Professional Documents
Culture Documents
Understanding
The Connected
Southeast Asian
Consumer
2020 Mobile Marketing Handbook
Mobile Marketing Handbook – SEA, 2020
Table of
Contents
02 03
THE DIGITAL THE PARADIGM
LANDSCAPE IN SHIFT WITH THE
SEA CONNECTED CONSUMER
• Understanding the • Mobile Commerce
Connectivity Paradigm • Entertainment
• The Booming Internet • Mobile Banking
Economy
• The Connected
Consumer of 2020
04 05
01 THE 2020 VOICE OF THE
MARKETER
WINNING THE CONNECTED
CONSUMER: MOBILE
MOMENTS OF TRUTH
INTRODUCTION
Foreword
Southeast Asia witnessed a transformation like no other in the last decade.
Punching above its weight, the region is home to one of the world’s most
dynamic internet economies, offering convenience to consumers at an
unprecedented scale. The average Southeast Asian user spends more than
74% of their time on their smartphones when compared to their American counterparts,
making them a highly connected, highly mobile user base. This transformation led by the
internet economy has been most significant in 3 key categories:
Entertainment: The region is fast emerging as a leader in both OTT Streaming Services
and Gaming. Both regional and international heavyweights play a critical role in this
ecosystem.
mBanking: ASEAN has revolutionized the banking ecosystem, with apps solving for last
VASUTA AGARWAL mile connectivity and infrastructure issues bringing on board a critically underbanked
population.
Managing Director,
Asia Pacific As a part of our annual survey of marketers in Southeast Asia, we take a moment to
understand not only the key challenges they face in an ever-shifting digital economy,
but also the untapped opportunities that come with it. Keeping in mind the all
compassing nature of smartphones, we discuss the emergence of a new phenomenon,
the Mobile Moments of Truth.
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
Introduction
Southeast Asia is one among the fastest growing
regions across the globe, with its digital economy
poised to achieve USD 300 Billion in the next 5 years.
This phenomenal growth can largely be attributed
towards the mobile revolution this region has
witnessed, making way for multiple growth
opportunities, fueling the rise of unique in-app
ecosystems. This transformation is particularly
prominent in three unique categories:
mCommerce, Content, and mBanking. We examine the
shift in these three distinct categories which have
fundamentally altered consumer behavior in
Southeast Asia. As consumer expectations begin to
shift, both brands and advertisers understand that it is
critical to rethink how they communicate with their
customers. We speak to marketers across the region
including industry leaders and understand their
motivations and concerns as we step into the golden
age of the connected Southeast Asian consumer.
Disclaimer: This document was produced by and the opinions expressed are those of InMobi and other sources up to the current date of writing and are subject to change. It has been prepared solely for information purposes over a limited
time period to provide a perspective on the market. Projected market and financial information, analyses and conclusions contained herein should not be construed as definitive forecasts or guarantees of future performance or results.
There is no representation or warranty, either expressed or implied, as to the accuracy or completeness of the information in the report and shall not be liable for any loss arising from the use hereof. InMobi does not provide market analysis
or financial projections.
