Hong Kong companies rapidly adopting digital advertising as the new normal.

Article in Chinese originally appeared in the Hong Kong Economic Times (page A26) May 17, 2016.

From the closure of iconic TV station ATV to the launch of new Free to Air TV station of Viu TV and newspaper HK01, to South China Morning Post offering its online edition for free, the media industry in Hong Kong changed a lot in past year. All the changes are because of the word "digital". Today, even TV stations are starting OTT services.
 
Banking & finance and tourism industries are pioneers
Many brands seem to have insight on consumers’ new habit on absorbing information, and are gradually changing their marketing strategy. According to "Advertising Spending Projections 2016 " conducted by the Hong Kong Advertisers Association and market research company Nielsen, 72% of respondents said they would increase digital advertising budget this year.  It is expected that digital advertising spend will increase to 41% from 11%, of which nearly two-thirds of the budget will be allocated to social media, online and mobile advertising.
 
Kevin Huang, CEO of digital advertising company Pixels said that development of digital marketing in Hong Kong was relatively slow compare to other markets, but there was big change in the past 1-2 years. "Many companies have kept certain amounts of data and begun to have the ability to launch targeted and personalized digital advertising. Their adoption of digital has also been trimmed from as long as 6 months to now  2-3 months.  Some brands have even expressed interest to try new platforms and innvoation on digital marketing. "
 
He believes that pioneers are banking & financial and tourism sector such as hotels while cosmetics and other fast moving consumer goods are investing more on mobile advertising. "Digital channels can help marketers to  achieve the marketing 3R: Reaching the Right audience at the Right time with the Right content.  For example, by analyzing the browser history on mobile phones, brands will know the user of certain mobile phone is a young woman and then will display a cosmetic related ads to her on websites. Such result will be much better than doing mass advertising." Pixels is also launching new "programmatic advertising solutions” with automated system to help brands quickly determine advertising time and online advertising channels.
 
Putting together online and offline play will lead to bigger effect
However, Kevin has seen some don't know where to start, or lack of knowledge towards different digital platforms. "We have seen some ‘let’s do it because others are doing it’ (herd) mentality. But in fact, with different objectives, brands should use different but suitable digital platforms.  Many years ago, a brand wanted to use digital advertising to promote to Japanese expats living in Hong Kong. I explained to them that the target group is a very niche one.  In fact, a lot of Japanese are staying in Taikoo Shing.  Distributing leaflets there will be more effective in this case.”
 
He pointed out that the best way is to do it at "360 degrees", with online and offline complimenting to each other. "For example, brands can do a 30-seconds ads on TV, invite consumers to view their 30-minutes micro-film on Internet, then promote an event on micro-film. Consumers do not live in the Internet world. Internet is only one of the many touch points"
 
Broadcasting online video after 10pm can generate viewership
Pixels CEO Kevin Huang believes the 3 major digital marketing trends in HK are advertising on mobile channels, video advertising (OTT) and programmatic display.  He mentioned the ‘marketing must-know’ at different platforms and marketers can take reference.
 
OTT (online video): supplement with offline media for promotion
Advertising on mobile channels: If an ad has repeatedly appeared 3 times on the same device without any click by the user, the content of the ad should be changed. "The ad is proved to be not effective if there is no click. Repeatedly appearing will only make consumers feel annoyed." He suggested brands to change the ad display mode starting from system set up.
 
In addition, marketers should do creative things leveraging different functions of mobile phones. "There is a camera on the mobile phone. Can we add selfie elements to the advertisement in order to get more clicks or participation? Like the previously launched " Carlsberg X IZZUE Fitting Room", there is virtual reality (VR) function at our App. This allows people to see the fitting room from different angles. "

Video advertising: prime time at traditional TV channels is from 20:00 to 2300, but broadcasting online video should be either during lunchtime or after 2200. "That is the time everyone is off work, after dinner, and start to play with mobile phones for leisure."
 
Huang reminded, users have less patience on Internet and mobile platforms: a TVC is around 30 seconds, while video on mobile phones should be shrank to 15 seconds.
 
Digital marketing recommendations
1.     3 major digital marketing trends in HK this year are advertising on mobile channels, video advertising and programmatic display
2.     Don’t have the ‘let’s do it because others are doing it’ (heard) mentality. Sometimes offline promotion is the most appropriate one
3.     Consumers don’t only live exclusively online. Adding online and offline advertising together will lead to bigger effect

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- for more information about advertising and marketing online, visit us at www.pixels.asia or www.gravity4.com

- Watch the recent Bloomberg TV Interview here of Pixels CEO Kevin Huang here. (Trending Business - April 28, 2016)