Enhancing cost-effective experience through Digital TV advertising

Dato’ Ricky WongC.E.O

Innovative & Cost-effective Advertising

8th & 9th June 2009Prince Hotel & Residence

Kuala Lumpur

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• How advertising affects the outcome of the sale

• Well crafted ads will persuade the buyer without the buyer realising it, guided subconsciously

• Impulsive buying

• Eg. Grocery shopping without shopping list

• Creating platforms to capture the attention of specific groups of consumers through digital TV advertising (PLATFORM)

• Enabling marketing messages to be disseminated in a more targeted manner to reach the right consumers (POSITIONING)

• Pinpointing the products and service sectors that would benefit most from an investment in digital TV advertising (PRODUCTS)

• Benefits of this much needed medium towards an efficient and cost-effective advertising (PRICE)

4 Ps to Powerful Promotions

• Drive more sales

• Have TV presence to attract larger clients

• Create brand awareness or a brand personality

• Who is the advert aimed at?

• What are the key messages or USPs?

• Is there a call to action?

What do you want to achieve with Digital TV advertising?

Worldwide number of Digital Billboards and Revenues for the Digital Billboard Manufacturers (Units as Number, and Revenues in US$ millions)

Old Rules of Marketing

• Advertising needed to appeal to the masses

• Advertising relied on interrupting people to get them to pay attention to a message

• Advertising was one-way: company to consumer

• Advertising was exclusively about selling products

• Advertising was based on campaigns that had a limited life

• Creativity was deemed the most important component of advertising

• Its was more important for ad agency to win advertisement awards than for client to win new customers

Selected Countries ADEX Expenditure 2005

Malaysian ADEX Market Share 2005* Before Digital/TransitTV

Broadcast ADEX 2005* Before Digital/TransitTV

Malaysia ADEX 2006* Before Digital/TransitTV

Malaysia's Adex shrinksby     2-Apr-09, 14:11

KUALA LUMPUR - Malaysia's advertising expenditure for the first two months of the year has shrunk by five per cent to RM830.8 million (US$228 million) from RM878 million.

The March general elections made up RM11.2 million or one per cent of adex for the first two months of last year. Omitting that amount means adex for the first two months of this year fell four per cent.

According to Nielsen research figures, newspapers have been the hardest hit, suffering a drop of nine per cent in January and February compared with the same months last year. Nevertheless, newspaper advertising still accounted for more than half the adex pie at RM465.7 million. Cinema advertising suffered the next biggest drop of seven per cent falling from RM4.2 million last year to RM3.9 million.

Adex for television dropped one per cent likely cushioned by the 12 per cent increase in January this year compared with the same month last year. Internet adex, which plunged 48 per cent in January this year compared to January 2008, also shrank one per cent.

The highest growth was for point-of-sale adex, which grew five per cent from RM12.6 million to RM13.2 million, followed by outdoor advertising which grew four per cent. Adex for radio grew two per cent to RM41.3 million from RM40.4 million.

Today’s Malaysian ADEX (2009)

Source: Media - http://www.brandrepublic.asia/Media/newsarticle/2009_04/Malaysias-adex-shrinks/35030

New Rules of Advertising

• Advertisers must shift their thinking from mainstream marketing to the masses to a strategy of reaching vast number of underserved audiences via Digital/Transit-TV

• Instead of causing one way interruption, advertising is about delivering content at just the precise moment your audience needs it

• Advertising is not about your agency winning awards, it is about your company winning business

• Market is fragmented due to the availability of new technologies and platforms

• Embrace , exploit and utilise new platforms to reach out to consumers – (evolve or die)

3Ms to Marketing

Out of Home

Digital Out of Home

Digital TV

TransitTV

Advertising

Includes traditional Billboards, and all advertisements in public places, cinema, shop window, bus stops , shopping malls, etc

Electronic Billboards, LED billboards, Digital Signage Networks, LCD screens

LCD screens specifically on public transportation hubs and networks

Digital content, and content-rich digital media

OOH – Out of Home Advertising

Despite the slowdown in 2009, OOH is forecasted to grow a compound average growth rate of 14.5% for the 2007 to 2012 period.

Digital Signage Network

Transit-TV

Measuring ROI

Content Creation

Content Production

Content Management

Content Distribution

Content Publication

Digital TV content Value Chain

Digital Signage Business Model 1

Digital Signage Business Model 2

Successful Applications

• Shopping Centres

• Airport Terminals

• Public Transportation

• Banks

• Travel Agents

• Car dealships

• In-Store TV networks

Summary

• Well-crafted adverts have significant impact on sales

• 4 Ps to Powerful Promotions (Platform, Positioning, Product , Price)

• New Rules of Marketing

• Digital OOH is the fastest growing advertising sector and the only one that is posting significant growth

DATO’ RICKY WONGChief Executive Officer

ASIA MEDIA SDN BHD(728838-H)

No. 35-1, 1st Floor, Jalan Bandar 16,Pusat Bandar Puchong,

47100 Puchong, Selangor Darul Ehsan, Malaysia.Tel: 603-5882 7788 Fax: 603-5882 6622

Email: ricky@asiamedia.net.myWebsite: www.asiamedia.net.my

Thank you