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“ The transformative impact of voice technology is being felt across

the globe. Brands who aren’t reacting to this burgeoning technology


risk becoming invisible sooner than they think across key customer
touch points.

Digital assistants have perfect memories. They know what you have
bought, where you have visited and what your schedule is. As brands
are increasingly challenged to provide their consumers with seamless
experiences in personalised moments that matter, voice represents an
opportunity to meet these expectations.

With over 2,000 languages across the region, Asia presents some
immense obstacles for product developers in the ways of voice
deployment. With global players such as Google and Amazon pivoting


to adapt to the region and Alibaba setting the bar for voice commerce
globally in China, the question remains who will best tap into the
regional consciousness and harness the voice opportunity in Asia.

Joanna Catalano
CEO iProspect Asia Pacific
1.1 Introduction 06

2.1 Asia Pacific View 08

3.1 Dynamic Growth 18

3.2 Market Spotlight – China 20

3.3 Market Spotlight – India 26

3.4 Market Spotlight – Indonesia 32

4.1 Conservative Growth 38

4.2 Market Spotlight – Australia 40

4.3 Market Spotlight – Japan 46

4.4 Market Spotlight – Singapore 52

5.1 Acknowledgement 58

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Introduction

A GLOBAL VIEW

We know that adoption of voice technology is growing.

Speech recognition on many devices has hit 95% accuracy, now at


parity with humans. Voice is at an inflection point and as we become
more comfortable having conversations with assistants and internet
enabled devices, their influence on our purchase decisions will
increase. Research conducted by Microsoft and Econsultancy found
that 60% of people feel future interactions with assistants will one
day resemble a real relationship, where assistants can even act on
their behalf. In an era of digital distrust, voice and the assistants that
power these conversations are the shining light for rebuilding strong
and trusted customer relationships.

An estimated 42% of those who own voice devices are already


using them in their shopping journey. In the United States alone,
Voice commerce sales are expected to reach $40 billion by 2022,
representing 5% of total ecommerce sales. With the staggering
contribution of ecommerce in China coupled with strong growth in
both India and South East Asia, we predict that voice technology
and smart assistants will have an even larger impact on sales and
purchase decisions in Asia. It is trend that has already gained
momentum and those that prepare now will ride the wave of
growth over the coming years.

“ As consumer expectations around service


continue to grow, brands will increasingly
be defined not by what they say about
themselves, but by the utility and service


experience they deliver
deliver.

Despite the global hype, voice remains a largely unexplored trend


across Asia Pacific. In this white paper, iProspect investigates voice
consumption across the region to better understand sentiment and
usage in six key markets: Australia, China, India, Indonesia, Japan
and Singapore.

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8
Asia Pacific Views

The Research
Working with market research
consultancy, idstats, iProspect fielded
a bespoke research study to better
understand not only voice adoption,
but also usage trends such as triggers,
motivations and barriers to trial.
Over 1,800 smartphone owners
(1,851) aged 18 to 50 years old across
Australia (300), China (312), India
(312), Indonesia (315), Japan (302) and
Singapore (310) completed the survey
in April 2018.

The Findings

“ 62% of smartphone users


are currently using voice


Our first big finding was that
62% of smartphone users across
Australia, China, India, Indonesia,
activated technology.
Japan and Singapore have used
voice activated technology in the
last six months and 54% in the last
one month. Voice is happening
now and it is a technology that has
quickly scaled in adoption across
Mapping the Technology
the mobile population. India (82%)
Adoption Across Markets (%)
and China (77%) emerged as the
leaders in voice adoption amongst
China Japan
field markets with Indonesia (62%)
77
VERSION 4
close behind. %
current
users
40 %
current
users

Current Adoption of the Technology (%)

38%
non-current
Indonesia
62 %
users current
users

62%
current
21% never
used
India
82 %
users 6% current
users
11%
Singapore
unaware have ever used
but not in the
55 %
current
past 6 months users
87%
have used
in past 6 13% Australia
have used in past
months &
in past 1 6 months but not 57 %
current
month in past 1 month users

9
Across all markets we found that once users have adopted voice activated technology, their
consumption does not decrease. Consumption is seen to have increased in China, India and

Version 4
Indonesia and stabilized in Australia, Japan and Singapore over the last six months. This finding
further solidified a pattern we were witnessing across all technology adoption, ultimately,
splitting the markets surveyed into two distinct categories: conservative and dynamic. We have
classified conservative growth markets as having below 60% adoption, mixed sentiment towards
the technology and steady growth potential compared to dynamic growth markets which have
over 60% adoption, positive sentiment towards the technology and high growth potential.
We will discuss these different categories and the implications for brands throughout the
white paper.

How has Current Users Usage Changed Over the Last 6 Months (%)

56%
Increased in the past 6 months

40% Remained the same in


the past 6 months
Decreased in the past 6 months

5%
ALL CURRENT USERS
78%
68%
53%
39%
29%
21%
8% 3% 0%

AUSTRALIA CHINA INDIA

60% 55%
53%
36% 40% 37%

4% 7% 8%

JAPAN INDONESIA SINGAPORE

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Asia Pacific Views

A Habit of Convenience
Still a relatively nascent technology, triggers different functions and devices.
for usage are important in understanding Alternately, in conservative growth markets
how to drive continued usage of voice like Singapore, Japan and Australia it
functions. We found that the two main seems the journey to daily adoption is
drivers for trials were general curiosity taking longer, with majority of current
of new technology and the perceived users activating voice 2-4 times per week.
convenience of voice functions. After initial This could be linked to the fact that most
trials, those that continued regular usage users first experimented with voice over
favoured its ability to allow users to multi- two years ago when recognition rates were
task and generate greater efficiencies in well below 95%, leading to scepticism over
moments that matter – highlighting that the technologies’ ability to handle more
curiosity attracts but convenience creates complex queries and add value every day
sustained usage. (imagine trying to scribe a message or order
a pizza if every 10th or 12th word
As users become increasingly comfortable was incorrect!).
with the technology, we are seeing more
regular integration into daily life as the Across all markets what is clear is that voice
technology moves from a state of novelty interactions can add value by providing
to necessity. We found that in dynamic immediate convenience. Brands must
markets, a high percentage of users are consider how they can tap into ‘hands free’
engaging voice functions daily to complete moments such as exercising at the gym,
a variety of tasks, particularly in India commuting to work, watching videos in the
(51%) and China (42%). These users were living room or driving in the car. Rather than
engaging voice to complete tasks like solving complex problems or creating in-
playing music, finding directions, setting depth services, leveraging daily habits such
timers, scribing messages, making calls and as ordering a coffee, playing your favourite
even ordering pizza. For these markets, the song or finding out how to get to your next
initial trial has proven so useful that people destination can have a significant impact
are testing voice applications across many in driving daily adoption and increasingly
value for the end user.

What Triggered First Time Usage? (%) What are the Reasons for Current Usage
Among Current Users? (%)
It was a new feature Voice interactions
and I always like to offer convenience
43% try new things 48%
I was curious Voice interactions are
to try an efficient alternative
45% 46% to keyboards

Helped free up my Voice interactions


hands and help free up my hands
46% multi task 55% and allow me to
multi task

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Breaking Norms in Conservative Markets
As with any new technology that replaces an
old one, changing established behaviours is
key to driving adoption. Our investigation
found that after initial trial many lapsed users
cited typing as actually being more efficient
compared with scribing via voice (64%). This
was especially true in conservative markets
where users were less comfortable with both
the technology and this new way of interfacing
with apps or devices.

