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April 2007

ASIA PACIFIC
Digital Marketing Yearbook

2007 will be remembered as


the year the balance tipped. For
the first time, Asia Pacific takes
the global lead in some key
aspects of the digital marketing
mix. Both the total number of
broadband users and market
penetration is highest in Asia
Pacific. The region boasts the
largest number of Internet users,
surpassing the US and Europe,
and mobile penetration remains
higher than anywhere else in
the world.

www.asiadma.com

Edited by Rachel Oliver


ABOUT THE ASIA DIGITAL MARKETING ASSOCIATION

The ears, eyes and Why join the ADMA?

voice of digital
Being a member gives you access:

marketing in Asia
• Unified voice for the industry to promote the use
of the Internet (in the media and with potential
customers)
• Forum for standards and best practice sharing
Spokespeople to represent members and respond
The Asia Digital Marketing Association to criticism
(ADMA) is the voice of, and advocate for, • Action-oriented committees to drive agendas
• Events & training (speaking and networking
the digital marketing industry in Asia opportunities)
(excluding Japan). The ADMA is guided by • Case studies and helpful data
• Standardisation of practices
senior executives in the industry and is • Professional code of conduct
charged with gaining consensus and • Industry contacts
• Regular eNewsletter
providing leadership on key industry issues. • Entry in the online Membership Directory
The ADMA actively promotes the benefits of • Access to the Members’ only section of the ADMA
Web site that allows you to share information with
using mobile and the Internet as channels other members and post company information,
to communicate with consumers as well as news, events, case studies, research papers, job
vacancies and tips.
lobbying and public relations assistance for
member companies. How to join the ADMA
Membership fees are set low enough to encourage
universal membership among industry players, and
The ADMA is a non-profit organisation with a taken together provide sufficient revenues to
underwrite regular activities. Other activities are
membership base representing online funded by sponsorship (cash and in kind) and by
publishers / portals, agencies, research charging admission fees for some events.

companies, technology / service companies Visit www.asiadma.com/membership/join and


and marketers / advertisers. complete the online registration form.

Visit www.asiadma.com for more details.


The ADMA gives heartfelt thanks all our members for their support and contributions:

ADMA Board Level members:

Yahoo! Asia
ADMA Corporate members:
Adsperience, AGENDA Corporation, Axonus Asia, G2 Interactive, Google, HSBC Direct, The Hyperfactory, ICLP,
Ion Global, Johnson & Johnson Vision Care Asia Pacific, OgilvyOne, Omniture, Premiere Global Services,
Profero, SCMP.com, Think Partnership, Tribal DDB, WebDNA Interactive and ZUJI.

And all our Individual members.

asia digital marketing yearbook


Introduction 2

Australia 5

China 8

Hong Kong 12

India 15

Indonesia 18

Japan 18

Malaysia 22

Philippines 24

Singapore 25

South Korea 28

Sri Lanka 30

Taiwan 31

Thailand 33

Vietnam 35

asia digital marketing yearbook


The Year the Balance Tipped

B
B yy DD aa vv ii dd KK ee tt cc hh uu m
m in Hong Kong, mobile Internet marketing in China;
and online communities and communication in India
2007 will be remembered as the year the balance and Australia.
tipped. For the first time, Asia Pacific takes the
global lead in some key aspects of the digital As would be expected from the year Time magazine
marketing mix. named “you” as the person of the year, user-
generated content and the realisation that the
Both the total number of broadband users and consumer is in control have dominated the
market penetration is highest in Asia Pacific. The strategies of marketers (according to new research
region boasts the largest number of Internet users, from Microsoft, nearly 50% of Asia’s Internet users
surpassing the US and Europe. According to the have their own blog). That being said, search is still
latest data from Internet World Stats, 36% of the an evolving game changer, and email and rich
world’s online population now live in Asia. media remain strong. Asia Pacific still posts the
highest email open rates in the world at 30.1%
Mobile penetration remains higher than anywhere (source: Epsilon International, Email Trends Update
else in the world. According to Informa, Hong Kong, and Benchmark Data Q3 2006 APAC), and
Australia and Taiwan are the world’s top three broadband is fueling rich media innovation.
markets in terms of penetration - the first two with Interactive games continue to grow in popularity -
rates exceeding 100%. And for the first time the In-Stat predicts the region’s online games revenues
number of Asian users accessing the Internet over will hit US$6.8 billion by 2010 - with online
their mobile phones exceeds the entire Internet gambling also on the rise. Mobile and multimedia
connected population of the US. continue their relentless growth, with lots of
excitement and creative activity while still
Asia is driving the digital marketing industry too. comprising a relatively small piece of the pie.
Merrill Lynch predicts that global online ad spend
will reach US$14.5 billion in 2007. That represents Speaking of pies, despite 30+ % annual growth
an increase of 24% from 2006 - and Asia will be the rates, digital marketing still captures only about 3%
driving engine. The highest growth rates for 2007 of all advertising dollars in the region. This is in part
are predicted to come from China (50%), Australia due to the fact that total media revenue including
(42.6%), South Korea (30.5%) and Japan (30%). traditional outlets is also growing, and from a far
larger base than online and mobile. Still, 3% seems
But the passing of the torch to Asia Pacific is not remarkably low, considering that the Web is among
just about statistics and the growth of the Web – the top three consumed media types (right up there
the region is also at the leading edge of many with TV, print and outdoor) in most markets in the
technologies and marketing techniques, and region. Especially within younger demographics,
showing bursts of creative work on par with that users spend the majority of their media time online
found anywhere. From the earliest days of the and on the mobile, often while simultaneously
Internet, Asia Pacific needed to look to the West to consuming other media.
find best practice and fresh ideas. Now the level of
the bar internationally is being set in the region. That being said, ZenithOptimedia predicts that
Some examples: Japanese e-commerce; Korea come 2008, Web-based advertising will represent
social networking and viral marketing; 3G and IPTV more than 10% of total ad spend in eight new

2 asia digital marketing yearbook


global markets (not including the UK, Norway and Internet Users and Penetration in Select
Sweden which have already passed this milestone). Countries in the Asia-Pacific Region, 2005-
And four of them are right here in Asia: Australia, 2011 (millions and % of population)
Japan, South Korea and Taiwan. 2005 2006 2007 2008 2009 2010 2011

Australia 12.5 13.1 13.6 14.0 14.4 14.8 15.3


For all its growth and vibrancy, digital marketing in % 62.2% 64.5% 66.7% 68.0% 69.2% 70.8% 72.5%

the Asia Pacific region still has issues that threaten China 111.0 133.5 156.2 181.2 206.6 227.3 245.5

the relevance of the medium. After a decrease in % 8.5% 10.2% 11.8% 13.6% 15.4% 16.9% 18.1%

India 19.5 25.5 33.2 41.5 50.6 60.7 71.6


2006, spam is on the rise again, with threats from
% 1.8% 2.3% 2.9% 3.6% 4.3% 5.1% 6.0%
“image spam” that continues to outwit ever- Japan 85.3 87.2 89.1 90.9 92.5 94.0 95.4
sophisticated technology, and the proliferation of % 67.0% 68.4% 69.9% 71.4% 72.7% 73.9% 75.1%
mass, unsolicited mobile and fax messages. A recent South Korea 33.0 34.4 35.6 36.5 37.2 37.8 38.4

study by Symantec revealed that the nearly 70% of % 67.9% 70.5% 72.7% 74.2% 75.3% 76.2% 77.3%

(Source: eMarketer)
all emails that come from Asia turn out to be spam,
or unsolicited ads. Not only that, but more than
20% of all malicious activities on the Web in 2H Top 20 Countries - Internet Users
2006 came from the Asia Pacific region too. Country No. Users % Penetration % Total
1. United States 211,108,086 69.9 % 18.9 %
Despite these threats, which are by no means 2. China 137,000,000 10.4 % 12.3 %
3. Japan 86,300,000 67.1 % 7.7 %
unique to the region, the year the balance tipped
4. Germany 50,471,212 61.2 % 3.6 %
offers unprecedented business opportunities for
5. India 40,000,000 3.5 % 3.6 %
marketers and advertisers, and the entire digital 6. United Kingdom 37,600,000 62.3 % 3.4 %
marketing “ecosystem” of portals, mobile operators, 7. Korea (South) 34,120,000 66.5 % 3.1 %
communications service providers, games and 8. Brazil 32,130,000 17.2 % 2.9 %
entertainment companies, handset manufacturers, 9. France 30,837,592 50.3 % 2.8 %
10. Italy 30,763,848 51.7 % 2.8 %
interactive agencies and the rest.
11. Russia 23,700,000 16.5 % 2.1 %
12. Canada 22,000,000 67.8 % 2.1 %
The Asia Digital Marketing Yearbook brings together 13. Mexico 20,200,000 19.0 % 1.8 %
the most up-to-date and freely available data on 14. Spain 19,765,032 43.9 % 1.8 %
Asia’s online population. In essence, we tell you 15. Indonesia 18,000,000 8.0 % 1.6 %
who they are and how they spend their time online. 16. Turkey 16,000,000 21.1 % 1.4 %
17. Vietnam 14,913,652 17.5 % 1.3 %
And where possible we have shown you examples
18. Australia 14,729,191 70.2 % 1.3 %
of online advertising campaigns that have worked
19. Taiwan 14,500,000 63.0 % 1.3 %
well with Asia’s online population. 20. Argentina 13,000,000 34.0 % 1.2 %
TOP 20 Countries 867,138,708 20.8 % 77.8 %
We would like to thank all of our members and Rest of the World 247,135,718 10.3 % 22.2 %
those companies and organisations that provided Total World - Users 1,114,274,426 16.9 % 100.0 %
(Source: Internet World Stats, 10 March 2007)
information and insight.

David Ketchum is Chairman, Asia Digital Marketing


Association and CEO Upstream Marketing and
Communications Inc.

asia digital marketing yearbook 3


The ADMA would like to thank all of the following

who contributed to this Yearbook:

4 asia digital marketing yearbook


AUSTRALIA

Demographics Internet Subscribers by Location


There are currently 14.73 million Internet users in Location total %
Australia, representing 70.2% of the population. New South Wales 1,994,000 33%
(Source: Internet World Stats) Victoria 1,457,000 25%
Queensland 1,256,000 21%
There were 3.5 million broadband households in South Australia 398,000 7%
Australia in 2006, representing 45.4% of all online Western Australia 586,000 10%
households. By 2010, it’s estimated that more than Tasmania 127,000 2%
70% of all Australian online households will Northern Territory 44,000 1%
subscribe to a broadband connection. Australian Capital Territory 84,000 1%
(Source: Australian Bureau of Statistics Internet Activity Survey, June 2006)

Internet Penetration by Demographic Profile


70 % and Access Location, July 2005-June 2006
60
(% of population in each group)
GROWTH IN
BROADBAND % at-home % at-work % any location
50 CONNECTION

40
Male 58% 31% 67%
Female 55% 28% 65%
30 Age 15-17 80% 4% 93%
20
18-24 68% 28% 85%
25-34 66% 45% 82%
10 35-44 67% 40% 77%
0 45-54 63% 40% 69%
2006 2010 55-64 48% 25% 54%
(Source: eMarketer) 65+ 18% 3% 19%
Total 57% 29% 66%
In 1998, only a third of households with PC access (Source: Australian Bureau of Statistics)
had access to the Internet. In 2005-06, this stood
at 86%, representing 4.7 million households.
(Source: Australian Bureau of Statistics) E-commerce
Total online spending in Australia totalled
In 2005-06, 66% of the population 15 years and AUD$11.35 billion in the 12 months to June 2006.
older used the Internet – as did 89% of 12-to-14- That’s around $1,900 annually per shopper.
year-olds, 76% of 9-to-11-year-olds and nearly (Source: ACNielsen)
40% of 5-to-8-year-olds.
(Source: Australian Bureau of Statistics) The number of Australian consumers shopping
online jumped by 13% in the past year to 5.9
There has been a 70% growth of mobile phones million people. Of these online shoppers, 51% had
with Internet access in Sydney in the past two years. made repeat purchases, 53% had purchased airline
(Source: Synovate) tickets, 47% had paid for accommodation and 38%
had purchased concert/event tickets online.
Internet Users and Penetration in Australia (Source: ACNielsen)
2005-2011 (millions and % of population)
Year Total % Of all international tickets issued by ZUJI in
2005 12.5 million 62.2% Australia in Q3 2006, 54% of them were e-tickets.
2006 13.1 million 64.5% (Source: ZUJI)
2007 13.6 million 66.7%
2008 14.0 million 68.0% ACNielsen recently asked consumers what helped
2009 14.4 million 69.2% their final decision when it came to purchasing a
2010 14.8 million 70.8% variety of products. ‘Searching the Internet’ was the
2011 15.3 million 72.5% most popular decision influencer for Australian
(Source: eMarketer) consumers when it came to purchasing holidays

asia digital marketing yearbook 5


(66%), MP3 players (43%) and loans (41%). Frequency of Blogging Activities Amongst
(Source: ACNielsen) Australia’s Users
Write a blog or contribute to
47% of Australian Internet users have accessed other people’s blogs 68%
insurance information online in the past six months. - Several times a day 1%
(Source: ACNielsen) - Once a day 5%
- Several times a week 9%
Australian online video revenues for 2006 were - Once a week 5%
US$4 million. Estimates are that by 2009 the - 2-3 times a month 12%
Australian online video market will generate $18.4 - Once a month 12%
million and $48.6 million by 2012. - Once every 2 months 5%
(Source: Informa Telecoms & Media) - Less often 19%
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
13% of mobile users in Sydney use their phones to Digital Advertising Solutions. Those who have visited/used a blogging/social
do their personal banking; while 13% use them to networking Web site in the past 3 months)
search for information on products or services.
(Source: Synovate PAX-Pan Asia Pacific Cross Media Frequency of Online Social Activities
Survey 2006) Activity % of respondents
Used instant messengers in past 3 months 34%
Where Australians Like to Shop Online Used Web-based email services in past
3 months 70%
Visited blogging/social networking
50 % Web sites in past 3 months 19%
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
1H2005
40 Digital Advertising Solutions. All people aged 15-64)
Retailer

30
Value-Added-Services used by Mobile Users*
Service %
Text Messaging/SMS 69
20
Competition via SMS/text 13
Photo/video messaging/MMS/PXT 13
10 Photo messaging/PXT 13
Downloading ringtones 8
0 Listening to radio 7
(Source: Nielsen//NetRatings, June 2006. *in the past 3 months)
Ticketmaster
eBay

