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 voice of digital marketing in Asia
The Asia Digital Marketing Association the digital marketing industry in Asia (ADMA) is the voice of, and advocate for, (excluding Japan). The ADMA is guided by senior executives in the industry and is charged with gaining consensus and

Being a member gives you access: • 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 to criticism • Action-oriented committees to drive agendas • Events & training (speaking and networking opportunities) • Case studies and helpful data • Standardisation of practices • Professional code of conduct • Industry contacts • Regular eNewsletter • Entry in the online Membership Directory • Access to the Members’ only section of the ADMA Web site that allows you to share information with other members and post company information, news, events, case studies, research papers, job vacancies and tips. Membership fees are set low enough to encourage universal membership among industry players, and taken together provide sufficient revenues to underwrite regular activities. Other activities are funded by sponsorship (cash and in kind) and by charging admission fees for some events. Visit www.asiadma.com/membership/join and complete the online registration form.

Why join the ADMA?

providing leadership on key industry issues. using mobile and the Internet as channels

The ADMA actively promotes the benefits of to communicate with consumers as well as member companies.

lobbying and public relations assistance for

How to join the ADMA

The ADMA is a non-profit organisation with a membership base representing online publishers / portals, agencies, research and marketers / advertisers.

companies, technology / service companies

Visit www.asiadma.com for more details.
ADMA Board Level members:

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

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

Yahoo! Asia

Introduction Australia China Hong Kong India Indonesia Japan Malaysia Philippines Singapore South Korea Sri Lanka Taiwan Thailand Vietnam

2 5 8 12 15 18 18 22 24 25 28 30 31 33 35
asia digital marketing yearbook

The Year the Balance Tipped
By David Ketchum By David Ketchum
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. in Hong Kong, mobile Internet marketing in China; and Australia. and online communities and communication in India As would be expected from the year Time magazine named “you” as the person of the year, userconsumer is in control have dominated the generated content and the realisation that the strategies of marketers (according to new research an evolving game changer, and email and rich from Microsoft, nearly 50% of Asia’s Internet users media remain strong. Asia Pacific still posts the

Both the total number of broadband users and

market penetration is highest in Asia Pacific. The surpassing the US and Europe. According to the world’s online population now live in Asia.

region boasts the largest number of Internet users, latest data from Internet World Stats, 36% of the Mobile penetration remains higher than anywhere

have their own blog). That being said, search is still highest email open rates in the world at 30.1% broadband is fueling rich media innovation. will hit US$6.8 billion by 2010 - with online excitement and creative activity while still

else in the world. According to Informa, Hong Kong, Australia and Taiwan are the world’s top three markets in terms of penetration - the first two with rates exceeding 100%. And for the first time the their mobile phones exceeds the entire Internet connected population of the US. number of Asian users accessing the Internet over

(source: Epsilon International, Email Trends Update

and Benchmark Data Q3 2006 APAC), and

In-Stat predicts the region’s online games revenues gambling also on the rise. Mobile and multimedia continue their relentless growth, with lots of comprising a relatively small piece of the pie. Speaking of pies, despite 30+ % annual growth rates, digital marketing still captures only about 3% due to the fact that total media revenue including traditional outlets is also growing, and from a far

Interactive games continue to grow in popularity -

Asia is driving the digital marketing industry too.

Merrill Lynch predicts that global online ad spend

will reach US$14.5 billion in 2007. That represents driving engine. The highest growth rates for 2007

an increase of 24% from 2006 - and Asia will be the are predicted to come from China (50%), Australia (42.6%), South Korea (30.5%) and Japan (30%). But the passing of the torch to Asia Pacific is not the region is also at the leading edge of many technologies and marketing techniques, and just about statistics and the growth of the Web – showing bursts of creative work on par with that found anywhere. From the earliest days of the Internet, Asia Pacific needed to look to the West to find best practice and fresh ideas. Now the level of the bar internationally is being set in the region. Some examples: Japanese e-commerce; Korea

of all advertising dollars in the region. This is in part larger base than online and mobile. Still, 3% seems remarkably low, considering that the Web is among with TV, print and outdoor) in most markets in the region. Especially within younger demographics, and on the mobile, often while simultaneously consuming other media. the top three consumed media types (right up there users spend the majority of their media time online

That being said, ZenithOptimedia predicts that

social networking and viral marketing; 3G and IPTV
2 asia digital marketing yearbook

come 2008, Web-based advertising will represent more than 10% of total ad spend in eight new

global markets (not including the UK, Norway and And four of them are right here in Asia: Australia, Japan, South Korea and Taiwan.

Sweden which have already passed this milestone).

Internet Users and Penetration in Select 2011 (millions and % of population)
Australia % % % % % China India Japan 12.5 2005 13.1 2006 13.6 2007 14.0 2008 14.4 2009

Countries in the Asia-Pacific Region, 20052010 2011

For all its growth and vibrancy, digital marketing in the Asia Pacific region still has issues that threaten the relevance of the medium. After a decrease in “image spam” that continues to outwit eversophisticated technology, and the proliferation of 2006, spam is on the rise again, with threats from mass, unsolicited mobile and fax messages. A recent study by Symantec revealed that the nearly 70% of or unsolicited ads. Not only that, but more than 2006 came from the Asia Pacific region too. 20% of all malicious activities on the Web in 2H Despite these threats, which are by no means all emails that come from Asia turn out to be spam,

62.2% 111.0 8.5% 19.5 85.3 1.8% 67.0%

64.5% 133.5 25.5 87.2 10.2% 2.3% 68.4% 34.4

66.7% 156.2 33.2 89.1 11.8%

68.0% 181.2 41.5 90.9 13.6%

69.2% 206.6 50.6 92.5 37.2 15.4%

70.8% 72.5% 227.3 60.7 245.5 71.6

14.8

15.3

16.9% 18.1% 6.0% 95.4

2.9% 69.9% 35.6

3.6% 71.4% 36.5

4.3% 72.7%

94.0 37.8

5.1%

South Korea 33.0

73.9% 75.1% 38.4

(Source: eMarketer)

67.9%

70.5%

72.7%

74.2%

75.3%

76.2% 77.3%

Top 20 Countries - Internet Users
Country 1. 2. 3. 4. 5. 6. 7. 8. 9. United States China Japan India No. Users 137,000,000 86,300,000 50,471,212 211,108,086 10.4 % 61.2 % 62.3 % 17.2 % 3.5 % 67.1 % 69.9 %

% Penetration

% Total

unique to the region, the year the balance tipped offers unprecedented business opportunities for communications service providers, games and interactive agencies and the rest. marketers and advertisers, and the entire digital marketing “ecosystem” of portals, mobile operators, entertainment companies, handset manufacturers, The Asia Digital Marketing Yearbook brings together

12.3 %

18.9 % 7.7 %

Germany

Korea (South) Brazil France

United Kingdom 37,600,000

40,000,000

34,120,000 30,837,592

32,130,000 30,763,848

66.5 %

3.1 %

3.4 % 2.9 % 2.8 % 2.8 % 2.1 % 1.8 %

3.6 %

3.6 %

10. Italy

50.3 % 51.7 % 67.8 % 16.5 %

11. Russia

12. Canada 13. Mexico 14. Spain

the most up-to-date and freely available data on Asia’s online population. In essence, we tell you

20,200,000 19,765,032

22,000,000

23,700,000

2.1 %

19.0 % 8.0 %

who they are and how they spend their time online. And where possible we have shown you examples of online advertising campaigns that have worked well with Asia’s online population.

15. Indonesia 16. Turkey 17. Vietnam 19. Taiwan

18,000,000 16,000,000 14,729,191 14,913,652

43.9 % 21.1 %

1.8 %

1.6 % 1.4 %

18. Australia 20. Argentina

We would like to thank all of our members and information and insight.

TOP 20 Countries

13,000,000

14,500,000

70.2 % 34.0 %

17.5 %

63.0 % 20.8 %

1.3 %

1.3 %

those companies and organisations that provided David Ketchum is Chairman, Asia Digital Marketing Association and CEO Upstream Marketing and Communications Inc.

Rest of the World

Total World - Users

(Source: Internet World Stats, 10 March 2007)

1,114,274,426

247,135,718

867,138,708

16.9 %

10.3 %

100.0 %

22.2 %

77.8 %

1.2 %

1.3 %

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
There are currently 14.73 million Internet users in Australia, representing 70.2% of the population. (Source: Internet World Stats) There were 3.5 million broadband households in Australia in 2006, representing 45.4% of all online households. By 2010, it’s estimated that more than 70% of all Australian online households will subscribe to a broadband connection.

Demographics

Internet Subscribers by Location New South Wales Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory

(Source: Australian Bureau of Statistics Internet Activity Survey, June 2006)

Location total 1,994,000 1,457,000 1,256,000 398,000 586,000 127,000 44,000 84,000

% 33% 25% 21% 7% 10% 2% 1% 1%

70 60 50 40 30 20 10 0

%

GROWTH IN BROADBAND CONNECTION

Internet Penetration by Demographic Profile and Access Location, July 2005-June 2006 (% of population in each group) % at-home % at-work % any location Male Female Age 15-17 18-24 25-34 35-44 45-54 55-64 65+ Total 58% 55% 80% 68% 66% 67% 63% 48% 18% 57% 31% 28% 4% 28% 45% 40% 40% 25% 3% 29% 67% 65% 93% 85% 82% 77% 69% 54% 19% 66%

(Source: eMarketer)

2006

2010

In 1998, only a third of households with PC access had access to the Internet. In 2005-06, this stood at 86%, representing 4.7 million households. (Source: Australian Bureau of Statistics) In 2005-06, 66% of the population 15 years and older used the Internet – as did 89% of 12-to-14year-olds, 76% of 9-to-11-year-olds and nearly 40% of 5-to-8-year-olds. (Source: Australian Bureau of Statistics) There has been a 70% growth of mobile phones with Internet access in Sydney in the past two years. (Source: Synovate) Internet Users and Penetration in Australia 2005-2011 (millions and % of population) Year Total % 2005 12.5 million 62.2% 2006 13.1 million 64.5% 2007 13.6 million 66.7% 2008 14.0 million 68.0% 2009 14.4 million 69.2% 2010 14.8 million 70.8% 2011 15.3 million 72.5%
(Source: eMarketer)

(Source: Australian Bureau of Statistics)

Total online spending in Australia totalled AUD$11.35 billion in the 12 months to June 2006. That’s around $1,900 annually per shopper. (Source: ACNielsen) The number of Australian consumers shopping online jumped by 13% in the past year to 5.9 million people. Of these online shoppers, 51% had made repeat purchases, 53% had purchased airline tickets, 47% had paid for accommodation and 38% had purchased concert/event tickets online. (Source: ACNielsen) Of all international tickets issued by ZUJI in Australia in Q3 2006, 54% of them were e-tickets. (Source: ZUJI) ACNielsen recently asked consumers what helped their final decision when it came to purchasing a variety of products. ‘Searching the Internet’ was the most popular decision influencer for Australian consumers when it came to purchasing holidays
asia digital marketing yearbook 5

E-commerce

(66%), MP3 players (43%) and loans (41%). (Source: ACNielsen) 47% of Australian Internet users have accessed insurance information online in the past six months. (Source: ACNielsen) Australian online video revenues for 2006 were US$4 million. Estimates are that by 2009 the Australian online video market will generate $18.4 million and $48.6 million by 2012. (Source: Informa Telecoms & Media) 13% of mobile users in Sydney use their phones to do their personal banking; while 13% use them to search for information on products or services. (Source: Synovate PAX-Pan Asia Pacific Cross Media Survey 2006) Where Australians Like to Shop Online
50 40 30 20 10 0 % Retailer 1H2005

Frequency of Blogging Activities Amongst Australia’s Users Write a blog or contribute to 68% other people’s blogs 1% - Several times a day 5% - Once a day 9% - Several times a week 5% - Once a week 12% - 2-3 times a month 12% - Once a month 5% - Once every 2 months 19% - Less often
networking Web site in the past 3 months) Digital Advertising Solutions. Those who have visited/used a blogging/social (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Frequency of Online Social Activities % of respondents Activity Used instant messengers in past 3 months 34% Used Web-based email services in past 3 months 70% Visited blogging/social networking Web sites in past 3 months 19%
Digital Advertising Solutions. All people aged 15-64) (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

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

Ticketmaster

Virgin Blue

Ticketek

Qantas

eBay

60 50 40 30 20 10 0

%

The Australian online advertising market grew 61.5% in 2006, generating AUD$1 billion in revenues. In the six months to 31 December 2006 online advertising spend totalled $580 million, a 62.5% increase on the corresponding 2005 period. (Source: Audit Bureau of Verification Services) By 2010, it is predicted that the Australian online advertising market will be bringing in AUD$2.95 billion in annual revenues. (Source: Frost & Sullivan) A total of 64% of Australian advertisers have invested in online advertising in the past year, up 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. (Source: emitch/Roy Morgan, March 2007) 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: emitch/Roy Morgan)

Online Advertising

Retailer

1H2006

Ticketmaster

Ticketek

Qantas

(Source: ACNielsen)

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Virgin Blue

Amazon

Jetstar

eBay

2006 Online Ad Revenues by Segment (% increase vs 2005) Segment % increase 105% Paid search 60% Directories 49% Classifieds 48% General Advertising
(Source: Frost & Sullivan, eMarketer)

Strengths of Internet as Advertising Medium (according to advertisers) % of respondents Leading strengths 32% Cost effective 31% Targeting capabilities 25% High accountability 23% Customer reach 11% Interactive 10% Immediacy Ability to change quickly 8% Speed to market 7% Customers/clients online 6% Access to large amounts of information 6%
(Source: emitch/Roy Morgan Research, August 2006)

Top Web Sites by Market Share Rank Web site Market 1. www.google.com.au 2. www.google.com 3. www.hotmail.com 4. ninemsn.com.au 5. www.ebay.com.au 6. www.myspace.com 7. au.yahoo.com 8. www.msn.com www.yahoo.com 9. 10. mail.myspace.com 11. www.bom.gov.au 12. mail.yahoo.com.au 13. www.netbank.commbank.com.au 14. images.google.com.au 15. news.ninemsn.com.au 16. www.youtube.com 17. www.wikipedia.org 18. mail.yahoo.com 19. www.news.com.au 20. www.gmail.com
all Hitwise industries.)