The perception of inefficiency paired with 1 The act of speaking to a device


in public draws attention to
inaccuracy of queries being processed has
Visual of someone yelling
driven a fear of embarrassment in public
using this new technology, particularly in
the user.
at a device on a train
2 There
conservative markets. Whilst discomfort
is expected with the introduction of new
is still a perceived (and
technology, we believe embarrassment is actual) risk the device will not
enhanced in this case for two reasons. properly understand your query.

This is so
embarrassing
... This means new users could be caught in an
embarrassing situation of repeating queries
in public without succcess. The research
confirms that this clearly matters more in
conservative markets than others depending
on cultural nuance and etiquette, further
highlighting the importance of improving
recognition rates to drive adoption of voice

Visual of someone enjoy-


outside of private moments. In dynamic
markets, we actually found many users

ing the use of Voice


perceived voice usage as being cool.

Hey Google,
how’s the
While this is a present barrier, we must weather today?
note it is only significant and needs to be
addressed in the conservative markets. In
dynamic markets, the value-add of voice
interactions seems to outweigh the potential
risk of embarrassment currently.

“ 20% of people in China and


10% of people in India first
used voice because they felt


it made them look cool.

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Asia Pacific Views

Reasons for Not Using


Amongst Lapsed Users (%)

I feel embarrassed
52% using voice in public

The feature did not process


50% my request accurately

I found typing easier


64% and more convenient

Voice Device & App Usage


Coming as no surprise in Asia, accessing
personal assistants via smartphone was In-app voice features outside of search
the most utilised voice touch point across came in third with people using scribe
all markets. All brands should consider or recording features in messaging apps
looking at the assistant ecosystems in each such as WhatsApp and WeChat. Many
markets when deciding where to invest users are also using voice to navigate in
first. Currently Google offers the best level applications like Google maps and Waze
of reach to customers across Asia, giving for those ‘on the go’ moments.


brands ability to scale their voice strategy
if developing across numerous markets,
devices and languages. This coupled with
the dialog flow developer infrastructure, 60% of people will
which offers a depth of functionality and
support to integrate APIs, makes the Google trust their digital
assistant ecosystem our top choice for
brands looking to create their own voice assistant to make
experiences in Asia.
decisions on their


Using voice for searching was the second
most frequented function reported (49%).
behalf in the future.
This demonstrates the importance of brands
optimising their SEO for ‘rank zero’ – the
single audio response for a voice search that
is normally the highest organic result. With
growing adoption of voice search in Asia,

24th
It’s 1:45 PM.
SEO will become an even bigger priority for
Booking a cab
brands as they risk becoming invisible to now for your
the voice led customer without the coveted appointment.
top organic spot. Without a paid offering
Meet Dr. Sarah
currently available, brands must invest in at 2 PM.
the long game of SEO when it comes to
Fetch John
voice results. from school.
at 3.30 PM.

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Despite lower levels of adoption compared to the US, we were still surprised to see such high
adoption of smart speakers (22%) and smart home (18%) features across the region. China
and India both had very high levels of adoption with 30% and 26% usage in the last 6 months
respectively. This shows the power that smart homes already have as a communication platform
within these markets and signals things to come in the conservative markets. With full Alexa
functionality available in Australia, Japan and soon Singapore, we expect the adoption of smart
speakers to increase over the coming years albeit at a slower rate compared to India. Smart
homes and speakers will soon reach a tipping point and become a more influential medium
in the shopping purchase journey. Retail brands must prepare for this future in conservative
markets and ensure their marketplace presence is optimised, strengthening their chance to
be recommended by Alexa and other ecommerce powered shopping assistants.

Voice Activated Devices used in the Last 6 Months (%)

PERSONAL ASSISTANT
VOICE CONTROL DEVICES SMART HOME DEVICES
TO OPERATE ELECTRONICS

IN-APPLICATION
22% 18%
VOICE FEATURES

32%
SMART PHONE
PERSONAL ASSISTANTS

57%
SEARCH ENGINE
VOICE FEATURES
www.

48%

Voice Activated Devices Intended to Use in Future (%)

www.

SMART PHONE SEARCH ENGINE SMART HOME DEVICES


PERSONAL ASSISTANTS VOICE FEATURES TO OPERATE ELECTRONICS

53% 44% 22%

PERSONAL ASSISTANT IN-APPLICATION


VOICE CONTROL DEVICES VOICE FEATURES

26% 31%
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Asia Pacific Views

LOOKING FORWARD

Voice adoption in Asia Pacific is surging. Particularly in


mobile-first, high population markets like China and India,
voice is increasingly becoming ingrained in daily life. 95%
of our sample reported that they intend to continue using
95% of the voice activated technology in the future. This behaviour is
here to stay.
users intend to
continue using Whilst technology companies such as Alibaba, Google and
voice activated Amazon are trying to tackle the complexities that accompany
the region, it is imperative that brands begin pivoting their
technology in


customer engagement strategies to reflect the needs of
voice based interactions.
the future.
Smart phone based assistants, smart speakers and voice
led search will be three key touch points that brands must
integrate into their customer approach to avoid being
shut out by the new gatekeepers of the purchase decision
(assistants). The conversation has changed – those that move
today will ride the wave of growth tomorrow and those that
pause will be left behind.

FEATURE

iProspect
voicelab
BUILT WITH
VoiceLab
The iProspect VoiceLab is an
experimental space that explores
the new vocal relationship between
person and machine. In partnership
with Google, it is built to help
strategists, planners and clients
uncover insights with speed and ease.
The aim is to use voice to enable a
faster, agile and more collaborative
planning process in a shared space
rather than on a single screen; the
VoiceLab assistant pulls the data
and the team can focus on analysing
the insights.

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3 Takeaways

1 Convenience is King

Tapping into hands-free moments and daily habits is important


to offer true value to the customer. Start simple – in terms of
both the queries needed from the user and for information
provided by the assistant.

2 Optimise for Rank Zero

Search via voice is clearly growing in adoption across Asia and


becoming a significant way in which we discover products,
locations and more. Responses on Google assistant and Alexa
are both powered by their search algorithms, so it imperative
to ensure your content is optimised to rank as well as possible.
Brands need to optimise their SEO and marketplace content
strategies to suit new conversational queries. Remember with
only one audio result you want to make sure it’s your brand!

3 Understand Each Markets Nuance


– Dynamic vs Conservative

There are clear differences in the behaviour, adoption and


ecosystems of voice in each country. A clear theme we see
emerging is the difference between dynamic and conservative
markets. In order to succeed, brands must first understand
the behaviour and ecosystem in each market and navigate
accordingly. The rest of this white paper is designed to help
give guidelines for that journey.

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It was a positive instance where
I asked Google Assistant to get
me the answer I was looking for
and I got 100% accurate answer
in no time. Google Assistant


was able to understand my
pronunciation very accurately.


Male, India,
I was out with a friend and 25 to 34 years old
wanted to search for a good
restaurant nearby.. I used
the search engine with voice
command. It did give the most
accurate results. It takes out the
pain of typing the whole line


on a go and when you have n
number of bags in your hand.

Female, Indonesia,
25 to 34 years old

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Dynamic Growth Markets

Dynamic Growth Markets

Dynamic growth markets are set for a voice revolution over the coming
years. With adoption rates above 60%, growth rates strong and very high
net promoter scores, voice is and will become a dominant medium for
the average digital consumer. These markets are full of individuals willing
to explore, experiment and recommend this technology. They will be the
engine for future growth and technological innovation in this space.

