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ISSUE 208 (JAN-FEB2017)
Regional CEO Harmandar Singh ham@adoimagazine.com Chief Content Officer Malati Siniah malati@adoimagazine.com Business Development Manager Jarrod Sunil Solomon jarrod@adoimagazine.com Art Director Chemical Ali ali@adoimagazine.com Deputy Art Director/Digital Magazine Khairul Annuar aka An an@adoimagazine.com Subscriptions Ruby Lim ruby@ham.com.my Photography & Digital Imaging DL Studio No 7, Jalan PJU 3/50, Sunway Damansara 47810 Petaling Jaya, Selangor D.E. Malaysia tel +603 7880 6380 / 6386, email: studiodl@pd.jaring.my
COVER STORY
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The consortium formed between two out-ofhome (OOH) giantsBig Tree Outdoor (BTO) and Seni Jaya, BTSJ is set to change the outdoor landscape by introducing a series of innovative and new OOH formats along Klang Valley’s major motorways.
CCO NOTE
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Mccain Goh, mccain1982@yahoo.com Online Content Management On-Target Marketing Solutions Sdn Bhd
ONLINE FLUX
AMAZON GO: TAKING THE QUEUE OUT OF ACQUISITION Here at the start of 2017, I shall endeavor to try to learn from 2016 and my delusional fellow Americans – but, to paraphrase Betty Davis in “All About Eve,” fasten your seatbelts, it’s going to be a bumpy ride.
Contributors: Josh Sklar, Paul Loosley, Contagious Print Spec Solution Sdn Bhd (726670-H) No 57, Jalan Balakong Jaya 6, Taman Industri Balakong Raya, 43300 Balakong, Selangor Darul Ehsan Distribution: Five E-Comm No. 2 & 2-1, Jalan Palma Raya Bandar Botanic, 41200 Klang, Selangor MARKETING magazine is published by Sledgehammer Communications (M) Sdn Bhd 22B, Jalan Tun Mohd Fuad Satu, Taman Tun Dr. Ismail, 60000 Kuala Lumpur, Malaysia. Tel: 603-7726 2588 Fax: 603-7722 5712 www.marketingmagazine.com.my follow us on: www.facebook.com/marketingmagazine.asia Digital Edition: http://goo.gl/e0B07B © All Rights Reserved By: Sledgehammer Communications (M) Sdn Bhd (289967-W) No part of this magazine may be reproduced in any form without prior permission in writing from the publisher. While every effort has been made to ensure the accuracy of the information in this publication, the publisher assumes no responsibility for errors, omissions and/ or for any consequences of reliance upon information in this publication. The opinions expressed in this publication do not necessarily represent the views of the publisher or editor. Advertisements are the sole responsibility of the advertisers.
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NEW YEAR, NEW CHANCES
While I came across plenty of motivational quotes, inspirational pictures and tear-jerking videos this phrase stood the most to me on the first day of 2017. The phrase not only resonated personally but its something I’m hoping to see more from the industry. ‘Fail Fast, Fail Often’ is the mantra embedded in many of Silicon Valley’s top start-ups as failure to them spurs growth, understanding and change. While I’m in no way encouraging you to look at your next project with failure in mind, I am asking you to look at it with the open mind of taking a chance. Be it suggesting a new idea to your client or as a client being brave enough to accept that bold new idea.
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MALAYSIAN MEDIA CONFERENCE 2016
19 MMC2016 DATA DRIVEN INSIGHTS
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SPOTLIGHT 2017
TOP 6 MARKETING TRENDS FOR 2017
MALAYSIAN MEDIA CONFERENCE 2016
SINKORSWIM
MALAYSIAN MEDIA CONFERENCE 2016
Data, the four letter word that has been on the lips of every marketer in 2016 is going to play an even bigger importance to the industry in 2017. SINKORSWIM
MALAYSIAN MEDIA CONFERENCE 2016
In a blink of an eye, we have said goodbye to 2016 and hello to a brand New Year. To inspire your future campaigns, we have picked some of the top trends marketers should look out for in 2017 from J. Walter Thompson Innovation Group’s third annual Future 100 report.
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MPA AWARDS
MARKETING MAGAZINE SWEEPS AWARDS AT MPA MALAYSIAN MEDIA CONFERENCE 2016
SHUT UP ABOUT ADVERTISING!
A SMALL SEASONAL BREAK WITH TRADITION, REDUX. You see this is a weird time of the year for me. With all the holidays around, a great wave of sadness suddenly sweeps over me. And here’s why. I am, by my own admission an old hippy. I was a teenager in the 60’s and I believed it all, love, peace and the whole thing (even though, even then, the Israelis and the Arabs were beating up on each other).
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OLD SPICE NATURE ADVENTURE Old Spice created the world's first branded, live-action, realtime video game to reach out to millennial gamers.
SINKORSWIM
It was a proud moment for MARKETING Magazine recently as the trade publication picked up two awards at the annual Magazine Publishers Association (MPA) Magazine Awards. Taking home the Gold Award for Editorial (English) was the article ‘Cannes Lion 2015 Diaries!’ penned by Harmandar Singh aka Ham, MARKETING’s Regional CEO. His witty and sharp feature won the hearts of the judges
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CASE STUDY
WHITE PAPER
31 PRODUCT OF THE YEAR 2017
39 RETAIL INSIGHTS: UNDERSTANDING MALAYSIAN SHOPPERS
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EXPERTS BREAK DOWN VIEWABILITY CONTAGIOUS
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Part of the fun of shopping is the thrill of the chase. Three in five Malaysian consumers (62%) say they enjoy taking the time to find bargains, this is according to Nielsen’s latest surveys released recently on Global Retail Growth Strategies and Global Retail Loyalty Programmes. The top two motivators for retail shopping according to the survey is that Malaysians enjoy shopping for groceries (66%) and are actively seeking products... ISSUE208JAN-FEBMARKETING
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creative showcase HOOK CATEGORY RESTAURANTS & FAST FOOD CLIENT MCDONALD’S AGENCY LEO BURNETT FRANKFURT COUNTRY GERMANY
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cCO note
NEW YEAR, NEW CHANCES
By Malati Siniah, malati@adoimagazine.com
“365 Days, 365 Chances” While I came across plenty of motivational quotes, inspirational pictures and tear-jerking videos this phrase stood the most to me on the first day of 2017. The phrase not only resonated personally but its something I’m hoping to see more from the industry. ‘Fail Fast, Fail Often’ is the mantra embedded in many of Silicon Valley’s top start-ups as failure to them spurs growth, understanding and change. While I’m in no way encouraging you to look at your next project with failure in mind, I am asking you to look at it with the open mind of taking a chance. Be it suggesting a new idea to your client or as a client being brave enough to accept that 8
MARKETINGISSUE208JAN-FEB
Malati MARKETING's
bold new idea. If you are looking for inspiration for those bold new ideas flip through our special feature which looks at the marketing trends predicted for 2017. For those of you who are looking to venture into a brand new media space, don’t miss our cover story on the new
consortium formed between two Out-OfHome veterans, Big Tree Outdoor and Seni Jaya. We speak to Jeff Cheah on the opportunities Malaysia’s RM 21 billion MRT project carries. With all those features and a closer look into topics such as Viewability, Retail and more, we hope this issue inspires you to
and Ali taking
new chances.
take as many brave new chances in 2017. Happy Reading & Happy New Year!
creative showcase CLEAN UP AUSTRALIA DAY: SPROUT CLIENT CLEAN UP AUSTRALIA AGENCY CUMMINS&PARTNERS SYDNEY COUNTRY AUSTRALIA CREATIVE DIRECTOR AVISH GORDHAN MANDIE VAN DER MERWE ACCOUNT EXECUTIVE OLIVIA ETZINE DESIGNER DOMENIC BARTOLO PHOTOGRAPHY SEAN IZZARD
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say what
“The business of advertising is nightmarish on a regular basis – you can’t go a week without being punched in the gut. I think you have to take failures and setbacks with grace – this is something I had to learn, I used to stamp my feet and get angry.” - Ted Royer, Droga5’s Chief Creative Officer & ADFEST Grand Jury President shared in an interview on the learnings from his 20-year-old advertising career.