(Source: Hitwise, December, 2006 - based on market share of visits across

Share 7.08% 3.89% 2.99% 2.5% 1.94% 1.89% 0.81% 0.73% 0.65% 0.65% 0.63% 0.62% 0.57% 0.55% 0.52% 0.52% 0.48% 0.45% 0.44% 0.43%

CLIENT: Buena Vista International (BVI) AGENCY: MindShare CAMPAIGN: To promote film, Chicken Little OBJECTIVE: To promote animation movie Chicken Little, in December 2005, movie distributor Buena Vista International (BVI) wanted to engage people in a new way and encourage them to watch an online trailer of the film. STRATEGY: The company used special Windows Live™ Messenger Services Theme Packs; aligned with online advertising on Windows Live Hotmail®, the Windows Live Today homepage, and the nineMSN homepage. DETAILS: BVI ran its online promotional campaign for the entire month of December 2005. It used a Windows Live Messenger One-Click Theme Pack for users to download backgrounds, send Winks, use Chicken Little mood backgrounds, and send Dancing Chicken emoticons to other Windows Live Messenger users. The campaign also featured an editorial page with details of the movie, plus a direct link to the InCinemas.com.au Web site, which featured the Chicken Little movie trailer. In a network first, BVI placed an animated “premium expanding” button on the nineMSN Network homepage and in the Messenger ‘hockey stick’ zone. Both featured a dancing Chicken Little character that linked to the advertorial or the download screen. A chat window text link provided an additional theme download option. Supplementary promotion was provided by a Hotmail Inbox and nineMSN homepage banner adverts. BVI’s target was 250,000 downloads over the duration of the campaign. RESULTS: 1. The campaign saw record-breaking take-up, with 33 million impressions, and more than 301,000 downloads of the Theme Pack. 2. A target download figure exceeded by 60% in three weeks. 3. An unusually high 0.5% click-through rate. 4. Initial targets met with two weeks to go. 5. Excellent Dancing Chicken viral penetration across all age groups. 6. 40-50% extra value from viral distribution and editorial. The lowest client cost-per-click to date.

C H I C K E N LITTLE CASE STUDY - C H I C K E N L I T T L E

asia digital marketing yearbook 7

CHINA
According to the CNNIC, 18-to-24-year-olds are nearly four times as likely to be Internet users than the general population. (Source: eMarketer) In 2006, there were 46.6 million broadband households in China, representing 12.6% of all online households. (Source: eMarketer) The number of Internet users in China has increased from 22.5 million in 2000 to 137 million at the end of 2006, representing a growth rate of 508%. Chinese Internet users now represent 34.4% of all Internet users in Asia.
140 120 100 80 60 40 20 0 2000 2006 million

Demographics

61% of men discuss car purchases; 78% of men and 71% of women discuss electronics and gadgets prior to purchasing; 69% of men and 61% of women talk about mobile phone purchases on email before purchase; and 74% of women and 59% of men exchange their ideas on clothes and accessories purchases via email. (Source: Microsoft Digital Advertising Solutions) In a survey regarding email etiquette, in reply to the question: “which is the most impolite email habit?”, 64% of Chinese respondents said “sending chain emails”, while only 3% said “using a PDA while out with others”. (Source: Synovate) Electronics and gadgets (74%) is the most talkedabout topic via email in China, closely followed by education (73%), travel (72%) and social arrangements (72%). (Source: Microsoft Digital Advertising Solutions) In a survey regarding the effectiveness of different mediums, Chinese respondents said they found the Internet was the most effective in “delivering information” and “being a source of entertainment”. The Internet was not seen as being the most effective in “supporting purchase decisions”, “arousing interest” or “drawing attention”. (Source: Synovate) In a survey regarding the consumption of news, Chinese respondents said that when a major disaster or news story breaks, only 19% of them turn to the Internet. That’s compared to 60% of people who turn to the TV. In the past week 22% had gone online to read a blog; 18% had received news on their mobile phones; 13% had emailed some interesting news to a friend; 11% had received a regular, subscribed to news email; and 7% had accessed a news Web site that they had paid to use or subscribed to. (Source: Synovate) Out of all Chinese mobile Internet users, 72.2% of them use their mobile phones for sending or receiving email; 30.9% for reading news and information; 19.4% for downloading ringtones, movies and games; 6.3% for logging on to communities; 5.3% for their banking; 2.6% for their own blogs and 2.3% for watching online videos. (Source: CNNIC, January 2007)

508%

GROWTH

(Source: Internet World Stats)

China is now only behind the US for the overall number of users online. Prediction – at the current rate of growth, Chinese Internet users will exceed the 210 million US users by 2009. (Source: eMarketer) Out of China’s Internet users, around 38 million of them play online games. (Source: Palava Digital) The number of short message service (SMS) users in China is expected to reach 360 million by 2008, with an expected market value of RMB37 billion. (Source: Analysys International) Email is an important tool for collecting opinions from peers regarding purchase decisions. 75% of Hotmail®/Windows Live Mail users in China discuss music (MP3s, CDs, etc) via email prior to purchase;
8 asia digital marketing yearbook

User Behaviour

Number of Chinese Internet Users 2005-2011 (millions and % penetration)

Government staff Non-profit staff Self-employed Peasants/farmers Unemployed Army/Others Monthly Income (RMB) Less than 500 501-1,000 1,001-1,500 1,501-2,000 2,001-2,500 2,501-3,000 3,001-4,000 4,001-5,000 5,001-6,000 6,001-10,000 Over 10,000 No income

(Source: China Internet Network Information Center (CNNIC), Jan 2007)

4.3% 8.6% 9.6% 0.4% 7.2% 1.7% 25.3% 18.1% 13.6% 11.2% 6.1% 7.6% 4.8% 4.1% 1.6% 1.8% 1.6% 4.2%

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)

(Source: Emarketer: Internet Users and Penetration in China, 2005-2011)

China’s Internet Users (% of total) Gender

Male

Female Marital Status Married Unmarried Age <18 18-24 25-30 31-35 36-40 41-50 51-60 60+ Education Below High School High School College Diploma Bachelor’s Degree Master’s Degree Doctoral Degree Profession Students Company staff Teachers/School staff

58.3%

41.7%

57.8% 42.2% 17.2% 35.2% 19.7% 10.4% 8.2% 6.2% 2.2% 0.9% 17.1% 31.1% 23.3% 25.8% 2.3% 0.4% 32.3% 29.7% 6.2%

Average Time Spent Online Per Week (hours) Average 16.9 Males 18.6 Females 14.8 Below 18 years-old 7.0 21.5 18-24 year-olds 25-30 year-olds 21.0 31-40 year-olds 16.7 40+ 15.8
(Source: CNNIC, January 2007)

Online Activities by Internet Users (% of respondents) Email News browsing Search engines Acquisition of information Forums, discussion groups Watching/downloading video Instant message Listening/downloading music Internet Games Blogging Online shopping Job-hunting Chat Telephone calls Online banking Online reservation (hotels etc)
(Source: CNNIC, Jan 2007)

56.1% 53.5% 51.5% 41.0% 36.9% 36.3% 34.5% 34.4% 26.6% 25.3% 23.6% 20.8% 20.8% 11.2% 10.5% 8.6%

asia digital marketing yearbook 9

China’s Mobile Internet Users (% of total) Gender Male 67.7% 32.2% Female Marital Status 66.0% Married 34.0 Unmarried

China’s retail e-commerce revenues were expected to increase from US$504.3 million in 2005 to US$700.1 million in 2006. (Source: Analysys International) China’s online travel market in Asia is expected to grow by 71% by 2010. (Source: Euromonitor) At end 2006, the market size of the online advertisement industry in China had reached RMB1.324 billion, representing an increase of 9.53% from Q3. Revenues from key word advertisements were RMB476 million, representing 36% of the total market and an increase of 14.4% from the Q3. Revenues from column-based advertisements were RMB751million, representing 56.7% of the total market size and an increase of 6.68% from the Q3. (Source: Analysys International) In May 2006, 587 online display advertisers ran nearly 1,500 campaigns consisting of more than 3,700 banners. In July 2006, 817 online display advertisers ran 2,276 campaigns consisting of 5,785 banners. (Source: Nielsen//NetRatings) During the May-September period of 2006, there was a total of 3,795 online advertisers in China, running 10,136 campaigns (at an average of 2.7 each), posting 25,023 banners and generating 285 billion ad impressions. The total ad expenditure in that period was RMB2.3 billion. Of that expenditure, 26% of it went on automotive advertisements; 23% on computers and electricals; and 10% on FMCG advertising. Just 7% of online ad spend went on fashion; 6% on auctions and classifieds; 4% on media; 3% on entertainment; and 3% on property. (Source: Nielsen//NetRatings) During the January-June period of 2006, out of the RMB2 billion spent on online advertising, 60% (RMB 1.25 billion) went on display advertising; 33% (RMB 697 million) on search engines; and 7% (RMB139 million) on classifieds and other forms of ads. (Source: Nielsen//NetRatings) In 1H 2006, Sina.com led the portals, owning 20% of China’s online advertisement market, worth RMB420 million in ad revenues; Sohu.com had 14% 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”)

E-commerce

Age

Under 18 18-24 25-30 31-35 36-40 40+

Profession

16.9% 41.7% 24.6% 8.2% 5.5% 3.1% 30.9% 31.5% 3.3% 4.0% 8.2% 13.6% 0.2% 5.9% 2.4%

Online Advertising

Students Company staff Teachers/School staff Government staff Non-profit staff Self-employed Peasants/farmers Unemployed Army/Others
(Source: CNNIC, Jan 2007)

Frequency of Blogging Activities Amongst China’s Users Write a blog/contribute to other people's blogs 79% - Several times a day 2% - Once a day 5% - Several times a week 15% - Once a week 15% 12% - 2-3 times a month - Once a month 7% - Once every 2 months 3% - Less often 19%
networking Web site in the past 3 months) Digital Advertising Solutions. Those who have visited/used a blogging/social (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Top Web Sites 1. Baidu.com 2. QQ.com 3. Sina.com.cn 4. Sohu.com Inc. 5. 163.com 6. Yahoo.com.cn 7. Taobao.com 8. Google 9. TOM.COM 10. Google.cn

(Source: Alexa.com, April 2007)

10 asia digital marketing yearbook

Online Ad Spend by Brand (RMB millions) eBay.com 53.201 Lenovo 53.154 38.636 Samsung 28.609 Dell 24.67 Microsoft 23.723 Taobao.com 22.23 China Mobile 21.157 Toyota 19.106 HP 15.519 TCL
Advertising Research Report 1st Half of 2006”) (Source: iADTracker 3.0, iResearch Consulting Group “China Online

Online Advertisers by Sector (RMB millions)
800 700 600 500 400 300 200 100 0

Reaal estate

Communication services

Financial services

Online services

Consumable electronics

Medical services

Food and beverage

IT products

Garments

Traffic

Impossible Team Online Game/Massively Multiplayer Online Game (MMOG) - The first massively multiplayer online game built entirely for a leading consumer brand. RESULTS: 1. The TUNiT Flash Game generated 8 million page views over six weeks. 2. TUNiT garnered 70,000 registrations (not obligatory). 3. Players spent a total of 72,300 minutes online playing the game; each spending on average 11 minutes each. (Standard Flash games generate 3-4 minutes playing time. High quality graphics, game play, multiple environments and mini-challenges within the TUNiT generated three times as much participation.) 4.The Impossible Team Online Game generated 1 million game logins and 60,000 registrations. 5. Gamers spent a total of 15 million minutes (258 hours) playing The Impossible Team Online Game; or 533 minutes (9 hours) per person on average spent immersed in the adidas virtual world. 6. 36 logins per registered member; 15 minutes per login per user. The top participant played for over 300 hours (12.5 days) while the top 30 players on average spent 126 hours playing in the adidas world. 7.The Impossible Team Online Game showed steep subscription growth similar to that of Dungeons & Dragons Online, an internationally renowned game.
CLIENT Neutrogena Sensitive Skin Range AGENCY: Agenda CAMPAIGN: The Power of Word-of-Mouth OBJECTIVES: Deepen product appreciation. Collect database of sensitive skin consumers STRATEGY: Based on three pillars. 1. Establish and own a strong skincare image through a strong dermatologist presence. 2. Leverage WOM (word-ofmouth) as a key medium used by people with skin problems. 3. Positioning angle versus competitors know myths from facts. DETAILS: Developed a Skin Analyzer in 31 combinations, with intelligent content not limited to product information which was used by many consumers in their own blogs and forums. Leveraged word-of-mouth as a key medium used by people with skin problems by recruiting Net Journalists to be Neutrogena’s voice with skincare bloggers and skincare forum administrators. Product samples were sent for own and readers’ use and collaborated to get reviews. RESULTS: 1. Paid media generated awareness. 2. Word-of-mouth outperformed paid media and created tail effect. 3. Cost performance of word-of-mouth far better than paid media. 4. 15% point-of-sale lift. 5. No other media and PR used, hence conclusion can be made that the Web site and the word-of-mouth strategy contributed significantly to the sales lift.
asia digital marketing yearbook 11

CASE STUDY - NEUTROGENA

(Source: iADTracker 3.0, iResearch Consulting Gourp “China Online Advertising Research Report, 1H 2006”)

Most Popular Ad Formats, 1H 2006 (number of insertions) Long horizontal banner large-size advertisement 189,340 Button advertisement 87,987 Retractable banner advertisement 64,378 Long vertical large size advertisement 50,758 Square large size advertisement 34,747 Suspending advertisement 12,228 Pop-up window advertisement 7,187 Couplet advertisement 6,806 Online software advertisement 1,426 Inserting rich media advertisement 1,077
Advertising Research Report”) (Source: iADTracker 3.0, iResearch Consulting Group “China Online