As reflected in the name, the economies covered here have been in


a general state of transformation for the past 30 years – moving from
economies with low levels of infrastructure and average income to ones
that have grown exponentially with higher income, life expectancy and
many other key economic indicators. Most peoples’ daily environments
have rapidly evolved over the past 2-3 decades, bringing a comfort with
change. Life is dynamic; technology is just one part of this journey.

Reactions to voice technology have been overwhelmingly positive with


a high percentage of users having experiences they are willing to share
and recommend to others. When investigating these markets, we also
found that initial trials of voice happened in the last 18 months, around
the time that Voice hit 95% recognition. This suggests initial trials would
have been a lot smoother in comparison to conservative markets.

NPS Score

India China Indonesia

+ 59 + 30 + 18

This positive momentum will continue in the coming years with voice
moving to the centre of digital communications and touch points.
Brands must invest now in developing a holistic voice strategy as dynamic
markets are using this format across many varied devices, applications and
occasions. Combined, these markets account for nearly 40% of the world’s
population and will be important to any global brand’s growth strategy.

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Market Spotlight – China

INTRODUCTION

77%
China continues to be a global leader with voice adoption rates rising
and local players like iFlytek, Alibaba, JD and Baidu aggressively building
their capabilities. The research revealed 77% of smartphone users are
current currently using voice activated technology. 61% of these users reported
users regular usage, with 42% using voice daily, highlighting how ingrained
voice touch points have become within the market. When asked to

VERSION 4
recount their last experience with voice, over one third of users talk about
the ease and convenience that voice technology provides them daily.

Not only is usage high – but it continues


to rise. 68% of current users report their
Frequency of Usage (%)
voice usage has increased in the last
six months. Continued usage is firmly
42% rooted in utility. According to a joint study
by Baidu, Stanford University and the
34% University of Washington, it is 2.8 times
faster to say Mandarin words than to type
10% and the error rate in Mandarin for voice
recognition is lower than it is in English.
5% These are both key factors for driving
such strong adoption.
4%
4% Out of the non-users, 39% report they
choose not to use voice because they
are embarrassed to be seen in public.
Daily 2-3 times Once
a week a week However, 55% indicate they will use
Once in Once Once every voice activated technology in the future
2 weeks a month few months if it enables them to use their time
more efficiently.

China is one of the fastest and most


fragmented markets for smart speakers
with companies including Lenovo,
Monthly Income, RMB (%) JD.com, Tmall, iFlytek, Xianomi and
Baidu all releasing smart speakers in the
last few years. The challenge for brands in
China won’t be in generating buzz to use
voice, but rather staying relevant to their
consumers by offering useful assistant
applications whilst ensuring a rank zero
position in an advanced, fragmented
voice activated market.

Age and Gender (%)


Up to 2,000
13 %
2,000 to 5,000 18 % 35 to 39
years old
5,001 to 8,500 30 to 34
years old
8,501 to 20,000 10 %
40 to 44
20,000 & above 19 % years old
25 to 29 M F
years old 51% 49%
7%
45 to 50
years old
33 %
18 to 24
years old
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Triggers & Barriers
Voice usage in China is directly linked to its ability to offer convenience and free up time for
users. With a complex alphabet, the ability of voice to offer efficiencies in lieu of typing in ‘on
the go’ moments has ignited regular usage. Convenience, entertainment and the ‘cool’ factor
are all significant triggers in the initial trial stage. Entertainment is a stand out to other markets
meaning the Chinese consumer is open to voice applications not only for utility but also
for entertainment.

VERSION 3
An inherently dynamic market, China’s willingness to adopt and integrate voice technology is
reflected in their high NPS score of +30, ranking second behind India.

Key reasons for using (%)


NPS Score

+ 30

Use time more effectively 43%


Hands-free to multi task 53%
Next tech revolution 41%
Makes me feel cool 36%
Efficient alternative 43%
Widely available 34%
Entertainment 38%
Convenience 53%
Free feature 37%

VERSION 2 - combined
In the shrinking non-user audience, Reasons for not using (%)

VERSION 2 - combined
embarrassment to use in public
inaccurate responses came out as
dominant reasons for not using voice
52%
functions. With high recognition rates
and cited convenience
23%
Reasons in
forcomparison
not using (%)
to typing, we expect this scepticism
to fade quickly in China.
57%
52% 58%
23% 21% Doesn’t understand q
Not comfortable usin
57% 24% and typing is easier
Inaccurate responses
58% Embarrassment
Too techy
21% Doesn’t understand queries
Not comfortable using
Creates laziness
and too complicated
24% and typing is easier
Inaccurate responses
Embarrassment
Too techy
Creates laziness
and too complicated

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Market Spotlight – China

Usage Patterns
People in China use voice daily across many different devices and touch points. Voice is
becoming a part of everything they do. Aligned with utility, 59% use voice technology to
execute commands across mobile applications and 47% use voice to operate smart home
devices. However, as mentioned earlier, the research also indicates that it is not just utility
people are interested in with 57% of people using voice for personal entertainment and 49%
to surf the internet.

Additionally, 26% of current users report that have used voice interactions to make a purchase

VERSION 4
or book a service. There is a huge opportunity for brands to further provide seamless purchase
experiences for Chinese users moving forward.

Activities that Voice is Used for (%)

PERSONAL EXECUTE SPECIFIC OPERATE SMART


ENTERTAINMENT FUNCTIONALITY OF AN APP HOME DEVICES

57% 52% 47%


I’m Alexa,
your personal
assistant

SURF OPERATE VIRTUAL EXECUTE SPECIFIC


THE NET ASSISTANT DEVICES COMMANDS ACROSS APPS

49% 44% 59%


Occasions when voice has been used (%)

BOUGHT OR BOOKED GET DIRECTIONS

Hey Google, How do I get


order 2 boxes to the nearest
of tissues. gas station?

26% 32%

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Technology Adoption
Smartphone personal assistants emerged dominant across China with 81% of current users
engaging with assistants. This makes China by far the biggest market regionally and potentially
globally for smart assistants. Search engine voice features and in-app features are quickly
gaining momentum and are also high-reach customer touch points. As the Chinese consumer
becomes increasingly comfortable with their day-to-today ‘assistant,’ it is likely they’ll continue
to explore more avenues to engage with voice activated technology. We must remember
the influence of these assistants is predicted to move beyond functionality to an emotional
relationship with high levels of trust, significantly influencing customer decisions. China is the
market to watch globally for this dynamic to play out between user and virtual assistant.

Technology Adoption (%)

81% Smart phone personal


assistants (e.g. Siri)

46% Search engine voice


features (e.g. Ok Google)

33%Smart home assistants


to operate electronics

28% Personal assistant voice


control devices (e.g. Alexa)

41% In-App features (e.g.


voice typing in Whatsapp)

With 96% of current users reporting that they intend to continue using voice activated
technology in future, this is a trend that is here to stay. Even among non-users and lapsed
users, between 58% to 60% users indicate they intend to use voice in the next twelve months,
showing even sceptics realise this is technology will become part of their lives in the future.
With usage projected to continue increasing across all demographic groups, brands need

VERSION 4
to focus on the service experience they provide across devices, applications and occasions.
Like mobile device engagement, this is not a singular channel but a way of consuming and
interacting with media.

Future Use (%)

96%
Current User’s
intention

60% 58%
Lapsed User’s Aware Non-user’s
intention intention

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Market Spotlight – China

3 TAKEAWAYS

1 Fragmented Ecosystem

With numerous assistant ecosystems and devices, brands


must navigate complexity and choose the right device and
ecosystem to suit their business objective.