“I believe it will become more challenging in 2017. The targeting tactics by marketers will work up to a certain extent, however, if the ad does not prove meaningful to the consumers, it will be summarily overlooked. The ‘hunter’ mindset of preying customers will not work anymore. People will find that irritating. Marketers will have to woo their audience.” - Andrew Lee, Managing Director Havas Worldwide Kuala Lumpur told The Star of the challenges marketers would face in the new year.
“In 2017, clients are going to demand more transparency from their location intelligence providers. They’ll want to understand how data is being collected, how it is being verified and what the consumer’s role is. Walled gardens will come under pressure to open up, and transparency will help marketers better gauge the accuracy and precision of the data they’re working with. Companies that haven’t moved on to programmatic ad buying will be called out.” - Steven Rosenblatt, President of Foursquare wrote in his article titled ‘How Location-Based Marketing Will Evolve in 2017’ published in Adweek
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“Gen Z will not only change how brands communicate but also create challenges in how brands demonstrate authenticity and transparency in digital”- Duncan Southgate, Global Brand Director, Media & Digital at Kantar Millward Brown shared in the company’s annual digital and media predictions for 2017.
cover story
: THE OUTDOOR INDUSTRY’S NEW PILLAR OF STRENGTH BTSJ or Big Tree Seni Jaya may still be new to many but come 2017 this name will be on everybody's lips.
by Malati Siniah
The consortium formed between two out-of-home (OOH) giants- Big Tree Outdoor (BTO) and Seni Jaya, BTSJ is set to change the outdoor landscape by introducing a series of innovative and new OOH formats along Klang Valley’s major motorways.
cover story
Some of these engaging new advertising formats have already been mounted upon the pillars of the government’s RM21 billion MRT project. Phase One of the MRT Sungai Buloh-Kajang (SBK) Line, which 14 MARKETINGISSUE208JAN-FEB
covers 12 stations and spans 21km from Sungai Buloh and Semantan is already in operation with Phase Two scheduled to be operational by mid2017 with 19 more connecting stations between Semantan and
Kajang. Upon launching the highly anticipated project in early December 2016 Prime Minister Datuk Seri Najib Tun Razak shared that the project which took five years to build would not only improve public transportation
in Klang Valley but give urbanites a better quality of life. Apart from improving public transportation and creating new jobs the MRT project according to Najib created an image of a modern and more
progressive nation.
THE BIG PITCH Winning the pitch for such an iconic project was no easy feat. As I flipped through the hardcover proposal book which was as thick as an annual
“When creating MRT’s new media formats we think like an OOH media designer to ensure that each inventory had a refined look and feel.” JEFF CHEAH
report, I was fascinated to see digital ads towering the skies of KL and brand logo’s no longer constricted to billboards. “If you think that’s a lot you should see the four other books we submitted for pitching,”
grinned Jeff Cheah, BTO Chief Executive Officer who spearheaded the entire project. The level of detail which went into the proposal was a result of almost two years of fieldwork in the
new area which the 51km track would cover and international benchmarking of products and solutions. “When MRT Corp called for the tender it attracted both local and international companies to pitch for the deal. The
collaboration with Seni Jaya was a strategic move, we would be combining our skills of bringing integrated outdoor advertising solutions for over 17 years and Seni Jaya’s 32 years of outdoor industry experience,” Jeff shared while adding that BTO has a 60% ownership of the consortium. The move paid off as late last year: BTSJ was awarded MRT Corp’s largest advertising concession, the line’s outdoor exterior advertising. The Outdoor Exterior parcel concession is considered to be highly lucrative as it includes advertising opportunities along the MRT train line which covers a distance of approximately 41km (excluding tunnels) covering key populated areas such as Sungai Buloh, Kota Damansara, Bandar Utama, TTDI, Damansara Heights, Cheras and Kajang “I believe our pitch won because of our direction in making media more engaging. We found a way of creating media solutions which are eye-catching, engaging and blend seamlessly with its surroundings” Jeff added that BTO’s strong track record in managing advertising opportunities in railway systems would have also given MRT Corp the assurance that the company had the resources and expertise to see the project
through to its 10-year contract. 2016 proved to be a successful year for the company which currently commands the largest market share of outdoor advertising nationwide. Earlier in the year, BTO had secured an advertising concession of the Light Rail Transit’s (LRT) new Line Extension Project from Prasarana Malaysia Berhad. BTO was announced as the outdoor agency of choice to manage RapidKL’s two LRT lines - the Ampang line and the Kelana Jaya line - both existing tracks and stations, as well as the KL Monorail line.
AN OOH REVOLUTION “When creating MRT’s new media formats we think like an OOH media designer to ensure that each inventory has a refined look and feel,” Jeff adds. This is to suit the new urban areas in which it would be part of. Bringing a fresh look into the industry was paramount and the company spared no expense to work with international talents and using the advancements in design and technology to ensure that the new formats would have better visibility and create the right value for advertisers. Phase One will see the unveiling of six new media formats which ISSUE208JAN-FEBMARKETING 15
include: Beamer Series: Eyecatching and vibrant lightboxes mounted on each of the MRT pillars capturing the attention of office workers stuck in traffic Sexy Curve: A towering beauty dominating the KL skyline to cut through the clutter and capture the attention of onlookers Digital Tower: Combining cutting edge technology with vibrant visuals this brand new format goes beyond a single image by allowing advertisers to experience multiple screen synchronisation. Adoption: Providing a one-of-a-kind brand experience, this format gives advertisers an option of going beyond the screen by creating
ambient advertising in the space between each pillar Station Domination: With their brand enveloping the entire station advertisers have a unique opportunity to tie in their branding with a landmark station Halo Panel: With a panel that stretches across the motorway this advertising format gives a head-on impact of hard-to-miss visuals “It was important for us that the designs we came up with suited the location it was in. It’s not only about aesthetics, everything from ensuring that our ‘Beamer Series’ is at eye level for oncoming motorist to designing the curvature of the ‘Sexy Curve’ to follow
Beamer Series
Halo Panel (Night) Halo Panel (Day)
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cover story Jeff Cheah Chief Executive Officer Big Tree Outdoor
the direction each driver was coming from,” Jeff explained. While the MRT brought Malaysia to the forefront of technological advancement it was only fair advertising on the stations mirrored this.
“Drawing inspiration from Europe to Korea, the latest formats brought the latest deployment in technology globally to Malaysia. While some of it might not be apparent, such as the digital display’s auto dimming
feature at night, others such as our ‘Digital Tower’s’ live feed abilities will definitely be hard to miss,” Jeff shared excitedly while flipping through the designs of each format which have already been snapped up by keen
“Drawing inspiration from Europe to Korea, the latest formats brought the latest deployment in technology globally to Malaysia. While some of it might not be apparent, such as the digital display’s auto dimming feature at night, others such as our ‘Digital Tower’s’ live feed abilities will definitely be hard to miss”
JEFF CHEAH
Adoption (Day) Digital Tower
advertisers.