CLIENT: Adidas AGENCY: Outblaze/Palava Digital CAMPAIGN: To leverage off the Football World Cup 2006 STRATEGY: Designing two online games: The TUNiT Flash Game/Multi-level Flash Game and The

CASE STUDY - ADIDAS

HONG KONG
There were an estimated 4.87 million Internet users in Hong Kong (68.2% of the population) in January 2007, up by 113.7% from 2000. Hong Kong’s Internet users represent 1.2% of Asia’s online population. (Source: Internet World Stats, Jan 2007) By the end of 2005, 65.6% of Hong Kong households were using broadband - making Hong Kong second in the world in terms of penetration. (Source: Hong Kong Yearbook 2005) At the beginning of 2006, there were 8.6 million mobile subscribers.That’s a 123% penetration level. (Source: Office of the Telecommunications Authority) Hong Kong’s broadband penetration rate - among the highest in the world - has facilitated the development of IPTV. As of June 2006, there were more than 700,000 IPTV subscribers in the territory. (Source: tdctrade.com) In a survey regarding the effectiveness of different mediums, Hong Kong respondents said they found the Internet was the most effective in “delivering information”, “being a source of entertainment” and “supporting purchase decisions”. They did not regard the Internet as being the most effective medium in “arousing interest” or “drawing attention”. (Source: Synovate) Hong Kong Internet users on average spend 1.4 hours per day checking their email; one hour a day on online community activities; and three hours a day on instant messaging applications. (Source: Synovate) In a survey regarding the consumption of news, Hong Kong respondents said that when a major disaster or news story breaks, only 8% of them turn to the Internet, compared to 71% which turn to the TV. In the past week 52% of them had read the weekend newspapers for over an hour; 19% had gone online to read a blog; 8% had received news on their mobiles; 14% had emailed some interesting news to a friend; 13% had received a regular, subscribed to news email; and 8% accessed a news Web site that they had paid to use or subscribe. (Source: Synovate)
12 asia digital marketing yearbook

Demographics

In a survey regarding email etiquette, in reply to the question: “which is the most impolite email habit?”, only 19% of Hong Kong respondents said “sending chain emails”, while 55% said “copying irrelevant people”. (Source: Synovate) Internet Usage and Population Statistics
Year Users 2000 2005 2006 2,283,000 4,878,713 4,878,713 6,898,686 7,054,867 6,702,500 Population % Pop. 34.1 % 70.7 % Source ITU Nielsen//NetRatings

(Source: Internet World Stats)

69.2 %

Nielsen//NetRatings

User Behaviour

Information Technology Penetration at Home 2005 2006 households with PC at home amongst all households in Hong Kong 70.1% 71.7% households with PC at home connected to Internet amongst all households with PC at home in Hong Kong 92.2% 93.6% households with PC at home connected to Internet amongst all households in Hong Kong 64.6% 67.1%
Penetration 2006, Hong Kong Census and Statistics Department) (Source: Household Survey on Information Technology Usage and

Hong Kong’s online travel market - in terms of the volume of retail sales - is expected to grow by 97.9% by 2010. (Source: Euromonitor) 44% of international air bookings made on ZUJI Hong Kong are made within two weeks of travel. (Source: ZUJI) 80% of international e-tickets issued by ZUJI are for travel from Hong Kong. (Source: ZUJI) Out of the Hong Kong Internet users who download music online, 75% of them don’t pay for it. (Source: Synovate) According to a 2005 ACNielsen survey, favourite items or services for Hong Kong online shoppers included books (35%), event tickets (23%), tours/hotels reservations (19%) and airline/tickets reservations (16%). The same survey indicated that the majority of Hong Kong online shoppers used credit cards to settle payment for their online

E-commerce

purchases, making Hong Kong the second highest in Asia Pacific and the third highest in the world for using credit cards in settling online purchases. (Source: tdctrade.com) According to a recent survey, there has been a 70% growth in the number of mobile phones with Internet access in Hong Kong. According to the same survey, 21% of mobile users in the city use their mobile phones to do their personal banking; while 16% use them to search for information on products or services online. (Source: Synovate, PAX-Pan Asia Pacific Cross Media Survey 2006) According to a government survey, nearly 9% of all Hong Kong users aged 15 and over had used one or more types of online purchasing services for personal matters in the previous 12 months. (Source: Household Survey on Information Technology Usage and Penetration 2006, Hong Kong Census and Statistics Department) Frequency of Social Activities Activity Used instant messenger in past 3 months Used Web-based email services in past 3 months Visited blogging/social networking Web sites in past 3 months
Digital Advertising Solutions. All people aged 15-64)

Online vs Total Advertising Spend in Hong Kong, 2000-2007 (US$millions) Online Total Year $0.0 $3,555 2000 $0.0 $3,800 2001 $0.0 $4,297 2002 $0.1 $4,644 2003 $0.1 $5,299 2004 $0.1 $5,874 2005 $0.2 $6,447 2006 $0.2 $7,125 2007
(Source: eMarketer.com)

Online Advertising

Top 10 Hong Kong Media by Ad Spend
70 60 50 40 30 20 10 0 Adspend (HKD) million

% 49% 65% 27%

(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Frequency of Blogging Activities Amongst Hong Kong’s Users Write a blog or contribute to other people’s blogs 77% - Several times a day 8% - Once a day 9% - Several times a week 25% - Once a week 11% - 2-3 times a month 10% - Once a month 5% - Once every 2 months 3% - Less often 6%
networking Web site in the past 3 months) Digital Advertising Solutions. Those who have visited/used a social (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

(Source: Admango, Jan 2007)

How Hong Kong Online Users Consume News
At least once a day 11% 4-6 times a week 2-3 times a week Once a week Once a month Seldom/Never Total 3% 5% 81% 8% 5% 46% 11% 11% 3% 8%

Internet Television Newspaper Mobile 6% 2% 3% 2% 3%

74%

2%

4%

(Source: Synovate)

100%

3%

1%

2%

100%

20%

100%

100%

84%

Top 20 Online Advertisers by Ad Spend Company $ 1. PCCW HKT 9,936,230 2. The Wall Street Institute 9,740,212 3. Dell 5,687,154 4. Citifinancial 4,789,931 5. Cosmetic Care Asia 4,756,399 6. eBay 3,641,911 7. Inchroy 2,630,385 8. Town Gas / TGC 2,389,276 9. South China Morning Post Publishers 2,339,980 10. Visa 2,212,438 11. Linguaphone 2,118,914 12. HKMA 1,918,819 13. EF Education First [EF Education] 1,782,998 14. Mei Ah Entertainment 1,715,663 15. Nokia 1,626,392 16. Fuji Xerox 1,584,446 17. Hitachi 1,445,603 18. Golden Scene Company 1,372,603 19. Hutchison 3G HK 1,245,903 20. Adidas 1,195,064 21. Nike 1,143,131
(Source: Admango, Feb 2007)

Yahoo! Hong Kong 56,749,263 Atnext.com 12,233,616 Ming Pao Online 10,821,396 Orisun.com 8,566,358 SCMP Online 6,070,849 MSN Hong Kong 5,633,647 Singtao.com 1,818,877 Sina Hong Kong 1,543,438 Uwants.com 1,309,419 ETNet 1,224,312

asia digital marketing yearbook 13

Top Web Sites 1. Yahoo! 2. Uwants.com 3. discuss.com.hk 4. Xanga 5. Microsoft Network (MSN) 6. YouTube 7. Atnext.com 8. Hkjc.com 9. Windows Live 10. Newsgroup.la
(Source: Alexa.com, April 2007)

selectively pull relevant job listing content from the SCMP job database. DETAILS: This software was distributed via SCMP’s Web site as well as CD-ROMs cut to the shape of business cards, branded as the Job Hunting Card. RESULTS: The campaign ended in 2003; and now three years later, the system still tracks over 80% of the original installer base using the Hunting Card Software on a daily basis. CLIENT: BIOTHERM (owned by L’Oreal Hong Kong) AGENCY: Media Explorer (ME) CAMPAIGN: BIOTHERM Skin Loving Colors Spring Summer 2005; BIOTHERM AQUATRIO OBJECTIVE: To promote BIOTHERM’s skin care and make up products on the Internet in order to attract customer visiting their outlets. Enlarge their customer email database throughout the campaign. STRATEGY: ME developed two online promotional campaigns for the BIOTHERM Skin Loving Colors Spring Summer 2005 and BIOTHERM AQUATRIO projects. The scopes included design and production of mini Web site, banners, tell a friend, flash game, e-coupon, e-news subscription, and enewsletter and email broadcasting. DETAILS: ME proposed strategies on the bounce back mechanism for the campaign and enlarging the customer email database. The “Tell a Friend” module was recommended to help for broadcasting the Web site’s address by visitors. ME monitored, measured and reported on email open rates, clickthrough rates and hit-rates of the Web sites. Creative solutions included concept development, navigation and information presentation that covered graphic design, animation and user interface. Web applications development included Tell-a-Friend, bounce back mechanism and Flash game. RESULTS: 1. Biotherm’s management team has a better bridge on communicating with their members and visitors through online media. 2. New products and events were successfully promoted and the message was spread among members and Internet users. 3. The customer email database was enlarged. 4. The brand gained more exposure on the Internet and brand awareness was enhanced.

CASE STUDY - BIOTHERM

Top Web Sites (% market share) Market Rank Web site hk.yahoo.com 1. www.xanga.com 2. search.hk.yahoo.com 3. 4. mail.yahoo.com.hk 5. www.google.com 6. www.youtube.com 7. www.hotmail.com 8. www.gofoxy.net 9. www.gmail.com 10. www.uwants.com 11. hk.knowledge.yahoo.com 12. geocities.yahoo.com 13. www.google.com.hk 14. hk.auctions.yahoo.com 15. hk.news.yahoo.com 16. hk.finance.yahoo.com 17. mail.yahoo.com 18. bet.hkjc.com/football 19. HKJC.com appledaily.atnext.com 20.
by market share of visits across all Hitwise industries.)

(Source: Hitwise. Based on HK Internet usage for December, 2006, ranked

Share 8.15% 2.61% 2.52% 2.19% 1.74% 1.59% 1.55% 1.27% 1.14% 1.05% 0.94% 0.88% 0.88% 0.88% 0.86% 0.7% 0.68% 0.63% 0.57% 0.55%

CLIENT: South China Morning Post (SCMP) AGENCY: Tribal DDB Hong Kong CAMPAIGN: The SCMP Job Hunting Card OBJECTIVE: To develop an online campaign which would bring quality readers to SCMP’s job classified site during, and after, the campaign period. STRATEGY: Tribal DDB came up with an idea and a desktop software which allows readers to

CASE STUDY - SCMP

14 asia digital marketing yearbook

INDIA
There are 40 million Internet users in India, representing 3.5% of the population. This represents a 700% growth rate in users since 2000. (Source: Internet World Stats, January 2007). The Internet & Mobile Association of India (IAMAI) says Internet adoption is growing in India, and predicts there will be 100 million by end 2007. (Source: eMarketer) In 2006, there were 2.3 million broadband households in India, representing 1.2% of all online households. (Source: eMarketer) In June 2006, India passed Japan as the second largest mobile services market in Asia Pacific in terms of subscribers, after China. India currently has 142.7 million mobile subscribers - which is only a mobile penetration rate of 13%. (Source: eMarketer) The percentage of light Internet users are on the decline in India, dropping from 63% in 2001 to 26% in 2006. (Source: G2 Interactive) The number of mobile phone subscribers in India is nearly double that of landline subscribers. (Source: International Telecommunication Union) According to a recent survey, there has been a 47% growth rate over the past two years in the number of mobile phone users with Internet access in India. (Source: Synovate, PAX-Pan Asia Pacific Cross Media Survey 2006) Total Internet Users by Access Location (%)
Cyber -café 53 53 Schoolkids (12+) College students Non-student Older men (35-38) (18-45) men (18-35) 28 Home Office School 15 /College Other 4 2 2 2 1 5

Demographics

Internet Users and Penetration 2005-2011 (millions and % of population)
80 70 60 50 40 30 20 10 0 1.8% 2.3% 2.9% 3.6% 4.3% 5.1% 6.0% 2005 2006 2007 2008 2009 2010 2011 Million

(Source: eMarketer)

Active* Internet Users by Usage Light (less than 120 mins) Medium (121-450 mins) Heavy (450+ mins) Total (average hours)
past month)

(Source: eMarketer, Internet and Mobile Association of India, *used in the

Weekly Usage 2004 2006 54% 28% 23% 31% 20% 38% 6.1 8.2

Contrary to popular belief email and chat are no longer the most popular activities on the Internet. 32% of users primarily rely on the Internet for information and research, up from 20% in 2001 to 32% in 2006. (Source: G2 Interactive) 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 access from home is gaining steadily, rising from 21% in 2003 to 31% in 2006. (Source: G2 Interactive) India’s Internet users on average spend 1.7 hours per day checking their email; 1.3 hours a day on online community activities; 2.3 hours a day on instant messaging applications; and 2.1 hours on other Internet activities. (Source: Synovate) In a survey regarding the consumption of news, Indian respondents said that when a major disaster or news story breaks, only 2% of them turn to the
asia digital marketing yearbook 15

User Behaviour

33

-

12 1 2 2

36 18 25 45

26 39 34 47

35 41 38 -

Working women

Non-working, non-student Women (18-45)

(Source: eMarketer, Internet & Mobile Association of India)

Internet, compared to 88% which turn to the TV. In the past week 1% had gone online to read a blog; 3% had received news on their mobiles; 4% had emailed some interesting news to a friend; 3% had received a regular, subscribed to news email; and 2% accessed a news Web site that they had paid to use or subscribe. (Source: Synovate) In a survey regarding the effectiveness of different mediums, Indian respondents said they found the Internet was the most effective in “delivering information”. They did not regard the Internet as being the most effective medium in “drawing attention”, “arousing interest”, “supporting purchase decision” or “being a source of entertainment”. (Source: Synovate) Main Applications Used by Indian Surfers Activity % (2004) % (2006) Email 50% 45% Information/Education 24% 33% Buy/Sell/Transact 1% 4% Text/Chat 12% 10% Entertainment 9% 7%
(Source: I-Cube, Internet and Mobile Association of India)