2 Convenience and Entertainment

China is one of the only markets that not only values voice
for its convenience but also for entertainment in moments
of spare time or boredom. Brands can tap into this through
games or humour.

3 Voice in All Moments

With high adoption of smart speakers and smart phones, the


moments brands can tap into are wide and varied. Brands
should consider all on the go and in-home moments.

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Market Spotlight – India

INTRODUCTION

82%
India emerged as the leading market both in terms of adoption rates
and positive sentiment towards voice experiences. 82% of surveyed
smartphone users report to be using voice activated technology, with
current 51% of them engaging with voice daily. A growing trend, 78% of current
users user’s report their usage has increased in the last six months and many
users began using the technology over twelve months ago. According to
eMarketer, over 420 million people are expected to be smartphone users

VERSION 4 by 2020 in India.

Additionally, our survey revealed


that 74% of total respondents are
Frequency of Usage (%)
early adopters. Therefore, as voice
technology becomes more widely
51% available across the market, voice
is positioned to be very impactful
34% and scalable. 56% of non-users
indicate that they will begin
7% using voice activated technology
if it continues to be perceived
3% as a ‘technological revolution.’
Additionally, India scored the
3% highest NPS rating of all surveyed
1% markets at +59.We expect this
positive perception to continue in
the short to midterm resulting in
Daily 2-3 times Once
a week a week scaled adoption to new audiences
Once in Once Once every and users.
2 weeks a month few months
64% of total respondents regularly

VERSION 3 make online purchases on their


smartphone and 5% of current
users are already using voice
activated technology to make
Monthly Income, INR (%) purchases. Consumer behaviour
is shifting in reaction to voice
technology and brands need
to pivot accordingly to ensure
they are ready to facilitate these
experiences of or their customers.

Age and Gender (%)

17 %
35 to 39
years old
Up to 20,000 1,40,001
to 1,60,000 19 %
10 %
20,001 to 40,000 30 to 34
1,60,001 years old 40 to 44
40,001 to 80,000 to 1,80,000 years old
80,001 to 1,80,001 M
to 2,00,000 F 45 to 50
1,20,000 54% years old
46%
1,20,001
to 1,40,000
2,00,001
& above
18 % 6%
25 to 29
Undisclosed years old

29 %
18 to 24
years old
27
Triggers & Barriers
Voice usage in India is predominately linked to functionality. The ability to multi-task and use
time more efficiently emerged as the two top reasons for using voice activated technology.
Perception was also found to be important to users in India, with 46% using voice because
it makes them feel cool and 54% using voice because they feel it is in the next technological
revolution.

Out of all surveyed Asia Pacific markets, India had the highest NPS score of +59. This not only

VERSION 3
signifies the willingness to adopt and integrate voice technology, but also an openness to
utilize voice in a variety of ways moving forward.

Key reasons for using (%)


NPS Score

+ 59

Use time more effectively 56%


Hands-free to multi task 57%
Next tech revolution 54%
Makes me feel cool 46%
Efficient alternative 55%
Widely available 41%
Entertainment 44%
Convenience 48%
Free feature 47%

VERSION 2 - combined
The most common reason for not Reasons for not using (%)
using voice search is, as in most
56%
VERSION 2 - combined
markets, inaccurate processing. With
22 official languages across the country,
24
development of voice recognition will
need to be a focus for technology
%
providers in order to maintain this
Reasons for not using (%)
positive trajectory.
53%
One third of respondents who have not 56% 32%
yet tried voice activated technology 39% Doesn’t understand q
24 % with
cite issues tied with perception, Not comfortable usin
users worried it will make them lazy or
being embarrassed to use in public. 53% 23% and too techy
Inaccurate responses
This however is not an issue for those
32
who regularly use voice, suggesting%
31% Typing is easier
Embarrassment
the negative perception is dispelled Creates laziness
39
once people try the technology. Whilst % Doesn’t understand queries
Not comfortable using
Too complicated
adoption is surging, voice is still an
23
emerging piece of technology% and and too techy
Inaccurate responses
there are naturally barriers to trial in
the current ecosystem. 31 % Typing is easier
Embarrassment
Creates laziness
Too complicated

28
Market Spotlight – India

Usage Patterns
Usage patterns highlight how quickly voice has spread across touch points and occasions in
the Indian market. From surfing the internet (57%) to operating smart home devices (51%)
to executing commands across mobile apps (67%), voice activated technology is becoming
integrated into the day-to-day for consumers.

31% of current users reported that they have used voice to make a purchase or book a service.
With an increasing pool of smartphone users who demonstrate early adopter behaviour, brands
need to have a voice strategy or else they risk falling behind quickly.

VERSION 4
Activities that Voice is Used for (%)

PERSONAL EXECUTE SPECIFIC OPERATE SMART


ENTERTAINMENT FUNCTIONALITY OF AN APP HOME DEVICES

53% 60% 51%


I’m Alexa,
your personal
assistant

SURF OPERATE VIRTUAL EXECUTE SPECIFIC


THE NET ASSISTANT DEVICES COMMANDS ACROSS APPS

57% 49% 67%


Occasions when voice has been used (%)

BOUGHT OR BOOKED GET DIRECTIONS

Hey Google, How do I get


order 2 boxes to the nearest
of tissues. gas station?

31% 41%

29
Technology Adoption
Smartphone personal assistants and search engines currently lead as the main technology
platforms in which people use voice functions. Smart home devices and operating systems
like Alexa are quickly gaining momentum with services like Prime and Google home readily
available and actively marketed. The traction of smart homes is evident with a major number
of users surveyed also operating connected smart electronics like smart bulbs, speakers and
air conditioning units from their smart home applications (29%). It is essential to have a multi-
platform strategy in this market with the potential to create assistant experiences for hands
free, on the go and in-home moments. Alexa and Google assistant already play a big role in
many customers’ lives and both ecosystems have significant scalability in this market. Brands
must consider how to create experiences across all relevant devices and ecosystems.

Technology Adoption (%)

73% Smart phone personal


assistants (e.g. Siri)

65% Search engine voice


features (e.g. Ok Google)

29% Smart home assistants


to operate electronics

43% Personal assistant voice


control devices (e.g. Alexa)

44% In-App features (e.g.


voice typing in Whatsapp)

With 98% of current users reporting that they intend to continue using voice activated
technology in future, this is a trend that is here to stay. More importantly, 93% of non-users and
83% of lapsed users indicate that they intend to use voice activated technology in the next

VERSION 4
twelve months. Voice is on an upward trajectory in India and brands will quickly be challenged
to react accordingly.

Future Use (%)

98%
Current User’s
intention

83% 93%
Lapsed User’s Aware Non-user’s
intention intention

30
Market Spotlight – India

3 TAKEAWAYS

1 Positive Momentum for Early Adopters

India has seen phenomenal momentum in terms of voice


adoption and NPS ranking. The early adopter audience
will continue to drive growth in this market as their positive
experiences are shared.

2 Smart Home is Key

The smart home will be key to consider when crafting a local


voice strategy. Google Home and Alexa are set to play a
central role in driving this further adoption in India. Brands
need to lean in to both ecosystems and design experiences
that add convenience to moments in the home.

3 Tip of the Iceberg

With smartphone assistants being a dominant source of


interaction, the rising smartphone population in India will
further fuel voice adoption. We have only seen the beginning
of voice and its scalability in this market.