PEOPLE POWERED INNOVATION The backbone of the new company and its exciting new products is BTSJ’s brand new sales team. The now three, but soon to be five people, strong team is led by Fong Kok Chin (KC) who was formerly with Big Drive. Having joined BTO in 2008 KC shared that it took him less than 10 minutes to respond to Jeff when he presented to him this new opportunity wrapped in a challenge. “I felt that it was the right challenge I needed at this point of my career. In many ways, we are starting from scratch, coming up with
Station Domination
Sexy Curve
Adoption (Night)
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cover story 1
2
THE SQUAD
3
1. Fong Kok Chin (KC), Head of Sales The business principle that KC holds is to add value to every recommended solution for clients. He goes beyond just a supplier-buyer relationship with clients; KC believes in forming partnerships to achieve sustainable organic growth in the best interest of his clients. 2. Darren Boo, Account Manager Darren finds it imperative to have a meticulous overview of the industry, client’s brand positioning and target consumer to comprehend the demands of clients. He is dedicated to provide in-depth ideas to ensure advertisers achieve their advertising campaign objectives. 3. Kerry Yap, Senior Sales Executive In fulfilling the advertising needs of clients, Kerry found her forte in creative ideation to form holistic advertising solutions. She gauges the requirement of clients via multiple perspectives, and is proactive in optimising sales and marketing resources to satisfy the every need of her clients.
new systems to ensure that everything runs like a well-oiled machine,” KC shared while adding that the knowledge and experience from BTO spurred his groundwork in setting things in motion. KC who has been on the ground understanding the market and footfall surrounding the MRT project is positive on the new opportunities the project will provide. “The population living in the areas connected by the MRT are premium and affluent with good 18 MARKETINGISSUE208JAN-FEB
purchasing power, a great market for many of our clients." The new locations which the MRT covers provide advertisers a wider net to capture the attention of new consumers. "Our eye-catching and innovative media formats would not only captivate traffic but also help them instill a stronger brand presence among viewers." To market BTSJ's new media inventories KC brought in Darren Boo (Account Manager) and Kerry Yap (Senior
Sales Executive), two of the OOH industry's rising stars. “Both Darren and Kerry have the industry knowledge and right attitude to get the job done. I’m currently recruiting two more members to join our dynamic team,” he shared while adding that his future plans included increasing his team’s headcount with the rollout of Phase Two.
DRIVING POSSIBILITIES To Jeff, who is also the Outdoor Advertising Association
of Malaysia’s (OOAM) President, 2017 provides immense opportunities for the OOH industry thanks to the innovation and creativity from its products and innovative campaign executions. “We are constantly reinventing ourselves to stay ahead of the curve. One of our key initiatives last year was to launch a new activation team within BTO to bring life to our customers product.” The company he shared recently set up a gigantic vending machine dispensing hot coffee to give LRT
customers a taste of their client’s latest product. The experience was also carried online with consumers tweeting their experience, bringing more publicity to the on-ground campaign. 2016 saw the reinvention of the OOH industry and BTO certainly shows no signs of slowing down. With mutiple awards including A+M's OOH media company of the year, for 8 years consecutively, the future is bright for both BTO and BTSJ.
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MMC2016 DATA DRIVEN INSIGHTS
Data, the four letter word that has been on the lips of every marketer in 2016 is going to play an even bigger importance to the industry in 2017.
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MALAYSIAN MEDIA CONFERENCE 2016
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The man who brought data back into the spotlight Harmandar Singh, organiser of MMC2016 with Lw Chan Keong,CEO, Media Consortium Corporation and MMC's speaker Jeffrey Seah
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Chan Woei Hern, Executive Creative Director EnsembleWW stands beside his full size promotional poster
MARKETING launched the 12th Malaysian Media Conference (MMC) with the theme of Datalytics to give the attending media, marketing and creative professionals a holistic view on the topic. The event which took place at Sime Darby Convention Centre last November 14th was crafted around the single question posed to attendees, 'In a sea of Data, will you sink or swim?'. The insights led conference had top brands including Domino’s, Digi and more who shared with the attendees how they were making more data driven decisions. Attendees gained insights from the region’s top speakers 20 MARKETINGISSUE208JAN-FEB
including Robin Wong - Mindshare & CEO of FAST Asia Pacific, Rahul Thappa - Vice President of Data Analytics, Astro, Linda Hassan - Head of Marketing at Domino’s Malaysia & Singapore, Lars Setsaa – Head of Revenue Management and Analytics - Digi Telecommunications who shared how they were tapping into the power of data to power the growth of their business. 'Datalytics is here to stay' declared MMC’s first speaker Robin Wong, CEO, Fast Asia Pacific, Mindshare. During his talk, Robin gave the audience an overview of the data Participants networking during the break evolution in the local market. Looking into the future he even outlined some of his future
All Smiles from team Emojot
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Our Panelists Rahul Thappa,Vice President of Data Analytics, Astro and Deepika Nikhilender, CEO, CtrlShift sharing thoughts before their session
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Our MC having a chat with one of the attendees
predictions and advice as to how the industry would grow: • All eyes on Virtual Reality – The image of Tom Cruise being served personalised ads in Minority Report might someday become a reality. He shared how personalised Outdoor Ads being beamed to commuters’ and shoppers’ eye and ads being served programmatically based on retinas defining profiles and attributes could one day be the future of the convergence between data and advertising. • Datalytics is here to stay as a core enabler. • The key for all of this is to remain focused on your business fundamentals and sift through the hype ISSUE208JAN-FEBMARKETING 21
MALAYSIAN MEDIA CONFERENCE 2016
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In an engaging Power Panel titled “Is this the new SINKORSWIM ecosystem in media? Data = Insights = Marketing, Media and Creative solutions” SINKORSWIM Bala Pomaleh, CEO, IPG Mediabrands was the mediator between the creative and data camps. Representing the creative side was Chan Woei Hen, Executive Creative Director of EnsembleWW and on the other side was Sujith Rao, Head of Analytics, IPG Mediabrands. From speaking with less jargon to how to collaborate better during client discussions, the session was both light hearted and engaging with both sides bringing up points as to how they can work better together. There were plenty of discussions throughout the day on how marketers can bridge the divide between creativity and data. In our third power panel session some of the top thought leaders in the industry including Dheeraj Raina - GM & Head of Strategy, Mindshare Malaysia, Adam Miranda - Creative Director, Fishermen Integrated, Ramakrishnan C.N. – Partner Integration, ENTROPIA, Khoo Kar Khoon - Chairman, GigaGigs Malaysia & Former Communications Director, Nestlé Malaysia-Singapore and Sue-Anne Lim - Chief of DAN Group Insights & Strategy held an MALAYSIAN MEDIA CONFERENCE 2016
MALAYSIAN MEDIA CONFERENCE 2016
Event hashtag #MMC2016 was a hit thanks to eager participants
The first speaker of the conference Robin Wong, CEO,FAST Asia Pacific, Mindshare giving a good overview of the usage of data in the industry
Power Panel session discussing ‘Impact of Data on Marketing Organisations and decision making processes in a shared ecosystem’
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Linda Hassan of Domino’s Malaysia & Singapore sharing how she is recruiting more data savvy professionals
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engaging session on how marketers can simplify their data SINKORSWIM and better engage their consumers with it though great storytelling. To watch andSINKORSWIM hear for yourself on what went on during the Malaysian Media Conference 2016 view our videos on the coverage at www. marketingmagazine. com.my. MALAYSIAN MEDIA CONFERENCE 2016
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Mics were busy during the Q&A with enlightened participants sharing their thoughts
A vibrant panel session with some of the top minds in the media and creative agencies discussing how to weave storytelling in a data driven age
"Datalytics is here to stay' declared MMC’s first speaker Robin Wong, CEO, Fast Asia Pacific, Mindshare
How Lih Ren, Head of iTelco, Digi taking the stage
Robin behind the mic once again but this time he is the one asking the questions
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AMAZON GO: TAKING THE QUEUE OUT OF ACQUISITION
by Josh Sklar, President of Heresy, Author of “Digital Doesn’t Matter (and other advertising heresies)” josh@heresy.co, @ chiefheretic, http:// heresy.co, http:// digitaldoesntmatter.com
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Note: I apologize for my last column’s optimism regarding the impossibility of a Donald Trump presidency. Like many, I was clearly deluded by facts and did not take into account the number of voters who reject them, utterly. Here at the start of 2017, I shall endeavor to try to learn from 2016
and my delusional fellow Americans – but, to paraphrase Betty Davis in “All About Eve,” fasten your seatbelts, it’s going to be a bumpy ride. Not all of the future appears to be tinged with a bleak, dystopian outlook, despite the looming threat of the incoming thin-skinned, egomaniacal Leader of the Free World. For
instance, if you find grocery shopping to be a constant tedious drag because of long lines and the painful checkout process slowing you down (yes, the small talk is a killer), you might thank Amazon for soon bringing you a bit of Utopia they have been testing with their employees in New York City since 2012. They are launching a new service this quarter called Amazon Go that puts into real world practice many of the promises we’ve been sold since the 1950s. Imagine entering a local brick and mortar Amazon supermarket, pulling out your mobile
device to be scanned automatically as you walk through a gantry or entrance, storing it away and then taking things off the market’s shelves, putting them in whatever bag you have, and walking out with them without ever having to talk to a soul, stand in line, pull out the goods you want to buy, scan any of them, deal with a physical payment processor, or stop for any reason at all. You Amazon grab and then you Amazon go. How can this be? Won’t they send drones to hunt you down and find all of the goods you have just pilfered? Is it really worth a criminal record
online FLUX
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for a box of Twinkies? Mmm, could be. But it doesn’t matter because Amazon is employing technology all over the place to ensure you remain a citizen in good standing. When your mobile device is scanned, there is also a camera taking your photo and associating
you with the account that has just been activated – along with a new virtual cart. As you walk around the stores, cameras with computer vision facial recognition and microphones listening for footfalls follow your every move to verify that when you take something off a
...if you find grocery shopping to be a constant tedious drag because of long lines and the painful checkout process slowing you down (yes, the small talk is a killer), you might thank Amazon for soon bringing you a bit of Utopia they have been testing with their employees in New York City since 2012...