Online travel sales in India will nearly quadruple to reach revenues of US$2 billion in 2010. (Source: Euromonitor) India will be Asia’s fastest growing travel retail market by 2010. The volume of India’s online travel retail transactions is expected to increase by 271% between 2005 and 2010, generating more than US$2 billion in 2010 in that year alone. (Source: Euromonitor International) India’s market for mobile value added services (VAS) was estimated to be worth Rs.2850 crore (US$660 million) at the end of 2006 and is estimated to grow at 60% to reach Rs.4560 crore by the end of 2007. (Source: IMRB Research, November 2006) In 2006 India generated US$1.2 billion in B2C ecommerce sales. By 2010 it is forecast that the country will generate $6.4 billion which represents a compound annual growth rate (CAGR) of 50.7%. (Source: eMarketer) Breakdown of Mobile VAS P2P SMS Ringtone Download P2A & A2P Game & Data Others (MMS etc)
(Source:IMRB Research)

E-commerce

Frequency of Blogging Activities Amongst India’s Users Write a blog or contribute to other people’s blogs 93% - Several times a day 19% - Once a day 23% - Several times a week 19% 13% - Once a week - 2-3 times a month 3% - Once a month 10% - Once every 2 months 2% - Less often 5%
networking Web site in the past 3 months) Digital Advertising Solutions. Those who have visited/used a blogging/social (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Value Added Services Revenues % of total Rs. 1140 crore (40%) Rs. 1026 crore (35%) Rs. 428 crore (15%) Rs. 171 crore (7%) Rs. 86 crore (3%)

Frequency of Social Activities Activity Used instant messengers in past 3 months Used Web-based email services in past 3 months Visited blogging/social networking Web sites in past 3 months
Digital Advertising Solutions. All people aged 15-64)

The online advertising market has radically increased in size over the past 3-4 years. In 200304 it was worth Rs.420 million (US$9.8 million); in 2004-05 it was worth Rs.1,070 million; by 2005 it had reached Rs.1,620 million. By 2006 the online advertising market in India was worth Rs.2,180 million – or US$51 million. (Source: G2 Interactive) Advertising revenues in India 2006 vs 2005
60 50 40 30 20 10 0 Radio Internet Press TV Cinema Medium % increase vs. prior year

Online Advertising

% 16% 16% 9%

(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

(Source: eMarketer)

16 asia digital marketing yearbook

Share of Online Ad Revenue by Category (%) Category 2004-5 2005-6 Financial Services 27% 24% 13% 11% Technology 14% 12% Travel 9% 11% Automobile 8% 9% Consumer durables 7% 9% FMCG 12% 11% Online Services (P)* 4% 7% Entertainment 2% 6% Telecom
placement, personalised travel verticals)

(Source: G2 Interactive; *stands for personal and includes matrimonial, job

Online Ad Revenues of Top Sites (US$m) US$m Site 15 Rediff 12 Yahoo! Indiatimes 6 Web18 Group 3 MSN 2.5 Sify 2 Naukri 1.3 WebDunia 0.8 Others 5
(Source:G2 Interactive)

Top Web Sites 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)

CLIENT: TimesJobs AGENCY: Tribal DDB India CAMPAIGN: If you have a reason we have a job OBJECTIVES: TimesJobs wanted innovative yet cost effective ways of using the digital medium to increase the number of resumes added to their Web site daily and hence increase their current market share. STRATEGY: Completing forms can be very irritating and a time consuming experience. The idea was to create a simple banner that is a “one stop shop” for registration on TimesJobs - a single, end-to-end call for action within the banner itself. DETAILS: The banner developed allowed the user to “directly” upload his resume within the banner without undergoing the registration process. These resumes got captured directly onto a server. The campaign was carried over around 30 Web sites. RESULTS: 1. Over 50 million impressions served across the campaign Web sites. 2. 98% over delivery of leads as projected prior to deployment. 3. 48% efficiency in Cost per Acquisition. 4. Efficiency in deliveries led to client spending in the tune of 5 times the amount spent in the first phase. 5. Runaway success on Yahoo.co.in and Yahoo.com.

CASE STUDY - TIMES JOBS

asia digital marketing yearbook 17

INDONESIA
There are currently 2 million Internet subscribers in Indonesia with approximately 20 million users in total. Out of these, around 100,000 are broadband subscribers. (Source: Ministry of Communication and Information Technology) Indonesia currently has around 63 million mobile users, representing 28.64% of the population. Of these, there are 2 million 3G, edge and EV-DO subscribers. (Source: Ministry of Communication and Information Technology) Indonesia’s online population has grown by 800% since 2000. Currently there is around 8% Internet penetration in the country. Indonesia’s Internet users represent 4.5% of Asia’s total online community. (Source: Internet World Stats) There has been a 75% growth rate in the past two years in the number of consumers in Jakarta that have mobile phones with Internet access. (Source: Synovate, PAX-Pan Asia Pacific Cross Media Survey 2006) Indonesia’s online travel market - in terms of its retail sales volumes - is expected to grow by 82.8% by 2010. (Source: Euromonitor) Indonesia’s Internet users on average spend 1.8 hours per day checking their email; 1.7 hours a day on online community activities; 2.4 hours a day on instant messaging applications; and 2.5 hours on other Internet activities. (Source: Synovate) In a survey regarding the effectiveness of different mediums, Indonesian respondents said they found the Internet was the most effective in “delivering information”. They did not regard the Internet as being the most effective medium in “arousing interest”, “supporting purchase decisions”, “drawing attention”, or “being a source of entertainment”. (Source: Synovate) Indonesian respondents said that when a major disaster or news story breaks, none of them turn to the Internet, compared to 94% who turn to the TV.
18 asia digital marketing yearbook

Demographics

In the past week only 1% had gone online to read a blog; and just 2% had received news on their mobiles. (Source: Synovate) In a survey regarding the use of mobile applications, 17% of mobile users in Jakarta said that they used their phones for personal banking, while 14% said they used them for product or service information searching. (Source: Synovate, PAX-Pan Asia Pacific Cross Media Survey 2006) Indonesian Internet Users 2004-2010
80 70 60 50 40 30 20 10 0 Users (millions)

E-commerce

2004

2005 2006 2007 2008 2009

2010

(Source: Ministry of Communication and Information Technology)

Indonesian Broadband Users 2004-2010 Year Users (millions) 2004 0.1 2005 0.2 2006 0.5 2007 0.9 2008 1.6 2009 2.0 2010 2.5
(Source: Ministry of Communication and Information Technology)

Top Web Sites 1. Yahoo! 2. Friendster 3. Google.co.id 4. Google 5. Microsoft Network (MSN) 6. Blogger.com 7. Megaupload 8. UserCash.com 9. Rapidshare.com 10. WikiPedia
(Source: Alexa.com, April 2007)

JAPAN
There are currently 86.3 million Internet users in Japan, representing 67.1% of the population. (Source: Internet World Stats) In 2006, there were 23.7 million broadband households in Japan, representing 52.3% of all online households. (Source: eMarketer) There has been a 248.8% growth rate in the number of Internet users in Japan from 2000 to 2007. Japan’s Internet users represent 21.6% of Asia’s total online population. (Source: Internet World Stats) In February 2007, Japan passed the 100 million mark for mobile subscribers. The number of 3G subscribers for all carriers now exceeds 60 million. Japan is the world’s number one mobile market. (Source: eMarketer) By 2011, there will be 95.4 million Internet users in Japan - 75% of the population. Driving the growth is cheap and widespread high-speed access. (Source: eMarketer) Internet Users and Penetration 2005-2011 (millions vs % of population)
100 90 80 70 60 50 40 30 20 10 0 67% 68% 70% 71% 73% 74% 75% 2005 2006 2007 2008 2009 2010 2011

Demographics

Mobile Internet Subscribers Q1 2005-Q3 2006 (millions) 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3
January 2007/eMarketer)

Source: Ministry of Internal Affairs and Communications (MIC) - Japan,

(Note: includes mobile phones and personal handy-phone systems (PHS)

76.55 77.75 78.92 80.09 81.78 82.91 84.06

In 2006 Japan generated US$33.5 billion in B2C ecommerce sales. Prediction: by 2010 it will generate $61.9 billion. (Source: eMarketer) 16% of Japanese mobile phone customers already use some kind of m-commerce. (Source: NPD Group) A recent report from analyst firm Juniper Research predicts that Broadcast Mobile TV will reach revenues of US$11.7 billion worldwide by 2011. Japan is predicted to lead the market with revenues reaching US$2.9 billion. (Source: Wireless Watch Japan) Japanese end-user mobile data spend will soar by nearly 60% in the next few years, from almost US$17 billion in 2005 to nearly $28 billion in 2010. (Source: Strategy Analytics) The Japanese retail e-commerce market was worth US$32.7 billion in 2005, according to the Nomura Research Institute. The figure is expected to reach $58.3 billion by 2010.
70 60 50 million

E-commerce

(Source: eMarketer)

Internet Users by Access Platform Device Mobile devices PC Mobile devices and PC Total
July 2006; InfoWorld, July 2006)

(Source: Ministry of Internal Affairs and Communications (MIC) - Japan,

million 69.2 66.0 48.6 85.3

40 30 20 10 0

GROWTH

(Source: eMarketer)

2005

2010

asia digital marketing yearbook 19

The size of Japan’s mobile commerce market more than tripled from 2002 to 2005 to reach 407 billion yen (US$3.5 billion). The mobile commerce market in the United States and Canada combined is expected to reach only 75% of that size by 2009. (Source: Reuters) According to government data, 80% of e-commerce by teenagers aged 15-19 was done via mobile phones in 2005. (Source: Reuters) Japan’s online video revenues for 2006 were US$24.1 million. Estimates are that by 2009 the Japanese online video market will generate $155.1 million, and $510 million by 2012. (Source: Informa Telecoms & Media) Frequency of Social Activities Activity Used instant messengers in past 3 months Used Web-based email services in past 3 months Visited blogging/social networking Web sites in past 3 months
Digital Advertising Solutions. All people aged 15-64)

networking Web site in the past 3 months)

Digital Advertising Solutions. Those who have visited/used a blogging/social

(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

-

2-3 times a month Once a month Once every 2 months Less often

10% 5% 3% 9%

It is predicted that by 2008, Japan will be one of just eight markets globally where the Internet advertising share will exceed 10% of total ad budgets. (Source: ZenithOptimedia) In September, 2006 alone there were 1,254 advertisers, running 3,004 online ad campaigns, utilising 6,453 banners or creatives, generating 29.5 billion ad impressions – and representing an overall ad expenditure of 19.2 billion yen (US$160 million). (Source: Nielsen//NetRatings AdRelevance, Japan; excludes in-house ads) Internet advertising expenditures in Japan increased 29.3% in 2006 from the previous year. (Source: Dentsu) In 2005, 265 billion yen was spent on online advertising. That rose to 359 billion yen in 2006 and it is predicted to reach 643 billion yen in 2010. (Nomura Research Institute) Japan’s mobile advertising revenues in 2006 came to US$304 million and are predicted to increase to $389 million in 2007. By 2009, it is forecast that Japan will be generating $560 million in mobile advertising revenues. (Source: Yankee Group) Top 10 Online Display Advertising Sectors, September 2006 No. Sector Impressions Estimated ad spend (¥ m) 1. Beauty 1,229.8 1,945 2. Food 1,208.1 1,866 3. Finance 1,054.3 648 4. Mobile Comms 1,011.5 1,633 5. Personal Loans 991.7 2,246 6. Real Estate 868.5 1,120 7. Employment 835.6 2,506 8. Computers 803.6 1,157 9. Car Manufacturers 679.3 1,112 10. Others 671.1 1,189

Online Advertising

% 21% 46% 25%

(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Online Activities in Japanese Households Activity % of households Internet shopping 17.8 Various reservations 10.8 Auction ( Sell ) 2.0 Auction ( Buy ) 5.5 6.1 Internet banking Participation in the auction 3.4 Maintenance of individual homepage 4.9 Gathering information 43.2 Online game 6.8 Application for prize 4.3 Email 29.4 Others 0.9 Gathered information through Internet for purchasing goods and services 31.6 Ordered through Internet on purchasing 21.1 Didn’t order through Internet on purchasing 28.0 Paid by credit card etc through Internet 12.6 Didn’t pay by credit card etc through Internet 36.4
Yearly Average) Internet by All Japan, Districts, and City Groups (Total Households), 2006 (Source: Ministry of Internal Affairs and Communications: Utilization of

Frequency of Blogging Activities Amongst Japan’s Users Write a blog or contribute to other people’s blogs 67% - Several times a day 10% - Once a day 7% - Several times a week 18% 5% - Once a week
20 asia digital marketing yearbook

(Source: Nielsen//NetRatings AdRelevance, Japan; excludes in-house ads)

Top 10 Online Display Advertisers, September 2006 Rank Advertiser Ad impressions % Share of Total ad (millions) impressions Vodafone 1,214 4.1% 1. MediaRights 941 3.2% 2. DHC 882 3.0% 3. Carview 598 2.0% 4. Kenkou 5. 515 1.7% Corporation SOFTBANK 6. 511 1.7% Human Capital ORIX Credit 453 1.5% 7. At-Loan 433 1.5% 8. Japan Airlines 401 1.4% 9. 391 1.3% 10. INTELLIGENCE
(Source: Nielsen//NetRatings AdRelevance, Japan; excludes in-house ads)

Top 10 Online Display Vendors, September 2006 Rank Vendor Ad impressions (in millions) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Yahoo! Japan 13,298 mixi 3,319 MSN 1,159 goo 951 NikkeiNET 751 Infoseek 697 EC Navi 647 Excite Japan 551 Kakaku.com 528 Nikkansports.com 496

Source: Nielsen//NetRatings AdRelevance, Japan; excludes in-house ads

Share of total ad impressions 45.1% 11.3% 3.9% 3.2% 2.6% 2.4% 2.2% 1.9% 1.8% 1.7%

34th Anniversary Campaign. Raise awareness of the Nissin Cup Noodle brand among business computer users in their 20s and 30s. With over 6 million active users in Japan, Windows Live Hotmail was an ideal partner for Nissin. STRATEGY: As part of its 34th anniversary celebrations in 2005, Nissin Cup Noodle partnered with Microsoft Digital Advertising Solutions and Hotmail® launched a creative based on the Hotmail® Big Ad Expand ad format. This campaign aimed to raise awareness of the Nissin Cup Noodle brand among business computer users in their 20s and 30s. DETAILS: Nissin Cup Noodle used animated human shadows to show a celebratory party. This was achieved by employing the Hotmail® Big Ad Expand ad format and rich media. RESULTS: 1. 74% of viewers were interested in signing up for the campaign. 2. 51.1% said they noticed the words displayed in the remainder, 30% of which showed strong interest in the ad. 3. The number of Hotmail® users who signed up for the anniversary campaign was three times that of non-Hotmail® users.

