Digital Marketing TrendsDigital Marketing Trends

AudienceAudience

EnvironmentEnvironment

InteractiveInteractive

HCMC – July 17, 2007

Prepared by: Russ Conrad

Managing Director New Media Vietnam

Agenda

Web 2.0 Trends

Vietnam Internet Trends

Marketing 2.0 Trends

Key drivers of online advertising Growth

Time

GDP Growth

Lower Internet and ADSL Cost

Increased Demand for Digital Advertising

Higher Internet Penetration

Improved Internet Infrastructure

Greater Investment

in Web Content

Growth in Internet Advertising

VIETNAM HAS IT ALL

Vietnam’s Digital Generation has a diverse user base• Factory Worker in Saigon Export

processing district

• Net Pay = $50 per month

• $1.50 – haircuts

• $.60 shampoo

• $1.00 Hair ties

• $.18 per hr – Internet chat and gaming

Internet user growth pace in Vietnam in past 5 years

3,098,007

6,345,049

10,710,980

14,683,78315,760,702

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Dec-03 Dec-04 Dec-05 Dec-06 Apr-07

Time

Nu

mb

er o

f u

sers

(Source: Vietnam National Internet Center - http://www.thongkeinternet.vn/jsp/trangchu/index.jsp )

CountryTotal

populationOnline

AudienceMobile population

ID 221,900,701 15,300,000 46,900,000MY 27,392,442 11,000,000 17,500,000PH 85,712,221 12,000,000 34,800,000S G 3,601,745 2,400,000 4,100,000TH 63,456,000 11,900,000 32,400,000VN 83,944,402 15,760,000 13,000,000

Vietnam is the leading SEA country in terms of # of users

INCREASED ADVERTISING BUDGETS, AND THE MASS REACH OF THE INTERNET IN VIETNAM, WILL CREATE A LEAP FROM AFFECT IN ADVERTISING

Mobile Phone Consumption

Country Total populationOnline

AudienceMobile

populationPenetration

ID 221,900,701 15,300,000 46,900,000 21%MY 27,392,442 11,000,000 17,500,000 64%PH 85,712,221 12,000,000 34,800,000 41%SG 3,601,745 2,400,000 4,100,000 114%TH 63,456,000 11,900,000 32,400,000 51%VN 83,944,402 15,760,000 13,000,000 15%

• Vietnam has the lowest Mobile Penetration in South East Asia

• With the fastest growing GDP, Mobile penetration will not be far behind

• 4 local companies have been investing in Fixed WiMAX services: VNPT, FPT Telecom, VTC and Viettel since 2006.

Web 2.0 Video

Web 1.0Web 1.0The mostly read only WebThe mostly read only Web

250,000 Web Sites250,000 Web Sites

PublishedContent

UserGenerated

Content

1996: 45 Million Global Users

PublishedContent

UserGenerated

Content

2006: 1 Billion + Global Users

CollectiveIntelligence

The business 2.0 opportunities in S.E. Asia (Localization)The business 2.0 opportunities in S.E. Asia (Localization)

DoubleClickOfoto

Akamaimp3.com

Britannica OnlinePersonal Websites

Domain Name SpeculationPage Views

Screen ScrapingPublishing

Content Management Directories(Taxonomy)

Stickiness

AdwordsFlickrBitTorrentiTunesWikipediaBloggingSEO & SEMCPC, CPAWeb ServicesParticipationWikisTagging (Folksonomy)Syndication

Opportunity 2.0

Webisodes

Blog Marketing

Flash MicrositesSearch Marketing

Social NetworkingSocial Networking

Web Seeding

Viral Ads

Advertorials

Ad Serving

Web Analytics

Branded Games

Globalization meets Web 2.0

MARKETING 2.0

Email Marketing

Widgets

Red Bull Engages via a Can Sculpture Contest

Red Bull Art of the Can – young adults create sculptures out of red Bull cans and submit photos of their handiwork to the web. The prize is a trip for two to Switzerland.

Axe Launches brand Using Marketing 2.0 Best Practices

• Formed a band like the pussy cat dolls• Created web only videos release on

Youtube. • Utilize edgy humor that crosses borders

Boom Chicka Wah Wah USA Super market

Boom Chicka Wah Wah USA home

Boom Chicka Wah Wah Japan

Viral Ad reaches 2m visitors spending avg. 8:54 min

Axe Thailand

Axe Results

Source: Business week July 2, 2007

Country Date entered

Market share

Thailand 1995 10.9%

Columbia 2003 11.2%

USA 2002 13.5%

Japan 2007 14%

Philippines 1985 19%

Britain 1991 19.5%

Argentina 1986 20.2%

Chile 1988 21.5%

India 1999 28.6%

• USA – released 3 web based videos showing the Axe affect.Millions forwarded it to friends Axe grew from Zero to a $500 million business in 2006.

• Japan – Axe entered the market with a viral video that showed teens snowboarding down a mountain with girls following. 6 weeks after launch, axe had 12% market share.

Mitsubishi tries “TV-to-Online” cross-media marketingMitsubishi tries “TV-to-Online” cross-media marketing

15 Second TV Advertisement drove over 11 million hits in the 6 hours to the seewhathappens.com

66% of these people watched the full 50-second spot 2+ times

Superbowl TV Commercial Mitsubishi website

Case Study: Doritos ‘Crash the Super Bowl’

DORITOS stats1,100 movies

2,149,762 streams

17,949 “loves”

14,775 comments

Doritos asked usersto create their own

Superbowl Commercial

5,000,000 media impressions

Integrated Digital Marketing

“An Idea is nothing more nor less than a new combination of old elements” – Jack Foster

Being that about 50% of all ad budgets come from the brands represented in this room, then it’s important that everyone think about activities they can do with their 5% digital budget

Other Marketing 2.0 Activities

Axe - Viral- show axe feather, other

Red bull – “art of a can”

Mitsubishi – show offline to online

Doritos – yahoo Choose your ending

content• Web 2.0 video• Web 2.0- what is it? – wikipedia definition• Marketing 2.0 – What is it? – wikipedia definition• Examples of Marketing 2.0 • Fotune article – mickey mouse• Biz week article – unilever.

• Take the key points from the oreilly article and highlight and talk about them. - push this into marketing 2.0. lessons to take from web 2.0.

• Ask a few questions to the audience

I’m honored to speak today. When roger asked me to help organize this event, I had no idea how many Agencies, companies and individual interest there would be in a seminar like this. I never expected to speak to a packed room, but I think it’s a testament to the interest and intrigue into the new form of media that is less than 1% advertising spend.

I sat down to put this presentation together on Saturday night. I was in a café that normally has internet. However the internet was having problems. I turned to my phone’s gprs function and spent 3 hours using wikipedia to compile all the content for this presetnation. While this is not a seminar that focuses on Mobile marketing, I want to put in a small plug.

I hope I can provide you with some information or insight into digital media that you can successfully implement in your marketing plans. When ever I am asked to speak at an event like this, I usually fight for the topic of New Trends. It is a very broad topic and allows me to brush up on what is the latest buzz words in the industry. Today, I havd chosen to focus on a few buzz words that may be mis understood.

Web 2.0, Markting 2.0 and Integrated digital marketing.

Conclusion

• Internet advertising is the future. Take baby steps, test and learn before you invest big money. The knowledge of what works in Vietnam is being created by the individuals in this room.

• What’s great in vietnam is that we don’t have to reinvent the wheel. We need to look at the pieces of global campaings that were effective and package it in ways that will connect with Vietnamese. For example instead of Pimp by ride = pimp my bike.

• Where Web 2.0 Started

• The web 2.0 phenomenon is what is taking hold right now in Vietnam and has lead to a huge grown in the internet. Examples include:

– Yahoo 360 – over 1 million users– Clip.vn – video sharing that started– Flickr – Photo sharing – over 500,000 users

• Web 2.0 lessons:– The service automatically gets better the more people use it.– Network effects from user contributions are the key to market dominance in the web 2.0 era

Source: Zenith Optimedia, WPP Report

  Asiapac Australia Hong Kong Japan S Korea Taiwan Thailand Vietnam

2000 71,303 5,935 3,546 42,388 5,945 1,793 1,275 131

2001 69,819 5,649 1,867 41,679 5,871 1,939 1,494 147

2002 69,988 5,758 1,850 38,845 6,776 1,961 1,687 162

2003 73,961 6,296 1,847 38,813 7,059 2,145 1,943 214

2004 78,801 6,948 2,247 40,323 6,798 1,751 2,100 263

2005 82,760 7,514 2,499 40,928 6,579 1,814 2,198 297

2006 87,698 7,920 2,762 41,750 6,652 1,893 2,339 343

2007 94,467 8,378 2,902 44,173 6,785 1,990 2,506 392

2008 102,148 8,826 3,125 45,536 6,968 2,103 2,698 451

Total Ad Spend (US$)Total Ad Spend (US$)

Online ad spend (US$)Online ad spend (US$)

Source: Zenith Optimedia, WPP Report

  Asiapac Australia Hong Kong Japan S Korea Taiwan Thailand Vietnam

2000 777 61 14 545 119 26 6 -

2001 883 45 10 679 112 25 4 -

2002 1,116 123 10 781 162 29 4 -

2003 1,569 174 15 1,093 236 33 4 0.3

2004 2,408 286 16 1,677 343 59 9 0.3

2005 3,434 436 17 2,485 394 73 11 0.4

2006 4,207 589 18 3,027 446 90 22 3.0

2007 4,985 736 20 3,583 490 107 30 5.0

2008 5,733 883 22 4,111 539 117 40 8.0

Source: Zenith Optimedia, WPP Report

  Asiapac Australia Hong Kong Japan S Korea Taiwan Thailand Vietnam

2000 1.1% 1.0% 0.4% 1.3% 2.0% 1.5% 0.4% 0.0%

2001 1.3% 0.8% 0.5% 1.6% 1.9% 1.3% 0.3% 0.0%

2002 1.6% 2.1% 0.5% 2.0% 2.4% 1.5% 0.2% 0.0%

2003 2.1% 2.8% 0.8% 2.8% 3.3% 1.5% 0.2% 0.1%

2004 3.1% 4.1% 0.7% 4.2% 5.0% 3.4% 0.4% 0.1%

2005 4.1% 5.8% 0.7% 6.1% 6.0% 4.0% 0.5% 0.1%

2006 4.8% 7.4% 0.7% 7.3% 6.7% 4.8% 0.9% 0.9%

2007 5.3% 8.8% 0.7% 8.1% 7.2% 5.4% 1.2% 1.2%

2008 5.6% 10.0% 0.7% 9.0% 7.7% 5.6% 1.5% 1.7%

Online as % of total (US$)Online as % of total (US$)

In 2008, Vietnam will pass it’s peer SEA countries in Percentage of budgets that go online

Online as % of Total Adspend

2010

By 2010, the digital ad market is estimated to be $30,000,000 in Vietnam.

What does this mean to Advertisers?