Virgin Blue

Qantas

Ticketek

Amazon

Jetstar

Online Advertising
The Australian online advertising market grew
61.5% in 2006, generating AUD$1 billion in
revenues. In the six months to 31 December 2006
60 % online advertising spend totalled $580 million, a
62.5% increase on the corresponding 2005 period.
50 (Source: Audit Bureau of Verification Services)

By 2010, it is predicted that the Australian online


40 1H2006
advertising market will be bringing in AUD$2.95
Retailer
billion in annual revenues.
30
(Source: Frost & Sullivan)

20 A total of 64% of Australian advertisers have


invested in online advertising in the past year, up
10 5% from January 2006. And 98% of all ad agencies
have placed advertising online during the past 12
months, a 15% increase from January 2006.
0
(Source: emitch/Roy Morgan, March 2007)
Ticketmaster
eBay

Virgin Blue

Qantas

Ticketek

Amazon

Jetstar

Major advertisers in Australia say they will invest


close to 22% of their total advertising dollars online
in 2007, compared to 16% in 2006.
(Source: ACNielsen) (Source: emitch/Roy Morgan)

6 asia digital marketing yearbook


2006 Online Ad Revenues by Segment (% CASE STUDY - C
CHH II CC KK EE N
N LL II TT TT LL EE
increase vs 2005) CLIENT: Buena Vista International (BVI)
Segment % increase AGENCY: MindShare
Paid search 105% CAMPAIGN: To promote film, Chicken Little
Directories 60% OBJECTIVE: To promote animation movie Chicken
Classifieds 49% Little, in December 2005, movie distributor Buena
General Advertising 48% Vista International (BVI) wanted to engage people
(Source: Frost & Sullivan, eMarketer) in a new way and encourage them to watch an
online trailer of the film.
Strengths of Internet as Advertising Medium STRATEGY: The company used special Windows
(according to advertisers) Live™ Messenger Services Theme Packs; aligned
Leading strengths % of respondents with online advertising on Windows Live Hotmail®,
Cost effective 32% the Windows Live Today homepage, and the
Targeting capabilities 31% nineMSN homepage.
High accountability 25% DETAILS: BVI ran its online promotional campaign
Customer reach 23% for the entire month of December 2005. It used a
Interactive 11% Windows Live Messenger One-Click Theme Pack for
Immediacy 10% users to download backgrounds, send Winks, use
Ability to change quickly 8% Chicken Little mood backgrounds, and send
Speed to market 7% Dancing Chicken emoticons to other Windows Live
Customers/clients online 6% Messenger users. The campaign also featured an
Access to large amounts of information 6% editorial page with details of the movie, plus a
(Source: emitch/Roy Morgan Research, August 2006) direct link to the InCinemas.com.au Web site, which
featured the Chicken Little movie trailer.
Top Web Sites by Market Share In a network first, BVI placed an animated
Rank Web site Market Share “premium expanding” button on the nineMSN
1. www.google.com.au 7.08% Network homepage and in the Messenger ‘hockey
2. www.google.com 3.89% stick’ zone. Both featured a dancing Chicken Little
3. www.hotmail.com 2.99% character that linked to the advertorial or the
4. ninemsn.com.au 2.5% download screen. A chat window text link provided
5. www.ebay.com.au 1.94% an additional theme download option.
6. www.myspace.com 1.89% Supplementary promotion was provided by a
7. au.yahoo.com 0.81% Hotmail Inbox and nineMSN homepage banner
8. www.msn.com 0.73% adverts. BVI’s target was 250,000 downloads over
9. www.yahoo.com 0.65% the duration of the campaign.
10. mail.myspace.com 0.65% RESULTS: 1. The campaign saw record-breaking
11. www.bom.gov.au 0.63% take-up, with 33 million impressions, and more than
12. mail.yahoo.com.au 0.62% 301,000 downloads of the Theme Pack.
13. www.netbank.commbank.com.au 0.57% 2. A target download figure exceeded by 60% in
14. images.google.com.au 0.55% three weeks.
15. news.ninemsn.com.au 0.52% 3. An unusually high 0.5% click-through rate.
16. www.youtube.com 0.52% 4. Initial targets met with two weeks to go.
17. www.wikipedia.org 0.48% 5. Excellent Dancing Chicken viral penetration
18. mail.yahoo.com 0.45% across all age groups.
19. www.news.com.au 0.44% 6. 40-50% extra value from viral distribution and
20. www.gmail.com 0.43% editorial. The lowest client cost-per-click to date.
(Source: Hitwise, December, 2006 - based on market share of visits across
all Hitwise industries.)

asia digital marketing yearbook 7


CHINA

Demographics 61% of men discuss car purchases; 78% of men


According to the CNNIC, 18-to-24-year-olds are and 71% of women discuss electronics and gadgets
nearly four times as likely to be Internet users than prior to purchasing; 69% of men and 61% of
the general population. women talk about mobile phone purchases on email
(Source: eMarketer) before purchase; and 74% of women and 59% of
men exchange their ideas on clothes and
In 2006, there were 46.6 million broadband accessories purchases via email.
households in China, representing 12.6% of all (Source: Microsoft Digital Advertising Solutions)
online households.
(Source: eMarketer) In a survey regarding email etiquette, in reply to
the question: “which is the most impolite email
The number of Internet users in China has habit?”, 64% of Chinese respondents said “sending
increased from 22.5 million in 2000 to 137 million chain emails”, while only 3% said “using a PDA
at the end of 2006, representing a growth rate of while out with others”.
508%. Chinese Internet users now represent 34.4% (Source: Synovate)
of all Internet users in Asia.
Electronics and gadgets (74%) is the most talked-
about topic via email in China, closely followed by
140 million education (73%), travel (72%) and social
arrangements (72%).
120
(Source: Microsoft Digital Advertising Solutions)
100

In a survey regarding the effectiveness of different


80
mediums, Chinese respondents said they found the

508%
60 Internet was the most effective in “delivering
40 GROWTH information” and “being a source of entertainment”.
The Internet was not seen as being the most
20 effective in “supporting purchase decisions”,
0
“arousing interest” or “drawing attention”.
2000 2006 (Source: Synovate)

(Source: Internet World Stats) In a survey regarding the consumption of news,


Chinese respondents said that when a major
China is now only behind the US for the overall disaster or news story breaks, only 19% of them
number of users online. Prediction – at the current turn to the Internet. That’s compared to 60% of
rate of growth, Chinese Internet users will exceed people who turn to the TV. In the past week 22%
the 210 million US users by 2009. had gone online to read a blog; 18% had received
(Source: eMarketer) news on their mobile phones; 13% had emailed
some interesting news to a friend; 11% had
User Behaviour received a regular, subscribed to news email; and
Out of China’s Internet users, around 38 million of 7% had accessed a news Web site that they had
them play online games. paid to use or subscribed to.
(Source: Palava Digital) (Source: Synovate)

The number of short message service (SMS) users Out of all Chinese mobile Internet users, 72.2% of
in China is expected to reach 360 million by 2008, them use their mobile phones for sending or
with an expected market value of RMB37 billion. receiving email; 30.9% for reading news and
(Source: Analysys International) information; 19.4% for downloading ringtones,
movies and games; 6.3% for logging on to
Email is an important tool for collecting opinions communities; 5.3% for their banking; 2.6% for
from peers regarding purchase decisions. 75% of their own blogs and 2.3% for watching online
Hotmail®/Windows Live Mail users in China discuss videos.
music (MP3s, CDs, etc) via email prior to purchase; (Source: CNNIC, January 2007)

8 asia digital marketing yearbook


Number of Chinese Internet Users 2005-2011 Government staff 4.3%
(millions and % penetration) Non-profit staff 8.6%
Self-employed 9.6%
Peasants/farmers 0.4%
Unemployed 7.2%
Army/Others 1.7%
Monthly Income (RMB) Less than 500 25.3%
501-1,000 18.1%
1,001-1,500 13.6%
1,501-2,000 11.2%
2,001-2,500 6.1%
2,501-3,000 7.6%
3,001-4,000 4.8%
4,001-5,000 4.1%
5,001-6,000 1.6%
6,001-10,000 1.8%
Over 10,000 1.6%
No income 4.2%
(Source: China Internet Network Information Center (CNNIC), Jan 2007)

Internet Access Locations (% of users)


Home 76.0%
Work 33.4%
Internet cafe 32.3%
School 12.6%
Public places 0.9%
Others 0.2%
(Source: CNNIC, Jan 2007)

Average Time Spent Online Per Week (hours)


Average 16.9
(Source: Emarketer: Internet Users and Penetration in China, 2005-2011) Males 18.6
Females 14.8
China’s Internet Users (% of total) Below 18 years-old 7.0
Gender 18-24 year-olds 21.5
Male 58.3% 25-30 year-olds 21.0
Female 41.7% 31-40 year-olds 16.7
Marital Status 40+ 15.8
Married 57.8% (Source: CNNIC, January 2007)
Unmarried 42.2%
Age Online Activities by Internet Users
<18 17.2% (% of respondents)
18-24 35.2% Email 56.1%
25-30 19.7% News browsing 53.5%
31-35 10.4% Search engines 51.5%
36-40 8.2% Acquisition of information 41.0%
41-50 6.2% Forums, discussion groups 36.9%
51-60 2.2% Watching/downloading video 36.3%
60+ 0.9% Instant message 34.5%
Education Listening/downloading music 34.4%
Below High School 17.1% Internet Games 26.6%
High School 31.1% Blogging 25.3%
College Diploma 23.3% Online shopping 23.6%
Bachelor’s Degree 25.8% Job-hunting 20.8%
Master’s Degree 2.3% Chat 20.8%
Doctoral Degree 0.4% Telephone calls 11.2%
Profession Online banking 10.5%
Students 32.3% Online reservation (hotels etc) 8.6%
Company staff 29.7% (Source: CNNIC, Jan 2007)
Teachers/School staff 6.2%

asia digital marketing yearbook 9


China’s Mobile Internet Users (% of total) E-commerce
Gender China’s retail e-commerce revenues were expected
Male 67.7% to increase from US$504.3 million in 2005 to
Female 32.2% US$700.1 million in 2006.
Marital Status (Source: Analysys International)
Married 66.0%
Unmarried 34.0 China’s online travel market in Asia is expected to
Age grow by 71% by 2010.
Under 18 16.9% (Source: Euromonitor)
18-24 41.7%
25-30 24.6% Online Advertising
31-35 8.2% At end 2006, the market size of the online
36-40 5.5% advertisement industry in China had reached
40+ 3.1% RMB1.324 billion, representing an increase of
Profession 9.53% from Q3. Revenues from key word
Students 30.9% advertisements were RMB476 million, representing
Company staff 31.5% 36% of the total market and an increase of 14.4%
Teachers/School staff 3.3% from the Q3. Revenues from column-based
Government staff 4.0% advertisements were RMB751million, representing
Non-profit staff 8.2% 56.7% of the total market size and an increase of
Self-employed 13.6% 6.68% from the Q3.
Peasants/farmers 0.2% (Source: Analysys International)
Unemployed 5.9%
Army/Others 2.4% In May 2006, 587 online display advertisers ran
(Source: CNNIC, Jan 2007) nearly 1,500 campaigns consisting of more than
3,700 banners. In July 2006, 817 online display
Frequency of Blogging Activities Amongst advertisers ran 2,276 campaigns consisting of 5,785
China’s Users banners.
Write a blog/contribute to other (Source: Nielsen//NetRatings)
people's blogs 79%
- Several times a day 2% During the May-September period of 2006, there
- Once a day 5% was a total of 3,795 online advertisers in China,
- Several times a week 15% running 10,136 campaigns (at an average of 2.7
- Once a week 15% each), posting 25,023 banners and generating 285
- 2-3 times a month 12% billion ad impressions. The total ad expenditure in
- Once a month 7% that period was RMB2.3 billion. Of that expenditure,
- Once every 2 months 3% 26% of it went on automotive advertisements; 23%
- Less often 19% on computers and electricals; and 10% on FMCG
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft advertising. Just 7% of online ad spend went on
Digital Advertising Solutions. Those who have visited/used a blogging/social fashion; 6% on auctions and classifieds; 4% on
networking Web site in the past 3 months) media; 3% on entertainment; and 3% on property.
(Source: Nielsen//NetRatings)
Top Web Sites
1. Baidu.com During the January-June period of 2006, out of the
2. QQ.com RMB2 billion spent on online advertising, 60% (RMB
3. Sina.com.cn 1.25 billion) went on display advertising; 33% (RMB
4. Sohu.com Inc. 697 million) on search engines; and 7% (RMB139
5. 163.com million) on classifieds and other forms of ads.
6. Yahoo.com.cn (Source: Nielsen//NetRatings)
7. Taobao.com
8. Google In 1H 2006, Sina.com led the portals, owning 20%
9. TOM.COM of China’s online advertisement market, worth
10. Google.cn RMB420 million in ad revenues; Sohu.com had 14%
(Source: Alexa.com, April 2007) market share earning RMB290 million; Netease.com
with 6% generated RMB130 million; QQ.com and its
5% earned RMB100 million; while Tom.com had 3%
share worth RMB50 million.
(Source: iADTracker 3.0, iResearch Consulting
Group “China Online Advertising Research Report”)

10 asia digital marketing yearbook


Online Ad Spend by Brand (RMB millions) Impossible Team Online Game/Massively Multiplayer
eBay.com 53.201 Online Game (MMOG) - The first massively multi-
Lenovo 53.154 player online game built entirely for a leading
Samsung 38.636 consumer brand.
Dell 28.609 RESULTS: 1. The TUNiT Flash Game generated 8
Microsoft 24.67 million page views over six weeks.
Taobao.com 23.723 2. TUNiT garnered 70,000 registrations (not
China Mobile 22.23 obligatory).
Toyota 21.157 3. Players spent a total of 72,300 minutes online
HP 19.106 playing the game; each spending on average 11
TCL 15.519 minutes each. (Standard Flash games generate 3-4
(Source: iADTracker 3.0, iResearch Consulting Group “China Online minutes playing time. High quality graphics, game
Advertising Research Report 1st Half of 2006”) play, multiple environments and mini-challenges
within the TUNiT generated three times as much
Online Advertisers by Sector (RMB millions) participation.)
4.The Impossible Team Online Game generated 1
800 million game logins and 60,000 registrations.
5. Gamers spent a total of 15 million minutes (258
700
hours) playing The Impossible Team Online Game; or
600
533 minutes (9 hours) per person on average spent
500 immersed in the adidas virtual world.
400 6. 36 logins per registered member; 15 minutes per
login per user. The top participant played for over 300
300
hours (12.5 days) while the top 30 players on
200
average spent 126 hours playing in the adidas world.
100 7.The Impossible Team Online Game showed steep
0 subscription growth similar to that of Dungeons &
Dragons Online, an internationally renowned game.
Reaal estate