CASE STUDY - NISSIN CUP NOODLE CLIENT: Nissin Cup Noodle CAMPAIGN: 34th Anniversary Campaign OBJECTIVES: Promote the Nissin Cup Noodle

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
There are currently 13.5 million Internet users in 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) Male 50.2% Female 49.8% Single 55.0% Married 44.3% Divorced/widowed 0.7% Below 15 6.5 % 15-19 18.6 % 20-24 17.2% 25-29 12.5 % 30-34 12.2% 35-39 9.9 % 9.6 % 40-44 45-49 5.1 % Above 50 8.4 %
Household Use of the Internet Survey 2005) (Source: Malaysian Communications and Multimedia Commission, (Source: The Communications and Multimedia, Selected Facts and Figures

Demographics

represented an increase of 255% from 2004 – where 6.6 billion were sent.

Q3 2006)

Malaysian Internet users on average spend 1.7 hours per day checking their email; 1.5 hours a day on online community activities; 3.2 hours a day on instant messaging applications; and 3.1 hours on other Internet activities. (Source: Synovate) In a survey regarding email etiquette, in reply to the question: “which is the most impolite email habit?”, only 31% of Malaysian respondents said “sending chain emails”. (Source: Synovate) Malaysians like texting. In a 2006 government survey, 46.1% of Malaysians said they sent more than five SMS/MMSs every day, compared to 6.4% who sent 5 or less; 4.7% who sent 4; 9% who sent 3; 9.9% who sent 2; 7.5% who sent 1; and 16.4% who sent none at all. (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. (Source: Malaysian Communications and Multimedia Commission, Hand Phone Users Survey 2006) There has been a 85% growth in the number of mobile phones with Internet access in Kuala Lumpur. 12% of mobile users in the capital use their mobile phones to do their personal banking; 14% use them to search for information on products or services online. (Source:Synovate, PAX-Pan Asia Pacific Cross Media Survey 2006)

As much as 42.3% of Malaysian hand phone subscribers said that they received some form of spam through their hand phone in the last three months. 76.3% of these received at least one spam a week. (Source: Malaysian Communications and Multimedia Commission, Hand Phone Users Survey 2006) In a survey regarding the effectiveness of different mediums, Malaysian respondents said they found the Internet was the most effective in “delivering information” and “supporting a purchase decision”. They did not regard the Internet as being the most effective medium in “drawing attention”, “arousing interest” or “being a source of entertainment”. (Source: Synovate) In the first nine months of 2006, Malaysians sent 23.4 billion SMS messages to each other. This
22 asia digital marketing yearbook

User Behaviour

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 RM500 but less than RM1,000 RM1,000 but less than RM1,500 RM1,500 but less than RM2,000 RM2,000 but less than RM2,500 * RM2,500 but less than RM3,000 * Rm3,000 but less than RM3,500 * RM3,500 but less than RM4,000 * RM4,000 but less than RM4,500 * RM4,500 but less than RM5,000 * RM5,000 and above * % 57.7 20.7 6.8 4.5 2.3 2.0 2.0 0.6 0.6 0.6 2.3

E-commerce

Preferred Purchases Online

users of the Internet by value of purchases via Internet; * multiple choice)

Household Use of the Internet Survey 2005; Distribution of household

(Source: Malaysian Communications and Multimedia Commission,

multiple choice)

users of the Internet by type of products or services purchased online; *

Household Use of the Internet Survey 2005; Distribution of household

(Source: Malaysian Communications and Multimedia Commission,

Preferred Activities Online Activity Email Chat rooms Finding information about goods/services Government services Reading/downloading online newspapers/ magazines Playing/downloading games, music, software Other entertainment/pleasure Online banking/financial activities Purchasing/ordering goods or services Education/research activities Others
users of the Internet by activity)

% 73.7 25.9 40.5 12.7 20.2 19.9 7.0 12.2 2.4 46.8 1.3

Top Web Sites 1. Yahoo! 2. Friendster 3. Microsoft Network (MSN) 4. Google.com.my 5. Google 6. YouTube 7. Myspace 8. Blogger.com 9. Windows Live 10. WikiPedia
(Source: Alexa.com, April 2007)

Household Use of the Internet Survey 2005; Distribution of household

(Source: Malaysian Communications and Multimedia Commission,

asia digital marketing yearbook 23

PHILIPPINES
In 2006 there were 13.5 million Internet users in the Philippines, a 15.4% penetration rate. Prediction: penetration rates will double by 2009. (Source: PANA) The online population has grown at a rate of 291% since 2000 when there were 2 million users. Internet users in the Philippines represent 2% of Asia’s total online population. (Source: Internet World Stats) Internet usage in the Philippines is expected to record a growth of 23% annually to reach 21.5 million users by 2008. (Source: IDC) Around 80% of Metro Manila Internet users access the Internet from their homes and 48% of them use prepaid Internet cards to access the Internet. (Source: Digital Filipino) The prepaid Internet market is worth 818 million pesos (US$17 million). Top prepaid ISPs: ISP Bonanza, Bl@st, Go, and SurfMaxx. (Source: Digital Filipino) Five million people are estimated to have Internet access through PCs at home, schools, corporate offices and Internet cafés. 80% of Filipino users still access the Internet through dial-up connections. (Source: National Telecommunications Commission) The Philippines has more cellular phones than fixed/wired phones. At the end of 2003, there were close to 22 million mobile phone subscribers. (Source: Digital Review 2005-06) Profile of Internet Users Characteristic Male Female 20-29 years old 30-49 years old
(Source: ACNielsen, 2004)

Demographics

Philippines’ users said that when a major disaster or news story breaks, only 1% of them turn to the Internet. In the past week 7% had gone online to read a blog; 9% had received news on their mobiles; 7% had emailed some news to a friend; 8% had received a news email; and 3% accessed a news Web site that they had paid for/subscribed to. (Source: Synovate) There has been a 109% growth in the number of mobile phones with Internet access in Manila. 14% of mobile users there use their phones to do their personal banking; while 16% use them to search for information on products or services online. (Source: Synovate, PAX-Pan Asia Pacific Cross Media Survey 2006) In a survey that asked: “Have you ever used an online personal ad or online dating service to meet a potential romantic interest?”, a resounding 77% of respondents said “No”. (Source: Synovate) In 2005, mobile users in the Philippines sent an average of 250 million SMS text messages every day. (Source: National Telecommunications Commission) Around 13% of Internet users purchased online in 2006, spending around US$312 million. (Source: Digital Filipino) The Philippine online gaming market was worth US$10 million with 350,000 subscribers in 2004. (Source: IDC) In 2004, thanks to online gaming, Internet Café revenues grew by an estimated 75%. (Source: Commission on Information and Communication Technology) Top Web Sites 1. Yahoo! 2. Friendster 3. YouTube 4. Google.com.ph 5. Google 6. Microsoft Network (MSN) 7. Multiply.com 8. WikiPedia 9. Blogger.com 10. Myspace
(Source: Alexa.com, April 2007)

E-commerce

% 52% 48% 48% 44%

Philippines’ Internet users on average spend 2.3 hours per day checking their email; 1.6 hours on online community activities; 2.7 hours on instant messaging applications; and 3 hours on other Internet activities. (Source: Synovate)
24 asia digital marketing yearbook

User Behaviour

SINGAPORE
In 2006, there were 2.4 million Internet users in Singapore, representing 66.3% of the population. There has been a 101.8% growth rate in the number of Internet users in Singapore since 2000, when there were 1.2 million. Singapore’s Internet users represent 0.6% of Asia’s total online population. (Source: Internet World Stats) 65% of Singaporeans aged between 15-49 are at least moderately aware and are casual users of the Internet. The survey also found that 55% of 15-49 year olds are at least moderately able to analyse and discern information on the Internet; 33% of 15-49 year olds are at least moderately involved in producing content on the Internet, such as blogs, Webcasts, and podcasts; and 22% of 15-49 year olds at least moderately encourage or facilitate others in the use of the Internet. (Source: Media Development Authority of Singapore) In 2006, 71% of all Singaporean households had access to the Internet. Out of those, 66% of the households in public housing had access to the Internet at home, compared to 87% of households in private housing. (Source: Infocomm Development Authority of Singapore.The 2006 Annual Survey on Infocomm Usage in Households and by Individuals) Among households with home Internet access, almost all used computers (97%) as the mode of Internet access; 9% used Internet-enabled mobile phones; and 4% used a game console with an Internet connection. (Source: Infocomm Development Authority of Singapore.The 2006 Annual Survey on Infocomm Usage in Households and by Individuals) There are currently a total of 4.72 million mobile subscribers in Singapore (2G and 3G), giving the city a mobile penetration rate of 105.5%. (Source: Infocomm Development Authority of Singapore) Singapore has household broadband penetration rates of 64.1%. (Source: Infocomm Development Authority of Singapore)

Demographics

Singapore Internet users on average spend 1.8 hours per day checking their email; 1.1 hours a day on online community activities; 3.6 hours a day on instant messaging applications; and 3.2 hours on other Internet activities. (Source: Synovate) In a survey regarding the effectiveness of different mediums, Singapore respondents said they found the Internet was the most effective in “delivering information”. They did not regard the Internet as being the most effective medium in “drawing attention”, “arousing interest”, “supporting purchase decision” or “being a source of entertainment”. (Source: Synovate) In a survey regarding the consumption of news, Singaporean respondents said that when a major disaster or news story breaks, only 5% of them turn to the Internet, compared to 74% which turn to the TV. In the past week 16% had gone online to read a blog; 7% had received news on their mobiles; 16% had emailed some interesting news to a friend; 13% had received a regular, subscribed to news email; and 9% accessed a news Web site that they had paid to use or subscribe. (Source: Synovate) Singaporeans sent 911 million SMS text messages in the month of February 2007 alone. (Source: Infocomm Development Authority of Singapore) Frequency of Internet Usage by Age
Frequency At least once a day At least once a week 72% 4% 22% 73% 6% 19% 15-29yrs 30-44yrs 45-59yrs 60yrs+ 69% 6% 21% 74% 12% 10%

User Behaviour

At least once a month

Less than once a month

Survey on Infocomm Usage in Households and by Individuals)

(Source: Infocomm Development Authority of Singapore.The 2006 Annual

1%

2%

3%

0%

Frequency of Social Activities Activity Used instant messengers in past 3 months Used Web-based email services in past 3 months Visited blogging/social networking Web sites in past 3 months
Digital Advertising Solutions. All people aged 15-64)

% 50% 66% 19%

(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

asia digital marketing yearbook 25

Frequency of Blogging Activities Amongst Singapore’s Users* Write a blog or contribute to 63% other people’s blogs 1% - Several times a day 5% - Once a day 11% - Several times a week 13% - Once a week 7% - 2-3 times a month 7% - Once a month 2% - Once every 2 months 17% - Less often
blogging/social networking Web site in the past 3 months) Digital Advertising Solutions. *Those who have visited/used a (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

45% of international air bookings made on ZUJI Singapore are made within two weeks of travel. Around a third of flight reservations (32%) are made a month or more before travel. (Source: ZUJI) Of all international tickets issued by ZUJI in Singapore in Q3 2006, 54% were e-tickets. Out of Singapore’s Internet users who download music online, 82% of them don’t pay for it. (Source: Synovate) In a survey that asked: “Have you ever used an online personal ad or online dating service to meet a potential romantic interest?”, a resounding 96% of Singaporean respondents said “No”. (Source: Synovate) According to a recent survey, there has been a 95% growth in the number of mobile phones with Internet access in Singapore over the past two years. According to the same survey, 8% of mobile users in Singapore use their mobiles to do their personal banking; while 9% use them to search for information on products or services online. (Source:Synovate, PAX-Pan Asia Pacific Cross Media Survey 2006) 40% of Singaporean online users said they have paid to download content from the Internet; 9% said they were likely to download new movies paid or unpaid; 13% said they would download TV shows/dramas; 6% said they would download exclusive celebrity interviews; and 38% said they would download music from the Internet. (Source: Mindshare, ADOI) A recent government survey of online shoppers found that only 27% of 15-29 year old Singaporeans had purchased online before, compared to 38% of 30-44 year olds and 34% of those 60 years and above. The least enthusiastic online shoppers were 45-59 year olds, where only 23% had made an online purchase in the past. (Source: Infocomm Development Authority of Singapore.The 2006 Annual Survey on Infocomm Usage in Households and by Individuals) A PricewaterhouseCoopers (PwC) study showed 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)

E-commerce

Usage of Internet Services by Age Group
Activity Communicating Emails Instant messaging Social networks Chat rooms Forum discussion Reading blogs Peer–to–peer VoIP Own blogs 15-29 89% 89% 64% 43% 30-44 85% 85% 39% 15% 16% 45-59 81% 80% 24% 12%

20%

36%

17%

26%

12%

22%

12% 6%

11% 14% 83% 72%

13% 9%

12%

6%

60+ 61% 61% 6% 6% 6%

12% 8%

0% 5%

9% 20% 59%

For getting information Information browsing Leisure activities

17%

77% 69%

5%

81% 65%

Downloading/listening to music Reading online news

68%

55%

45%

31% 9%

25%

Playing/downloading computer or video games 40% 29% 26% 24%

28%

50%

39%

27%

29%

23%

11% 0% 0% 11%

Downloading/watching movies, short films, images Downloading/uploading other media Reading online magazines 17% Listening to Web radio Reading electronic books Watching Web television Making online payments For online banking For other activities Applying for jobs 19% 12% 17% 16% 16%

26%

15% 12%

19% 9%

21% 14% 30%

7%

15% 7% 16%

2% 2% 9% 0% 5%

10%

6%

29% 40%

42% 34%

27% 21%

14% 2% 2%

Downloading software

Buying/ordering goods or services 24%

18%

37%

16%

31%

9%

21%

0%

Survey on Infocomm Usage in Households and by Individuals)

(Source: Infocomm Development Authority of Singapore.The 2006 Annual

33%

21%

25%

Online Advertising

26 asia digital marketing yearbook

Goods/Services Purchased Over the Internet 15-29yrs 30-44yrs 45-59yrs 60yrs+ Items
Ticket(s)- Entertainment Clothing/footwear Entertainment Travel products 34% 20% 32% 17% 12% 41% 36% 20% 19% 16% 18% 10% 34% 39% 11% 18% 9% 9% 15% 18% 2% 22% 31% 31% 0% 0% 38%

Computer equipment Computer software Tickets(s) - Sports IT/Teleco services Food

0%

15% 9%

11% 8%

0% 0%

31%

Shares/Unit Trusts

0% 0% 0%

Photo/telco/optical equipment Insurance Products Groceries Others

8%

8%

7%

4%

4%

5%

Survey on Infocomm Usage in Households and by Individuals)

(Source: Infocomm Development Authority of Singapore.The 2006 Annual

10%

3%

5%

6%

15%

2%

5%

0%

0%

21%

0%

69%

Value of Goods and Services Purchased Online
Value Less than SGD100 15-29yrs 30-44yrs 45-59yrs 60yrs+ 33% 22% 20% 9% 7% 25% 20% 20% 12% 12% 12% 16% 22% 34% 10% 7% 10% 31% 19% 13% 38% 0% 101% 0% SGD100 to SGD199 SGD200 to SGD499 SGD500 to SGD999 SGD1,000 to SGD1,999 SGD2,000 and above Total:

Top 20 Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Hitwise industries))

(Source: sg.hitwise.com, (ranked by market share of visits across all

Popular Web sites - November, 2006 Web site Market Share www.yahoo.com 2.95% www.hotmail.com 2.91% www.google.com 2.68% sg.yahoo.com 2.67% www.google.com.sg 2.48% mail.yahoo.com 2.19% mail.yahoo.com.sg 1.76% www.msn.com 1.63% www.friendster.com 1.31% www.youtube.com 1.12% search.yahoo.com 1.06% www.gmail.com 0.92% sg.search.yahoo.com 0.91% www.msn.com.sg 0.76% address.yahoo.com 0.75% www.blogger.com 0.69% www.soccernet.com 0.62% www.dbs.com.sg 0.62% www.microsoft.com 0.57% www.poems.com.sg 0.54%

Survey on Infocomm Usage in Households and by Individuals)

(Source: Infocomm Development Authority of Singapore.The 2006 Annual

100%

9%

101%

99%

Top Web Sites 1. Yahoo! 2. Microsoft Network (MSN) 3. Friendster 4. YouTube 5. Google.com.sg 6. Blogger.com 7. Google 8. Windows Live 9. WikiPedia 10. Megaupload
(Source: Alexa.com, April 2007)

CLIENT: ZUJI AGENCY: Epsilon Interactive/AllianceData CAMPAIGN: Regular Travel Tuesday newsletter OBJECTIVES: To increase relevancy for users, and improve ROI for this channel STRATEGY: Search Based Offer email. Subscribers who have made any searches in the past week will receive a custom newsletter. Best flights and best hotel deals will be highlighted for the three most recent searches. Dynamically assemble promos from over 200 destinations. RESULTS: 1. Open rate increased by 72%. 2. Click rate increased by more than 300%. 3. Unique clicks increased by more than 300%. 4. Conversions up by 84%.

CASE STUDY - ZUJI

asia digital marketing yearbook 27

SOUTH KOREA
There were an estimated 34.1 million Internet users in South Korea (66.5% of the population) in January 2007, showing a growth rate in usage of 79.2% since 2000. South Korea’s Internet users represent 8.6% of Asia’s total online population. (Source: Internet World Stats) Nearly 100% of South Korean Internet users have Internet access at home, according to the South Korean Ministry of Information and Communication. (Source: eMarketer) eMarketer estimates that by 2011, 77% of the population in South Korea will be Internet users, up from 67.9% in 2005. In 2006, there were 12.7 million broadband households in South Korea, representing 78.8% of all online households. (Source: eMarketer) More than one-third of 3-year-olds in South Korea are Internet users; nearly two-thirds of 5-year-olds are Internet users. And 90% of all South Koreans under 40 are Internet users. (Source: eMarketer) Internet Users and Penetration 2005-2011 Year millions % 2005 33.0 67.9% 2006 34.4 70.5% 2007 35.6 72.7% 2008 36.5 74.2% 2009 37.2 75.3% 2010 37.8 76.2% 2011 38.4 77.3%
(Source: eMarketer)

Demographics

mediums, South Korean respondents said they found the Internet was the most effective in “delivering information”, “supporting purchase decisions” and “being a source of entertainment”. They did not regard the Internet as being the most effective in “arousing interest” or “drawing attention”. (Source: Synovate) 53.5% of online users spend more than 10 hours a week online; and 24.8% of them spend 4-10 hours a week online. (Source: Yahoo! National Internet Development Agency, July 2006) There has been a 34% growth in the number of mobile phones with Internet access in Seoul. 11% of mobile users in the capital use their mobile phones to do their personal banking; while only 6% use them to search for information online. (Source: Synovate, PAX-Pan Asia Pacific Cross Media Survey 2006) In a survey that asked: “Have you ever used an online personal ad or online dating service to meet a potential romantic interest?”, a resounding 88% of South Korean respondents said “No”. (Source: Synovate) Frequency of Social Activities Activity Used instant messengers in past 3 months Used Web-based email services in past 3 months Visited blogging/social networking Web sites in past 3 months
Digital Advertising Solutions. All people aged 15-64)

% 49% 66% 33%

(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Internet Usage Rate 6-19 20s 2004 95.5 95 2005 97.3 97.2 2006 98.1 98.1

(Source:Yahoo! National Internet Development Agency, July 2006)

by Age (%) 30s 40s 86.4 58.3 89.8 67.2 91.6 71

50s 27.6 34.7 37.5

60+ 7.3 11 15.2

South Korean Internet users on average spend 1.3 hours per day checking their email; 0.9 hours on online community activities; 2.7 hours on instant messaging; and 3 hours on other Internet activities. (Source: Synovate) In a survey regarding the effectiveness of different
28 asia digital marketing yearbook

User Behaviour

Frequency of Blogging Activities Amongst South Korea’s Users Write a blog or contribute to other people’s blogs 72% - Several times a day 2% - Once a day 7% - Several times a week 11% - Once a week 7% - 2-3 times a month 14% - Once a month 6% - Once every 2 months 1% - Less often 3%
networking Web site in the past 3 months) Digital Advertising Solutions. Those who have visited/used a blogging/social (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Average Weekly Usage by Age Group (% of respondents in each group)
<1 hour 6-19 1-2 hours 2-4 hours 4.5% 1.9% 1.4% 4.6% 1.0% 20-29 6.6% 4.7% 7.6%

30-39 40-49 50-59 60+ 7.5%

11.6% 13.1% 5.9% 4.0%

Advertising Market Share - Portals (%) Site Paran Empas Yahoo! Nate Daum Naver Share 37.5 4.5 5.6 8.6 12.8 21.5
(Source:Yahoo! KoreanClick, January 2007, Adram, January 2007)

4-10 hours 32.5% Total hours 11.0

12.6%

10+ hours 48.5%

18.9% 74.1%

10.9% 14.5% 13.9% 24.4%

22.9% 20.6% 19.8% 19.2% 11.0 10.2 9.2

(Source: eMarketer, December 2005)

18.3

13.8

55.0% 45.7% 45.7% 4 6.4%

South Korea’s online video revenues for 2006 were US$4.9 million. Prediction: by 2009 the market will generate $23.5 million, and $76.2 million by 2012. (Source: Informa Telecoms & Media) Out of the Internet users who download music online, 52% of them don’t pay for it. (Source: Synovate) In 2006 South Korea generated US$14 billion in B2C e-commerce sales. By 2010 it is forecast that it will generate $28.8 billion which represents a compound annual growth rate (CAGR) of 19.7%. (Source: eMarketer) Most Popular Online Services (%) Activity Male Female Search 67.2 62.5 Email 36.3 38.8 Community 31.0 31.6 News 36.6 22.2 Games 36.9 20.9 1.8 6.4 Blog Shopping 11.6 31.2 E-learning 1.1 1.7 Music 8.0 3.9 E-trade 9.8 0.7
(Source: Yahoo! 2006 Korea Netizen Profile research)

E-commerce

Online Ad Spend by Advertiser (US$ million) Sector (US$m) Rank Advertiser SK Telecom Telco 18.5 1. Samsung Electronics Tech 9.8 2. CJ Entertainments Entertainment 7.8 3. Interpark G-Market Retail 7.7 4. Show Box Entertainment 7.4 5. Auction Retail 7.2 6. Lotte Shopping Cinema 7. 6.1 Entertainment JD Retail 4.6 8. KT Telco 4.5 9. 4.3 10. GS Home shopping Entertainment
(Source: Yahoo! Adram 2006)

All 65.0 37.5 31.2 29.9 29.4 8.6 20.7 1.3 0.7 0.2

Top Web Sites 1. Naver.com 2. Daum 3. Nate.com 4 Yahoo! 5. TOM.COM 6. Netmarble.net 7. Internet Auction 8. Gmarket.co.kr 9. Hangame.com 10. Microsoft Network (MSN)
(Source: Alexa.com, April 2007)

By 2008, South Korea will be one of just eight markets globally where the Internet advertising share will exceed 10% of total ad budgets. (Source: ZenithOptimedia) The online advertising market will hit US$1.04 billion in 2007, according to keyword advertising company Korea Overture. Keyword advertising accounts for 60% of the total online ad market. (Source: Adotas.com) The online ad banner market in 2006 was worth US$385 million. In order of ad spend: the Entertainment sector (78.5%); Telco (58.9%); Retail (37.8%); Education (36.4%); CPF (31.1%); Transportation (22.4%); Health (21.3%); and Tech/PC (17.7%). (Source: Yahoo! Adram)

Online Advertising

CLIENT: Coca-Cola AGENCY: D’KIMS OBJECTIVE: Global soft drinks company Coca-Cola wanted to establish a strong brand profile for its new green tea drink in South Korea. STRATEGY: The company launched a multi-media campaign using a celebrity, based on TV and Windows Live™ Messenger targeted at young female Internet users. To reinforce the product message, consumers could download a custom Windows Live™ Messenger environment to take part in online contests and win prizes. DETAILS: Microsoft delivered a compelling mix of creatives that included: Windows Live™ Messenger Theme Pack delivering a downloadable Messenger environment. Branded emoticons, a short video, and a celebrity endorsement. Competition that rewarded users with a series of special gifts RESULTS: Using the Windows Live HARU Messenger Contents Pack Coca-Cola achieved outstanding results from its campaign: 1. The target download figure was exceeded by almost 30%. 2.More than 130,000 Windows Live™ Messenger Theme Pack downloads were measured.

CASE STUDY- COCA-COLA

asia digital marketing yearbook 29

SRI LANKA
Sri Lanka currently has just 280,000 Internet users, representing 1.4% of its population. That does represent, however, a growth rate of 130.5% against 2000 where there were only 121,500 people online. Sri Lanka’s Internet users represent 0.1% of Asia’s total online population. (Source: Internet World Stats) It is estimated about 90% of Sri Lanka’s Internet users are in the capital of Colombo. (Source: Gunawardana & Wattegama, 2004) As at the end of Q4 2006, there were 5,412,496 cellular mobile subscribers, equivalent to 27.1% penetration. (Source: Telecommunications Regulatory Commission of Sri Lanka) In Sri Lanka, 65% of Internet users have had tertiary education. (Source: Women’s Learning Partnership) As of 2004, there were only 500 Web sites in Sri Lanka in the national language compared to 25,000 which were in English. (Source: 1994-2004 Asia Pacific Networking Group) Out of Sri Lanka’s Internet users, 71% are male. (Source: 1994-2004 Asia Pacific Networking Group) Sri Lanka’s mobile market has been showing an overall annual growth rate of 50-60% for the last few years. Mobile penetration currently stands at around 27% coming into 2007. (Source: Paul Budde Communication) The Sri Lankan government’s targets for 2008 include creating an IT industry worth US$1 billion, with a pool of 220,000 IT professionals. It is also aiming for a PC penetration of 10%, and Internet penetration of 5% of the population. (Source: Inomy.com) There are currently 23 ISPs in Sri Lanka. (Source: The Sunday Times) Sri Lanka’s Mobile Subscribers 2000-2006
6 5 4 3 2 1 0 2000 2001 2002 2003 2004 2005 2006 Million Subscribers

(Source: The Telecommunications Regulatory Commission of Sri Lanka)

Sri Lanka’s Internet and Email Subscribers Year Number 2000 40,497 2001 61,532 2002 73,468 2003 85,500 2004 93,444 2005 115,000 2006 130,000
(Source: The Telecommunications Regulatory Commission of Sri Lanka)

Top Web Sites 1. Yahoo! 2. Google.lk 3. Microsoft Network (MSN) 4. Google 5. Hi5 6. Cricinfo 7. Microsoft Corporation 8. Windows Live 9. YouTube 10. Megaupload
(Source: Alexa.com, April 2007)