31
32
Market Spotlight – Indonesia

INTRODUCTION

62%
Voice is still at a nascent stage in Indonesia, but the potential for brands
is growing rapidly. 62% of smartphone owners are currently using voice
activated technology. Compared to other Asia Pacific markets, usage is
current not as frequent with 37% of users using voice 2-3 times per week and
users over 20% using voice less than once a month.

eMarketer predicts that


smartphone users will increase
Frequency of Usage (%)
by 14.7% in 2018 and reach 98
million by 2020. Similar to India,
25% with a consistent new pool of
smartphone device owners,
37% brands have an opportunity
to create a voice activated
11% relationship with consumers that
they previously could not speak to
7% through digital channels. Will this
new generation of users not only
9% be mobile first but also voice first?
5% Only time will tell.

Reasons for using voice are


Daily 2-3 times Once
a week a week anchored mainly in utility and
Once in Once Once every barriers are driven by frustration
2 weeks a month few months with inaccurate processing,
aligned with all markets. Brands

VERSION 3 need to ensure the interactions


they have with consumers on voice
are frictionless and simple to help
them achieve the convenience
Monthly Income, RP (%) they are looking for.

Age and Gender (%)

19 % 18 %
30 to 34 35 to 39
years old years old

11%
less than 100,000 2,000,001 40 to 44
M years old
100,000
to 3,000,000 17% 51%
F
49%
to 700,000 3,000,001 25 to 29
years old
700,001
to 5,000,000 5 %
to 1,000,000 5,000,000 45 to 50
to 7,500,000 years old
1,000,001
to 1,500,000 7,500,001
30 %
18 to 24
& above years old
1,500,001
to 2,000,000 Undisclosed

33
Triggers & Barriers
As stated previously, voice usage in Indonesia is predominately linked to utility. The ability
to multi-task and use time more efficiently emerged as the two top reasons for using voice
activated technology. When asked to recount their last experience with voice, over one third
of users described the time it saved it them. Interestingly, only one third of people reported
that they found typing easier than voice suggesting that voice could easily become the
key outlet for how people interact with their smart devices, especially as new smartphone
audiences emerge.

Out of the dynamic markets, Indonesia had the lowest NPS score at +18. That being said, this

VERSION 3
score still captures the high growth potential of Indonesia, particularly as internet penetration
and smartphone usage continue to grow.

Key reasons for using (%)


NPS Score

+ 18

Use time more effectively 52%


Hands-free to multi task 59%
Next tech revolution 45%
Makes me feel cool 42%
Efficient alternative 49%
Widely available 44%
Entertainment 44%
Convenience 37%

VERSION 2
Free feature 42%

Reasons for not using (%)

Inaccurate processing (61%) and


60%
13%
VERSION 2
embarrassment to use voice technology
in public (55%) emerged as the two key
reasons for people to stop using voice. 61%
For non-users, over half for
Reasons of respondents
not using (%) 30%
that haven’t tried voice activated
technology are worried it will make
60% 55% Doesn’t understand q
them lazy or they are embarrassed Not comfortable usin
to use it in public. Whilst adoption is
13 16% Inaccurate responses
surging, voice is still %
an emerging piece Typing is easier
of technology and there are barriers
61% 22% Embarrassment
to trial in the current ecosystem. This Too techy
should subside with time but brands
30 %
18% Creates laziness
should also think about how they Too complicated
promote the use of voice to shift
perceptions of laziness and break 55% Doesn’t understand queries
Not comfortable using
down social barriers to public usage.
16 % Inaccurate responses
Typing is easier
22% Embarrassment
Too techy
18% Creates laziness
Too complicated
34
Market Spotlight – Indonesia

Usage Patterns
Usage patterns reflect triggers in that functionality is driving activities. 68% of respondents
use voice activated technology to execute specific commands across mobile applications. The
research also revealed 62% use voice to surf the internet, suggesting a keenness to use search
as a point of discovery rather than only action.

Only 14% reported that they have used voice to make a purchase or book a service. However,
45% of total respondents report they regularly make online purchases with their smartphone,
so there is opportunity here if brands can effectively demonstrate the convenience that voice
purchases provide them.

VERSION 4
Activities that Voice is Used for (%)

PERSONAL EXECUTE SPECIFIC OPERATE SMART


ENTERTAINMENT FUNCTIONALITY OF AN APP HOME DEVICES

45% 47% 45%


I’m Alexa,
your personal
assistant

SURF OPERATE VIRTUAL EXECUTE SPECIFIC


THE NET ASSISTANT DEVICES COMMANDS ACROSS APPS

62% 37% 68%


Occasions when voice has been used (%)

BOUGHT OR BOOKED GET DIRECTIONS

Hey Google, How do I get


order 2 boxes to the nearest
of tissues. gas station?

14% 33%

35
Technology Adoption
Search engine voice is the dominant technology platform for voice in the Indonesian market.
Over 50% of users are also using in-app features. Voice could end up being a viable and widely
used alternative to typing across apps and smartphone functions.

Smart home adoption has yet to take off significantly which is not surprising given the absence
of Alexa and only recent adoption of Bahasa by Google assistant. Surprisingly, though, smart
phone personal assistants have a much lower adoption than other surveyed markets. We
expect this to shift as users start to explore other applications across the android ecosystem,
the dominant OS for Indonesia.

Technology Adoption (%)

37% Smart phone personal


assistants (e.g. Siri)

75% Search engine voice


features (e.g. Ok Google)

17% Smart home assistants


to operate electronics

20% Personal assistant voice


control devices (e.g. Alexa)

52% In-App features (e.g.


voice typing in Whatsapp)

92% of current users report that they intend to continue using voice activated technology in
future showing this technology is here to stay. The only dark spot on adoption for Indonesia
was only 33% of lapsed users intend to use voice in the next twelve months. When recounting
their experience with voice, inaccurate processing is always the key frustration. Brands must

VERSION 4
be weary to keep interactions simple and convenient to avoid frustration due to inaccurate
processing if designing assistant experiences.

Future Use (%)

93%
Current User’s
intention

33% 56%
Lapsed User’s Aware Non-user’s
intention intention

36
Market Spotlight – Indonesia

3 TAKEAWAYS

1 Search is Key Today

Having an SEO strategy optimised for conversational queries


is essential for brands to avoid becoming invisible in a rank 0
world where only one result is served to the user.

2 Smartphone Assistants Tomorrow

While still a nascent stage, assistants accessed via the


smartphone will likely become the next wave of adoption in
Indonesia. As this not only a new tool but also a new way of
interacting with devices, brands must keep experiences simple
and focused on convenience.

3 Voice First Users

We have seen the growth of mobile first markets across


Asia over the last five years. As a market new to the world
of mobile, the behaviour of type based interactions is not as
ingrained as in conservative markets. Could we see the world’s
‘voice first markets’ rise in Asia? We believe Indonesia has
that potential.

37

I tried it once on my
old phone when I was
bored and felt very


uncomfortable talking
to a phone.

Female, Australia,
18 to 24 years old


It can get a bit annoying


at times when you have
to repeat yourself.
Male, Australia,
25 to 34 years old

38
Conservative Growth Markets

Conservative Growth Markets

Despite its title, we found conservative growth markets still represent


a significant opportunity for brands. With usage rates on average
sitting well above 50%, there is ample room for brands to create voice
experiences with consumers. The core difference with these markets is
their healthy scepticism towards voice and slower rates adoption. This
scepticism as highlighted in negative NPS scores signifies that there are
more detractors of this technology than those willing to recommend it.

