White Paper 16: Marketing spenders in Hong Kong (2010)

7/29/2019 White Paper 16: Marketing spenders in Hong Kong (2010)

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Trends in Marketing Spend

Close your eyes and try to remember fve advertisements ormessages you saw on your way to work this morning. Still thinking?

Grabbing your attention in busy environments such as Hong Kong, Shanghai orSingapore, is virtually impossible in an age o mobile Internet use, constant socialnetworking and e-mailing. Trafc jams, the daily commute to work, and o course, thehighly distorted media landscape o these areas add to this problem. We should thereoreask ourselves i traditional mediums are enough to grab the attention o the people we wantto communicate with.

In a world o instant communication and globalization, markets are changing asterthan ever. It is this current stage o the development where global brands have to actdistinctly rom their competition. Marketers need to take advantage o these ast changingdevelopments. They shouldnt wait to see how other markets are developing. In thisextremely ast changing environment, market need to act aster than ever.

With the U.S. and European market adapting to retention rather than attention,marketers o global brands have already analyzed the advantage o interacting on a morepersonal and direct level with their most important stakeholders. Global brands, whetherinternally, within a company, or externally with their partners, business associates andconsumers, see the advantage o these new marketing tools and trends, and continue toamaze their audiences with bigger and better marketing activities.

However, one major question remains: How are these extremely astdeveloping markets rom the East adapting? What is the current marketsituation, what are the trends, and how will marketing operations lookin the near uture?

Stefano Sandri

The gamble

worked, resulting in2.4 billion media

impressions.

WHITE PAPER No.

16


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The power of experiencing brands in new markets

So how and where do we implement experiences in order to add more

value to an activity and ampliy the power o its communication? Experiences

can be applied through multiple channels, meaning every direct touch point with

stakeholders allows us to interact with the people that matter most to us. This can

be anything rom personal communication via the Internet, to outdoor and eventactivities, allowing our audiences to interact, engage and enter the brand.

Most brands agree that interaction through experiences, whether o or online,

allows or two-way communication, rather than the one-way communication traditional

media is limited to. It is this two-sided interaction that creates experiences, allowing both

parties to have a memorable moment and establish a stronger bond than with one-way

interaction. This clearly creates awareness o how experiences may be a much more efcient

and eective tools or brands to communicate with their audiences. 89% o marketers and

managers o global brands agree that experiential marketing helps them build long term

relationships. The strength o this marketing tool is the power o personal experiences

directly applied to the audience. This allows or personal interaction and engagement witha brand and its message. It is that experience that stakeholders will consciously remember,

rather than subliminal observations rom the oversaturated media environment.

This powerul tool o creating a brand experience, rather than just a marketing message,

has clear advantages that can be applied on several levels o communication between

brands and their most important audiences. This could include a conerence or product

launches or recent brand developments, exhibitions, digital solutions, or a consumer

marketing campaign. Two-way communication can be applied to several marketing

activities and clearly strengthen the relationship between brands and their audiences.


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Marketing spending and trendsCompared to Western markets, Hong Kong and Asian markets in particular have

always been quite conservative and rather traditional when it comes to communicationand advertising, compared to Western markets. However, since Hong Kong and Asia arecatching up through their massively enhanced economical power, change in behavior,perception and thinking within the past decade, marketers are changing their awareness o

media usage and communication tools.

From 2008 to 2009, a steep decline in TV spending occurred, due to the recession andmassive cuts in marketing budgets. This decline orced marketers to change their thinking inregards to spending. This caused a shit to more cost eective mediums and many movedtheir budgets to events, print, and online, since they allow more eective communicationwith their stakeholders.

With these developments in mind, we still see most o the spending going towardstraditional mediums such as TV and newspapers. While these are still the dominantcommunication tools or these markets, marketers need to understand that online solutions,as well as personal interacting activities, are gaining much more importance andeectiveness.