30 asia digital marketing yearbook

TAIWAN
There are currently 14.5 million Internet users in Taiwan, representing 63% of the population. That figure represents a 131.6% growth rate from 2000, where there were only 6.2 million Taiwanese online. Taiwan’s Internet users represent 3.6% of Asia’s total online population. (Source: Internet World Stats) The Internet penetration rate among Taiwanese male users in 2006 was 65%; and among female users it was 63%, up 7% and 5% respectively from 2005. (Source: FIND) The number of broadband subscribers in Taiwan reached 4.5 million by the end of 2006. The total number of Internet users with valid and active accounts in Taiwan reached 9.68 million at the end of June 2006, representing a year-on-year growth rate of 3%. (Source: FIND) As of September 2006, 79% of households in Taiwan owned PCs, 72% of households had Internet access, 62% of households had broadband access and 87% of online households were using broadband connections. (Source: FIND) There were a total of 22.98 million mobile phone subscribers in Taiwan at the end of September 2006. (Source: FIND) In 2006, 21.78% of the population aged 12 or above in Taiwan had used mobile handsets or WLAN to access the Internet. (Source: FIND) By the end of January 2007, Taiwan had 1.81 million mobile Internet users. Of those, 1.02 million were males and 0.78 million were females. (Source: TWNIC) In 2006, 94.38% of households in Taiwan with access to the Internet had an average income of NTD 100,001-150,000; 91.82% had an income of NTD 60,001-80,000, and 90.94% had an income of NTD 80,001-100,000. (Source: TWNIC)

Demographics

Taiwan’s Internet Users Characteristics Under 12 yrs old Aged 12 and above Male Female (% of age group) 12-15 yrs old 16-20 yrs old 21-25 yrs old 26-35 yrs old 36-45 yrs old 46-55 yrs old 56+
of The Jan Survey of 2007)

(Source: TWNIC, Internet Broadband Usage in Taiwan A Summary Report

millions 1.96 13.26 6.76 6.5 % 94.6% 94.7% 92.1% 87.8% 74.3% 57.1% 16.6%

Taiwan’s Mobile Internet Users % of age group 12-15 yrs old 16-20 yrs old 21-25 yrs old 26-35 yrs old 36-45 yrs old 46-55 yrs old 56+ Taiwan’s Broadband Users % of age group Male Female 12-15 yrs old 16-20 yrs old 21-25 yrs old 26-35 yrs old 36-45 yrs old 46-55 yrs old 56+
of The Jan Survey of 2007)

% 9.15% 19.26% 15.69% 17.74% 8.76% 1.83% 0.62% % 64.46% 62.24% 85.29% 91.40% 87.90% 82.67% 69.85% 53.33% 13.59%

(Source: TWNIC, Internet Broadband Usage in Taiwan A Summary Report

Taiwan’s Internet users on average spend 1.6 hours per day checking their email; 1.2 hours a day on online community activities; 3.5 hours a day on instant messaging applications; and 3.4 hours on other Internet activities. (Source: Synovate) 900 million SMS messages were sent in Q1 2006, 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

User Behaviour

As of January 2007, the most frequently used mobile service was “Ringtones Download” used by 39.36% of users, followed by “Information Browsing” (21.14%) and “Email” (8.76% of users). (Source: TWNIC) There has been a 65% growth in the number of mobile phones with Internet access in Taipei over the past two years. 11% of mobile users in the capital now use their phones for personal banking; 17% use them to search for information on products or services online. (Source: Synovate) Frequency of Blogging Amongst Taiwan’s Users Write a blog or contribute to other 69% people’s blogs - Several times a day 4% - Once a day 7% - Several times a week 11% - Once a week 14% - 2-3 times a month 7% - Once a month 9% - Once every 2 months 2% - Less often 13%
networking Web site in the past 3 months) Digital Advertising Solutions. Those who have visited/used a social (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Mobile Internet Users’ Activities* Activity Ringtone download Email Information browsing Information search Game download Financial transactions News/Weather Application download Information upload Shopping
of The Jan Survey of 2007 *multiple choice)

(Source: TWNIC, Internet Broadband Usage in Taiwan A Summary Report

% 38.36% 8.76% 21.14% 8.17% 4.54% 3.05% 2.26% 1.16% 1% 0.68%

62% of Taiwanese users have paid to download content from the Internet; 23% were likely to download new movies paid or unpaid; 25% would download TV shows/dramas; 12% would download exclusive celebrity interviews; and 56% would download music. (Source: Mindshare, ADOI) According to Gartner, mobile data service ARPUs in Taiwan in 2006 stood at US$2.10. (Source: FIND) By 2008, Taiwan will be one of just eight markets globally where the Internet advertising share will exceed 10% of total ad budgets. (Source: ZenithOptimedia) The revenue from value-added mobile services only accounts for 5%-10% of the whole mobile market. (Source: FIND) Taiwan’s online video revenues for 2006 were US$0.9 million. Prediction: by 2009 the market will generate $3.3 million, and $16.6 million by 2012. (Source: Informa Telecoms & Media) In 2006 Yahoo! bagged nearly 70% of the NT$3.74 billion (US$112 million) online ad market. 97% of local Taiwanese users visit Yahoo! Taiwan. (Source: Commonwealth Magazine) Top Web Sites 1. Yahoo! 2. Wretch.cc 3. PC home [Taiwan] 4. Yam 5. Gamer.com.tw 6. Microsoft Network (MSN) 7. HiNet 8. Google.com.tw 9. Wefong.com 10. Badongo
(Source: Alexa.com, April 2007)

E-commerce

Online Advertising

Frequency of Social Activities Activity Used instant messengers in past 3 months Used Web-based email services in past 3 months Visited blogging/social networking Web sites in past 3 months
Digital Advertising Solutions. All people aged 15-64)

% 58% 65% 39%

(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Broadband Users’ Activities (% of responses*)
70 60 50 40 30 20 10 0
Information search Downloading software Online game Downloading music Watching videos Online banking Newsgroups Email Online radio Web surfing Online shopping Watching TV Chat/ICQ

%

(Source: TWNIC, Internet Broadband Usage in Taiwan A Summary Report of The Jan Survey of 2007 *multiple choice)

32 asia digital marketing yearbook

THAILAND
In 2006, there were 8.42 million Internet users in Thailand, representing 12.5% of the population. There has been a staggering 266.1% growth rate in the number of Internet users in Thailand since 2000, when there were just 2.3 million users. Thailand’s Internet users represent 2.1% of Asia’s total online population.
9 8 7 6 5 4 3 2 1 0 2000 2006 million people

Demographics

Thailand’s Internet Users (% of users) 52.6% Male 47.4% Female 10% 6-14 yrs old 52% 15-24 yrs old 19.8% 25-34 yrs old 15% 35-49 yrs old 3% 50-59 yrs old 0.2% 60+
(Source: National Statistics Office, 2003/2004)

266%
GROWTH

Thailand’s Internet users on average spend 1.7 hours per day checking their email; 1.5 hours a day on online community activities; 3.5 hours a day on instant messaging applications; and 3.3 hours on other Internet activities. (Source: Synovate) In a survey regarding the consumption of news, Thai respondents said that when a major disaster or news story breaks, only 6% of them turn to the Internet, compared to 80% which turn to the TV. In the past week 45% of them had read the weekend newspapers for over an hour; 31% had gone online to read a blog; 16% had received news on their mobiles; 11% had emailed some interesting news to a friend; 15% had received a regular, subscribed to news email; and 4% accessed a news Web site that they had paid to use or subscribe. (Source: Synovate) In a survey regarding email etiquette, in reply to the question: “which is the most impolite email habit?”, 46% of Thai respondents said “sending chain emails”, while only 11% said “using a PDA while out with others”. (Source: Synovate) In a survey regarding the effectiveness of different mediums, Thai respondents said they found the Internet was the most effective in “delivering information” and “supporting purchase decision”. They did not regard the Internet as being the most effective medium in “arousing interest”, “being a source of entertainment” or “drawing attention”. (Source: Synovate) According to a recent survey, there has been a 87% growth in the number of mobile phones with Internet access in Bangkok over the past two years. According to the same survey, 7% of mobile users
asia digital marketing yearbook 33

User Behaviour

(Source: Internet World Stats)

According to the most recently available statistics, the household PC penetration rate in Thailand is around 11.1%. That is compared to an overall Internet penetration rate of 11.9%. (Source: NECTEC, Thailand ICT Indicators 2005) There were about 570,000 broadband subscribers in Thailand in 2005 and 3.18 million broadband users. That works out at about five users per subscription to ADSL. (Source: Bangkok Post) The PC penetration rate in Thailand is around 15% - but for mobile phones the penetration rate is closer to 50%. It is forecast that new mobile phone sales will account for 8-10 million units in 2007, with 1-2 million of these expected to be so-called “smart phones”. (Source: Bangkok Post) Local mobile data consumption, led by music downloads and Internet access, registered skyrocketing growth in the Q1 2007. The emerging non-voice communications market in Thailand is expected to grow by 40% this year in a market worth more than 26 billion baht (US$798 million). (Source: Bangkok Post)

E-commerce

in Bangkok use their mobile phones to do their personal banking; while 8% use them to search for information about products and services online. (Source: Synovate, PAX-Pan Asia Pacific Cross Media Survey 2006) Direct online travel reservations in Thailand now account for around 40% of total travel-related transactions. That represents an increase of 10% compared to five years ago, according to the Association of Thai Travel Agents. (Source: TravelWireNews, May 2006) Out of the Thai Internet users who download music online, 80% of them don’t pay for it. (Source: Synovate) The total value of e-commerce transactions covering B2B and B2C - in 2003 was estimated at 58,529 million baht (US$1.79 billion) of which 99% came from B2B.That year only 20.9% of Thais had bought anything online. (Source: NECTEC, Thailand ICT Indicators 2005) A recent study on the online gaming market in Asia/Pacific excluding Japan (APEJ) revealed that Thailand totalled US$32.9 million in subscription revenues in 2005, growing by approximately 44% over 2004. Thailand is the largest online gaming market in South East Asia, holding 2.4% market share of the APEJ region’s total subscription revenue of US$1.39 billion in 2005. (Source: IDC) Thais’ Preferred Online Activities (% of activities conducted online) Information search 31.9% Email 31.6% News 14.1% Chat/ICQ 7.1% Games 5.8% Download software 2.1% View products 1.3% Download music 1% Download game 0.5%
(Source: NECTEC, Thailand ICT Indicators 2005)

Frequency of Blogging Activities Amongst Thailand’s Users Write a blog or contribute to other 84% people’s blogs 5% - Several times a day 5% - Once a day 15% - Several times a week 15% - Once a week 18% - 2-3 times a month 12% - Once a month 7% - Once every 2 months 6% - Less often
networking Web site in the past 3 months) Digital Advertising Solutions. Those who have visited/used a blogging/social (Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Frequency of Social Activities Activity Used instant messengers in past 3 months Used Web-based email services in past 3 months Visited blogging/social networking Web sites in past 3 months
Digital Advertising Solutions. All people aged 15-64)

% 33% 45% 18%

(Source: Synovate AsiaBUS Dec 2006 Survey commissioned by Microsoft

Thailand’s online advertising market is valued at around 80 million baht (US$2.4 million). (Source: Nation) Thailand’s online advertising spend is fragmented. Some experts estimate the figure is less than 1% of total media spend, estimated at 89 billion baht (US$2.7 billion) in 2006 by Nielsen Media Research. (Source: TMCNet) According to Truehits in August 2006, Google is the favourite amongst Thais when it comes to search engines. It has a market share of 88.4%, followed by Sanook which only has 9.75%, Yahoo! with 0.85% and MSN which has 0.61%. (Source: AsiaMedia) Top 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Web Sites (IP/day) www.sanook.com www.kapook.com www.manager.co.th www.mthai.com teenee.com www.playpark.com www.dek-d.com www.sf.in.th www.siamza.com www.yenta4.com 296,472 176,679 140,396 132,147 126,458 108,500 106,462 95,066 90,527 86,405

Online Advertising

Most Popular Sites by Category* Categories % of total visited Entertainment 29.6% Internet 26% Business 9.5% News 7% Personal 6% Games 5% Shopping 3.3% Government 2.4% Computer 2.4% Education 2.1%
(Source: NECTEC, Thailand ICT Indicators 2005, * 2003 figures)

(Source: Truehits)

34 asia digital marketing yearbook

VIETNAM
There were an estimated 14,913,652 Internet users in Vietnam in January 2007, representing 17.5% of the population. Vietnam has shown incredible growth rates of 7,356.8% since 2000 when it had only 200,000 Internet users. Vietnam’s Internet users represent 3.7% of Asia’s online population. (Source: Internet World Stats) The number of Internet users in Vietnam is forecast to increase to around 30 million, according to the Ministry of Posts and Telecommunications. (Source: VietnamNet) The government has announced plans to increase the Vietnam’s Internet penetration rate to 35% by 2010 - and will invest VND100.5 trillion (US$6.3 billion) by 2010 to meet its target. (Source: Internet World Stats) In the last three years, Vietnam’s mobile phone market has boomed, exceeding the economy’s 8% average growth rate. The number of subscribers increased by 7 million - a 70% jump - last year to reach 17 million people. Prediction: Vietnam will have 46 million mobile users by 2010, growing at a rate of 270% from today’s level. (Source: Wireless Asia) Vietnam will see an GDP growth of 16% due to the growing ubiquity of mobiles in the next four years. (Source: Wireless Asia) Vietnam’s Internet Users Characteristics Male Female 18-30 31-40 42-50 Access Point At Internet café At work At home Internet service Usage a week Less than 30 min 31-60 min 1-2 hours 2-3 hours 3-4 hours 4-5 hours % 41% 24% 53% 23% 10% 3% 15% 31% 50% 13% 40% 22% 15% 4% 1%

Demographics

Vietnam’s online travel market is expected to grow by a rate of 202.8% from now until 2010. (Source: Euromonitor) 45% of households in Vietnam have PCs, compared to 41% in 2005; and 72% of households have a mobile phone, up from 69% in 2005. (Source: ACNielsen) 10% of households across Vietnam are predicted to make their purchases online by 2010. (Source: NhanDhan) Internet Usage, by Activity, Age Activity 18-30 Chatrooms 72% News/current affairs 63% Play games 57% Email 38% Watching movies 33% Study/homework 15% Work 14% Dating online 11% Job search 5% Listening to music 3% Shopping online 3% 2% Checking the weather 41-50 43% 81% 14% 34% 0% 3% 27% 0% 0% 0% 3% 2%

E-commerce

(Source: ACNielesen, Uses of the Inetrnet in HCMC and Hanoi)

Online advertising revenues in Vietnam are estimated to reach US$4 million at the end of 2006, a US$2.1 million year-on-year increase from 2005. (Source: VietnamNet) The 2005 turnover from online advertising was VND60 billion (US$3.7 million) - 0.5% of the market value of Vietnam’s domestic advertisement market. (Source: VietnamNet) The online advertising market is estimated to grow at a rate of 70-100% by 2010, with expected revenues of VND500 billion (US$31 million). (Source: VietnamNet) Top Web Sites 1. Yahoo! 2. Google.com.vn 3. VnExpress 4. Bao Khuyen hoc & Dan tri Online 5. 24h.com.vn
(Source: Alexa.com, April 2007)

Online Advertising

(Source: ACNielsen Omnibus, Internet Usage in HCMC and Hanoi)

asia digital marketing yearbook 35

ADMA Membership Directory
BOARD LEVEL MEMBERS
Cindy Burke, Account Manager, Asia Pacific Rob Stanley, Regional Director, Asia Winnie Wong, Senior Marketing Manager, Asia Pacific markets and growth. To address emerging new business areas in the Mobility era while continuing to grow its leadership in mobile voice communications, Nokia has four business groups to best meet the unique dynamics of each business: Mobile Phones; Networks; and Enterprise Solutions.