Online services

Communication services

Consumable electronics

Financial services
Food and beverage

Medical services

Garments
IT products

Traffic

CASE STUDY - NEUTROGENA


CLIENT Neutrogena Sensitive Skin Range
AGENCY: Agenda
CAMPAIGN: The Power of Word-of-Mouth
OBJECTIVES: Deepen product appreciation. Collect
(Source: iADTracker 3.0, iResearch Consulting Gourp “China Online database of sensitive skin consumers
Advertising Research Report, 1H 2006”) STRATEGY: Based on three pillars. 1. Establish and
own a strong skincare image through a strong
Most Popular Ad Formats, 1H 2006 (number dermatologist presence. 2. Leverage WOM (word-of-
of insertions) mouth) as a key medium used by people with skin
Long horizontal banner problems. 3. Positioning angle versus competitors -
large-size advertisement 189,340 know myths from facts.
Button advertisement 87,987 DETAILS: Developed a Skin Analyzer in 31
Retractable banner advertisement 64,378 combinations, with intelligent content not limited to
Long vertical large size advertisement 50,758 product information which was used by many
Square large size advertisement 34,747 consumers in their own blogs and forums. Leveraged
Suspending advertisement 12,228 word-of-mouth as a key medium used by people with
Pop-up window advertisement 7,187 skin problems by recruiting Net Journalists to be
Couplet advertisement 6,806 Neutrogena’s voice with skincare bloggers and
Online software advertisement 1,426 skincare forum administrators. Product samples were
Inserting rich media advertisement 1,077 sent for own and readers’ use and collaborated to get
(Source: iADTracker 3.0, iResearch Consulting Group “China Online reviews.
Advertising Research Report”) RESULTS: 1. Paid media generated awareness.
2. Word-of-mouth outperformed paid media and
CASE STUDY - ADIDAS created tail effect.
CLIENT: Adidas 3. Cost performance of word-of-mouth far better than
AGENCY: Outblaze/Palava Digital paid media.
CAMPAIGN: To leverage off the Football World 4. 15% point-of-sale lift.
Cup 2006 5. No other media and PR used, hence conclusion can
STRATEGY: Designing two online games: The be made that the Web site and the word-of-mouth
TUNiT Flash Game/Multi-level Flash Game and The strategy contributed significantly to the sales lift.

asia digital marketing yearbook 11


HONG KONG

Demographics In a survey regarding email etiquette, in reply to


There were an estimated 4.87 million Internet users the question: “which is the most impolite email
in Hong Kong (68.2% of the population) in January habit?”, only 19% of Hong Kong respondents said
2007, up by 113.7% from 2000. Hong Kong’s “sending chain emails”, while 55% said “copying
Internet users represent 1.2% of Asia’s online irrelevant people”.
population. (Source: Synovate)
(Source: Internet World Stats, Jan 2007)
Internet Usage and Population Statistics
By the end of 2005, 65.6% of Hong Kong Year Users Population % Pop. Source
households were using broadband - making Hong 2000 2,283,000 6,702,500 34.1 % ITU
Kong second in the world in terms of penetration. 2005 4,878,713 6,898,686 70.7 % Nielsen//NetRatings
(Source: Hong Kong Yearbook 2005) 2006 4,878,713 7,054,867 69.2 % Nielsen//NetRatings
(Source: Internet World Stats)
At the beginning of 2006, there were 8.6 million
mobile subscribers.That’s a 123% penetration level. Information Technology Penetration at Home
(Source: Office of the Telecommunications 2005 2006
Authority) households with PC at home
amongst all households in
Hong Kong’s broadband penetration rate - among Hong Kong 70.1% 71.7%
the highest in the world - has facilitated the households with PC at home
development of IPTV. As of June 2006, there were connected to Internet amongst
more than 700,000 IPTV subscribers in the territory. all households with PC
(Source: tdctrade.com) at home in Hong Kong 92.2% 93.6%
households with PC at home
User Behaviour connected to Internet amongst
In a survey regarding the effectiveness of different all households in Hong Kong 64.6% 67.1%
mediums, Hong Kong respondents said they found (Source: Household Survey on Information Technology Usage and
the Internet was the most effective in “delivering Penetration 2006, Hong Kong Census and Statistics Department)
information”, “being a source of entertainment” and
“supporting purchase decisions”. They did not E-commerce
regard the Internet as being the most effective Hong Kong’s online travel market - in terms of the
medium in “arousing interest” or “drawing volume of retail sales - is expected to grow by
attention”. 97.9% by 2010.
(Source: Synovate) (Source: Euromonitor)

Hong Kong Internet users on average spend 1.4 44% of international air bookings made on ZUJI
hours per day checking their email; one hour a day Hong Kong are made within two weeks of travel.
on online community activities; and three hours a (Source: ZUJI)
day on instant messaging applications.
(Source: Synovate) 80% of international e-tickets issued by ZUJI are
for travel from Hong Kong.
In a survey regarding the consumption of news, (Source: ZUJI)
Hong Kong respondents said that when a major
disaster or news story breaks, only 8% of them Out of the Hong Kong Internet users who download
turn to the Internet, compared to 71% which turn music online, 75% of them don’t pay for it.
to the TV. In the past week 52% of them had read (Source: Synovate)
the weekend newspapers for over an hour; 19%
had gone online to read a blog; 8% had received According to a 2005 ACNielsen survey, favourite
news on their mobiles; 14% had emailed some items or services for Hong Kong online shoppers
interesting news to a friend; 13% had received a included books (35%), event tickets (23%),
regular, subscribed to news email; and 8% tours/hotels reservations (19%) and airline/tickets
accessed a news Web site that they had paid to use reservations (16%). The same survey indicated that
or subscribe. the majority of Hong Kong online shoppers used
(Source: Synovate) credit cards to settle payment for their online

12 asia digital marketing yearbook


purchases, making Hong Kong the second highest Online Advertising
in Asia Pacific and the third highest in the world for Online vs Total Advertising Spend in Hong
using credit cards in settling online purchases. Kong, 2000-2007 (US$millions)
(Source: tdctrade.com) Year Online Total
2000 $0.0 $3,555
According to a recent survey, there has been a 70% 2001 $0.0 $3,800
growth in the number of mobile phones with 2002 $0.0 $4,297
Internet access in Hong Kong. According to the 2003 $0.1 $4,644
same survey, 21% of mobile users in the city use 2004 $0.1 $5,299
their mobile phones to do their personal banking; 2005 $0.1 $5,874
while 16% use them to search for information on 2006 $0.2 $6,447
products or services online. 2007 $0.2 $7,125
(Source: Synovate, PAX-Pan Asia Pacific Cross (Source: eMarketer.com)
Media Survey 2006)
Top 10 Hong Kong Media by Ad Spend
According to a government survey, nearly 9% of all
70 million
Hong Kong users aged 15 and over had used one
or more types of online purchasing services for 60
personal matters in the previous 12 months.
(Source: Household Survey on Information 50
Technology Usage and Penetration 2006, Hong
40
Kong Census and Statistics Department)
30
Frequency of Social Activities
Activity % 20
Used instant messenger in past 3 months 49%
10
Used Web-based email services in Adspend (HKD)
past 3 months 65% 0
Visited blogging/social networking
56,749,263
Atnext.com
12,233,616

8,566,358

6,070,849

5,633,647
Singtao.com
1,818,877

1,543,438
Uwants.com
1,309,419
ETNet
1,224,312
Ming Pao Online
10,821,396
Orisun.com

SCMP Online

MSN Hong Kong

Sina Hong Kong


Yahoo! Hong Kong

Web sites in past 3 months 27%


(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
Digital Advertising Solutions. All people aged 15-64)

Frequency of Blogging Activities Amongst


Hong Kong’s Users (Source: Admango, Jan 2007)
Write a blog or contribute
to other people’s blogs 77% Top 20 Online Advertisers by Ad Spend
- Several times a day 8% Company $
- Once a day 9% 1. PCCW HKT 9,936,230
- Several times a week 25% 2. The Wall Street Institute 9,740,212
- Once a week 11% 3. Dell 5,687,154
- 2-3 times a month 10% 4. Citifinancial 4,789,931
- Once a month 5% 5. Cosmetic Care Asia 4,756,399
- Once every 2 months 3% 6. eBay 3,641,911
- Less often 6% 7. Inchroy 2,630,385
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft 8. Town Gas / TGC 2,389,276
Digital Advertising Solutions. Those who have visited/used a social 9. South China Morning Post Publishers 2,339,980
networking Web site in the past 3 months) 10. Visa 2,212,438
11. Linguaphone 2,118,914
How Hong Kong Online Users Consume News 12. HKMA 1,918,819
Internet Television Newspaper Mobile 13. EF Education First [EF Education] 1,782,998
At least once a day 11% 81% 46% 6% 14. Mei Ah Entertainment 1,715,663
4-6 times a week 3% 8% 11% 2% 15. Nokia 1,626,392
2-3 times a week 5% 5% 11% 3% 16. Fuji Xerox 1,584,446
Once a week 4% 2% 8% 3% 17. Hitachi 1,445,603
Once a month 2% 1% 3% 2% 18. Golden Scene Company 1,372,603
Seldom/Never 74% 3% 20% 84% 19. Hutchison 3G HK 1,245,903
Total 100% 100% 100% 100% 20. Adidas 1,195,064
(Source: Synovate) 21. Nike 1,143,131
(Source: Admango, Feb 2007)

asia digital marketing yearbook 13


Top Web Sites selectively pull relevant job listing content from the
1. Yahoo! SCMP job database.
2. Uwants.com DETAILS: This software was distributed via SCMP’s
3. discuss.com.hk Web site as well as CD-ROMs cut to the shape of
4. Xanga business cards, branded as the Job Hunting Card.
5. Microsoft Network (MSN) RESULTS: The campaign ended in 2003; and now
6. YouTube three years later, the system still tracks over 80%
7. Atnext.com of the original installer base using the Hunting Card
8. Hkjc.com Software on a daily basis.
9. Windows Live
10. Newsgroup.la CASE STUDY - BIOTHERM
(Source: Alexa.com, April 2007) CLIENT: BIOTHERM (owned by L’Oreal Hong Kong)
AGENCY: Media Explorer (ME)
Top Web Sites (% market share) CAMPAIGN: BIOTHERM Skin Loving Colors Spring
Rank Web site Market Share Summer 2005; BIOTHERM AQUATRIO
1. hk.yahoo.com 8.15% OBJECTIVE: To promote BIOTHERM’s skin care
2. www.xanga.com 2.61% and make up products on the Internet in order to
3. search.hk.yahoo.com 2.52% attract customer visiting their outlets. Enlarge their
4. mail.yahoo.com.hk 2.19% customer email database throughout the campaign.
5. www.google.com 1.74% STRATEGY: ME developed two online promotional
6. www.youtube.com 1.59% campaigns for the BIOTHERM Skin Loving Colors
7. www.hotmail.com 1.55% Spring Summer 2005 and BIOTHERM AQUATRIO
8. www.gofoxy.net 1.27% projects. The scopes included design and
9. www.gmail.com 1.14% production of mini Web site, banners, tell a friend,
10. www.uwants.com 1.05% flash game, e-coupon, e-news subscription, and e-
11. hk.knowledge.yahoo.com 0.94% newsletter and email broadcasting.
12. geocities.yahoo.com 0.88% DETAILS: ME proposed strategies on the bounce
13. www.google.com.hk 0.88% back mechanism for the campaign and enlarging
14. hk.auctions.yahoo.com 0.88% the customer email database. The “Tell a Friend”
15. hk.news.yahoo.com 0.86% module was recommended to help for broadcasting
16. hk.finance.yahoo.com 0.7% the Web site’s address by visitors. ME monitored,
17. mail.yahoo.com 0.68% measured and reported on email open rates, click-
18. bet.hkjc.com/football 0.63% through rates and hit-rates of the Web sites.
19. HKJC.com 0.57% Creative solutions included concept development,
20. appledaily.atnext.com 0.55% navigation and information presentation that
(Source: Hitwise. Based on HK Internet usage for December, 2006, ranked covered graphic design, animation and user
by market share of visits across all Hitwise industries.) interface. Web applications development included
Tell-a-Friend, bounce back mechanism and Flash
game.
CASE STUDY - SCMP RESULTS: 1. Biotherm’s management team has a
CLIENT: South China Morning Post (SCMP) better bridge on communicating with their members
AGENCY: Tribal DDB Hong Kong and visitors through online media.
CAMPAIGN: The SCMP Job Hunting Card 2. New products and events were successfully
OBJECTIVE: To develop an online campaign which promoted and the message was spread among
would bring quality readers to SCMP’s job classified members and Internet users.
site during, and after, the campaign period. 3. The customer email database was enlarged.
STRATEGY: Tribal DDB came up with an idea and 4. The brand gained more exposure on the Internet
a desktop software which allows readers to and brand awareness was enhanced.

14 asia digital marketing yearbook


INDIA

Demographics Internet Users and Penetration 2005-2011


There are 40 million Internet users in India, (millions and % of population)
representing 3.5% of the population. This
represents a 700% growth rate in users since 2000. 80 Million
(Source: Internet World Stats, January 2007).
70

The Internet & Mobile Association of India (IAMAI) 60


says Internet adoption is growing in India, and 50
predicts there will be 100 million by end 2007.
(Source: eMarketer) 40

30
In 2006, there were 2.3 million broadband
20
households in India, representing 1.2% of all online
households. 10 1.8% 2.3% 2.9% 3.6% 4.3% 5.1% 6.0%

(Source: eMarketer) 0
2005 2006 2007 2008 2009 2010 2011
In June 2006, India passed Japan as the second
largest mobile services market in Asia Pacific in (Source: eMarketer)
terms of subscribers, after China. India currently
has 142.7 million mobile subscribers - which is only Active* Internet Users by Weekly Usage
a mobile penetration rate of 13%. Usage 2004 2006
(Source: eMarketer) Light (less than 120 mins) 54% 28%
Medium (121-450 mins) 23% 31%
The percentage of light Internet users are on the Heavy (450+ mins) 20% 38%
decline in India, dropping from 63% in 2001 to Total (average hours) 6.1 8.2
26% in 2006. (Source: eMarketer, Internet and Mobile Association of India, *used in the
(Source: G2 Interactive) past month)

The number of mobile phone subscribers in India is User Behaviour


nearly double that of landline subscribers. Contrary to popular belief email and chat are no
(Source: International Telecommunication Union) longer the most popular activities on the Internet.
32% of users primarily rely on the Internet for
According to a recent survey, there has been a 47% information and research, up from 20% in 2001 to
growth rate over the past two years in the number 32% in 2006.
of mobile phone users with Internet access in India. (Source: G2 Interactive)
(Source: Synovate, PAX-Pan Asia Pacific Cross
Media Survey 2006) 39% of users still prefer to access the Internet from
Cyber cafes but this scenario is set to change -
time spent in cyber cafes is reducing gradually and
Total Internet Users by Access Location (%) access from home is gaining steadily, rising from
Cyber School 21% in 2003 to 31% in 2006.
-café Home Office /College Other (Source: G2 Interactive)
Schoolkids (12+) 53 28 - 15 4
College students 53 33 - 12 2 India’s Internet users on average spend 1.7 hours
Non-student per day checking their email; 1.3 hours a day on
men (18-35) 36 26 35 1 2 online community activities; 2.3 hours a day on
Older men instant messaging applications; and 2.1 hours on
(35-38) 18 39 41 - 2 other Internet activities.
Working women (Source: Synovate)
(18-45) 25 34 38 2 1
Non-working, non-student In a survey regarding the consumption of news,
Women (18-45) 45 47 - 2 5 Indian respondents said that when a major disaster
(Source: eMarketer, Internet & Mobile Association of India) or news story breaks, only 2% of them turn to the

asia digital marketing yearbook 15


Internet, compared to 88% which turn to the TV. In E-commerce
the past week 1% had gone online to read a blog; Online travel sales in India will nearly quadruple to
3% had received news on their mobiles; 4% had reach revenues of US$2 billion in 2010.
emailed some interesting news to a friend; 3% had (Source: Euromonitor)
received a regular, subscribed to news email; and
2% accessed a news Web site that they had paid to India will be Asia’s fastest growing travel retail
use or subscribe. market by 2010. The volume of India’s online travel
(Source: Synovate) retail transactions is expected to increase by 271%
between 2005 and 2010, generating more than
In a survey regarding the effectiveness of different US$2 billion in 2010 in that year alone.
mediums, Indian respondents said they found the (Source: Euromonitor International)
Internet was the most effective in “delivering
information”. They did not regard the Internet as India’s market for mobile value added services
being the most effective medium in “drawing (VAS) was estimated to be worth Rs.2850 crore
attention”, “arousing interest”, “supporting purchase (US$660 million) at the end of 2006 and is
decision” or “being a source of entertainment”. estimated to grow at 60% to reach Rs.4560 crore
(Source: Synovate) by the end of 2007.
(Source: IMRB Research, November 2006)
Main Applications Used by Indian Surfers
Activity % (2004) % (2006) In 2006 India generated US$1.2 billion in B2C e-
Email 50% 45% commerce sales. By 2010 it is forecast that the
Information/Education 24% 33% country will generate $6.4 billion which represents a
Buy/Sell/Transact 1% 4% compound annual growth rate (CAGR) of 50.7%.
Text/Chat 12% 10% (Source: eMarketer)
Entertainment 9% 7%
(Source: I-Cube, Internet and Mobile Association of India) Breakdown of Mobile Value Added Services
VAS Revenues % of total
Frequency of Blogging Activities Amongst P2P SMS Rs. 1140 crore (40%)
India’s Users Ringtone Download Rs. 1026 crore (35%)
Write a blog or contribute P2A & A2P Rs. 428 crore (15%)
to other people’s blogs 93% Game & Data Rs. 171 crore (7%)
- Several times a day 19% Others (MMS etc) Rs. 86 crore (3%)
- Once a day 23% (Source:IMRB Research)
- Several times a week 19%
- Once a week 13% Online Advertising
- 2-3 times a month 3% The online advertising market has radically
- Once a month 10% increased in size over the past 3-4 years. In 2003-
- Once every 2 months 2% 04 it was worth Rs.420 million (US$9.8 million); in
- Less often 5% 2004-05 it was worth Rs.1,070 million; by 2005 it
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft had reached Rs.1,620 million. By 2006 the online
Digital Advertising Solutions. Those who have visited/used a blogging/social advertising market in India was worth Rs.2,180
networking Web site in the past 3 months) million – or US$51 million.
(Source: G2 Interactive)
Frequency of Social Activities
Activity % Advertising revenues in India 2006 vs 2005
Used instant messengers in past 3 months 16%
Used Web-based email services in past 60
% increase vs. prior year

3 months 16%
Visited blogging/social networking 50
Web sites in past 3 months 9%
40
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
Digital Advertising Solutions. All people aged 15-64)
30

20

10

Medium
0
Radio Internet Press TV Cinema

(Source: eMarketer)

16 asia digital marketing yearbook


Share of Online Ad Revenue by Category (%) CASE STUDY - TIMES JOBS
Category 2004-5 2005-6 CLIENT: TimesJobs
Financial Services 27% 24% AGENCY: Tribal DDB India
Technology 13% 11% CAMPAIGN: If you have a reason we have a job
Travel 14% 12% OBJECTIVES: TimesJobs wanted innovative yet
Automobile 9% 11% cost effective ways of using the digital medium to
Consumer durables 8% 9% increase the number of resumes added to their Web
FMCG 7% 9% site daily and hence increase their current market
Online Services (P)* 12% 11% share.
Entertainment 4% 7% STRATEGY: Completing forms can be very
Telecom 2% 6% irritating and a time consuming experience. The
(Source: G2 Interactive; *stands for personal and includes matrimonial, job idea was to create a simple banner that is a “one
placement, personalised travel verticals) stop shop” for registration on TimesJobs - a single,
end-to-end call for action within the banner itself.
Online Ad Revenues of Top Sites (US$m) DETAILS: The banner developed allowed the user
Site US$m to “directly” upload his resume within the banner
Rediff 15 without undergoing the registration process. These
Yahoo! 12 resumes got captured directly onto a server. The
Indiatimes 6 campaign was carried over around 30 Web sites.
Web18 Group 3 RESULTS: 1. Over 50 million impressions served
MSN 2.5 across the campaign Web sites.
Sify 2 2. 98% over delivery of leads as projected prior to
Naukri 1.3 deployment.
WebDunia 0.8 3. 48% efficiency in Cost per Acquisition.
Others 5 4. Efficiency in deliveries led to client spending in
(Source:G2 Interactive) the tune of 5 times the amount spent in the first
phase.
Top Web Sites 5. Runaway success on Yahoo.co.in and Yahoo.com.
1. Yahoo!
2. Orkut.com
3. Google India
4. Google
5. Rediff.com
6. Microsoft Network (MSN)
7. YouTube
8. Naukri.com
9. Blogger.com
10. Windows Live
(Source: Alexa.com, April 2007)

asia digital marketing yearbook 17


INDONESIA

Demographics In the past week only 1% had gone online to read


There are currently 2 million Internet subscribers in a blog; and just 2% had received news on their
Indonesia with approximately 20 million users in mobiles.
total. Out of these, around 100,000 are broadband (Source: Synovate)
subscribers.
(Source: Ministry of Communication and In a survey regarding the use of mobile
Information Technology) applications, 17% of mobile users in Jakarta said
that they used their phones for personal banking,
Indonesia currently has around 63 million mobile while 14% said they used them for product or
users, representing 28.64% of the population. Of service information searching.
these, there are 2 million 3G, edge and EV-DO (Source: Synovate, PAX-Pan Asia Pacific Cross
subscribers. Media Survey 2006)
(Source: Ministry of Communication and
Information Technology) Indonesian Internet Users 2004-2010

Indonesia’s online population has grown by 800% 80 Users (millions)


since 2000. Currently there is around 8% Internet 70
penetration in the country. Indonesia’s Internet
users represent 4.5% of Asia’s total online 60

community. 50
(Source: Internet World Stats)
40

There has been a 75% growth rate in the past two 30

years in the number of consumers in Jakarta that 20


have mobile phones with Internet access.
10
(Source: Synovate, PAX-Pan Asia Pacific Cross
Media Survey 2006) 0
2004 2005 2006 2007 2008 2009 2010

E-commerce (Source: Ministry of Communication and Information Technology)


Indonesia’s online travel market - in terms of its
retail sales volumes - is expected to grow by 82.8% Indonesian Broadband Users 2004-2010
by 2010. Year Users (millions)
(Source: Euromonitor) 2004 0.1
2005 0.2
Indonesia’s Internet users on average spend 1.8 2006 0.5
hours per day checking their email; 1.7 hours a day 2007 0.9
on online community activities; 2.4 hours a day on 2008 1.6
instant messaging applications; and 2.5 hours on 2009 2.0
other Internet activities. 2010 2.5
(Source: Synovate) (Source: Ministry of Communication and Information Technology)

In a survey regarding the effectiveness of different Top Web Sites


mediums, Indonesian respondents said they found 1. Yahoo!
the Internet was the most effective in “delivering 2. Friendster
information”. They did not regard the Internet as 3. Google.co.id
being the most effective medium in “arousing 4. Google
interest”, “supporting purchase decisions”, “drawing 5. Microsoft Network (MSN)
attention”, or “being a source of entertainment”. 6. Blogger.com
(Source: Synovate) 7. Megaupload
8. UserCash.com
Indonesian respondents said that when a major 9. Rapidshare.com
disaster or news story breaks, none of them turn to 10. WikiPedia
the Internet, compared to 94% who turn to the TV. (Source: Alexa.com, April 2007)

18 asia digital marketing yearbook


JAPAN

Demographics Mobile Internet Subscribers


There are currently 86.3 million Internet users in Q1 2005-Q3 2006 (millions)
Japan, representing 67.1% of the population. Q1 2005 76.55
(Source: Internet World Stats) Q2 2005 77.75
Q3 2005 78.92
In 2006, there were 23.7 million broadband Q4 2005 80.09
households in Japan, representing 52.3% of all Q1 2006 81.78
online households. Q2 2006 82.91
(Source: eMarketer) Q3 2006 84.06
(Note: includes mobile phones and personal handy-phone systems (PHS)
There has been a 248.8% growth rate in the Source: Ministry of Internal Affairs and Communications (MIC) - Japan,
number of Internet users in Japan from 2000 to January 2007/eMarketer)
2007. Japan’s Internet users represent 21.6% of
Asia’s total online population. E-commerce
(Source: Internet World Stats) In 2006 Japan generated US$33.5 billion in B2C e-
commerce sales. Prediction: by 2010 it will generate
In February 2007, Japan passed the 100 million $61.9 billion.
mark for mobile subscribers. The number of 3G (Source: eMarketer)
subscribers for all carriers now exceeds 60 million.
Japan is the world’s number one mobile market. 16% of Japanese mobile phone customers already
(Source: eMarketer) use some kind of m-commerce.
(Source: NPD Group)
By 2011, there will be 95.4 million Internet users in
Japan - 75% of the population. Driving the growth A recent report from analyst firm Juniper Research
is cheap and widespread high-speed access. predicts that Broadcast Mobile TV will reach
(Source: eMarketer) revenues of US$11.7 billion worldwide by 2011.
Japan is predicted to lead the market with revenues
Internet Users and Penetration 2005-2011 reaching US$2.9 billion.
(millions vs % of population) (Source: Wireless Watch Japan)

100 Japanese end-user mobile data spend will soar by


90 nearly 60% in the next few years, from almost
80 US$17 billion in 2005 to nearly $28 billion in 2010.
70 (Source: Strategy Analytics)
60
The Japanese retail e-commerce market was worth
50
US$32.7 billion in 2005, according to the Nomura
40
Research Institute. The figure is expected to reach
30
$58.3 billion by 2010.
20 67% 68% 70% 71% 73% 74% 75%
10
0 70 million
2005 2006 2007 2008 2009 2010 2011
60
(Source: eMarketer)
50

GROWTH
Internet Users by Access Platform 40

Device million 30
Mobile devices 69.2
PC 66.0 20

Mobile devices and PC 48.6 10


Total 85.3
0
(Source: Ministry of Internal Affairs and Communications (MIC) - Japan, 2005 2010
July 2006; InfoWorld, July 2006) (Source: eMarketer)

asia digital marketing yearbook 19


The size of Japan’s mobile commerce market more - 2-3 times a month 10%
than tripled from 2002 to 2005 to reach 407 billion - Once a month 5%
yen (US$3.5 billion). The mobile commerce market - Once every 2 months 3%
in the United States and Canada combined is - Less often 9%
expected to reach only 75% of that size by 2009. (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
(Source: Reuters) Digital Advertising Solutions. Those who have visited/used a blogging/social
networking Web site in the past 3 months)
According to government data, 80% of e-commerce
by teenagers aged 15-19 was done via mobile Online Advertising
phones in 2005. It is predicted that by 2008, Japan will be one of
(Source: Reuters) just eight markets globally where the Internet
advertising share will exceed 10% of total ad
Japan’s online video revenues for 2006 were budgets.
US$24.1 million. Estimates are that by 2009 the (Source: ZenithOptimedia)
Japanese online video market will generate $155.1
million, and $510 million by 2012. In September, 2006 alone there were 1,254
(Source: Informa Telecoms & Media) advertisers, running 3,004 online ad campaigns,
utilising 6,453 banners or creatives, generating 29.5
Frequency of Social Activities billion ad impressions – and representing an overall
Activity % ad expenditure of 19.2 billion yen (US$160 million).
Used instant messengers in past 3 months 21% (Source: Nielsen//NetRatings AdRelevance, Japan;
Used Web-based email services in excludes in-house ads)
past 3 months 46%
Visited blogging/social networking Internet advertising expenditures in Japan increased
Web sites in past 3 months 25% 29.3% in 2006 from the previous year.
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft (Source: Dentsu)
Digital Advertising Solutions. All people aged 15-64)
In 2005, 265 billion yen was spent on online
Online Activities in Japanese Households advertising. That rose to 359 billion yen in 2006
Activity % of households and it is predicted to reach 643 billion yen in 2010.
Internet shopping 17.8 (Nomura Research Institute)
Various reservations 10.8
Auction ( Sell ) 2.0 Japan’s mobile advertising revenues in 2006 came
Auction ( Buy ) 5.5 to US$304 million and are predicted to increase to
Internet banking 6.1 $389 million in 2007. By 2009, it is forecast that
Participation in the auction 3.4 Japan will be generating $560 million in mobile
Maintenance of individual homepage 4.9 advertising revenues.
Gathering information 43.2 (Source: Yankee Group)
Online game 6.8
Application for prize 4.3
Email 29.4 Top 10 Online Display Advertising Sectors,
Others 0.9 September 2006
Gathered information through Internet for No. Sector Impressions Estimated ad
purchasing goods and services 31.6 spend (¥ m)
Ordered through Internet on purchasing 21.1 1. Beauty 1,229.8 1,945
Didn’t order through Internet on purchasing 28.0 2. Food 1,208.1 1,866
Paid by credit card etc through Internet 12.6 3. Finance 1,054.3 648
Didn’t pay by credit card etc through Internet 36.4 4. Mobile Comms 1,011.5 1,633
(Source: Ministry of Internal Affairs and Communications: Utilization of 5. Personal Loans 991.7 2,246
Internet by All Japan, Districts, and City Groups (Total Households), 2006 6. Real Estate 868.5 1,120
Yearly Average) 7. Employment 835.6 2,506
8. Computers 803.6 1,157
Frequency of Blogging Activities Amongst 9. Car Manufacturers 679.3 1,112
Japan’s Users 10. Others 671.1 1,189
Write a blog or contribute to (Source: Nielsen//NetRatings AdRelevance, Japan; excludes in-house ads)
other people’s blogs 67%
- Several times a day 10%
- Once a day 7%
- Several times a week 18%
- Once a week 5%

20 asia digital marketing yearbook


Top 10 Online Display Advertisers, CASE STUDY - NISSIN CUP NOODLE
September 2006 CLIENT: Nissin Cup Noodle
Rank Advertiser Ad impressions % Share of CAMPAIGN: 34th Anniversary Campaign
(millions) Total ad OBJECTIVES: Promote the Nissin Cup Noodle
impressions 34th Anniversary Campaign. Raise awareness of the
1. Vodafone 1,214 4.1% Nissin Cup Noodle brand among business computer
2. MediaRights 941 3.2% users in their 20s and 30s. With over 6 million
3. DHC 882 3.0% active users in Japan, Windows Live Hotmail was an
4. Carview 598 2.0% ideal partner for Nissin.
5. Kenkou STRATEGY: As part of its 34th anniversary
Corporation 515 1.7% celebrations in 2005, Nissin Cup Noodle partnered
6. SOFTBANK with Microsoft Digital Advertising Solutions and
Human Capital 511 1.7% Hotmail® launched a creative based on the
7. ORIX Credit 453 1.5% Hotmail® Big Ad Expand ad format. This campaign
8. At-Loan 433 1.5% aimed to raise awareness of the Nissin Cup Noodle
9. Japan Airlines 401 1.4% brand among business computer users in their 20s
10. INTELLIGENCE 391 1.3% and 30s.
(Source: Nielsen//NetRatings AdRelevance, Japan; excludes in-house ads) DETAILS: Nissin Cup Noodle used animated
human shadows to show a celebratory party. This
Top 10 Online Display Vendors, was achieved by employing the Hotmail® Big Ad
September 2006 Expand ad format and rich media.
Rank Vendor Ad impressions Share of RESULTS: 1. 74% of viewers were interested in
(in millions) total ad signing up for the campaign.
impressions 2. 51.1% said they noticed the words displayed in
1. Yahoo! Japan 13,298 45.1% the remainder, 30% of which showed strong
2. mixi 3,319 11.3% interest in the ad.
3. MSN 1,159 3.9% 3. The number of Hotmail® users who signed up
4. goo 951 3.2% for the anniversary campaign was three times that
5. NikkeiNET 751 2.6% of non-Hotmail® users.
6. Infoseek 697 2.4%
7. EC Navi 647 2.2%
8. Excite Japan 551 1.9%
9. Kakaku.com 528 1.8%
10. Nikkansports.com 496 1.7%
Source: Nielsen//NetRatings AdRelevance, Japan; excludes in-house ads

Top Web Sites


1. Yahoo.co.uk
2. Google.co.jp
3. Mixi
4. FC2
5. YouTube
6. rakuten.co.jp - Site Info
7. Livedoor
8. Microsoft Network (MSN)
9. Goo
10. Google
(Source: Alexa.com, April 2007)

asia digital marketing yearbook 21


MALAYSIA

Demographics represented an increase of 255% from 2004 –


There are currently 13.5 million Internet users in where 6.6 billion were sent.
Malaysia, representing 47.8% of the population –
and also representing a 265% growth rate from
2000, where there were only 3.7 million Malaysians
online. Malaysia’s Internet users form 3.4% of
Asia’s total online population.
(Source: Internet World Stats)

Around 18.4% of Malaysia’s hand phone subscribers


use their hand phone to access the Internet.
(Source: Malaysian Communications and Multimedia
Commission, Hand Phone Users Survey 2006)

Profile of Malaysian Internet Users


Category (% of users) (Source: The Communications and Multimedia, Selected Facts and Figures
Male 50.2% Q3 2006)
Female 49.8%
Single 55.0% Malaysian Internet users on average spend 1.7
Married 44.3% hours per day checking their email; 1.5 hours a day
Divorced/widowed 0.7% on online community activities; 3.2 hours a day on
Below 15 6.5 % instant messaging applications; and 3.1 hours on
15-19 18.6 % other Internet activities.
20-24 17.2% (Source: Synovate)
25-29 12.5 %
30-34 12.2% In a survey regarding email etiquette, in reply to
35-39 9.9 % the question: “which is the most impolite email
40-44 9.6 % habit?”, only 31% of Malaysian respondents said
45-49 5.1 % “sending chain emails”.
Above 50 8.4 % (Source: Synovate)
(Source: Malaysian Communications and Multimedia Commission,
Household Use of the Internet Survey 2005) Malaysians like texting. In a 2006 government
survey, 46.1% of Malaysians said they sent more
User Behaviour than five SMS/MMSs every day, compared to 6.4%
As much as 42.3% of Malaysian hand phone who sent 5 or less; 4.7% who sent 4; 9% who sent
subscribers said that they received some form of 3; 9.9% who sent 2; 7.5% who sent 1; and 16.4%
spam through their hand phone in the last three who sent none at all.
months. 76.3% of these received at least one spam (Source: Malaysian Communications and Multimedia
a week. Commission, Hand Phone Users Survey 2006)
(Source: Malaysian Communications and Multimedia
Commission, Hand Phone Users Survey 2006) Currently 18.4% of Malaysian mobile users access
the Internet through their mobile phones.
In a survey regarding the effectiveness of different (Source: Malaysian Communications and Multimedia
mediums, Malaysian respondents said they found Commission, Hand Phone Users Survey 2006)
the Internet was the most effective in “delivering
information” and “supporting a purchase decision”. There has been a 85% growth in the number of
They did not regard the Internet as being the most mobile phones with Internet access in Kuala
effective medium in “drawing attention”, “arousing Lumpur. 12% of mobile users in the capital use
interest” or “being a source of entertainment”. their mobile phones to do their personal banking;
(Source: Synovate) 14% use them to search for information on
products or services online.
In the first nine months of 2006, Malaysians sent (Source:Synovate, PAX-Pan Asia Pacific Cross Media
23.4 billion SMS messages to each other. This Survey 2006)

22 asia digital marketing yearbook


E-commerce Preferred Purchases Online
Malaysia’s online travel market - in terms of its
retail sales volumes - is expected to grow by 82.1%
by 2010.
(Source: Euromonitor)

M-commerce has yet to take off in Malaysia. Only


17.6% of all Malaysian mobile users have purchased
anything through their phone.
(Source: Malaysian Communications and Multimedia
Commission, Hand Phone Users Survey 2006)

How Much Malaysians Spend Online


Value %
Less than RM500 57.7
RM500 but less than RM1,000 20.7
RM1,000 but less than RM1,500 6.8
RM1,500 but less than RM2,000 4.5
RM2,000 but less than RM2,500 * 2.3
RM2,500 but less than RM3,000 * 2.0
Rm3,000 but less than RM3,500 * 2.0
RM3,500 but less than RM4,000 * 0.6
RM4,000 but less than RM4,500 * 0.6
RM4,500 but less than RM5,000 * 0.6 (Source: Malaysian Communications and Multimedia Commission,
RM5,000 and above * 2.3 Household Use of the Internet Survey 2005; Distribution of household
(Source: Malaysian Communications and Multimedia Commission, users of the Internet by type of products or services purchased online; *
Household Use of the Internet Survey 2005; Distribution of household multiple choice)
users of the Internet by value of purchases via Internet; * multiple choice)

Preferred Activities Online Top Web Sites


Activity % 1. Yahoo!
Email 73.7 2. Friendster
Chat rooms 25.9 3. Microsoft Network (MSN)
Finding information about goods/services 40.5 4. Google.com.my
Government services 12.7 5. Google
Reading/downloading online newspapers/ 6. YouTube
magazines 20.2 7. Myspace
Playing/downloading games, music, software 19.9 8. Blogger.com
Other entertainment/pleasure 7.0 9. Windows Live
Online banking/financial activities 12.2 10. WikiPedia
Purchasing/ordering goods or services 2.4 (Source: Alexa.com, April 2007)
Education/research activities 46.8
Others 1.3
(Source: Malaysian Communications and Multimedia Commission,
Household Use of the Internet Survey 2005; Distribution of household
users of the Internet by activity)

asia digital marketing yearbook 23


PHILIPPINES

Demographics Philippines’ users said that when a major disaster or


In 2006 there were 13.5 million Internet users in news story breaks, only 1% of them turn to the
the Philippines, a 15.4% penetration rate. Internet. In the past week 7% had gone online to
Prediction: penetration rates will double by 2009. read a blog; 9% had received news on their
(Source: PANA) mobiles; 7% had emailed some news to a friend;
8% had received a news email; and 3% accessed a
The online population has grown at a rate of 291% news Web site that they had paid for/subscribed to.
since 2000 when there were 2 million users. (Source: Synovate)
Internet users in the Philippines represent 2% of
Asia’s total online population. There has been a 109% growth in the number of
(Source: Internet World Stats) mobile phones with Internet access in Manila. 14%
of mobile users there use their phones to do their
Internet usage in the Philippines is expected to personal banking; while 16% use them to search
record a growth of 23% annually to reach 21.5 for information on products or services online.
million users by 2008. (Source: Synovate, PAX-Pan Asia Pacific Cross
(Source: IDC) Media Survey 2006)

Around 80% of Metro Manila Internet users access In a survey that asked: “Have you ever used an
the Internet from their homes and 48% of them online personal ad or online dating service to meet
use prepaid Internet cards to access the Internet. a potential romantic interest?”, a resounding 77%
(Source: Digital Filipino) of respondents said “No”.
(Source: Synovate)
The prepaid Internet market is worth 818 million
pesos (US$17 million). Top prepaid ISPs: ISP In 2005, mobile users in the Philippines sent an
Bonanza, Bl@st, Go, and SurfMaxx. average of 250 million SMS text messages every day.
(Source: Digital Filipino) (Source: National Telecommunications Commission)

Five million people are estimated to have Internet E-commerce


access through PCs at home, schools, corporate Around 13% of Internet users purchased online in
offices and Internet cafés. 80% of Filipino users still 2006, spending around US$312 million.
access the Internet through dial-up connections. (Source: Digital Filipino)
(Source: National Telecommunications Commission)
The Philippine online gaming market was worth
The Philippines has more cellular phones than US$10 million with 350,000 subscribers in 2004.
fixed/wired phones. At the end of 2003, there were (Source: IDC)
close to 22 million mobile phone subscribers.
(Source: Digital Review 2005-06) In 2004, thanks to online gaming, Internet Café
revenues grew by an estimated 75%.
Profile of Internet Users (Source: Commission on Information and
Characteristic % Communication Technology)
Male 52%
Female 48% Top Web Sites
20-29 years old 48% 1. Yahoo!
30-49 years old 44% 2. Friendster
(Source: ACNielsen, 2004) 3. YouTube
4. Google.com.ph
User Behaviour 5. Google
Philippines’ Internet users on average spend 2.3 6. Microsoft Network (MSN)
hours per day checking their email; 1.6 hours on 7. Multiply.com
online community activities; 2.7 hours on instant 8. WikiPedia
messaging applications; and 3 hours on other 9. Blogger.com
Internet activities. 10. Myspace
(Source: Synovate) (Source: Alexa.com, April 2007)

24 asia digital marketing yearbook


SINGAPORE

Demographics User Behaviour


In 2006, there were 2.4 million Internet users in Singapore Internet users on average spend 1.8
Singapore, representing 66.3% of the population. hours per day checking their email; 1.1 hours a day
There has been a 101.8% growth rate in the on online community activities; 3.6 hours a day on
number of Internet users in Singapore since 2000, instant messaging applications; and 3.2 hours on
when there were 1.2 million. Singapore’s Internet other Internet activities.
users represent 0.6% of Asia’s total online (Source: Synovate)
population.
(Source: Internet World Stats) In a survey regarding the effectiveness of different
mediums, Singapore respondents said they found
65% of Singaporeans aged between 15-49 are at the Internet was the most effective in “delivering
least moderately aware and are casual users of the information”. They did not regard the Internet as
Internet. The survey also found that 55% of 15-49 being the most effective medium in “drawing
year olds are at least moderately able to analyse attention”, “arousing interest”, “supporting purchase
and discern information on the Internet; 33% of decision” or “being a source of entertainment”.
15-49 year olds are at least moderately involved in (Source: Synovate)
producing content on the Internet, such as blogs,
Webcasts, and podcasts; and 22% of 15-49 year In a survey regarding the consumption of news,
olds at least moderately encourage or facilitate Singaporean respondents said that when a major
others in the use of the Internet. disaster or news story breaks, only 5% of them
(Source: Media Development Authority of turn to the Internet, compared to 74% which turn
Singapore) to the TV. In the past week 16% had gone online
to read a blog; 7% had received news on their
In 2006, 71% of all Singaporean households had mobiles; 16% had emailed some interesting news
access to the Internet. Out of those, 66% of the to a friend; 13% had received a regular, subscribed
households in public housing had access to the to news email; and 9% accessed a news Web site
Internet at home, compared to 87% of households that they had paid to use or subscribe.
in private housing. (Source: Synovate)
(Source: Infocomm Development Authority of
Singapore.The 2006 Annual Survey on Infocomm Singaporeans sent 911 million SMS text messages
Usage in Households and by Individuals) in the month of February 2007 alone.
(Source: Infocomm Development Authority of
Among households with home Internet access, Singapore)
almost all used computers (97%) as the mode of
Internet access; 9% used Internet-enabled mobile Frequency of Internet Usage by Age
phones; and 4% used a game console with an Frequency 15-29yrs 30-44yrs 45-59yrs 60yrs+
Internet connection. At least once a day 72% 73% 69% 74%
(Source: Infocomm Development Authority of At least once a week 22% 19% 21% 12%
Singapore.The 2006 Annual Survey on Infocomm At least once a month 4% 6% 6% 10%
Usage in Households and by Individuals) Less than once a month 1% 2% 3% 0%
(Source: Infocomm Development Authority of Singapore.The 2006 Annual

There are currently a total of 4.72 million mobile Survey on Infocomm Usage in Households and by Individuals)

subscribers in Singapore (2G and 3G), giving the


city a mobile penetration rate of 105.5%. Frequency of Social Activities
(Source: Infocomm Development Authority of Activity %
Singapore) Used instant messengers in past 3 months 50%
Used Web-based email services in
Singapore has household broadband penetration past 3 months 66%
rates of 64.1%. Visited blogging/social networking
(Source: Infocomm Development Authority of Web sites in past 3 months 19%
Singapore) (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
Digital Advertising Solutions. All people aged 15-64)

asia digital marketing yearbook 25


Frequency of Blogging Activities Amongst E-commerce
Singapore’s Users* 45% of international air bookings made on ZUJI
Write a blog or contribute to Singapore are made within two weeks of travel.
other people’s blogs 63% Around a third of flight reservations (32%) are
- Several times a day 1% made a month or more before travel.
- Once a day 5% (Source: ZUJI)
- Several times a week 11%
- Once a week 13% Of all international tickets issued by ZUJI in
- 2-3 times a month 7% Singapore in Q3 2006, 54% were e-tickets.
- Once a month 7% Out of Singapore’s Internet users who download
- Once every 2 months 2% music online, 82% of them don’t pay for it.
- Less often 17% (Source: Synovate)
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
Digital Advertising Solutions. *Those who have visited/used a In a survey that asked: “Have you ever used an
blogging/social networking Web site in the past 3 months) online personal ad or online dating service to meet
a potential romantic interest?”, a resounding 96%
Usage of Internet Services by Age Group of Singaporean respondents said “No”.
Activity 15-29 30-44 45-59 60+
(Source: Synovate)
Communicating 89% 85% 81% 61%
Emails 89% 85% 80% 61%
Instant messaging 64% 39% 24% 6% According to a recent survey, there has been a 95%
Social networks 43% 15% 12% 6% growth in the number of mobile phones with
Chat rooms 36% 17% 12% 6% Internet access in Singapore over the past two
Forum discussion 20% 16% 13% 6% years. According to the same survey, 8% of mobile
Reading blogs 26% 11% 12% 9% users in Singapore use their mobiles to do their
Peer–to–peer 22% 12% 9% 0% personal banking; while 9% use them to search for
VoIP 12% 14% 8% 20% information on products or services online.
Own blogs 17% 6% 5% 5% (Source:Synovate, PAX-Pan Asia Pacific Cross Media
For getting information 77% 83% 81% 59% Survey 2006)
Information browsing 69% 72% 65% 25%
Leisure activities 68% 55% 45% 31% 40% of Singaporean online users said they have
Downloading/listening to music paid to download content from the Internet; 9%
50% 27% 23% 9% said they were likely to download new movies paid
Reading online news 28% 39% 29% 11% or unpaid; 13% said they would download TV
Playing/downloading computer or video games shows/dramas; 6% said they would download
40% 24% 26% 0% exclusive celebrity interviews; and 38% said they
Downloading/watching movies, short films, images would download music from the Internet.
29% 16% 15% 0% (Source: Mindshare, ADOI)
Downloading/uploading other media
26% 16% 12% 11% A recent government survey of online shoppers
Reading online magazines 17% 21% 15% 2% found that only 27% of 15-29 year old
Listening to Web radio 19% 19% 7% 2% Singaporeans had purchased online before,
Reading electronic books 12% 14% 7% 9% compared to 38% of 30-44 year olds and 34% of
Watching Web television 10% 9% 6% 0% those 60 years and above. The least enthusiastic
Making online payments 17% 30% 16% 5% online shoppers were 45-59 year olds, where only
For online banking 29% 42% 27% 14% 23% had made an online purchase in the past.
For other activities 40% 34% 21% 2% (Source: Infocomm Development Authority of
Downloading software 37% 31% 21% 2% Singapore.The 2006 Annual Survey on Infocomm
Applying for jobs 18% 16% 9% 0% Usage in Households and by Individuals)
Buying/ordering goods or services
24% 33% 21% 25% Online Advertising
(Source: Infocomm Development Authority of Singapore.The 2006 Annual A PricewaterhouseCoopers (PwC) study showed
Survey on Infocomm Usage in Households and by Individuals) that Singapore’s total Internet advertising is
expected to almost triple from US$91 million in
2004 to US$256 million in 2009.
(Source: AsiaMedia)

Industry watchers estimate that Singapore’s online


advertising market is worth US$20 million to US$30
million (S$31 million to S$46.5 million) a year.
(Source: AsiaOne)

26 asia digital marketing yearbook


Goods/Services Purchased Over the Internet Top 20 Popular Web sites - November, 2006
Items 15-29yrs 30-44yrs 45-59yrs 60yrs+ Rank Web site Market Share
Travel products 36% 39% 31% 38% 1. www.yahoo.com 2.95%
Ticket(s)- Entertainment 41% 34% 22% 31% 2. www.hotmail.com 2.91%
Clothing/footwear 34% 20% 11% 0% 3. www.google.com 2.68%
Entertainment 32% 16% 15% 0% 4. sg.yahoo.com 2.67%
Computer equipment 20% 19% 18% 0% 5. www.google.com.sg 2.48%
Computer software 17% 18% 18% 31% 6. mail.yahoo.com 2.19%
Tickets(s) - Sports 15% 11% 9% 0% 7. mail.yahoo.com.sg 1.76%
IT/Teleco services 12% 10% 2% 0% 8. www.msn.com 1.63%
Shares/Unit Trusts 9% 8% 9% 0% 9. www.friendster.com 1.31%
Food 8% 8% 7% 0% 10. www.youtube.com 1.12%
Photo/telco/optical equipment 11. search.yahoo.com 1.06%
5% 6% 0% 0% 12. www.gmail.com 0.92%
Insurance Products 4% 5% 5% 0% 13. sg.search.yahoo.com 0.91%
Groceries 4% 3% 2% 0% 14. www.msn.com.sg 0.76%
Others 10% 15% 21% 69% 15. address.yahoo.com 0.75%
(Source: Infocomm Development Authority of Singapore.The 2006 Annual 16. www.blogger.com 0.69%
Survey on Infocomm Usage in Households and by Individuals) 17. www.soccernet.com 0.62%
18. www.dbs.com.sg 0.62%
Value of Goods and Services Purchased Online 19. www.microsoft.com 0.57%
Value 15-29yrs 30-44yrs 45-59yrs 60yrs+ 20. www.poems.com.sg 0.54%
Less than SGD100 33% 25% 16% 31% (Source: sg.hitwise.com, (ranked by market share of visits across all
SGD100 to SGD199 22% 20% 22% 19% Hitwise industries))
SGD200 to SGD499 20% 20% 34% 13%
SGD500 to SGD999 7% 12% 10% 0% CASE STUDY - ZUJI
SGD1,000 to SGD1,999 9% 12% 10% 38% CLIENT: ZUJI
SGD2,000 and above 9% 12% 7% 0% AGENCY: Epsilon Interactive/AllianceData
Total: 100% 101% 99% 101% CAMPAIGN: Regular Travel Tuesday newsletter
(Source: Infocomm Development Authority of Singapore.The 2006 Annual OBJECTIVES: To increase relevancy for users, and
Survey on Infocomm Usage in Households and by Individuals) improve ROI for this channel
STRATEGY: Search Based Offer email. Subscribers
Top Web Sites who have made any searches in the past week will
1. Yahoo! receive a custom newsletter. Best flights and best
2. Microsoft Network (MSN) hotel deals will be highlighted for the three most
3. Friendster recent searches. Dynamically assemble promos
4. YouTube from over 200 destinations.
5. Google.com.sg RESULTS: 1. Open rate increased by 72%.
6. Blogger.com 2. Click rate increased by more than 300%.
7. Google 3. Unique clicks increased by more than 300%.
8. Windows Live 4. Conversions up by 84%.
9. WikiPedia
10. Megaupload
(Source: Alexa.com, April 2007)

asia digital marketing yearbook 27


SOUTH KOREA

Demographics mediums, South Korean respondents said they found


There were an estimated 34.1 million Internet users the Internet was the most effective in “delivering
in South Korea (66.5% of the population) in information”, “supporting purchase decisions” and
January 2007, showing a growth rate in usage of “being a source of entertainment”. They did not
79.2% since 2000. South Korea’s Internet users regard the Internet as being the most effective in
represent 8.6% of Asia’s total online population. “arousing interest” or “drawing attention”.
(Source: Internet World Stats) (Source: Synovate)

Nearly 100% of South Korean Internet users have 53.5% of online users spend more than 10 hours a
Internet access at home, according to the South week online; and 24.8% of them spend 4-10 hours
Korean Ministry of Information and Communication. a week online.
(Source: eMarketer) (Source: Yahoo! National Internet Development
Agency, July 2006)
eMarketer estimates that by 2011, 77% of the
population in South Korea will be Internet users, up There has been a 34% growth in the number of
from 67.9% in 2005. mobile phones with Internet access in Seoul. 11%
of mobile users in the capital use their mobile
In 2006, there were 12.7 million broadband phones to do their personal banking; while only 6%
households in South Korea, representing 78.8% of use them to search for information online.
all online households. (Source: Synovate, PAX-Pan Asia Pacific Cross
(Source: eMarketer) Media Survey 2006)

More than one-third of 3-year-olds in South Korea In a survey that asked: “Have you ever used an
are Internet users; nearly two-thirds of 5-year-olds online personal ad or online dating service to meet
are Internet users. And 90% of all South Koreans a potential romantic interest?”, a resounding 88%
under 40 are Internet users. of South Korean respondents said “No”.
(Source: eMarketer) (Source: Synovate)

Internet Users and Penetration 2005-2011 Frequency of Social Activities


Year millions % Activity %
2005 33.0 67.9% Used instant messengers in past 3 months 49%
2006 34.4 70.5% Used Web-based email services in
2007 35.6 72.7% past 3 months 66%
2008 36.5 74.2% Visited blogging/social networking
2009 37.2 75.3% Web sites in past 3 months 33%
2010 37.8 76.2% (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
2011 38.4 77.3% Digital Advertising Solutions. All people aged 15-64)
(Source: eMarketer)
Frequency of Blogging Activities Amongst
Internet Usage Rate by Age (%) South Korea’s Users
6-19 20s 30s 40s 50s 60+ Write a blog or contribute to
2004 95.5 95 86.4 58.3 27.6 7.3 other people’s blogs 72%
2005 97.3 97.2 89.8 67.2 34.7 11 - Several times a day 2%
2006 98.1 98.1 91.6 71 37.5 15.2 - Once a day 7%
(Source:Yahoo! National Internet Development Agency, July 2006) - Several times a week 11%
- Once a week 7%
User Behaviour - 2-3 times a month 14%
South Korean Internet users on average spend 1.3 - Once a month 6%
hours per day checking their email; 0.9 hours on - Once every 2 months 1%
online community activities; 2.7 hours on instant - Less often 3%
messaging; and 3 hours on other Internet activities. (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
(Source: Synovate) Digital Advertising Solutions. Those who have visited/used a blogging/social
In a survey regarding the effectiveness of different networking Web site in the past 3 months)

28 asia digital marketing yearbook


Average Weekly Usage by Age Group Advertising Market Share - Portals (%)
(% of respondents in each group) Site Paran Empas Yahoo! Nate Daum Naver
6-19 20-29 30-39 40-49 50-59 60+ Share 37.5 4.5 5.6 8.6 12.8 21.5
<1 hour 1.9% 1.0% 4.7% 11.6% 13.1% 5.9% (Source:Yahoo! KoreanClick, January 2007, Adram, January 2007)
1-2 hours 4.5% 1.4% 6.6% 7.6% 7.5% 4.0%
2-4 hours 12.6% 4.6% 10.9% 14.5% 13.9% 24.4% Online Ad Spend by Advertiser (US$ million)
4-10 hours 32.5% 18.9% 22.9% 20.6% 19.8% 19.2% Rank Advertiser Sector (US$m)
10+ hours 48.5% 74.1% 55.0% 45.7% 45.7% 4 6.4% 1. SK Telecom Telco 18.5
Total hours 11.0 18.3 13.8 11.0 10.2 9.2 2. Samsung Electronics Tech 9.8
(Source: eMarketer, December 2005) 3. CJ Entertainments Entertainment 7.8
4. Interpark G-Market Retail 7.7
E-commerce 5. Show Box Entertainment 7.4
South Korea’s online video revenues for 2006 were 6. Auction Retail 7.2
US$4.9 million. Prediction: by 2009 the market will 7. Lotte Shopping Cinema
generate $23.5 million, and $76.2 million by 2012. Entertainment 6.1
(Source: Informa Telecoms & Media) 8. JD Retail 4.6
9. KT Telco 4.5
Out of the Internet users who download music 10. GS Home shopping Entertainment 4.3
online, 52% of them don’t pay for it. (Source: Yahoo! Adram 2006)
(Source: Synovate)
Top Web Sites
In 2006 South Korea generated US$14 billion in 1. Naver.com
B2C e-commerce sales. By 2010 it is forecast that it 2. Daum
will generate $28.8 billion which represents a 3. Nate.com
compound annual growth rate (CAGR) of 19.7%. 4 Yahoo!
(Source: eMarketer) 5. TOM.COM
6. Netmarble.net
Most Popular Online Services (%) 7. Internet Auction
Activity Male Female All 8. Gmarket.co.kr
Search 67.2 62.5 65.0 9. Hangame.com
Email 36.3 38.8 37.5 10. Microsoft Network (MSN)
Community 31.0 31.6 31.2 (Source: Alexa.com, April 2007)
News 36.6 22.2 29.9
Games 36.9 20.9 29.4 CASE STUDY- COCA-COLA
Blog 1.8 6.4 8.6 CLIENT: Coca-Cola
Shopping 11.6 31.2 20.7 AGENCY: D’KIMS
E-learning 1.1 1.7 1.3 OBJECTIVE: Global soft drinks company Coca-Cola
Music 8.0 3.9 0.7 wanted to establish a strong brand profile for its
E-trade 9.8 0.7 0.2 new green tea drink in South Korea.
(Source: Yahoo! 2006 Korea Netizen Profile research) STRATEGY: The company launched a multi-media
campaign using a celebrity, based on TV and
Online Advertising Windows Live™ Messenger targeted at young
By 2008, South Korea will be one of just eight female Internet users. To reinforce the product
markets globally where the Internet advertising message, consumers could download a custom
share will exceed 10% of total ad budgets. Windows Live™ Messenger environment to take
(Source: ZenithOptimedia) part in online contests and win prizes.
DETAILS: Microsoft delivered a compelling mix of
The online advertising market will hit US$1.04 creatives that included: Windows Live™ Messenger
billion in 2007, according to keyword advertising Theme Pack delivering a downloadable Messenger
company Korea Overture. Keyword advertising environment. Branded emoticons, a short video,
accounts for 60% of the total online ad market. and a celebrity endorsement. Competition that
(Source: Adotas.com) rewarded users with a series of special gifts
RESULTS: Using the Windows Live HARU
The online ad banner market in 2006 was worth Messenger Contents Pack Coca-Cola achieved
US$385 million. In order of ad spend: the outstanding results from its campaign:
Entertainment sector (78.5%); Telco (58.9%); 1. The target download figure was exceeded by
Retail (37.8%); Education (36.4%); CPF (31.1%); almost 30%.
Transportation (22.4%); Health (21.3%); and 2.More than 130,000 Windows Live™ Messenger
Tech/PC (17.7%). Theme Pack downloads were measured.
(Source: Yahoo! Adram)