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
Digital
Landscape in
South east Asia
Mobile Marketing Handbook – SEA, 2020
Connectivity in
61% GSMA Mobile
65 connectivity index
2018
Southeast Asia = Mobile 68
69% Vietnam Internet
penetration
65%
86
57
56 65 71 %
%
62
Indonesia
Global
SEA
Size of the
It’s a unique, booming 12 Internet Economy
(in USD billion)
12
9x Indonesia
Singapore #1 m-commerce
#1 ride-hailing
40
Source: We are social 2019, Google Temasek Bain & Company's eConomy SEA 2019 Report
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
The consumer
force behind the
SEA CHINA UNITED STATES
Internet economy
Smartphone 58.3 56 85
Southeast Asians spend most Penetration
of their time on mobile, consuming
content and making purchases. It is no
surprise then that investors – both local
and international, recognize Total App
the potential and are eagerly taking Downloads (Bn), 3.5 2.0 3.0
significant steps to harness this Q2 2019
opportunity
consumer 50%
61%
Thailand
65
Cambodia Philippines
57%
55%
Malaysia Brunei
54%
63 % 65 45%
58%
Singapore
52% 76%
SEA 52%
Indonesia
ALWAYS - ON
ASPIRATIONAL
4 out of 10 high mobile
usage countries are 72% of Southeast Asians
Southeast Asian feel they can buy beyond
their basic needs
The Paradigm
Shift with the
Connected
Consumer
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
Decoding the
New-age
M-commerce
User
Mobile Marketing Handbook – SEA, 2020
Money Transfer 14 68
9 63
Clothes 19 52
28 48
Cosmetics/ Skincare 14 48
46 Of Internet
63%
17
Flights 45 Users in SEA
30
42
use M-
16
Commerce
Footwear 19 39
23 38
Toys 19 33
15 30
Technology (TV/ Ga ming) 26 33
19 30
Furniture 16 29
16 Of e-commerce
51%
25
in SEA can be
Mobile (%) PC (%) attributed to M-
Commerce
HIGH TRIALIBILITY
With several apps on the market, each
offering better prices than the other, users
are now open to having multiple apps
on the phone
User
REDUCED BRAND LOYALTY
Due to the availability of a wide variety of options
and heightened impulsivity, users are no longer
as brand-loyal as they used to be. Brands must
now work hard to build brand loyalty by paying
close attention the shifting needs of their
customers.
Mobile Marketing Handbook – SEA, 2020
20
18 Go-Jek
16 Super Apps
14 Conglomerates
12
Niche Players
10
8
6
Tokopedia
4
Touch n Go ewallet Grab SEA limited
2
Lazada
0 OVO Michat
0 10 30 40 50 60 70
20
MAUs in millions
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
4000000 Ramadan
3500000
9/9 12/12 $14B Shopped through
mobile apps in 2018
3000000
11/11
2500000
Growth in m-Commerce
2000000 20% sales by 2020
1500000
1000000
3 bn Time spent in
shopping apps in 2018
500000 hours
0
Time spent in
January April July September
Indonesia Thailand Malaysia
2X shopping apps doub
led in 2018*
Singapore Vietnam Philippines
Source: Priori Data
Mobile Marketing Handbook – SEA, 2020
As a region that primarily uses smartphones to connect to the internet, smartphones continue to be the preferred medium to
watch video content. OTT platforms have responded to this unique behavior with Netflix launching mobile only plans in this
region.
Source: Kagan, a media research group with S&P Global Market Intelligence
Mobile Marketing Handbook – SEA, 2020
Additionally the region is also open to a hybrid model of SVOD and AVOD (Advertising based Video on Demand)
where users pay a reduced monthly OTT subscription for a reduced price
50%
150
40%
100 30%
20%
50
10%
0%
0
Hong Kong Indonesia Philippin es Taiwan Vietnam
2015 2016 2017 2018 2019 2020 2021
Source: Kagan, a media research group with S&P Global Market Intelligence
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
Mobile is the most preferred channel for gaming as compared to PC and console as
observed in the rest of the globe.
Gaming has found a remarkable place in the psyche of the ASEAN population:
the 2018 Asian Games showcased 6 games as a part of its esports events
$3,304M
67%
Of game revenue in SEA
will come from mobile
Revenues generated by
SEA’s games market in 2019,
$976M
$4.6Bn up +22% year on year
$360M
Mobile PC Console
Vietnam
Philippines
Online Population
44,700,000
GAMERS IN
Gamers
Thailand 31,400,00
Online Population
SOUTHEAST
Online Population 42,000,000
21,100,000 Malaysia Gamers
Gamers 27,200,00
Online Population
ASIA 14,700,00
21,400,000
Gamers
14,300,00
Indonesia
Online Population
52,600,000
Gamers
Singapore 34,800,00
Online Population
4,100,000
Gamers
2,800,00
Source: ASEAN Post 2019
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
Video Gaming
Source: Yahoo News 2019 | Digital News Asia 2019 | All Correct Games 2017
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
The Southeast
Asian M-Banking
Revolution
Mobile Marketing Handbook – SEA, 2020
% of the population
43
73
$17
The Southeast Asian app ecosystem 57
continues to drive dramatic
27
disruption the need for financial
solutions that catered to the
2014 2017 2019 2030
nuanced needs of the market arose.
en
es
ey
m
a
K
ng ea
e
Sw d
A
re
na
id
U.