shelf and put it in your bag, it’s you who did it. They can also see if you changed your mind and put something back so it can be removed from your cart and purchase total. Combined with pressure plates on aisle shelves, deep machine learning algorithms, and sensor fusion (as they have in driverless cars), these cameras and microphones make it a certainty that you’re only charged for what you take – and that includes the shoplifters among us. This allows you to spend as little time as you want in the shop. You can run in and out without slowing down, so long as you don’t get physical with anyone. Amazon has brought many of the benefits of online shopping to the real world, although I’m not sure about their policy toward letting you shop in your underwear. In case you are still unsure if it’s as clear cut and simple as all of that, Amazon is calling it “Just Walk Out Technology.” The real challenge will be preventing people from forgetting they’re not in an Amazon store and getting into actual trouble because once a genie of convenience like this is out of the bottle, either everyone shifts or they get left behind. I, for one, can’t wait until everyone else is forced to catch up.
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creative showcase BABY PACIFIER CLIENT SEX AND CONTRACEPTION EDUCATION SOCIETY AGENCY FRIENDS/TBWA, BUCHAREST COUNTRY ROMANIA ART DIRECTOR MARIO NICULAE COPYWRITER VLADI PAUNESCU
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spotlight 2017
TOP 6 MARKETING TRENDS FOR 2017 In a blink of an eye, we have said goodbye to 2016 and hello to a brand New Year. To inspire your future campaigns, we have picked some of the top trends marketers should look out for in 2017 from J. Walter Thompson Innovation Group’s third annual Future 100 report.
1
AI Art
While the report assures that in no way will we see AI replacing artist. With more campaigns touching on Artificial Intelligence or AI the technology is one not to be overlooked. An example of a campaign using this is The Next Rembrandt, a project that scanned the artist’s existing work and used AI and 3D printing to create an entirely new “Rembrandt” painting in the spirit of the artist’s work. The campaign done for
Insurance brand ING by JWT Amsterdam won accolades at the Cannes Lions Festival. Google is also keeping AI on its radar. In June 2016, the company announced Magenta, a “research project to advance the state of the art in machine intelligence for the music and art generation” that also aims to build a community of artists around the technology. Tate Britain, an art museum based in London, chose AI as the 2016 theme for its annual award competition, IK Prize. The winning entry, “Recognition” by Fabrica, matched paintings in the museum’s collection with daily news photographs supplied by Reuters, revealing connections between past and present that human curators would likely have missed. The possibilities and parameters of AI in art are only beginning to be defined. As Google and others work to expand the community of artists using these tools, we can expect surprises in 2017 and as highlighted in the
report expect AI to go beyond just being a buzzword.
2
Social virtual reality
At the 2014 Web Summit, Oculus Rift CEO Brendan Iribe pointed to revolutionized communication as the biggest opportunity in VR. Facebook promised to enable teleporting by 2025. VR has thus far been a relatively isolated experience, enjoyed in a personal headset, but this needs to change for it to reach mass adoption, shared
Rowland Manthorpe, associate editor at Wired UK. “The thing about virtual reality currently is that it is not very social or limited to gaming, and that, ultimately, will stop it from reaching mass adoption. Until you make it social, it won’t have as big an impact,” was quoted in the report. Gaming companies such as The Void have sought to socialize it with interactive multiplayer games. Augmented reality has also demonstrated the benefits of combining digital landscapes with physical and social surrounds. But this is just the beginning. Companies such as High Fidelity, founded by Philip Rosedale, who also founded virtual world Second Life, is experimenting with VR to create limitless 3D social landscapes. And with giants such as Facebook, Google, ISSUE208JAN-FEBMARKETING 27
Apple, Amazon and Alibaba investing heavily in VR, making the technology more social is a logical way forward. According to the report this innovative new technology was one to watch out for as it provided a rich landscape for storytelling and immersion and that it could further be enhanced by allowing consumers to interact in virtual worlds, fictional or real.
3
Gamevertising
For many marketers, the idea that at this moment, more than half a million people are streaming their own video gameplay or watching other people play on the media platform Twitch, does not quite compute—is this really entertaining? But for a generation of digital-native gamers—mostly, but not all, male—it’s intuitive. Following Twitch’s 2014 acquisition by Amazon, advertising dollars are finally going where the eyeballs are. Most ads on Twitch have been gaming-related up to now, but the Wall Street Journal reports that Coke, Pepsi, Bud Light, Pizza Hut, Old Spice, Totino’s and Red Bull have recently signed on. While the above campaigns
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are mostly traditional TV-style commercials, others have involved custom integrations with the platform. To promote the show Stranger Things, Netflix gathered well-known Twitch community members in a 1980s-style basement to play and stream video games. For the USA Network show Mr Robot, digital and physical experience agency ISL created a three-day live-streamed event on Twitch. One of the show’s central plot points, the deletion of debt, was re-enacted in real life, as $100,000 of viewers’ debt was paid off during the activation. Why was this interesting? Well according to the report, although an abundance of new media platforms aimed at women have recently launched, there’s been no equivalent shift for men. But brands that want to reach them can go directly to Twitch—while keeping in mind that girls love gaming, too.