asia digital marketing yearbook 29


SRI LANKA

Sri Lanka currently has just 280,000 Internet users, Sri Lanka’s Mobile Subscribers 2000-2006
representing 1.4% of its population. That does
represent, however, a growth rate of 130.5% 6 Million
Subscribers
against 2000 where there were only 121,500 people
online. Sri Lanka’s Internet users represent 0.1% of 5

Asia’s total online population.


4
(Source: Internet World Stats)
3
It is estimated about 90% of Sri Lanka’s Internet
users are in the capital of Colombo. 2
(Source: Gunawardana & Wattegama, 2004)
1

As at the end of Q4 2006, there were 5,412,496


0
cellular mobile subscribers, equivalent to 27.1% 2000 2001 2002 2003 2004 2005 2006
penetration.
(Source: Telecommunications Regulatory (Source: The Telecommunications Regulatory Commission of Sri Lanka)
Commission of Sri Lanka)
Sri Lanka’s Internet and Email Subscribers
In Sri Lanka, 65% of Internet users have had Year Number
tertiary education. 2000 40,497
(Source: Women’s Learning Partnership) 2001 61,532
2002 73,468
As of 2004, there were only 500 Web sites in Sri 2003 85,500
Lanka in the national language compared to 25,000 2004 93,444
which were in English. 2005 115,000
(Source: 1994-2004 Asia Pacific Networking Group) 2006 130,000
(Source: The Telecommunications Regulatory Commission of Sri Lanka)
Out of Sri Lanka’s Internet users, 71% are male.
(Source: 1994-2004 Asia Pacific Networking Group) Top Web Sites
1. Yahoo!
Sri Lanka’s mobile market has been showing an 2. Google.lk
overall annual growth rate of 50-60% for the last 3. Microsoft Network (MSN)
few years. Mobile penetration currently stands at 4. Google
around 27% coming into 2007. 5. Hi5
(Source: Paul Budde Communication) 6. Cricinfo
7. Microsoft Corporation
The Sri Lankan government’s targets for 2008 8. Windows Live
include creating an IT industry worth US$1 billion, 9. YouTube
with a pool of 220,000 IT professionals. It is also 10. Megaupload
aiming for a PC penetration of 10%, and Internet (Source: Alexa.com, April 2007)
penetration of 5% of the population.
(Source: Inomy.com)

There are currently 23 ISPs in Sri Lanka.


(Source: The Sunday Times)

30 asia digital marketing yearbook


TAIWAN

Demographics Taiwan’s Internet Users


There are currently 14.5 million Internet users in Characteristics millions
Taiwan, representing 63% of the population. That Under 12 yrs old 1.96
figure represents a 131.6% growth rate from 2000, Aged 12 and above 13.26
where there were only 6.2 million Taiwanese online. Male 6.76
Taiwan’s Internet users represent 3.6% of Asia’s Female 6.5
total online population. (% of age group) %
(Source: Internet World Stats) 12-15 yrs old 94.6%
16-20 yrs old 94.7%
The Internet penetration rate among Taiwanese 21-25 yrs old 92.1%
male users in 2006 was 65%; and among female 26-35 yrs old 87.8%
users it was 63%, up 7% and 5% respectively from 36-45 yrs old 74.3%
2005. 46-55 yrs old 57.1%
(Source: FIND) 56+ 16.6%
(Source: TWNIC, Internet Broadband Usage in Taiwan A Summary Report
The number of broadband subscribers in Taiwan of The Jan Survey of 2007)
reached 4.5 million by the end of 2006. The total
number of Internet users with valid and active Taiwan’s Mobile Internet Users
accounts in Taiwan reached 9.68 million at the end % of age group %
of June 2006, representing a year-on-year growth 12-15 yrs old 9.15%
rate of 3%. 16-20 yrs old 19.26%
(Source: FIND) 21-25 yrs old 15.69%
26-35 yrs old 17.74%
As of September 2006, 79% of households in 36-45 yrs old 8.76%
Taiwan owned PCs, 72% of households had 46-55 yrs old 1.83%
Internet access, 62% of households had broadband 56+ 0.62%
access and 87% of online households were using
broadband connections. Taiwan’s Broadband Users
(Source: FIND) % of age group %
Male 64.46%
There were a total of 22.98 million mobile phone Female 62.24%
subscribers in Taiwan at the end of September 12-15 yrs old 85.29%
2006. 16-20 yrs old 91.40%
(Source: FIND) 21-25 yrs old 87.90%
26-35 yrs old 82.67%
In 2006, 21.78% of the population aged 12 or 36-45 yrs old 69.85%
above in Taiwan had used mobile handsets or 46-55 yrs old 53.33%
WLAN to access the Internet. 56+ 13.59%
(Source: FIND) (Source: TWNIC, Internet Broadband Usage in Taiwan A Summary Report
of The Jan Survey of 2007)
By the end of January 2007, Taiwan had 1.81
million mobile Internet users. Of those, 1.02 million User Behaviour
were males and 0.78 million were females. Taiwan’s Internet users on average spend 1.6 hours
(Source: TWNIC) per day checking their email; 1.2 hours a day on
online community activities; 3.5 hours a day on
In 2006, 94.38% of households in Taiwan with instant messaging applications; and 3.4 hours on
access to the Internet had an average income of other Internet activities.
NTD 100,001-150,000; 91.82% had an income of (Source: Synovate)
NTD 60,001-80,000, and 90.94% had an income of
NTD 80,001-100,000. 900 million SMS messages were sent in Q1 2006,
(Source: TWNIC) 17% up from Q4 2005. 340 million were sent in
January alone, the highest ever in a single month.
(Source: National Communications Commission)

asia digital marketing yearbook 31


As of January 2007, the most frequently used Mobile Internet Users’ Activities*
mobile service was “Ringtones Download” used by Activity %
39.36% of users, followed by “Information Ringtone download 38.36%
Browsing” (21.14%) and “Email” (8.76% of users). Email 8.76%
(Source: TWNIC) Information browsing 21.14%
Information search 8.17%
There has been a 65% growth in the number of Game download 4.54%
mobile phones with Internet access in Taipei over Financial transactions 3.05%
the past two years. 11% of mobile users in the News/Weather 2.26%
capital now use their phones for personal banking; Application download 1.16%
17% use them to search for information on Information upload 1%
products or services online. Shopping 0.68%
(Source: Synovate) (Source: TWNIC, Internet Broadband Usage in Taiwan A Summary Report
of The Jan Survey of 2007 *multiple choice)
Frequency of Blogging Amongst Taiwan’s
Users E-commerce
Write a blog or contribute to other 62% of Taiwanese users have paid to download
people’s blogs 69% content from the Internet; 23% were likely to
- Several times a day 4% download new movies paid or unpaid; 25% would
- Once a day 7% download TV shows/dramas; 12% would download
- Several times a week 11% exclusive celebrity interviews; and 56% would
- Once a week 14% download music.
- 2-3 times a month 7% (Source: Mindshare, ADOI)
- Once a month 9%
- Once every 2 months 2% According to Gartner, mobile data service ARPUs in
- Less often 13% Taiwan in 2006 stood at US$2.10.
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft (Source: FIND)
Digital Advertising Solutions. Those who have visited/used a social
networking Web site in the past 3 months) Online Advertising
By 2008, Taiwan will be one of just eight markets
Frequency of Social Activities globally where the Internet advertising share will
Activity % exceed 10% of total ad budgets.
Used instant messengers in past 3 months 58% (Source: ZenithOptimedia)
Used Web-based email services in
past 3 months 65% The revenue from value-added mobile services only
Visited blogging/social networking accounts for 5%-10% of the whole mobile market.
Web sites in past 3 months 39% (Source: FIND)
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
Digital Advertising Solutions. All people aged 15-64) Taiwan’s online video revenues for 2006 were
US$0.9 million. Prediction: by 2009 the market will
Broadband Users’ Activities (% of responses*) generate $3.3 million, and $16.6 million by 2012.
70 % (Source: Informa Telecoms & Media)

60 In 2006 Yahoo! bagged nearly 70% of the NT$3.74


50 billion (US$112 million) online ad market. 97% of
local Taiwanese users visit Yahoo! Taiwan.
40
(Source: Commonwealth Magazine)
30
Top Web Sites
1. Yahoo!
20

10 2. Wretch.cc
3. PC home [Taiwan]
0
4. Yam
5. Gamer.com.tw
Web surfing

Email

Information search

Online game

Downloading software

Newsgroups

Online banking

Watching videos
Chat/ICQ

Downloading music

Online shopping

Online radio

Watching TV

6. Microsoft Network (MSN)


7. HiNet
8. Google.com.tw
9. Wefong.com
10. Badongo
(Source: TWNIC, Internet Broadband Usage in Taiwan A Summary Report (Source: Alexa.com, April 2007)
of The Jan Survey of 2007 *multiple choice)

32 asia digital marketing yearbook


THAILAND

Demographics Thailand’s Internet Users (% of users)


In 2006, there were 8.42 million Internet users in Male 52.6%
Thailand, representing 12.5% of the population. Female 47.4%
There has been a staggering 266.1% growth rate in 6-14 yrs old 10%
the number of Internet users in Thailand since 15-24 yrs old 52%
2000, when there were just 2.3 million users. 25-34 yrs old 19.8%
Thailand’s Internet users represent 2.1% of Asia’s 35-49 yrs old 15%
total online population. 50-59 yrs old 3%
60+ 0.2%
9 million
people (Source: National Statistics Office, 2003/2004)

8
User Behaviour
7 Thailand’s Internet users on average spend 1.7
6 hours per day checking their email; 1.5 hours a day
on online community activities; 3.5 hours a day on
5 instant messaging applications; and 3.3 hours on
4 266% other Internet activities.
(Source: Synovate)
GROWTH
3

2 In a survey regarding the consumption of news,


Thai respondents said that when a major disaster
1
or news story breaks, only 6% of them turn to the
0 Internet, compared to 80% which turn to the TV. In
2000 2006 the past week 45% of them had read the weekend
(Source: Internet World Stats) newspapers for over an hour; 31% had gone online
to read a blog; 16% had received news on their
According to the most recently available statistics, mobiles; 11% had emailed some interesting news
the household PC penetration rate in Thailand is to a friend; 15% had received a regular, subscribed
around 11.1%. That is compared to an overall to news email; and 4% accessed a news Web site
Internet penetration rate of 11.9%. that they had paid to use or subscribe.
(Source: NECTEC, Thailand ICT Indicators 2005) (Source: Synovate)