P h esi
n
si
US
a
in
po
rk
ed
ila
r
So a y
w
hi
Ko
tn
on
pp
Tu
ld
C
a
a
al
e
h
Th
or
Source: World Bank Global Findex, 2017
ili
d
Vi
M
ut
In
W
Si
The ASEAN Post, Jan 2019
Mobile Marketing Handbook – SEA, 2020
economy
While most of these apps started out primarily as an infrastructure
lever for mCommerce transactions, these apps have come into
their own to offer more services and solutions to the people. These
include:
(Trillion RMB)
307.2
SEA Consumer Payments (GTV,
PC Third-Party Payments
$8) 229
144
Mobile Third-Party Payments 165.9
e-wallets
1100
22
Digital Payments 98.7
600 58.8
39 45.4
2300 Cons umer Payments 26 32.3
11.912.2 19.9
2.2 0.1 3.7 0.2 5.4 1.2 8.1 6
1,400
2011 2012 2013 2014 2015 2016 2017 e 2018 e 2019 e 2020 e
2019 2025
Source: Accelerating Financial Inclusion in Southeast Asia with Digital Finance | 2017
Digital Banking in ASEAN
Mobile Marketing Handbook – SEA, 2020
The financial Leading Banks across The rapid evolution of Among the most Nontraditional players
services offered the region have financial apps have led disruptive financial have also made the
by Superapps became
recognized to tremendous inclusion technologies foray into financial
a natural extension of
the importance of driving adoption among are blockchain and apps to solve for
their exhaustive value
proposition and mobile as a channel both the unbanked cryptocurrency. In the nuances that they
became a critical and have embraced and underbanked. response to the might face on a day
factor in their journey of apps as a critical Be it peer to peer need of the region, to day basis, making it
building a medium in offering transactions, cryptocurrency a natural extension to
360-degree app their customers payments, loans, or apps have found a their business as usual
ecosystem a variety of options insurance, these viable place in the model
when it comes to apps cater to the day to rapidly evolving
instant payments and day needs of the financial
fund transfers. average consumer app ecosystem
seamlessly.
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
Here in Asia, we have made the acquisition and use of first party
data a clear priority. That’s quite a challenge, given the multitude
of platforms and channels used by Unilever brands.
SAMSUNG
MobileMarketing
Mobile MarketingHandbook
Handbook –– SEA,
SEA, 2020
2020
Customer Journey Mapping 59% Southeast Asia has been quick to adopt
digital technologies, especially mobile in the last decade.
Today, three in four consumers have access to the internet
and are increasingly consuming digital services and
products everyday.
Hyper-local outreach In a bid to further their share of time, marketers will push
24% the envelope to deliver personalized experiences that
resonate with consumers in their moment of need. In order
to achieve this, marketers must re-evaluate their strategies
on Super Apps in particular. These apps offer marketers a
unique opportunity to connect beyond just commerce and
Rise of the Ecosystem Players 24% truly inform and engage them through their entire journey.
Mobile Marketing Handbook – SEA, 2020
Conclusion
The stages between While shopping journeys As connectivity continues With increased connectivity
awareness and purchase previously could be to increase at a breakneck comes great opportunity as
are varied while often no distinctly separated as speed, the length of brands have multiple
longer being linear. unique phases, today purchase cycles have avenues to leave a lasting
Customers might start an these stages often drastically reduced. This is positive impression on
activity on one medium, overlap leading to a largely due to the ease of consumers. Personalization
continue it on another collision of moments. consumption enabled by is a key lever that customers
channel and make a connectivity - be it increased expect when interacting with
purchase via an entirely access, increased options, brands.
separate medium. improved payments.
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Handbook –– SEA,
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2020
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