4
VR Ads
VR is still in the early stages of adoption. But with headsets like Google’s $79 Daydream View or the $29 Xiaomi Mi VR making VR more accessible than ever, mass adoption of VR suddenly seems much closer than it used to. As more consumers embrace VR, the question arises: Will it one day be common for users to see advertisements in VR, sponsoring games or video clips? In fact, the future for VR ads is already here. In October 2016, publisher Gannett ran ads in VR on a new virtual reality talk show called VRtually There. Users were transported to a cube-shaped room, where a 15-second Toyota Camry video ad played from each wall. Virtual reality requires rethinking many of the basic tenets of advertising. While studies have shown
that VR ads garner 27% higher emotional engagement than 2D ads, according to a joint study by YuMe and Nielsen, questions remain. How do brands maximize the 3D space and create a valuable experience for consumers? Companies that are already experimenting with creating branded content for VR, including North Face and BMW, will come out ahead of the pack. Quoting Greenlight Insights the report pointed out how Virtual reality may be a fringe content platform now, but by 2026 the industry is projected to bring in $38 billion in revenues. Brands should experiment in the sector sooner rather than later.
spotlight 2017
5
Double-take packaging
What is this? A fragrance or a detergent? In late 2015, Moschino Fresh took a very familiar, everyday household cleaning bottle as its latest fragrance container. At a glance it looks as though product designers are deliberately confusing consumers, but they are actually responding to consumers who are increasingly adopting a holistic approach to wellbeing. Designers are borrowing forms from other categories and bidding farewell to packaging stereotypes. The Beauty Chef’s food products are packaged and marketed for beauty, as is Super Elixir by WelleCo—a supplement stocked in retail stores under both beauty and food. In autumn 2016, organic garment-care specialist Tangent GC moved into personal care with the launch of perfumed soaps. The bottle aesthetic remains the same as the company’s garment and shoe care products, despite the new product’s purpose being very different. The report call for marketers to ‘reconsider where your product can sit on the
retail shelf by rethinking the packaging first. Food brands can be marketed for beauty, beauty products can adopt the form of cleaning products—this is about maximizing the retail floor by breaking the packaging norms.
6
Unexpected platform tie-ups
“Go where your audience is,” they say, and Hood By Air hit the headlines at New York Fashion Week in September 2016 by collaborating with Pornhub, the online porn streaming platform. Models walked the catwalk in garments emblazoned with phrases such as “Never Trust a Church Girl,” “Do You Know Where Your Children Are” and
“Hustler.” The tie-up is the latest in a string of unconventional, intentionally provocative brand partnerships with dating and hook-up sites. The Happn dating app has been working with Fiat, and also with charities Equality Now, Plan UK and the Art Fund on social-good campaigns. Grindr, the “world’s largest gay social app,” recently created its first capsule fashion collection to raise awareness and funds for LGBT athletes. In January 2016, Grindr also teamed up with London designer JW Anderson and streamed the designer’s AW16 show. Campaigns for Calvin Klein, Budweiser and other lifestyle brands have worked with Tinder. These platforms were not
to be taken lightly, Tinder has an estimated 50 million users. In 2015, over four million hours of porn were streamed on Pornhub. Grindr has 10 millionplus users. Dating and porn hubs aren’t just a provocative, headline-grabbing tie-up opportunity; they also boast large audiences and frequent daily engagement. Locationbased apps such as Happn also have the added benefit of potential contextual data.
“The thing about virtual reality currently is that it is not very social or limited to gaming, and that, ultimately, will stop it from reaching mass adoption. Until you make it social, it won’t have as big an impact,”
The content above is courtesy of JWT Intelligence’s Future 100 report. The report looks at the top 100 emerging trends for 2017, with a focus on culture, tech and innovation, travel and hospitality, brands and marketing, food and drink, beauty, retail, health, lifestyle, and luxury. To view the full report visit: https:// www.jwtintelligence. com/trend-reports/ future-100-2017/
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spotlight 2017
INDUSTRY LEADERS SHARE THEIR HOPES FOR THE NEW YEAR… more value creation via creative thinking and executions than just cutting prices.”
Girish Menon CEO, GroupM “I would like to see the industry (both agencies and clients) be willing to take risks, accept failure and try out new, untested tactics and platforms based on gut feel, even if there is insufficient data to support the decision.”
Stuart Ramalingam Vice President of DSA and Head of Dentsu Sports Malaysia (DSM) “I wish to see more sports marketing talent coming through the system. I do feel the new generation coming into the working world, needs to couple the 30 MARKETINGISSUE208JAN-FEB
great education they obtained and the modern and creative outlook they possess, with an even stronger attitude (which I often find lacking) that will make them an invaluable asset to the sports industry.”
Andreas Vogiatzakis CEO of Havas Media Group Malaysia “My wish would be for more focus on quality than quantity. 2017 should bring braver, bolder and better campaigns that change the game and refocus our minds. Less pricedriven reviews and
Timothy Johnson Senior VP of Marketing at INTI International University & Colleges
about cutting costs. We should pay more attention to relevance, response and results. We should also work towards integrating the online and offline data as combining them to provide a single customer view can unleash the power of data.”
“Seeing a stronger desire to use insights to drive marketing actions”
Henry Tan Chief Operating Officer, Astro Serm Teck Choon CtrlShift’s Country Head of Malaysia and President of the Malaysian Digital Association “One should realise that programmatic is not
“To stop buying cheapest, to pay for top solutions and to grow value (rather than madly cutting cost). 2017 will see Astro expanding from serving households to individuals via AOTG and other OTT offering. The best is yet to come!”
mpa awards
Art Director, Chemical Ali picking up the Gold Award for MARKETING Magazine
MARKETING MAGAZINE SWEEPS AWARDS AT MPA It was a proud moment for MARKETING Magazine recently as the trade publication picked up two awards at the annual Magazine Publishers Association (MPA) Magazine Awards. Taking home the Gold Award for Editorial (English) was the article ‘Cannes Lion 2015 Diaries!’ penned by Harmandar Singh aka Ham, MARKETING’s Regional CEO. His witty and sharp feature won the hearts of the judges
and competed alongside features from Esquire, Time Out KL and more. MARKETING also picked up the Bronze award for Front Cover (Special Interest & Niche- English) for MARKETING’s Jan/Feb 2015 issue ‘The Client is not God!’ The cover was crafted to promote MARKETING’s annual Chief Marketing Officer (CMO) Conference theme. MARKETING’s Art Director Chemical Ali
who conceptualised the cover shared more on the concept behind the design “The cover was inspired by the Michaelangelo painting ‘The Creation of Adam’ in which God breathes life into Adam… the first man on earth!” Based on the headline ‘The Client is not God’, we wanted to bring to life the idea that the Client is at the end of the day only human and as an agency, you need not fear the client. Instead,
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mpa awards it’s on you to be bold on what you believe to help the Client create better value for Consumers!” he added. Commenting on the win Ham shared, “The dedication and creativity of my team surprises me every day, apart from the fact that more than half our people are returning staff. I am proud our DNA is about being creative thinkers, not mere publishers.” This was not the first win for MARKETING; at MPA in 2010 the publication won the coveted ‘Magazine Cover of the Year’ and the Gold Award for Best Cover Design.
In 2010 ADOI picked up the coveted 'Cover of the Year' for the front cover above. It was designed for a story on CRM (Commercial Radio Operators) Malaysia’s Radio Day in 2009.