CORPORATE MEMBERS

Main Representative: Harjeet Virdee, Commercial Manager, e-Business Department Dominic Purvis, General Manager, Cathay Pacific Loyalty Programmes

Cathay Pacific Airways www.cathaypacific.com Tel: +852 2747 3840

Cathay Pacific Airways is an international airline registered and based in Hong Kong, offering scheduled cargo and passenger services to over 90 destinations around the world. We are deeply committed to Hong Kong, where the Company was founded in 1946. We continue to make substantial investments to develop Hong Kong’s aviation industry and enhance Hong Kong’s position as a regional transportation hub. In addition to our fleet of aircraft, these investments include catering, aircraft maintenance and ground handling companies, as well as our corporate headquarters at Hong Kong International Airport.

Epsilon International is a leading provider of strategic, ROI-focused email communications solutions and marketing automation technologies worldwide. Through its combination of innovative technologies, professional services and vertical market expertise, Epsilon International helps marketers acquire, grow and retain profitable customer relationships through highly relevant and personalised email communications. The company’s end-to-end suite of industryspecific products and services includes scalable email campaign technology, delivery optimisation, marketing automation tools, turnkey integration solutions, strategic consulting, and creative expertise to produce email programs that generate measurable results throughout the customer lifecycle.

Adsperience www.adsperience.com Tel: +852 2581 2919

Main Representative: Paul Campbell, Managing Director

Orbit Media www.orbitmedia.com.au Tel: +61 2 9957 6533

Main Representative: Terry Iu, Business Development Manager

Microsoft Digital Advertising Solutions www.advertising.microsoft.com/asia/home Tel: +852 2804 4281

Main Representative: Jayne Leung, Regional Director, Asia Nicole Chou, Account Director, Asia Andrew Wong, Rich Media Sales Consultant

DoubleClick International Asia www.doubleclick.net Tel: +852 3760 1888

Main Representative: Gina Hertel, Regional Director of Marketing for Asia Pacific, Greater China, and Japan Karen Chia, Head of Multinational Sales, Asia Gregg Albright, Sales Directory, Asia Pacific
Microsoft has built its business on an understanding of consumers’ changing relationship with technology. Now it is putting the full breadth of that understanding at the service of advertisers. Microsoft Digital Advertising Solutions offers a range of deeply targeted channels that reach across every element of the emerging digital lifestyle. With consumers now connecting to the Internet at all times, for many different reasons, and through various devices, Microsoft’s unbeatable reach and service are the keys to establishing an ongoing dialogue.

Orbit Media Australasia (“OMA”) is a digital media group that provides expertise in the creation, production and delivery of interactive and online media. Founded in 1996, OMA is owned by an experienced group of marketing professionals, who are supported by highly skilled people in Australia, Hong Kong, China, Korea and the United States to service a client base throughout the Asia Pacific region. OMA creates interactive sales, marketing and training products, builds sophisticated Web sites and intelligent online marketing tools integrated with content management systems. We invest heavily in our knowledge by employing specialist people of various skills and disciplines to maintain our competitive edge.

AGENDA Corporation www.agenda-asia.com Tel: +852 2298 3888

Main Representative: Magdalena Wszelaki, Regional VP, Strategic Planning Steve Hsia, Group CEO Eric Ng, Chief Innovation Officer Clement Yip, Chief Creative Officer

Axonus Asia www.axonusasia.com Tel: +852 2521 5455

DoubleClick provides tools and know-how, which enable marketers, agencies and publishers to make their marketing work better in an integrated, multi-channel world. In Asia Pacific DoubleClick has offices in Hong Kong, Beijing, Sydney and Singapore as well as channel partners in Tokyo and Seoul.

Main Representative: David Ketchum, Chief Executive Officer Paul Mottram, Chief Operating Officer

Upstream Asia www.upstreamasia.com Tel: +852 2973 0222

Main Representative: Jay Jhaveri, Managing Partner Alastair Monteith-Hodge, Managing Director, Momentum 54 Strategic Communications Anthony Pettifer, Managing Partner, Brandstorm Kingsley Smith, Managing Director, MDA Management Development Asia-Pacific

eBay www.ebay.com.hk Tel: +852 3550 8511

Main Representative: Kerry Wong, Managing Director, Hong Kong Ben Grubbs, Marketing Director, Hong Kong

Founded in September 1995, eBay is The World’s Online Marketplace for the sale of goods and services by a diverse community of individuals and small businesses. Today, the eBay community includes more than a hundred million registered members from around the world. People spend more time on eBay than any other online site, making it the most popular shopping destination on the Internet.

Epsilon International www.epsilon.com/international Tel: +852 3589 6308

Main Representative: Dominic Powers, Managing Director, Asia Pacific

Main Representative: Ruhne Fiala, Marketing Director, Nokia Multimedia, Asia Pacific Jawahar Kanjilal, Director, Multimedia Experiences, Nokia Asia Pacific Alison Tan, Campaign Manager, Multimedia Marketing, Asia Pacific Yoong Leong Yan, Senior Manager, Music Experiences, Multimedia Experiences, Asia Pacific A leading player in mobile communications in the Asia Pacific, Nokia first started operations in the region in the early 1980s. It has since established a leading brand presence in many local markets, and business has expanded considerably in all areas to support customer needs and the growth of the telecommunications industry in the region. Nokia’s regional corporate headquarters is located at Alexandra Technopark in Singapore. As the regional hub for Nokia, it is a base from which over 700 staff provide leadingedge technology, product and solutions support to the 20 diverse markets and Nokia offices in the Asia Pacific. As of January 2004, Nokia streamlined its global organisational structure to strengthen its focus on convergence, new mobility

Nokia www.nokia.com Tel: +65 6723 2323

Upstream is a full service marketing and corporate communications network ideally positioned to help companies make the most of business opportunities in the Asia Pacific region. Our clients look to us to create and manage multi-disciplinary campaigns, and we provide a full range of off and online communications solutions, including strategic public relations counselling, media relations, event management, digital marketing and Webbased communications services. Upstream primarily works with clients in three sectors: technology/ media/ telecommunications; consumer/ lifestyle/ travel; and corporate and financial. Yahoo! Asia http://advertising.yahoo.com Tel: +852 2882 3899

Main Representative: Huen-yee Lee, General Manager Susan Reingold, VP, Corporate Development & Communications, Asia Pacific, Grey Global Group

G2 Interactive G2 Interactive www.g2.com Tel: +852 2510 6888

Main Representative: Ivy Wong, Senior Director, Asia Pacific Sales William Woo, Senior Manager, Asia Pacific Sales

Google www.google.com Tel: +852 2166 8702

Yahoo! is a leading global Internet brand and one of the most trafficked Internet destinations worldwide. Yahoo! seeks to provide online products and services essential to users’ lives, and offers a full range of tools and marketing solutions for businesses to connect with Internet users around the world.

Main Representative: Derek Callow, Marketing Manager, HK & SE Asia

Main Representative: Rose Leng, Head of Direct Propositions Mike Zung

HSBC Direct www.hsbcdirect.com Tel: +852 2822 3341

36 asia digital marketing yearbook

The Hyperfactory www.thehyperfactory.com Tel: +852 2179 5013

Main Representative: Geoff Handley, New Business Director, Asia Pacific Derek Handley, Managing Director Howard Hunt, Mobile Integration Manager Shannon Lam, Business Development Director, HK & South China

Premiere Global Services www.premiereglobal.com.au Tel: +61 2 9338 8822

Method Media www.method.com.sg Representative: Martyn Tan, Media Director ZUJI www.zuji.com Tel: +852 2175 5233

Main Representative: Joanne Rigby, Marketing Manager, Asia Pacific Becky Lai, SE Asia Marketing Co-ordinator Nigel Mendonca, Regional Sales Director, South East Asia

MRM Worldwide www.mrmworldwide.com Representative: Jennifer Faucon, Director Nielsen//NetRatings www.nielsen-netratings.com Representative: Joseph Kam, Director OneXeno www.onexeno.com Representative: Ralph Szeto, General Manager

Main Representative: Sean Seah, Country Manager, Hong Kong Albert Bagaman, Manager Partnerships & Media Sales

ICLP www.iclployalty.com Tel: +852 2803 8100

Main Representative: Etienne Maccario, Manager, Digital Marketing Stephen Hay, General Manager, Hong Kong Paul Smitton, General Manager, North Asia & Greater China

Profero www.profero.com Tel: +852 2524 5188

Accoona www.accoona.cn Representative: John Fernandez, Director of Marketing AsiaPac Net Media www.asiapac.com.hk Representative: Daniel Chan, Marketing Manager e-Crusade www.e-crusade.com Representative: Venus Lee, Director

INDIVIDUAL MEMBERS

Game Guru www.gameguru.biz Representative: Napoleon Biggs, Director Pilot Simple Software www.pilot.com.hk Representative: Tim Hay-Edie, Managing Director Pixel Media www.pixelmedia-asia.com Representative: Kevin Huang, Chief Executive Officer

Main Representative: Patrick Ko, Director Amelie Cheng, Senior Client Service Executive Henry Wood, Business Director (Hong Kong)

Eight Partnership www.eightpartnership.com Representative: Louise Hammond, Online Business Director Emporio Asia www.emporioasia.com Representative: Vincent Kobler, Chief Executive Officer Eureka Group www.eureka-group.com Representative: Louis Yang, Director

Reuters Group www.reuters.com.cn Representative: Glenn Asano, General Manager, Consumer Services Shanghai Xianda Info Tech Representative: Minchu Mo, Director

Ion Global www.ionglobal.com Tel: +852 2865 5880

Main Representative: Marcus Crowley, Managing Director, Hong Kong Cyrus Ma, Account Director Garland Mak, Marketing Manager Ginny Wong, Marketing Executive

SCMP.com www.scmp.com Tel: +852 2565 2222

Main Representative: Chris Axberg, Publisher Don Anderson, Manager, Marketing & Communications Pen Kwok, Business Development Manager David Savelson, Assistant Director, Multimedia

Tektronix www.tektronix.com Representative: Gapun Tang, Marketing Program Manager, Asia Pacific Region

Eureka Technology Partners www.eureka.lk Representative: Sanjay Mendis, AGM Marketing

Tree & Me www.treeandme.com Representative: Andrew Harris, Director

Gary Ho, Marketing Manager Li Ting Low, Regional Interactive Marketing Manager

Johnson & Johnson Vision Care Asia Pacific www.jnjvision.com Tel: +65 6827 6000

Factiva www.factiva.com Representative: Irene Leung, Marketing Manager, Dow Jones & Co.

USA Today www.usatoday.com.hk Raymond Suen, Managing Director, Asia Pacific WebPro www.eeplace.com Representative: Larry Kwang, Founder

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Think Partnership www.thinkpartnership.com Tel: +852 2166 8614

Fluid www.fluidhk.com Representative: Simon Squibb, Marketing Director

Main Representative: Phil Ingram Benjamin Condit

Forbes.com www.forbes.net Representative: Inez Albert, Regional Sales Director forumline www.forumline.com Representative: Meraj Huda, Principal Consultant Frenzoo www.frenzoo.com Representative: Simon Newstead, Managing Director Gravitas www.gravitas.com.hk Representative: Ricky Chu, Sales & Marketing Director G S Quantum Multimedia www.gsqm.com Representative: Gary Gopinathan

Who Digital www.whodigital.com Representative: Julie Fitzpatrick, Business Director X.ON Communications www.thexon.com Representative: Felix Leung, Director

OgilvyOne www.ogilvy.com Tel: +852 2568 1177

Yo-So Technologies www.yo-so.com Representative: Jeff Chui, Chief Search Engine Marketer

Main Representative: Sean Rach, Managing Director Jason Kwong, Head of Interactive, Business Director

TribalDDB www.tribalddb.com Tel: +852 2828 0310

Main Representative: Adam Good, President, Greater China Jenny Williams, Managing Director Australia

Omniture www.omniture.com Tel: +61 4 2261 6398

Main Representative: Marc Gagne, Director Sales & Client Services APAC Anthony Lam, Technical Account Manager, Asia

WebDNA Interactive www.webdna.com Tel: +852 2581 2918

iMagic Systems / MyClick Media www.myclick.hk Representative: Rupert Purser, Chief Executive Officer

Main Representative: Leonard Chan, Chief Executive Officer

Isobar Global www.isobar.net Representative: Barney Loehnis, Network Director, Asia 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

Email: contact@asiadma.com Web site: www.asidma.com

Fax: +852 2973 6900

Tel: +852 2973 0222

© Asia Digital Marketing Association 2007