By Steve Lau Vice Chairman HKAIM 10 Dec, 2010

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1 By Steve Lau Vice Chairman HKAIM 10 Dec, 2010

2 Objectives of HKAIM Identify standard and regulations within the industry in Hong Kong Liaise with Hong Kong and China Government on industry-related issues Promote the growth of interactive ti marketing/advertising i industry in Hong Kong Train and develop young talents in interactive i marketing/advertising industry Enable the continuity of the professional development in the industry Raise the industry standard by sharing best practices and the latest industry developments to industry practitioners and users

3 About Interactive advertising industry in Hong Kong Interactive advertising/marketing industry: fast growing industry worldwide and also in Hong Kong Hong Kong has one of the highest h internet t penetration ti rates in the world, 69.9% of Hong Kongers are now online. Hong Kong has the world s highest mobile messenger usage, with 23% of global users. Online advertising accounted for 3.6% of overall ad spend in Hong Kong in Total ad spend came to HK$22 billion. In 2007, the interactive advertising market grew by 30% against last year More than 1,000 advertisers in Hong Kong put their advertising budget on 2,800 online campaigns in 2008.

4 HKAIM serves a vibrant industry: This is a synergy of cross-disciplinary professionals and various groups of establishment that contribute to the growth of interactive marketing/advertising industry in Hong Kong: Marketers Digital media Digital agency Designers, copywriter, producers Advertising production Interactive media planners Software developers and programmers

5 HKAIM Inauguration Ceremony HKAIM Inauguration Cocktail was held on Sept 20, 2007 at HKUST Business Center Over 200+ guests from different sectors Laid down important foundation of HKAIM for her future projects

6 Social 2.0 Held on Sept 24, HKPC Over 14 speakers in 4 hours Over 350+ attendants Sponsor by Darizi, DotAsia & Synergy

7 mcmo Conference 2009 Held on Nov 11, HKPC Over 12 speakers in 4 hours Over 250+ attendants Sponsor by Hotmob

8 NGO 2.0 Held on Dec 1, 2009 at 1/F HKCSS Jointly organized with HKCSS 10 speakers and 2 panels in 4 hours Over 200+ attendants NGO 2.0 Workshops held on Jan 2010

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11 Supported By: Conducted by:

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13 BRIEF RECAP 1. Research Objectives To determine the user habits, preference and attitude towards social media in Hong Kong among knowledge workers.

14 BRIEF RECAP 2. Areas of Investigation User habits and preference; Use of Social Media in Business; and The perception of Social Media relative to established Media

15 BRIEF RECAP 3. Methodology Online polling was used and supplied by Radica Systems. The respondent base was provided and pooled using HKAIM executive committee and members peer network. The sample size was 127

16 BRIEF RECAP 3. Methodology Target Respondents Aged 18 or above. Female or male office workers. Have used social media in the past 6 months.

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18 Respondents Demographics The survey was done at end The respondents of our survey are very balanced, with an almost equal distribution of men and women. They tend to be aged between 26 and 35 (46%), and 36 or older (45%), and mostly work in marketing (43%), or are senior management in their organization (20%). While our respondents tend to come from a broad cross section of industries, a large portion come from the service industry (34%) and the IT&T industry (19%), and almost half work in large corporation of 100 or more staff (48%), while 44% work in SMEs of less than 50 staff.

19 Respondents Demographics 90% of respondents have used social media in the past 6 months. 56% of respondents have 3-5 social media accounts, while 25% have 1-2 accounts. The type of accounts they would register would be ranked by the following likelihood: lih 1.Social Network 2.Instant Messaging 3.Video sharing 4.Internet Forum 5.Blog network or Blogging

20 User Habits & Preferences In terms of time spent using social media, 46% of users spent on average between 1 to 3 hours a day, with 39% of users spending less than 1 hour a day, but still keeping an effort to remain plugged into their social media. Interestingly, ti 5% of all users spend 6 hours or more on their social ilmedia each day.

21 User Habits & Preferences Out of social media people have used over the past 6 months, the most popular are Social Networks such as Facebook and Xanga, Instant Messengers like MSN andyahoo, and Video sharing sites likeyoutube andtudou. Interestingly 98% of those that visit blogs or use blogs themselves, also use social networking sites like Facebook. Out of those that use business networking sites like LinkedIn, 93% of them use IM, with the ability to chat or make an instant connection with those in their business network being very important.

22 User Habits & Preferences Question: your favorite? If you have used social media in the past 6 months, which is 70% 53% 70% 48% 49% 26% 41% 29% 13% 31% 26% 38% 38% 11% 23% 17% 12% 21% 36% 19% 21% Of those that have used social media in the past 6 months Instant Messaging (IM) and Social Networks (Facebook) are our respondent s favorite, with business networking sites the least favorite.

23 User Habits & Preferences Question: Why do you use Social Media? 94% 55% 32% 38% 74% % of Users 94% use it to stay in touch with friends and family, while 74% use it to gather information. The interesting fact is although 55% use it for business networking, 59% of respondents think business networking sites are their least favorite social media. This could be due in part to user experience.