0

1000

2000

3000

4000

5000

6000

7000

8000

TV

News

pape

r

Internet

Print

Events

Outd

oor

Direc

tMail

Radio

Othe

r

2008 (Total spend: 25,575) 2009 (Total spend: 24,041) 2010 (Total spend: 25,086)

Progression of Budget Allocation (in million HKD)

Domesticspenders on TV

are going downand that moneywould probably

go to online.

TV27%

Other 2%

Radio 2%

Direct Mail 3%

Outdoor 9%

Events 10%

Print 11%

Internet 13%

Newspaper 27%

Marketing Spending in Hong Kong (2010)


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As a leading global experiential marketingagency, Jack Morton Worldwide creates brandexperiencesand thereby helps clients buildexperience brands. We integrate live events,digital engagement and 3D environments to buildbrand relationships, increase sales and improvebusiness results.

For more inormation about Jack Morton, or oradditional fndings rom the 2011 Marketers'Survey email: [email protected]

Jack Morton Worldwide 2011. All Rights Reserved.This report may not be copied or reproduced in wholeor in part without the express written permission oJack Morton Worldwide.

ABOUT JACK MORTON:

or contact

US: Liz Bigham+2124017212

Europe:Julian Pullan+442087352000

Australia: Helen Graney+61282314500

Asia: Ben Taylor+85228051767

www.jackmorton.com

We cant justhave an event on

its own anymore;we need to makeit live more on

digital and makeit look better.

So what do the brands say?

When we interviewed high profle marketing spenders o global operating brands in

Hong Kong about uture trends in marketing activities, the majority agreed that online

is becoming a greater ocus. Some questioned the implementation o their brand and

operations with online engagements, but a strong desire or these solutions was present

at all times. A scepticism some brands had was the measurement o ROI. In this casewe compare experiential marketing activities to public relations activities. Measurement

is difcult, but everyone agrees that it is mission critical. However, compared to public

relations activities, online solutions can be measured more eectively through quantitative

data, relevant statistics and other tools to create an overview or a good ROI analysis.

Future thinking companies implement online solutions already and see the outcome they

desire, without putting their main ocus on measurement. Many brands already see the

power o online solutions to strengthen their marketing activities.

Shifting gears: less advertising and more experiences

The fnancial crisis o 2007 up to the

present day demands a dierent thinking in

media budgeting and spending. The question

at this point is not how to save money but

how to use the money marketers have more

efciently. Simultaneously, social networking

exploded rapidly in the past three years,

allowing marketers to review and assess online

marketing solutions once again. Questioning

the high pricing o media production through

TV, marketers see more potential and cost

eectiveness through online engagements.

This White Paper is based on the dissertation researchproject Current views and trends of the marketing spendersof global brands within the Hong Kong market written byStefano Sandri, NHTV - University of Applied SciencesBreda (2010).

Quotes used in this White Paper are direct quotes taken from12 in-depth interviews conducted within the research. Theinterviewees of this research included heads of marketing,directors of corporate communication and similar seniorpositions of leading consumer and nancial institutions.

All data is taken from quality marketing research reports.Some data is based on previous White Papers.

Overview

Jack Morton developed a campaign architecture, incorporating fve marketing channels

mobile, street teams, Facebook, Twitter and email. Each marketing channel had a unique

purpose and objectives in order to achieve the goals o the campaign and directed consumer

who interacted with the channel to the AT&T Torch

website and AT&T retail stores, in addition to other

campaign interaction opportunities.

Results

200,000 Facebook page views

945 people created Get InTouch holiday cards

+3,000 Augmented Reality views

7,369 sweepstakes entries and 3,503 unique entrants

505 million Facebook ads impressions, reaching 142 million people and +100,000

unique visits to the BlackBerry For AT&T Facebook page

+11,000 tweets rom 2,590 unique twitterers

+10 million Celebrity Twitter impressions and 19,000 click-throughs

+55,000 Email blast impressions, opened by 6,729 people and drove 120 people to the

AT&T Torch website or a combined click-through rate o 1.78%

+100,000 Street Team active engagements

Documents

White Paper 16: Marketing spenders in Hong Kong (2010)