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Ali on stage with the other winners of the day
Ali together with Malati Siniah, MARKETING's Chief Content Officer and Jarrod Sunil Solomon, Business Development Manager
Z E I T G E I S T
MARKETING's award winning cover that picked up the Bronze Award for 'Front Cover (Special Interest & Niche- English) this year ISSUE208JAN-FEBMARKETING 33
NEWS TONTON AND NTV7 ARE THE OFFICIAL BROADCASTERS OF ESL ONE GENTING’S DOTA 2 WORLD CHAMPIONSHIPS
Media Prima Television Networks’s (MPTN) online video streaming portal, tonton, and free-to- air channel, ntv7, were recently
selected as the official broadcasters of ESL One Genting DOTA 2 tournament, taking place at the Arena of Stars in Genting Highlands. ESL One is the world’s largest independent league for electronic sports (e-sports). Fans of e-sports
can watch eight of the world’s top teams, including Malaysia’s Fnatic, battling it out for the coveted ESL One Championship title and prize pool of US$250,000 from the 6th till 8 th January 2017. “We are truly honoured to be given
the privilege of bringing eSports to Malaysians for the first time as the DOTA 2 craze is rapidly gaining popularity amongst gamers in Malaysia. We are continuously expanding sports content through our media platforms and the inclusion of eSports has the
IPG REBRANDS RALLY TO SOCIETY
IPG Mediabrands recently announced the rebrand of its social media agency Rally Worldwide, to Society, in Malaysia. With digital content consumption at a 20% growth year-on- year in Malaysia, the rebrand sees the agency’s offerings evolve from social community management services towards holistic, datadriven content-marketing on digital; embedding real-time targeted content that drives commerce and builds brand affinity. Stanley Clement, Managing Director of Society Malaysia says
MAS APPOINTS A NEW HEAD OF MARKETING Malaysia Airlines recently announced the appointment of Schrene Goh Miow Ying as the airline’s new Head of Marketing. She was most recently the Head of Marketing, Communications, Brand 34 MARKETINGISSUE208JAN-FEB
that the exponential growth of Malaysia’s content marketing landscape has seen more brands focusing on creating authentic, original and immersive conversations online. “With the sheer volume of conversations happening daily in Malaysia alone, it is not just about creating content; but about creating the right kind of content. At Society Malaysia, data is the backbone on which we trigger conversations that
inspire brand affinity. This is what drives business results for our clients.” Video is projected to comprise 70% of all online content by 2017, making it paramount that all forms of digital content are engaging, relevant and deployed in real-time. This sees the introduction of Society 48, an agile and cost-effective content development initiative that allows brands to create, manage and build upon trending conversations amongst netizens within 48 hours.
and Digital for U Mobile where she was oversaw the digital engagement and overall direction of the department. In just one year under her leadership, U Mobile won Malaysia's Strongest Brand Award 2016 in the Telecommunications category. Prior to this she was with AirAsia for over
five years, as Marketing Manager in 2010 for the entire ASEAN network including the India market
WHAT’S NEXT FOR ‘THE SCARIEST MAN IN MALAYSIA’?
Veteran journalist R. Nadeswaran, better known as “Citizen Nades” thanks to his longstanding column in The Sun, shocked many when he announced his retirement yesterday on his Facebook page.
TV’S AD TRENDS
Big brand budgets and quadrennial events such as the Olympics, European Football Championship and US Presidential Election powered 2016’s global advertising revenue growth to $532 billion according to the annual Global Advertising Trends report from IHS Technology’s Advertising Intelligence Service.
The award-winning journalist who has been in The Sun for 17 years has never been afraid to speak his mind. Celebrated for raising the bar in journalism Nades has received numerous awards including excellence in editorial by ADOI and Kancil’s Media Personality of 2009. In his Facebook post
NEWS potential to attract urban viewers and sports aficionados,” said Datuk Kamal Khalid, Chief Executive Officer of Media Prima Television Networks. In 2013, it was estimated that more than 72 million people worldwide watched eSports. It is especially popular in
Nades thanked his supporters and shared that his next project would be to publish his book “Curi Curi Malaysia – the stories behind the stories” slated to launch in February. Responding to MARKETING’s queries on if he would still continue to his column, be it online or on print Nades shared, “I have not decided anything yet. The book is a priority and after that, a bit of travelling. “ This former special and investigative reports editor graced Adoi’s June cover in 2008. “The advertising industry is about to turn the corner thanks to the global economy getting back on track,” said Eleni Marouli, principal analyst, IHS Technology, and report author. Advertising revenue grew 7.1 percent in 2016 to $532 billion. Strong growth in global real private consumption also
South Korea, Europe, North America and China where most competitions are held. The global eSports market generated US$325 million of revenue in 2015 and was expected to make $493 million in 2016. The global eSports audience in 2015 was 226 million people.
IBM LAUNCHES ITS FIRST EVER EDUCATION PROGRAM TO TACKLE TALENT SHORTAGE
INTI International University & Colleges is partnering with IBM Malaysia to introduce the IBM Innovation Center for Education (ICE) program – the first ever program of its kind to be integrated into curriculum. Taught by IBM certified experts, IBM ICE is a series of Undergraduate Programs and Academic courses for the Computing & IT and Business verticals. The Undergraduate
Programs include the Bachelor of Computer Science (Hons) – Specializing in Business Analytics, the Bachelor of Computer Science (Hons) – Specializing in Cloud Computing, the Bachelor of Information
buoyed advertising revenue as brands tried to take advantage of heightened consumer spending. Advertising revenue accounted for 0.69 percent of global GDP in 2016, up from 0.66 percent in 2015, the report said. TV remains number one, but online will overtake by 2020 TV was the number one medium globally
for advertising revenue, accounting for $192 billion, or 36 percent, of global revenue. “Despite the incredible growth of online giants like Facebook, Google and Snapchat, the TV market continues to benefit from big brand budgets,” Marouli said. “Quadrennial events such as the Olympics, the European Football Championship
Technology (Hons) – Specializing in Business Analytics, the Diploma in Information & Communication Technology, Diploma in Business, Diploma in Accounting and the INTI Bachelor of Business Program (Hons) (BBUS).
and the US elections helped keep TV on top.” However, revenue from online advertising will overtake TV within the next five years. “In some countries such as the UK, online already accounts for almost 50 percent of total advertising revenue and will only keep getting stronger” Marouli added.
FOX NETWORKS GROUP SET TO BECOME THE LARGEST SPORTS NETWORK IN MALAYSIA
FOX Networks Group will be adding Astro’s sports channels and digital sports platform into its media sales portfolio, in addition to serving its existing media sales for FOX Sports Malaysia. In the new agreement, all four Astro SuperSport channels, Astro Arena, Golf Channel and stadiumastro.com will be added into FOX Networks Group’s array of inventory. This partnership presents brands with a one-stop solution for sports advertising in Malaysia. The addition of Astro’s sports channels extends the reach already attained by FOX Networks Group. Between all the sports channels in the inventory, the FOX Networks Group will now be reaching 5 million Malaysian homes, making it the largest sports network in Malaysia. Vineet Puri, Territory Head Malaysia of FOX Networks Group mentioned that “It’s a big deal for us to be taking on this responsibility. We have always worked closely with Astro to help develop the sports viewing landscape in Malaysia and we are very excited to bring our partnership to a new level by including these great sports channels into our portfolio.” “Sport is a universal language and an extremely effective vehicle for advertisers to reach out to highlyengaged and immersed audiences. With our greatly strengthened portfolio, we are proud to say that we are the ultimate network for sports marketing in Malaysia.” ISSUE208JAN-FEBMARKETING 35
GEORGE HARRISON FRANK ZAPPA
A SMALL SEASONAL BREAK
WITH TRADITION, REDUX. Paul Loosley is an English person who has been in Asia 38 years, 12 as a Creative Director, 20 making TV commercials. And in recent years, a brand consultant. And still, for some strange reason, he can’t shutup about advertising. Any feedback; mail p.loosley@gmail.com (please keep it nostalgic)
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More than ten years ago I revisited this article which I originally wrote in 1990-something. Here it is once again because: 1. It is still hugely meaningful to me. 2. It is still hugely meaningful to you. I have edited it a little bit (mainly dates etc.) but essentially it’s the same bit again. I do not apologize. Usually the ‘shut-up’ column is about stuff from the advertising world. Well this time it isn’t, not directly anyway. You see this is a weird time of the year for
me. With all the holidays around, a great wave of sadness suddenly sweeps over me. And here’s why. I am, by my own admission an old hippy. I was a teenager in the 60’s and I believed it all, love, peace and the whole thing (even though, even then, the Israelis and the Arabs were beating up on each other). There are now 10 days in early December that sees the anniversary of the deaths of four musicians who I believe actually changed the way many people look at things. Starting with George
Harrison of the Beatles. 30th November 2001 he went to join his sweet Lord. Dry, witty, pious, mystical; a wonderful musician and a man who had the courage to live in the shadow of the two greatest composers of popular music ever and still function. (And he still managed to write ‘Something’). He brought Ravi Shankar to the attention of the west, which is an act beyond praise; he brought spirituality into the lives of western teenagers, which unfortunately doesn’t seem to have taken. And he was the man who
started rock benefits. With the Concert for Bangladesh he showed that everyone should have a conscience and, that to really care, young people, famous people, privileged people, should get up off their asses and do something concrete. Live Aid and Free Nelson Mandela would not have been there without George. The 4th December is the anniversary of the demise of Frank Zappa who cruised off in 1993. For those of you who didn’t know him too well, he was the first guy to say f**k on stage, he dressed in
Shut up about advertising! ... AND WHAT HAS ANY OF THIS GOT TO DO WITH ADVERTS? WELL ADD IT UP. A CONSCIENCE, A LACK OF FEAR, TRUE EMOTION...
JOHN LENNON
ROY ORBISON
women’s clothes before David Bowie and before Marilyn Manson was a gleam in the milkman’s eye. He made fun of every conservative convention in lifestyle and in music. He mixed 50s doo-wop music with free-form classical music with avant-garde jazz. And created something wonderful and unique. He fought normalness his whole life without fear and without any need for recognition. He took on the whole music business by forming his own companies, publishing his own music and even fighting
the censorship of rock music. He was the nearest thing rock music has had to a classical composer. (I am listening to ‘Peaches en Regalia’ as I edit this, check it out you squirts). December 6th marks the end of the road for Roy Orbison who left us crying in1988. The dark glassed, shiny black-haired writer and performer of so many classics; ‘Pretty Woman’, ‘Only the Lonely’, ‘Blue Bayou’ and on and on. He proved that to be cool you just needed to stand there, in shades, and sing your heart out. He showed that emotion
was good and that rock music wasn’t just about beat and boogie it was also about melody and real feelings. Without him the Beatles wouldn’t have existed. Which brings me to December 8th. John Lennon who was shot outside his apartment in New York 37 years ago. (Holy mackerel, do I feel old). Lennon was you and me and every young person in the world. He was angry, mixed up, he was talented and naïve, he was working class and common. He made it OK to be from a poor background, he proved
that being intelligent wasn’t a privilege of the privileged. He wrote music that was deep, in the best possible way. He did some lunatic things with all the conviction in the world. And he showed that just about anyone could be great and influential if they wanted to badly enough, no matter where they came from. God he was good. And what has any of this got to do with adverts? Well add it up. A conscience, a lack of fear, true emotion and a profound belief in yourself. All wrapped up in a wonderful ability to
communicate with vast numbers of people in the most memorable and meaningful ways. Well what do you think? PS. Damn, they were good! And while talking of musical anniversaries, Wolfgang Amadeus Mozart died December 5th 1751. Right inbetween Frank Zappa and Roy Orbison. And he’s still rocking them in the aisles 225 years later!
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NOW OPEN FOr 2017 2017 For more details please visit www.productoftheyear.com.my or please contact Mr Sandesh at sandesh@adoimagazine.com
Z E I T G E I S T
RETAIL INSIGHTS: UNDERSTANDING MALAYSIAN SHOPPERS ‘Despite the excitement of a good deal, about half of Malaysian respondents shared that grocery shopping is something they try to spend as little time as possible doing. So what about the shopping experience that is particularly unpleasant?’ Part of the fun of shopping is the thrill of the chase. Three in five Malaysian consumers (62%) say they enjoy taking the time to find bargains, this is according to Nielsen’s latest surveys released recently on Global Retail Growth Strategies and Global Retail Loyalty Programmes.
The top two motivators for retail shopping according to the survey is that Malaysians enjoy shopping for groceries (66%) and are actively seeking products with healthy ingredients (69%). Although Malaysians displayed a high propensity to engage in
grocery shopping, nearly half of the respondents shared that they would try to spend as little time on it as possible (49%).
FILL POCKETS OF UNSATISFIED DEMAND Despite the excitement of a good deal, about half of Malaysian respondents shared
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Chart 1: Attributes that Malaysian consumer think about during grocery shopping
that grocery shopping is something they try to spend as little time as possible doing. So what about the shopping experience that is particularly unpleasant? Many Malaysian consumers think retailers don’t understand and deliver on their needs. Only two in five respondents believe their main grocery retailer always or mostly communicates with them in a relevant way (40%) while nearly half believe retailers always or mostly understand their grocery requirements (46%) and provide offers they like and value (46%). The way to stay relevant and connected to ever-changing consumer demand is to find pockets of unsatisfied demand and provide the products and services that will keep consumer satisfied and coming back time after time. In
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Malaysia, the in-store services most widely available and used are convenient options that cater to the on-the- go lifestyles of many Malaysian consumers. Roughly two-thirds of respondents say they use in-store banking services (64%) and about half of the respondents indicate that they use fast food (53%), pharmacy (48%) and postal services (46%). Other services that are less widely available or used such as cooking classes (15%) and beauty care (24%) have strong potential and about one in five respondents say they would use these services if they were available. “Grocery shopping and mall culture has always been a mainstay for Malaysians. But modern day shoppers have moved away from the hegemony of mom-and- pop
Chart 2: Percentage of Malaysian consumers who says the following attributes are highly influential in their decision to shop at a particular retailer
stores and fish markets to supermarkets, speciality, convenience stores and online shopping today. With an abundance of options at their fingertips, the retail experience must register the senses and that too in a short span of time” said Manisha Kinalekar, Director of Retailer Vertical for Nielsen Malaysia.
PRICE IS IMPORTANT BUT IT’S NOT EVERYTHING A core element in increasing share of wallet is understanding and responding to local consumer needs. Differentiation is the way to build a competitive advantage and it is no surprise that price is important; it always has been and always will be. However, as smart retailers have long known, price and value is not the same thing and the Malaysian consumers
are no different. In addition to seeking a convenient location (57%) and are price sensitive (54%), half of the respondents also prefer to shop at a store that sells products they want and is regularly in stock (50%) and high-quality fresh produce (50%). “While low prices or deep promotions may initially offer consumers enough motivation to change allegiance to products, but it may not keep consumers for long if the product doesn’t deliver on its promise. Getting the price and or value equation right, having products in stock, and offering a satisfying shopping experience are vital ways to build long-lasting customer loyalty.” notes Manisha.
KEEPING DISCERNING MALAYSIAN CONSUMERS LOYAL Malaysian consumers are spoilt for choice when it comes
Chart 3: Number of loyalty programme(s) that Malaysian consumers subscribe to versus Global consumers Chart 4: The types of loyalty programme rewards or benefits that Malaysian consumers like and value most
to shopping as they can shop at a speciality stores or mass retailers, on a computer or a mobile device. Hence, for retailers to differentiate their brand in a crowded retail landscape is not only critical but also more difficult than ever. As such, many retailers have introduced retail loyalty programme as a mean to create a competitive advantage by reducing customers’ likelihood to switch stores. About one in two Malaysian consumers are a member of between two and five retail loyalty programmes (53%). The global average for consumers holding two to five retail loyalty programmes is 42%. The survey also revealed that the majority of respondents say that financial incentives are the primary reason for participating in the loyalty programme, where at least three in five Malaysians say they value product discounts (63%) and rebates or cash back (60%) the most from loyalty programmes.
When it comes to loyalty programme features, Malaysians also say that they prefer a programme that offers flexibility. At least eight in 10 Malaysians (82%) say it is somewhat or very appealing to be able to earn rewards regardless of whether a purchase was made in store, on a website or on a mobile device. About four in five respondents also rate three other benefits as appealing: the ability to choose among several types of rewards (79%), personalised promotions based on past purchasing (79%) and the opportunity to earn points or being rewarded for referrals (79%). “Loyalty programmes are not new to Malaysia and shoppers tend to be well aware of the repetitive or similar promotional offerings that don’t offer unique advantages. Ideally, retailers and manufacturers need to work together to offer exclusive and personalized rewards that cut through the clutter. Making
effective use of shopper data to tailor messaging and promotions that get to the heart of shopper needs, will increase store traffic and incite loyalty.” Manisha shared. The Nielsen Global Surveys on Retail Growth Strategies and Retail Loyalty Programmes polled more than 30,000 online respondents in 63 countries, including 551 (for Growth Strategies) and 402 (for Retail Loyalty), respectively in Malaysia to understand the pain and pleasure points about the shopping experience including what drives consumers to participate in loyalty programmes.
"Loyalty programmes are not new to Malaysia and shoppers tend to be well aware of the repetitive or similar promotional offerings that don’t offer unique advantages. Ideally, retailers and manufacturers need to work together to offer exclusive and personalized rewards that cut through the clutter..."
Manisha Kinalekar, Director of Retailer Vertical for Nielsen Malaysia
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case study
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case study
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EXPERTS BREAK DOWN
VIEWABILITY Viewability has been the hot topic in 2016. In a series of interviews by ad tech company TubeMogul industry thought leaders share their opinions on the big viewability debate:
... VIEWABILITY AS ONE OF THE METRICS THAT DETERMINE THE EFFECTIVENESS OF A PUBLISHER/ CAMPAIGN, TOGETHER WITH METRICS SUCH AS COMPLETION RATES WHILE PAIRING IT WITH THE MEDIA COSTS,...
To view TubeMogul’s SEA-specific white paper on the state of viewability visit: http://bit.ly/2iHD35z
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Jessica Chuang
Director Regional Marketing, G. China, SEA & IN Hotels.com
What is your definition of viewability? Viewability means our ads or videos can be viewed by a human being. This is particularly critical as we use digital media to extend our reach with our key target audiences such as millennials, who we know spend more time on digital formats than traditional TV. Viewability provides us guidance in
understanding whether these audiences have had the opportunity to view our ads.
What’s the standard you set for a viewable impression? While we follow the IAB/MRC industry standards for a viewable impression, we know that these are restrictive particularly for video, as we aim to get our message across to our audiences. We therefore look at viewability as one of the metrics that determine the effectiveness of a publisher/campaign, together with metrics such as completion rates while pairing it with the media costs, as high quality inventory that is more likely to be viewable tends to be more expensive.
experience. We’re mindful that it’s extremely hard to achieve such high viewability standards and even start to become wary when viewability gets close to 100% as we look to understand how such good results can be achieved. Paying on a viewable CPM sounds attractive as it’s another way to ensure advertisers get the exposure they’re looking for, but ultimately it’s about demand and supply and ensuring enough inventory is available to trade on a viewable CPM basis. If this cost structure helps increase the overall quality of the available inventory, then I don’t see any issues.
Is 100% viewability possible? Why or why not? And is it something that advertisers should be aiming for?
Should advertisers pay a premium to ensure viewability? Are advertisers budgeting too little and do you believe prices will increase as we tackle the issue?
While 100% viewability might be possible it should not come at the expense of the consumer
Everything has a price tag and this includes the price of viewable impressions. I believe the definition
of premium for viewable impressions varies from one to the other. Each advertiser needs to evaluate the cost of an action generated per viewable CPM impressions vs percentage of viewability. At Hotels. com we create 2 types of video content: call to action retail and branding. For the former, we optimise the results to have the balance between actions and percentage views. For the latter, we want to drive higher completed views so that our messaging can cut through in the crowded environment. Niall Hogan
... IT IS UP TO INDIVIDUAL ADVERTISERS TO DECIDE IF THEY REQUIRE MORE FROM THEIR CAMPAIGNS AND THE SUPPLIERS THAT THEY WORK WITH TO DELIVER THESE ON THEIR BEHALF...
white paper
Managing Director, SEA IAS (Integral Ad Science)
What’s your definition of viewability and what’s the standard you set through viewable impressions? We follow the standard set by the MRC in the US and the regional IAB. For display, it’s 50% of the ad for one second. For video, it’s 50% of the ad for two continous seconds.
Do you believe advertisers think the standard is robust enough? I think that most advertisers see this as a starting point, not an end. Before the standard was introduced, we had no way of talking about Viewability or what was considered in-view or not. The standard gives us a common currency and a starting point, and that’s really important. It is up to individual advertisers to decide if they require more from their campaigns and the suppliers that they work with to deliver these on their behalf. If buyers and sellers are not satisfied with the current guidelines, they should go to the MRC or their IAB, and request that it be looked at again. Obviously,
they’ll be consulted in any process to redefine the metrics. Once the market, and by that I mean buyers and sellers, have agreed on what the metrics should be, technology companies and vendors can be consulted, to advise on what is actually possible and can and can not be counted as viewable.
and lengths in view for that product or service being advertised. Each campaign will be different and will need a different set up from suppliers to achieve the optimum performance. There is alot of talk around 100%. Hiren Desai
Are advertisers trying to change the metrics? Recently, a lot of advertisers have been coming to us looking for customisable metrics. We can accommodate those requirements based on advertiser needs. For example, we worked with GroupM to measure 100% of the ad when it’s in-view. Other customisations we can analyse include measurement of different percentages of the pixels in view or the lengths of time that the ad is in view for.
Why are they trying to change the metrics? If you are an advertiser, and paying for digital advertising space, I would imagine that 50% of an ad in view for 1 second, doesn’t feel like a great deal. It also feels like a pretty arbitrary number – advertisers are asking, where did that 1 second come from? Where’s the research? The important thing for advertisers, is to work with a vendor to measure each and every campaign, and to identify the optimum viewability percentage
Director - Digital Leadership Carat, Singapore
Do you believe advertisers should be buying on a viewable CPM basis? Absolutely. If I’m doing a branding campaign and my objective is only to push the message across, I would love to buy on a viewable impression basis. That really helps in terms of identifying that we are reaching our target audience, exposing the ad to them sufficiently and giving the viewer enough time to notice our communication. If I’m trying to sell something or drive traffic to my website, I wouldn’t entirely bid on viewable CPM because it isn’t as relevant. It really depends what your end objective is and how you want to communicate to your audience.
Is the technology
available to buy on a viewable-CPM basis? We are in a position to buy on a viewable CPM basis. If you look at some DSPs, they’ve started giving this option. The technology is available to use.
Should advertisers pay a premium to ensure viewability? Advertisers will only pay more because we are fundamentally dealing in an auction environment. If you have limited supply combined with strong demand – and the demand is for highly viewable inventory, then advertisers will end up paying more. It’s simply the way things work. if buying on a viewable CPM basis, then that restricts inventory options even more. Therefore, price will have to increase. It’s not a premium that someone is charging. It’s basically a fundamental of the demand/supply rule and buying on a viewable CPM basis means that the advertiser has made a decision to buy an exclusive inventory that everyone is after.
Do you think there’s anything unique to the Southeast Asia region regarding viewability that marketers should be aware of? In Southeast Asia, brands have just started monitoring their viewability. Marketers are still looking at their current viewability rather buying against
... IT’S BASICALLY A FUNDAMENTAL OF THE DEMAND/ SUPPLY RULE AND BUYING ON A VIEWABLE CPM BASIS MEANS THAT THE ADVERTISER HAS MADE A DECISION TO BUY AN EXCLUSIVE INVENTORY... higher viewability. We are moving a little slow in this part of the world. What this region needs to do is begin buying vCPM inventory via DSPs that allow this while we all wait for direct publishers to also start offering inventory on vCPM. Right now, everyone is just talking about it but very few are putting this into action.
What is the future of viewability? There are still inventory sellers who are adamant in not selling their inventory completely on viewable CPM. This has to change and is currently our strongest barrier to growth. Pressure is mounting as some ad-tech companies already offer bidding on vCPM. Simultaneously, few agency network have also started having partnerships and buying towards viewability. Eventually this will trickle down to the entire industry as a whole. ISSUE208JAN-FEBMARKETING 45
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