There were about 570,000 broadband subscribers in In a survey regarding email etiquette, in reply to
Thailand in 2005 and 3.18 million broadband users. the question: “which is the most impolite email
That works out at about five users per subscription habit?”, 46% of Thai respondents said “sending
to ADSL. chain emails”, while only 11% said “using a PDA
(Source: Bangkok Post) while out with others”.
(Source: Synovate)
The PC penetration rate in Thailand is around 15%
- but for mobile phones the penetration rate is In a survey regarding the effectiveness of different
closer to 50%. It is forecast that new mobile phone mediums, Thai respondents said they found the
sales will account for 8-10 million units in 2007, Internet was the most effective in “delivering
with 1-2 million of these expected to be so-called information” and “supporting purchase decision”.
“smart phones”. They did not regard the Internet as being the most
(Source: Bangkok Post) effective medium in “arousing interest”, “being a
source of entertainment” or “drawing attention”.
Local mobile data consumption, led by music (Source: Synovate)
downloads and Internet access, registered
skyrocketing growth in the Q1 2007. The emerging E-commerce
non-voice communications market in Thailand is According to a recent survey, there has been a 87%
expected to grow by 40% this year in a market growth in the number of mobile phones with
worth more than 26 billion baht (US$798 million). Internet access in Bangkok over the past two years.
(Source: Bangkok Post) According to the same survey, 7% of mobile users

asia digital marketing yearbook 33


in Bangkok use their mobile phones to do their Frequency of Blogging Activities Amongst
personal banking; while 8% use them to search for Thailand’s Users
information about products and services online. Write a blog or contribute to other
(Source: Synovate, PAX-Pan Asia Pacific Cross people’s blogs 84%
Media Survey 2006) - Several times a day 5%
- Once a day 5%
Direct online travel reservations in Thailand now - Several times a week 15%
account for around 40% of total travel-related - Once a week 15%
transactions. That represents an increase of 10% - 2-3 times a month 18%
compared to five years ago, according to the - Once a month 12%
Association of Thai Travel Agents. - Once every 2 months 7%
(Source: TravelWireNews, May 2006) - Less often 6%
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
Out of the Thai Internet users who download music Digital Advertising Solutions. Those who have visited/used a blogging/social
online, 80% of them don’t pay for it. networking Web site in the past 3 months)
(Source: Synovate)
Frequency of Social Activities
The total value of e-commerce transactions - Activity %
covering B2B and B2C - in 2003 was estimated at Used instant messengers in past 3 months 33%
58,529 million baht (US$1.79 billion) of which 99% Used Web-based email services in
came from B2B.That year only 20.9% of Thais had past 3 months 45%
bought anything online. Visited blogging/social networking
(Source: NECTEC, Thailand ICT Indicators 2005) Web sites in past 3 months 18%
(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft
A recent study on the online gaming market in Digital Advertising Solutions. All people aged 15-64)
Asia/Pacific excluding Japan (APEJ) revealed that
Thailand totalled US$32.9 million in subscription Online Advertising
revenues in 2005, growing by approximately 44% Thailand’s online advertising market is valued at
over 2004. Thailand is the largest online gaming around 80 million baht (US$2.4 million).
market in South East Asia, holding 2.4% market (Source: Nation)
share of the APEJ region’s total subscription
revenue of US$1.39 billion in 2005. Thailand’s online advertising spend is fragmented.
(Source: IDC) Some experts estimate the figure is less than 1% of
total media spend, estimated at 89 billion baht
Thais’ Preferred Online Activities (% of (US$2.7 billion) in 2006 by Nielsen Media Research.
activities conducted online) (Source: TMCNet)
Information search 31.9%
Email 31.6% According to Truehits in August 2006, Google is the
News 14.1% favourite amongst Thais when it comes to search
Chat/ICQ 7.1% engines. It has a market share of 88.4%, followed
Games 5.8% by Sanook which only has 9.75%, Yahoo! with
Download software 2.1% 0.85% and MSN which has 0.61%.
View products 1.3% (Source: AsiaMedia)
Download music 1%
Download game 0.5% Top Web Sites (IP/day)
(Source: NECTEC, Thailand ICT Indicators 2005) 1. www.sanook.com 296,472
2. www.kapook.com 176,679
Most Popular Sites by Category* 3. www.manager.co.th 140,396
Categories % of total visited 4. www.mthai.com 132,147
Entertainment 29.6% 5. teenee.com 126,458
Internet 26% 6. www.playpark.com 108,500
Business 9.5% 7. www.dek-d.com 106,462
News 7% 8. www.sf.in.th 95,066
Personal 6% 9. www.siamza.com 90,527
Games 5% 10. www.yenta4.com 86,405
Shopping 3.3% (Source: Truehits)
Government 2.4%
Computer 2.4%
Education 2.1%
(Source: NECTEC, Thailand ICT Indicators 2005, * 2003 figures)

34 asia digital marketing yearbook


VIETNAM

Demographics E-commerce
There were an estimated 14,913,652 Internet users Vietnam’s online travel market is expected to grow
in Vietnam in January 2007, representing 17.5% of by a rate of 202.8% from now until 2010.
the population. Vietnam has shown incredible (Source: Euromonitor)
growth rates of 7,356.8% since 2000 when it had
only 200,000 Internet users. Vietnam’s Internet 45% of households in Vietnam have PCs, compared
users represent 3.7% of Asia’s online population. to 41% in 2005; and 72% of households have a
(Source: Internet World Stats) mobile phone, up from 69% in 2005.
(Source: ACNielsen)
The number of Internet users in Vietnam is forecast
to increase to around 30 million, according to the 10% of households across Vietnam are predicted to
Ministry of Posts and Telecommunications. make their purchases online by 2010.
(Source: VietnamNet) (Source: NhanDhan)

The government has announced plans to increase Internet Usage, by Activity, Age
the Vietnam’s Internet penetration rate to 35% by Activity 18-30 41-50
2010 - and will invest VND100.5 trillion (US$6.3 Chatrooms 72% 43%
billion) by 2010 to meet its target. News/current affairs 63% 81%
(Source: Internet World Stats) Play games 57% 14%
Email 38% 34%
In the last three years, Vietnam’s mobile phone Watching movies 33% 0%
market has boomed, exceeding the economy’s 8% Study/homework 15% 3%
average growth rate. The number of subscribers Work 14% 27%
increased by 7 million - a 70% jump - last year to Dating online 11% 0%
reach 17 million people. Prediction: Vietnam will Job search 5% 0%
have 46 million mobile users by 2010, growing at a Listening to music 3% 0%
rate of 270% from today’s level. Shopping online 3% 3%
(Source: Wireless Asia) Checking the weather 2% 2%
(Source: ACNielesen, Uses of the Inetrnet in HCMC and Hanoi)
Vietnam will see an GDP growth of 16% due to the
growing ubiquity of mobiles in the next four years. Online Advertising
(Source: Wireless Asia) Online advertising revenues in Vietnam are
estimated to reach US$4 million at the end of 2006,
Vietnam’s Internet Users a US$2.1 million year-on-year increase from 2005.
Characteristics % (Source: VietnamNet)
Male 41%
Female 24% The 2005 turnover from online advertising was
18-30 53% VND60 billion (US$3.7 million) - 0.5% of the market
31-40 23% value of Vietnam’s domestic advertisement market.
42-50 10% (Source: VietnamNet)
Access Point
At Internet café 3% The online advertising market is estimated to grow
At work 15% at a rate of 70-100% by 2010, with expected
At home 31% revenues of VND500 billion (US$31 million).
Internet service 50% (Source: VietnamNet)
Usage a week
Less than 30 min 13% Top Web Sites
31-60 min 40% 1. Yahoo!
1-2 hours 22% 2. Google.com.vn
2-3 hours 15% 3. VnExpress
3-4 hours 4% 4. Bao Khuyen hoc & Dan tri Online
4-5 hours 1% 5. 24h.com.vn
(Source: ACNielsen Omnibus, Internet Usage in HCMC and Hanoi) (Source: Alexa.com, April 2007)

asia digital marketing yearbook 35


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Main Representative: Ruhne Fiala, travel; and corporate and financial.
Main Representative: Kerry Wong,
Marketing Director, Nokia Multimedia, Asia Yahoo! Asia
Managing Director, Hong Kong
Pacific http://advertising.yahoo.com
Ben Grubbs, Marketing Director, Hong
Jawahar Kanjilal, Director, Multimedia Tel: +852 2882 3899
Kong Google
Experiences, Nokia Asia Pacific
www.google.com
Alison Tan, Campaign Manager, Multimedia Main Representative: Ivy Wong, Senior
Founded in September 1995, eBay is The Tel: +852 2166 8702
Marketing, Asia Pacific Director, Asia Pacific Sales
World’s Online Marketplace for the sale of
Yoong Leong Yan, Senior Manager, Music William Woo, Senior Manager, Asia Pacific
goods and services by a diverse Main Representative: Derek Callow,
Experiences, Multimedia Experiences, Asia Sales
community of individuals and small Marketing Manager, HK & SE Asia
Pacific
businesses. Today, the eBay community
A leading player in mobile communications Yahoo! is a leading global Internet brand
includes more than a hundred million
in the Asia Pacific, Nokia first started and one of the most trafficked Internet
registered members from around the
operations in the region in the early destinations worldwide. Yahoo! seeks to
world. People spend more time on eBay
1980s. It has since established a leading provide online products and services
than any other online site, making it the
brand presence in many local markets, essential to users’ lives, and offers a full
most popular shopping destination on the
and business has expanded considerably range of tools and marketing solutions for
Internet.
in all areas to support customer needs and businesses to connect with Internet users
the growth of the telecommunications around the world.
HSBC Direct
industry in the region. Nokia’s regional
www.hsbcdirect.com
corporate headquarters is located at
Tel: +852 2822 3341
Alexandra Technopark in Singapore. As
the regional hub for Nokia, it is a base
Main Representative: Rose Leng, Head of
from which over 700 staff provide leading-
Direct Propositions
edge technology, product and solutions
Epsilon International Mike Zung
support to the 20 diverse markets and
www.epsilon.com/international
Nokia offices in the Asia Pacific. As of
Tel: +852 3589 6308
January 2004, Nokia streamlined its global
organisational structure to strengthen its
Main Representative: Dominic Powers,
focus on convergence, new mobility
Managing Director, Asia Pacific

36 asia digital marketing yearbook


Method Media
www.method.com.sg
Representative: Martyn Tan, Media
Director

The Hyperfactory Premiere Global Services MRM Worldwide


www.thehyperfactory.com www.premiereglobal.com.au ZUJI www.mrmworldwide.com
Tel: +852 2179 5013 Tel: +61 2 9338 8822 www.zuji.com Representative: Jennifer Faucon, Director
Tel: +852 2175 5233
Main Representative: Geoff Handley, New Main Representative: Joanne Rigby, Nielsen//NetRatings
Business Director, Asia Pacific Marketing Manager, Asia Pacific Main Representative: Sean Seah, Country www.nielsen-netratings.com
Derek Handley, Managing Director Becky Lai, SE Asia Marketing Co-ordinator Manager, Hong Kong Representative: Joseph Kam, Director
Howard Hunt, Mobile Integration Manager Nigel Mendonca, Regional Sales Director, Albert Bagaman, Manager Partnerships &
Shannon Lam, Business Development South East Asia Media Sales OneXeno
Director, HK & South China www.onexeno.com
Representative: Ralph Szeto, General
Manager
INDIVIDUAL MEMBERS
Game Guru
Accoona www.gameguru.biz
www.accoona.cn Representative: Napoleon Biggs, Director
Representative: John Fernandez, Director
of Marketing Pilot Simple Software
ICLP Profero www.pilot.com.hk
www.iclployalty.com www.profero.com AsiaPac Net Media Representative: Tim Hay-Edie, Managing
Tel: +852 2803 8100 Tel: +852 2524 5188 www.asiapac.com.hk Director
Representative: Daniel Chan, Marketing
Main Representative: Etienne Maccario, Main Representative: Patrick Ko, Director Manager Pixel Media
Manager, Digital Marketing Amelie Cheng, Senior Client Service www.pixelmedia-asia.com
Stephen Hay, General Manager, Hong Kong Executive e-Crusade Representative: Kevin Huang, Chief
Paul Smitton, General Manager, North Asia Henry Wood, Business Director (Hong www.e-crusade.com Executive Officer
& Greater China Kong) Representative: Venus Lee, Director
Reuters Group
Eight Partnership www.reuters.com.cn
www.eightpartnership.com Representative: Glenn Asano, General
Representative: Louise Hammond, Online Manager, Consumer Services
Business Director
Shanghai Xianda Info Tech
Emporio Asia Representative: Minchu Mo, Director
Ion Global www.emporioasia.com
www.ionglobal.com SCMP.com Representative: Vincent Kobler, Chief Tektronix
Tel: +852 2865 5880 www.scmp.com Executive Officer www.tektronix.com
Tel: +852 2565 2222 Representative: Gapun Tang, Marketing
Main Representative: Marcus Crowley, Eureka Group Program Manager, Asia Pacific Region
Managing Director, Hong Kong Main Representative: Chris Axberg, www.eureka-group.com
Cyrus Ma, Account Director Publisher Representative: Louis Yang, Director Tree & Me
Garland Mak, Marketing Manager Don Anderson, Manager, Marketing & www.treeandme.com
Ginny Wong, Marketing Executive Communications Eureka Technology Partners Representative: Andrew Harris, Director
Pen Kwok, Business Development Manager www.eureka.lk
David Savelson, Assistant Director, Representative: Sanjay Mendis, AGM - USA Today
Multimedia Marketing www.usatoday.com.hk
Raymond Suen, Managing Director, Asia
Factiva Pacific
www.factiva.com
Representative: Irene Leung, Marketing WebPro
Manager, Dow Jones & Co. www.eeplace.com
Johnson & Johnson Vision Care Asia Representative: Larry Kwang, Founder
Pacific Fluid
www.jnjvision.com www.fluidhk.com Who Digital
Tel: +65 6827 6000 Representative: Simon Squibb, Marketing www.whodigital.com
A S I A P A C I F I C

Think Partnership Director Representative: Julie Fitzpatrick, Business


Gary Ho, Marketing Manager www.thinkpartnership.com Director
Li Ting Low, Regional Interactive Tel: +852 2166 8614 Forbes.com
Marketing Manager www.forbes.net X.ON Communications
Main Representative: Phil Ingram Representative: Inez Albert, Regional Sales www.thexon.com
Benjamin Condit Director Representative: Felix Leung, Director

forumline Yo-So Technologies


www.forumline.com www.yo-so.com
Representative: Meraj Huda, Principal Representative: Jeff Chui, Chief Search
Consultant Engine Marketer
OgilvyOne Frenzoo
www.ogilvy.com www.frenzoo.com
Tel: +852 2568 1177 Representative: Simon Newstead,
TribalDDB Managing Director
Main Representative: Sean Rach, www.tribalddb.com
Managing Director Tel: +852 2828 0310 Gravitas
Jason Kwong, Head of Interactive, www.gravitas.com.hk
Business Director Main Representative: Adam Good, Representative: Ricky Chu, Sales &
President, Greater China Marketing Director
Jenny Williams, Managing Director -
Australia G S Quantum Multimedia
www.gsqm.com
Representative: Gary Gopinathan

iMagic Systems / MyClick Media


Omniture www.myclick.hk
www.omniture.com Representative: Rupert Purser, Chief
Tel: +61 4 2261 6398 Executive Officer
WebDNA Interactive
Main Representative: Marc Gagne, Director www.webdna.com Isobar Global
Sales & Client Services APAC Tel: +852 2581 2918 www.isobar.net
Anthony Lam, Technical Account Manager, Representative: Barney Loehnis, Network
Asia Main Representative: Leonard Chan, Chief Director, Asia
Executive Officer
Media Explorer
www.me.com.hk
Representative: Davy Ma, Director

asia digital marketing yearbook 37


The Asia Digital Marketing Association (ADMA) has produced this Yearbook to provide basic information
about the digital marketing environments across key Asian markets. This Yearbook can also be downloaded
as a PDF file from our Web site at www.asiadma.com.

The ADMA has research, guidelines and case studies available for download on its Web site. Visit us at
www.asiadma.com where you can subscribe to our eNewsletter; keeping you appraised on digital
marketing – from events around the region related to digital marketing to informative articles on
the industry to online research being undertaken.

Asia Digital Marketing Association


Tel: +852 2973 0222
Fax: +852 2973 6900
Email: contact@asiadma.com
Web site: www.asidma.com

© Asia Digital Marketing Association 2007