When I moved to China in March 2001, the numbers were intriguing. There were a total of 18 million internet users in China and this seemed like an outrageously high number at the time. Eight years later, there are 250 million Chinese consumers online, making them the world’s largest internet population. The situation became even more interesting a few years ago, when Chinese telcos stopped selling modems and went straight to installing ADSL. Now there are 215 million people on broadband, equipped with 1MB lines, craving anything that’s potentially entertaining. That’s not a bad platform to start from if you work as a creative person in a digital agency.
While the numbers of internet users are extremely high in China, that doesn’t mean we are talking about highly sophisticated consumers. The marketing and advertising industry is merely 15 years old, and in many cases, you don’t really need to be all that creative to cut through the clutter. In fact, Chinese consumers don’t really mind the clutter. It might even be part of their culture. Just picture a postcard of Hong Kong at night, and you’ll conjure up thousands of neon signs. That is exactly what communication looks like to Chinese consumers; high visual impact. This also applies to online advertising. In the Western world, you would have one to three banners on any single web page, where as in China, you will have up to 30 banners all competing for attention.
Adopting innovation
The extremely high growth rate of the Chinese online population reflects the general mindset of consumers in this region; early adoption. In the west, things take a while to be truly embraced and accepted by the general public, while in Asia consumers are constantly on the look-out for innovation. Instant messaging, social networking, browsing websites on mobile phones, interacting with outdoor ads, even watching TV on mobile phones, are not really considered or talked about much. They’re just there, part of everyday life. And this behavior is visible in almost any culture and country across the region.
In Japan for example, surfing websites on mobile phones was popular long before consumers used computers to go online. Today the mobile phone is the single most important access point, offering information from news providers and blogs, to friends, colleagues and social networking services. The phone serves as ubiquitous media player, as a payment option, as a general link from the real to the virtual, or vice versa. Think 2D barcodes, they are basically found everywhere in Japan.
Japanese consumers are extremely sophisticated in how they receive messages through their personal digital channels, so it takes a fair amount of creativity to get through to them. This works like a catapult, in order to get the message out, marketers and agencies need to spend considerable effort conceiving creative and innovative approaches, as well as packaging and distributing that message. This in turn spurs even further sophistication amongst consumers. No wonder Japanese digital agencies are consistently the highest awarded at international creative shows. Their work sets new standards in the innovative use of technology and in creating new digital channels.
In Korea, everything is about high speed internet access. There are few homes it seems, without a 100Mbit connection. Three out of four mobile phones connect through 3G and receive broadcast TV shows. Koreans make avid use of this technology, especially by connecting through MMOG (massively multiplayer online games), or by logging on to cyworld, the Korean Facebook which dates back as early as 1999 and connects about 25% of the Korean population. But while consumers in Korea are spoiled by this advanced technology and sophisticated gaming and communities, there seems to be a gap in what marketers are willing to push for. The rather conservative mindset of Korean marketers leaves plenty of room for ground-breaking innovative campaigns.
The electronic government
The fact that Asian consumers quickly adopt emerging technology into their daily lives, has led to many improvements being made by governments around the region. Singapore is a shining example of this early advancement with roll-outs of e-government services not just for Asia, but globally. The relatively small population, yet dense dwelling, has made e-government services both an ideal test market as well as a necessity. Accenture has consistently ranked Singapore as one of the top three countries in the world in regards to maturity of e-government. Singapore has over 1,600 government e-services available. More recently, Singapore has also started putting up free wireless broadband kiosks in shopping malls and public buildings.
In Malaysia, where broadband penetration moved from 1% in 2003 to almost 18% in 2008, blogging is one of the most wide-spread hobbies amongst its multicultural citizens. With more than 500,000 bloggers, Malaysia ranks among the highest per capita blogging countries in the world. And everyone blogs, from religious leaders and the ex-prime minister, to the opposition party leader. In fact, during the March election, official statistics showed that around 70% of Malaysian voters had been influenced by blogs. In a society where most television stations and newspaper publishers are controlled by the government, blogs, text messages and viral videos became the most influential source of information for voters, resulting in a historical blow to the Barisan National party, who had ruled the country for more than 50 years.
Creativity in Asia
Asia is one of the most competitive creative markets when it comes to creativity in advertising and design. Especially agencies from Singapore are constantly listed amongst the highest awarded creative shops in the world. Thailand is world famous for its unique and humorous story telling craft in TV commercials, while Malaysia and Hong Kong are renowned for beautiful design and art direction. Japan has probably the most sophisticated and innovative creativity in new media and increasingly also other markets like China, Korea, Philippines and India invest in and grow their creativity.
Asia’s advertising creativity originates in a dire need: Historically most large scale brand and product campaigns were not originated in Asia but been developed in New York, San Francisco, London or Paris. These campaigns then were sent to regional headquarters or directly to local markets for local language adaptation. This left creatives with the daunting task of localizing, vs actually creating new and talked about campaigns. Money in Asia to shoot new commercials, develop new print campaigns or create impactful online campaigns therefore has always been limited. And with limited resources, one has to get more creative to achieve great results.
Article in ADMAP magazine
Implications for marketers
According to an eMarketer study from January 2008, an estimated 543 million people are on the internet in the Asia Pacific region alone. That is almost as many people as Europe and North America combined. According to this study, within the next four years, almost half the world’s internet population will be from Asia. Pair this with steadily increasing online ad spend (China is up more than 25% year on year), and online marketing makes for a very attractive target for agencies and marketers alike.
But in order to conquer Asia, marketers must be aware of and have an inherent understanding of cultural and behavioural differences.
It starts with the city’s cab drivers who have undergone a complete make-over. While the old and trashy cabs have been banned off the street over the past three years, it wasn’t until August 1st that the taxi drivers themselves got a visual upgrade. While these guys used to live more of a cowboy live before, dressing as they pleased and even shaving while driving, they now all sport the same yellow and blue uniform with matching ties. When asked about it, they are all very happy with the new shirts and pants and give a thumbs up for their 100% cotton comfort. Only the ties are a bit of a drag and usually stowed inside the glove compartment. It took this gentleman a few minutes to make it work.