24 Social Media & Business Question: What do you think are the business benefits of social media? 90% 54% 36% 18% 75% 68% 33% Social media has a positive perception among respondents in terms of its business application, with 90% that believe social media is a fast and convenient way for networking and sharing, part of that perception is supported by the fact that 75% of respondents thought social media was free orperceivedtobeanaffordablemedia,and that68% thought social media was viral and generates word-of-mouth effectively. 100%

25 Social Media & Business In support of social media as a business tool, 46% of respondents say they have already included social media as part of their media and marketing mix, with 21% intending to include social media in their media and marketing budget within the next 6 months. While 42% of respondents do not intend to change their marketing budget to include social media, more than half our respondents intend to increase their budget to spend it on social media, with 30% planning on spending less than 10% of their budget on social media, and 21% intending to increase their bd budgetby 10-20% to spend it on social ilmedia.

26 Social Media & Business With an expected increase in demand for social media campaign planning, the positive outlook as indicated by our respondents should be good news for industry players, especially those with a low profile or those that specialize in social media. This is because when asked if Hong Kong has enough digital agencies that know how to create effective social media campaigns, 39% of respondents thought Hong Kong does not have enough good digital agencies, while more than half our respondents were unsure. This lack of awareness creates a very good opportunity for operators in this spaceto gain rare mind share as well as market share.

27 Social Media as a Medium With social media fast rising as a media option for marketers, HKAIM asked our respondents to rank popular mass media options in termsof Trustworthiness and Influence, as well as its ability to create a relationship with ihtarget audiences. The results are both surprising and insightful: Question: If you were to make a purchase,which media would you rate as most trustworthy and influential? 33% 36% 26% 28% 21% 12% 19% 36% 31% 39% 41% 38% 33% 94% 94% 24% 94% 55% 57% 31% 33% 35% 31% 41% Due to its popularity and ability to generate word-of-mouth effectively, Social Media, the youngest media option came in a very close second (55%) to TV (57%) as the most trustworthy and influential media.

28 Social Media as a Medium Question: Which media would you rate as being most effective in creating a relationship with your target t consumer? 94% 94% 94% When it comes to creating a relationship with target consumers, Social When it comes to creating a relationship with target consumers, Social Media far outpaces any other media (71%), with its next closest competitor edm trailing by 20%.

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30 Survey sponsored by

31 The respondents of this survey are mostly executives in Media and Marketing Agencies (8%), the Service industry (18%), the Gov t Sector (10%) or the IT&T sector (23%). Other respondents are quite equally distributed among those in the manufacturing & trading business, retail, or institutions or other industries. Most are age 36 or above (60%), or aged between (36%), with a small group aged between 19 to 25 (3%). Respondents were asked a series of questions to investigate and understand what the state of Mobile Marketing was in Hong Kong, and what opportunities might exist for marketers, service providers and platform owners. This year we compare the figure of 2009 and 2010 and see the changing trend of mobile marketing in Hong Kong

32 50% 45% 40% 35% 30% 25% 20% 2010 % 2009 % 15% 10% 5% 0% Yes, I am already using mobile marketing No, but I plan to use it in the coming quarter No, but I plan to use it within the next 6 months No, we do not have such plans in the next 6 months None of the above Question: Have you used mobile phones for marketing in past 6 months??

33 50% 45% 40% 35% 30% 25% 20% 15% 34% 2010 % 2009 % 10% 8% 5% 22% 0% Do not know how to use it for business Do not know good digitaal/interactive agencies 14% It is expensive It is not effective The company size is small 22% Question: Why do you not consider using mobile phones for marketing?

34 35% 30% 25% 20% 15% 2010 % 32% 2009 % 10% 18% 5% 7% 0% It can reach your target t market directly It is cost effective 14% It can yield a It is a media and higher h ROI than publicity it tool that t other media can be measured Compared to other media, it is considered more personalized. 26% Others Question: What do you think are the business benefits of mobile marketing?

35 100% 90% 80% 70% 60% 50% 40% 2010 % 2009 % 30% 20% 10% 0% 2D Barcode Apps Download Blue Tooth Location Base Service Mobile WAP SMS None of the above Question: Which of the following mobile marketing tools have you heard of?

36 70% 60% 50% 42% 36% 40% 30% 18% 4% % 10% 0% Less than 5% 6-20% 11-20% 21% or more None Question: What percentage of your total advertising budget did you spend on mobile advertising?

37 50% 45% 40% 35% 30% 18% 35% 47% 25% % % 10% 5% 0% Yes No I don't know Question: Do you think there are enough digital/interactive agencies that know how to create effective mobile marketing campaigns for your company or service?

38 There is a positive future for mobile marketing practitioners and service providers in Hong Kong. This can be seen by the high awareness of mobile marketing tools, a willingness to test the tools, and a preparedness to budget for it. There is high awareness of mobile marketing tools among professionals, with an increasing trend in apps download (thus apps development) in % of respondents believe mobile marketing can reach their target market directly, and almost 23% believe it is a more personalized media in However almost 60% of marketers either spend less than 5% or none of their budget on mobile advertising. We believe this is because 45% of respondents don t know how to use it, and 20% think its too expensive. These hurdle can easily be overcome by working with professionals, unfortunately 20% of respondents don t know of digital/interactive agencies that can create effective mobile marketing campaigns, and 47% don t believe there are enough ofsuchagencies in Hong Kong to assist them. This is a great opportunity for mobile marketing professionals, because in spite of the reluctance to engage, almost 66% of respondents either currently use mobile marketing or are planning to deploy mobile marketing campaigns within the next 6 months or less.

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40 For further information, please contact: Steve Lau Senior Consultant, HKPC Vice Chairman, HKAIM Dir: Website: