALAYSIAN COMMUNICATIONS AND MULTIMEDIA COMMISSION<br />
Off Persiaran Multimedia<br />
63000 Cyberjaya<br />
Selangor, Malaysia<br />
T: +60 3 86 88 80 00<br />
F: +60 3 86 88 10 00<br />
E: ccd@skmm.gov.my<br />
W: www.skmm.gov.my<br />
Freephone number: 1-800-888-030<br />
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T: +60 3 55 18 77 01<br />
F: +60 3 55 18 77 10<br />
For any details and enquiries please contact the Market Research team:<br />
Yee Sye Chung (Head)<br />
Fiona Lim Ai Suan<br />
Sharmila Manoharan<br />
Azrita Abdul Kadir<br />
Nadzrah Mazuriah Mohamed<br />
Siti Na’ilah Kamarud<strong>in</strong><br />
Nurul Izza Saaman<br />
Ramziyah Mohamad<br />
Nor Hayati Muhd Nor<br />
E: mrd@skmm.gov.my
Suruhanjaya Komunikasi dan Multimedia Malaysia<br />
<strong>Malaysian</strong> <strong>Communications</strong> and Multimedia Commission<br />
Off Persiaran Multimedia<br />
63000 Cyberjaya, Selangor Darul Ehsan Malaysia<br />
T: +6 03 86 88 80 00 F: +6 03 86 88 10 06<br />
E: ccd@cmc.com.my<br />
W: www.skmm.gov.my