NPS Score

Australia Singapore Japan

– 19 – 11 – 38

We found this sentiment is tied mainly to recognition rates of voice


technology. Many lapsed users cited inaccurate recognition as the main
reason they stopped using the technology. This trend was driven by many
initial trials and lapses occurring 2+ years ago when recognition rates had
not hit 95% of parity with human speech recognition. Interestingly, all
economies in the conservative markets fall within the highest category
for income and life expectancy globally and have done so for over
two decades.

As a general trend, we see that markets in this category tend to adopt


new technology in a much more conservative fashion. Technology has
always been a part of their daily lives – thus new technology is not readily
adopted and assessed with very high standards. As the technology
improves and assistants surpass human ability to recognise queries,
we firmly believe sentiment in these markets will shift as experiences
become more seamless, impressive and worth sharing.

39
40
Market Spotlight – Australia

INTRODUCTION

57%
Voice search in Australia is at a cross roads. Adoption is strong at 57% but
growth is stagnant with only 53% of current users reporting their usage
has remained consistent over the past 6 months and many reporting a
current decrease. Interestingly, 37% of active users began using voice more than
users two years ago when the technology first hit Australia and recognition
was still below 95% (parity with humans). Even with the arrival of Google
Home in 2017 and now Apple HomePod and Amazon Echo, voice usage
has largely remained stagnant. It is clear this market is hard to impress.

Whilst 55% of respondents first


trialled voice activated technology
Frequency of Usage (%)
out of curiosity, continued usage is
firmly rooted in utility. 53% of non-
14% users even report that they would
use voice activated technology
27% in the future if it offered greater
convenience in their daily life;
21% however, the general finding
is voice technology hasn’t yet
16% provided that proof point. 44% of
non-users indicate that they plan
11% to trial voice activated technology
11% in the next twelve months showing
there is an opportunity for this
stagnant growth to turn around if
Daily 2-3 times Once
a week a week utility is provided.
Once in Once Once every
2 weeks a month few months If brands can effectively enable
seamless interactions through

VERSION 4 voice which offer a superior


experience, they will not only
reignite the curiosity to engage
new users, but more importantly,
Monthly Income, AUD (%) create sustainable, voice-powered
relationships with their consumers.

Age and Gender (%)

7 %
15% 40 to 44
years old
35 to 39
years old
45 to 50
1,500 & under 19% years old

1,501 to 3,500
30 to 34
years old
8%
M F
3,501 to 6,500 54% 46%
6,501 to 10,500
10,501 to 16,000
14 %
25 to 29
years old
16,001 to 20,000 37 %
20,000 & above 18 to 24
years old
Undisclosed

41
Triggers & Barriers
Voice usage in Australia is reliant on the ability to offer efficiency and convenience in the lives
of users. The ability to multi-task during ‘on the go’ moments and provide greater convenience
are the two key reasons for using voice activated technology. 37% of current users still use
voice search as a form of entertainment, but it is rarely listed as the most important reason for
continued usage. When asked to recount their last experience using voice, 42% of respondents
said they used it as a search function – whether it was connecting to another application, playing
music or checking the weather.

Reasons cited for not using voice search are predominately around inaccurate processing,
leading to frustration and then a tendency to return to typing altogether. Current users were all

VERSION 3
found to be technologically savvy, hence concerns around the technology being too difficult to
use did not emerge as a key reason for not using.

Key reasons for using (%)


NPS Score

– 19

Use time more effectively 44%


Hands-free to multi task 51%
Next tech revolution 32%
Makes me feel cool 40%
Efficient alternative 41%
Widely available 28%
Entertainment 37%
Convenience 56%
Free feature 45%

VERSION 2
With an NPS score of -19, the findings Reasons for not using (%)

VERSION 2
suggest Australian users have high
expectations and voice has yet to
meet them.
60%
When looking at non-users, 59%using
report
24%
Reasons for not (%)
that they expect typing to be easier,
showing just how ingrained using a
56%
keyboard is as a behaviour and an 60% 51%
unwillingness to change. This will be
24 % like
a key barrier that voice players 22% Doesn’t understand q
Google and Amazon will need to break
down to stimulate new growth and 56% 32%
Not comfortable usin
and too techy
adoption of their devices and assistants.
It is also something brands should 51 %
Inaccurate responses
Typing is easier and
consider before investing in their own
22
voice experiences –making%experiences
Doesn’t understand queries feeling embarrassed
Creates laziness
Not comfortable using
that offer greater convenience than a
32 %
typed interaction. Hands free moments
and too techy
Inaccurate responses
Too complicated

like being in the gym or driving are key


Typing is easier and
to tap into.
feeling embarrassed
Creates laziness
Too complicated
42
Market Spotlight – Australia

Usage Patterns
Respondents most frequently use voice activated technology to execute specific functionality
in an application or to operate virtual assistants. Using voice to operate a smart home currently
only sits at 29%; however, with the introduction of new devices into the Australian marketplace,
it is likely that this will become increasingly integrated into daily life. We see the smart home as
key to driving the next stage of adoption with features like Amazon Prime driving real utility for
the end user (the effects of which have been consistently documented in the US).

11% of current users reported that they have used voice to make a purchase or book a service
And with over 50% of total respondents regularly making purchases on their smartphone, there
is a huge opportunity for brands to react and move into this space. The growth in smart home
adoption also means there is an opportunity to tap into smart home moments to drive the

VERSION 4
purchase journey.

Activities that Voice is Used for (%)

PERSONAL EXECUTE SPECIFIC OPERATE SMART


ENTERTAINMENT FUNCTIONALITY OF AN APP HOME DEVICES

43% 51% 29%


I’m Alexa,
your personal
assistant

SURF OPERATE VIRTUAL EXECUTE SPECIFIC


THE NET ASSISTANT DEVICES COMMANDS ACROSS APPS

37% 52% 50%


Occasions when voice has been used (%)

BOUGHT OR BOOKED GET DIRECTIONS

Hey Google, How do I get


order 2 boxes to the nearest
of tissues. gas station?

11% 23%

43
Technology Adoption
Using assistants on smart phones is the dominant touch point for Australian users. Interestingly
when asked about future use, respondents expect to increase their usage across personal
assistant devices like Alexa and smart home assistants to operate electronics. This signifies
a shift in behaviour – with users becoming more comfortable and willing to integrate voice
into their homes. As long as recognition rates continue to improve and experiences provide
convenience that outweigh existing behaviour, we believe Australia will steadily become a high
adoption market and sentiment towards voice will shift.

Technology Adoption (%)

62% Smart phone personal


assistants (e.g. Siri)

36% Search engine voice


features (e.g. Ok Google)

10% Smart home assistants


to operate electronics

22% Personal assistant voice


control devices (e.g. Alexa)

15% In-App features (e.g.


voice typing in Whatsapp)

With 93% of current users reporting they intend to continue using voice activated technology,
this is a trend that is here to stay. Additionally, 59% of lapsed users and 44% of non-users
both report that they expect to begin using voice in the future as well. These intention figures
demonstrate both the expectation that voice will continue to scale across the country, as

VERSION 4
well as, the important for brands to be hyper-relevant to their consumers when crafting a
voice strategy.

Future Use (%)

93%
Current User’s
intention

59% 44%
Lapsed User’s Aware Non-user’s
intention intention

44
Market Spotlight – Australia

3 TAKEAWAYS

1 Better than Typing

To break through into the next stage of growth, voice needs to


be more convenient than typing. With a market that has typed
on their phones for more than two decades, work will need to
be done by Amazon, Google and brands investing in assistants
to change this perception.

2 Hands Free Moments

Brands pursuing a voice strategy in Australia need to tap


into hands free moments to change existing perceptions of
convenience – at the gym, in the car and in the living room are
all great examples.

3 Smart Homes are the Next Big Bet

With Amazon Prime ramping up services, brands need to look


to the US and prepare for a smart home future. This type of
convenience could shift the dial on NPS and adoption rates
in Australia.

45
46
Market Spotlight – Japan

INTRODUCTION

40%
Voice is well established in Japan and has been for many years; however,
it is not growing at the pace of other surveyed Asia Pacific markets
with only 40% of smartphone owners currently using voice activated
current technology. Over 50% of these users engage with voice on a weekly basis
users and over 20% engage monthly showing it has not yet become a regular
habit for many users. Voice technology in Japan is currently used to fulfil
a specific need, rather than acting as a daily assistant across devices.

VERSION 4
30% of smartphone users have
never used voice technology, so
Frequency of Usage (%)
the key challenge in Japan lies
not just in driving frequency of
14% usage but also in driving trials of
the technology. Hesitation towards
32% engaging with voice is deeply
rooted in public perception of
21% feeling embarrassed to use voice
in public. Overcoming this cultural
8% perception will be a challenge
for both technology providers
13% (Amazon, etc.) and brands alike
10% in a market characterised by
conservative and considered
adoption of new technology.
Daily 2-3 times Once
a week a week
Once in Once Once every As brands are increasingly
2 weeks a month few months evaluated on the service
experience they deliver, there is an

VERSION 3 interesting opportunity for them


to begin answering Japanese user
needs with voice solutions among
those who are willing to lean in.
Monthly Income, JPY (%)

Age and Gender (%)

18
%
21% 35 to 39
years old
30 to 34
years old 8 %
40 to 44
years old
up to 83,000 415,001
83,001
to 498,000 M
57%
F 14 %
43% 45 to 50
to 166,000 498,001
to 581,000
14 % years old
166,001 25 to 29
to 249,000 581,001 years old
to 747,000
249,000
to 332,000 747,001 30 %
& above 18 to 24
332,001 years old
to 415,000 Undisclosed

47
Triggers & Barriers
Voice usage in Japan is predominately linked to empowering a more efficient lifestyle through
the ability to multi-task. 45% of Japanese users engage with voice activated technology as they
feel it is an efficient alternative to typing. Out of all markets surveyed, Japan is not concerned
with the ‘cool factor’ of using voice technology and will only continue to use it if it is positively
impacting their daily life.

VERSION 3
The most common reason for not using voice search is inaccurate processing and
embarrassment to use in public. Among lapsed users, 68% indicate that they have stopped

Key reasons for using (%)


NPS Score

– 38

Use time more effectively 36%


Hands-free to multi task 48%
Next tech revolution 26%
Makes me feel cool 24%
Efficient alternative 45%
Widely available 17%
Entertainment 27%
Convenience 39%
Free feature 43%

VERSION 2
using voice as they find typing easier. Reasons for not using (%)
As with all conservative markets this
ingrained behaviour will be a key
56%
VERSION 2
barrier to growth in adoption. Hands
free moments will be key to highlight
value and convenience. To encourage 9%
adoption, brands and technology
providers alike Reasons
should focus on using (%)
for not
44%
private moments like the home to
encourage usage where users will be 39%
more comfortable to trial. This will 56% 58% Doesn’t understand q
be imperative to changing sentiment
9 %
towards the technology and creating
Not comfortable usin

advocates of experiences. 8% and too techy


44 %
Inaccurate responses

Japan had the lowest NPS results of all


27% Typing is easier

surveyed markets, with a score39


Embarrassment
%
of -38. Creates laziness
Brands need to provide simple and
utilitarian experiences to first-time users 58% Doesn’t understand queries Too complicated
Not comfortable using
in order to create advocates of voice
8
technology and % truly move the dial in
and too techy
Inaccurate responses
this conservative market.
27 % Typing is easier
Embarrassment
Creates laziness
Too complicated

48
Market Spotlight – Japan

Usage Patterns
Voice usage patterns in Japan are more varied dependent with age in comparison to other
markets. 53% of current users execute specific commands across mobile applications, skewing
towards younger respondents. Additionally, 55% of current users engage with voice to surf the
internet, interestingly skewing towards older respondents. Brands should consider this when
developing their own experiences.

49% of total respondents are regularly making online purchases with their smartphones, yet
only 11% of users have engaged with voice to make a purchase or book a service despite
Alexa and Prime being available. Additionally, 50% of total respondents regularly source
information on products on services with their smartphone and 55% of voice users are surfing
the internet. There is a clear opportunity for brands to be there during points of discovery for

VERSION 4
Japanese users.

Activities that Voice is Used for (%)

PERSONAL EXECUTE SPECIFIC OPERATE SMART


ENTERTAINMENT FUNCTIONALITY OF AN APP HOME DEVICES

37% 44% 26%


I’m Alexa,
your personal
assistant

SURF OPERATE VIRTUAL EXECUTE SPECIFIC


THE NET ASSISTANT DEVICES COMMANDS ACROSS APPS

55% 37% 53%


Occasions when voice has been used (%)

BOUGHT OR BOOKED GET DIRECTIONS

Hey Google, How do I get


order 2 boxes to the nearest
of tissues. gas station?

11% 25%

49
Technology Adoption
Search engine voice features and smart phone personal assistants are currently leaders in
the Japanese market. Counterintuitively only 26% of users are engaging with smart homes
and 19% with associated assistants like Alexa despite the aversion to public usage. For now,
Japanese users are comfortable with voice technology when it fulfils a need on an ad hoc basis.

Technology Adoption (%)

44% Smart phone personal


assistants (e.g. Siri)

59% Search engine voice


features (e.g. Ok Google)

8% Smart home assistants


to operate electronics

19% Personal assistant voice


control devices (e.g. Alexa)

19% In-App features (e.g.


voice typing in Whatsapp)

93% of current users report that they intend to continue using voice activated technology in
future. However, among lapsed and non-users, there is a hesitation to trial voice activated
technology in the future. Only 29% of non-users plan to trial voice activated technology in the
next twelve months. If brands want to tap into the voice opportunity in Japan, they will have
to clearly demonstrate the positive impact that a frictionless, voice activated experience can
provide. To drive adoption and improvement in NPS scores, platform players should focus

VERSION 4
on driving daily usage in private environments, especially the home. This will lead to positive
sentiment, word of mouth, new trials and eventually growth in regular adoption.

Future Use (%)

93%
Current User’s
intention

49% 29%
Lapsed User’s Aware Non-user’s
intention intention

50
Market Spotlight – Japan

3 TAKEAWAYS

1 Better than Typing

As in Australia, voice needs to be perceived as more


convenient than typing for stagnant adoption to grow. Once
this perception is established, then we expect to see adoption
grow rapidly – however that initial shift will take time.

2 Avoid Public Moments

It is evident that using voice in public will not initially be a


scalable opportunity for brands. Instead they must focus on
private moments like in-home or driving.

3 Smart Homes are Key to Future


Trial and Adoption

Private moments will be key for creating brand experiences


and future growth. This is where effort should be focused.
Alexa is a key player worth looking at in this market.

51
52
Market Spotlight – Singapore

INTRODUCTION

55%
Voice is at an inflection point in Singapore and the opportunity for brands
is growing. 55% of smartphone owners are currently using voice activated
technology, but 50% of these users are only engaging on a weekly basis.
current Most respondents also reported that their usage had remained stable
users over the last six months. Voice is prevalent in Singapore, but the desire
to use the technology is missing.

As with Japan reasons for using


are anchored in functionality and
Frequency of Usage (%)
voice is often not used unless a
demand needs to be fulfilled.
14% Brands will increasingly be
challenged to demonstrate the
28% opportunity of voice to remove
friction and improve efficiencies
22% in their daily lives. With over 50%
of total respondents regularly
13% sourcing information on products
and services via smartphone,
13% there is a clear opportunity for
8% brands to better connect with their
consumers in impromptu moments
of discovery.
Daily 2-3 times Once
a week a week
Once in Once Once every
2 weeks a month few months

Monthly Income, SGD (%)

Age and Gender (%)

11 % 12 %
35 to 39 40 to 44
years old years old
22 % 45 to 50
up to 2,000 5,001 to 6,000 30 to 34 years old
years old
2,001 to 2,500 6,001 to 7,000 M
9%
F
2,501 to 3,000 7,001 to 10,000 54% 46%
3,001 to 3,500 10,001 to 20,000
3,501 to 4,000 20,000 & above 14 %
4,001 to 5,000 Undisclosed 25 to 29
years old 33%
18 to 24
years old

53
Triggers & Barriers
Voice usage in Singapore is predominately linked to utility. The ability to multi-task and
convenience emerged as the two top reasons for using voice activated technology. Singapore
users care less about the perception of using voice, but rather if it can improve efficiencies in
their daily life.

The most common reason for not using voice search is inaccurate processing and
embarrassment to use in public. Users appear to be comfortable using the technology, but
the main issue remains in its inaccuracy in returning relevant results. As this improves, we
VERSION 3
expect Singapore adoption to grow. Improvements in recognition will also be key to changing
perceptions and NPS scores for voice technology.

Key reasons for using (%)


NPS Score

– 11

Use time more effectively 37%


Hands-free to multi task 61%
Next tech revolution 37%
Makes me feel cool 36%
Efficient alternative 42%
Widely available 28%
Entertainment 32%
Convenience 51%
Free feature 48%

VERSION 2
With an NPS score of -11, Singapore Reasons for not using (%)
has the potential of moving from
a conservative growth market to a
dynamic one if recognition improves
54%
23%
VERSION 2
and brands can demonstrate value in
frequent voice usage.

74% of lapsed users still intend to


59%
trial voice activated technology in the
Reasons for
next year. For non-users, 64%notreport
using (%) 46%
they would be motivated to trial voice
search if it brought convenience to 54 %
53% Doesn’t understand q
Not comfortable usin
their life. With the perception that
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typing is easier, there is a key
% role for
15% Inaccurate responses
Typing is easier
brands to play in helping showcase
the efficiencies that voice can bring 59 %
17% Embarrassment
Too techy
in facilitating interactions from the
discovery to purchase phase. 46 %
21% Creates laziness
Too complicated

53% Doesn’t understand queries


Not comfortable using
15% Inaccurate responses
Typing is easier
17% Embarrassment
Too techy
21% Creates laziness
Too complicated
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Market Spotlight – Singapore

Usage Patterns
Usage patterns reflect triggers in that utility is driving usage. 63% of users execute specific
commands across mobile applications and 57% use voice to operate virtual assistant devices.

54% of total respondents are regularly making online purchases with their smartphones, yet
only 16% have used voice to make a purchase or book a service, showing there is room to
grow. Additionally, 58% of total respondents regularly source information on products and
services with their smartphone. There is an opportunity for brands to be present and provide
utility during these moments of discovery.

VERSION 4
Activities that Voice is Used for (%)

PERSONAL EXECUTE SPECIFIC OPERATE SMART


ENTERTAINMENT FUNCTIONALITY OF AN APP HOME DEVICES

51% 54% 28%


I’m Alexa,
your personal
assistant

SURF OPERATE VIRTUAL EXECUTE SPECIFIC


THE NET ASSISTANT DEVICES COMMANDS ACROSS APPS

45% 57% 63%


Occasions when voice has been used (%)

BOUGHT OR BOOKED GET DIRECTIONS

Hey Google, How do I get


order 2 boxes to the nearest
of tissues. gas station?

16% 28%

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Technology Adoption
Smart phone personal assistants currently dominate the Singapore market. However, users
indicate that they intend to increase usage across in-app features and smart home devices in
the next twelve months. As a market, Singapore has moved at a slower pace in terms of voice
adoption, but there is a clear intention to explore the capability of voice in the immediate future.

Technology Adoption (%)

68% Smart phone personal


assistants (e.g. Siri)

33% Search engine voice


features (e.g. Ok Google)

10% Smart home assistants


to operate electronics

23% Personal assistant voice


control devices (e.g. Alexa)

39% In-App features (e.g.


voice typing in Whatsapp)

97% of current users report that they intend to continue using voice activated technology
in future. Even among lapsed and non-users, there is an intention to explore further if the
technology can deliver a clear value-add. 60% of non-users and 74% of lapsed users report that
they intend to use voice within the next twelve months. Brands have an important role to play

VERSION 4
in these trials s, particularly in the discovery phase. Until the technology meets expectations,
players must approach the market with a very articulate strategy.

Future Use (%)

97%
Current User’s
intention

74% 60%
Lapsed User’s Aware Non-user’s
intention intention

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Market Spotlight – Singapore

3 TAKEAWAYS

1 Smart Phone Assistant is Essential

Looking at existing adoption rates, there is an immediate


opportunity for brands to build their own assistants on
smartphones. Smart homes are yet to scale so we recommend
looking at smart phone based assistant experiences first.

2 Poised for Growth if Utility can be Proven

Singaporeans are very comfortable with voice technology.


However, it seems they don’t yet see the value or convenience
due to inaccuracy in processing queries. This needs to be
addressed before the next wave of growth occurs.

3 ‘On the Go’ Moments

Being an active and mobile country, hands free moments will


be key to tap into for brands with access predominantly on the
smart phone.

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Bowan Spanbroek
Head of Product & Strategy, iProspect APAC

Bowan heads up product and strategy for iProspect across


Asia. With his team he investigates new technology, trends and
behaviours in one of the most exciting regions in the world,
applying the findings to clients business to create unparalleled
competitive advantage.

Nate Shurilla
Head of Innovation & North Asia Commerce, iProspect APAC

Nate heads up Innovation around APAC and has a strong focus


on everything Voice and Commerce related. Often traveling
around the globe to speak at events and consult clients, he also
enjoys updating his Voice Blog available via Google Assistant.
Try it out: ‘Hey Google, talk to Vitamin N!`

Julia Heffring
Global Network Communications Manager, iProspect

As Network Communications Manager, Julia works with


iProspect’s Global President and Asia Pacific leadership team to
support the design and delivery of internal and external brand
communication strategies that drive positive outcomes for
iProspect at a global, regional and local level.

Nurul Atiqah Binte Sumardi


Designer, iProspect

With expertise in creating innovative concepts of design and


branding solutions to enhance impact, Atiqah led the design
of iProspect’s The Future is Voice Activated research from
conception to delivery.

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iProspect is a global, award-winning agency – driving business performance for the world’s
largest brands including adidas, AccorHotels, Standard Chartered Bank, General Motors, PayPal
and Microsoft. The iProspect team works across a network of 4,300 employees spread over 93
offices in 55 countries. iProspect is part of Dentsu Aegis Network, a wholly owned subsidiary of
Dentsu Inc.

iProspect Asia Pacific works across a network of 1,000 employees spread over 20 offices in
fourteen markets. iProspect creates personalized digital strategies and connected experiences
to deliver transformative business outcomes for clients through the activation of solution
underpinned by data and technology.

Go to www.iprospect.com or follow us on Twitter @iProspect.

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