India, Australia and China play a significant role In the January 2016’s APAC digital marketing stats. This month Mobile payments, retail growth, Netflix, marketing technology and ad spends are all in the mix.
Cashless Payments: Going Mobile and Beyond
Smartphones have radically changed the way people do things – from communication, to gaming and entertainment, to other forms of connectivity. One of its functions which is gaining in popularity among the tech-savvy, digitally-inclined consumers today is as a mobile wallet. Mobile payment systems find themselves rank higher as against other cashless payment systems like cheques, debit and credit cards and even other online payment methods. It is the most convenient way of transferring funds whenever needed due to security, convenience and ease.
Asian consumers are driving up the global average of transactions made on the mobile devices by using payments methods such as Japan’s JCB.
Adyen, the global payments technology company, which tracks mobile payment data from web-based transactions published its latest Mobile Payments Index (MPI). As measured on Adyen’s network:
Chinese Retail All Set To Boom
The Chinese consumer market, is in the midst of a transformation that offers tremendous new opportunities. Three great forces which are steering this transformation are:
The Boston Consulting Group has released its predictions for China’s total consumer market, which is projected to expand by about half, to $6.5 trillion, by 2020. Online transactions will represent 42% of this $2.3trillion growth.
Demand for premium goods and services—such as healthy foods, education, and travel, rather than just the daily necessities—will accelerate not just in the biggest cities but also among the upper middle class growing outside of Beijing, Shanghai and Guangzhou.
Indian Retail Sector Is Also Thriving
It’s not just Chinese retail sector that is set to flourish, Indian retail will also double in value by 2020, according to a Confederation of Indian Industry and BCG report.
The retail sector in India is emerging as one of the largest sectors in the economy. Riding on income growth, rapid urbanization and more nuclear families leading to higher per capita consumption, Indian retail market is projected to grow from $630bn in 2015 to between $1.1tn and $1.2tn in 2020.
While the overall retail market is likely to grow at an annual rate of about 12%, organized retail is projected to grow at 20% and e-commerce at 40-50%. Organized retail will account for about 12% of the retail market by 2020.
Also by 2020, about 650 million consumers will be online, of which 350-400 million would be “digitally influenced”, helping e-commerce to grow from $8-12 billion in 2015 to $45-50 billion in 2020 .
Netflix In India Targets The Upper Middle Classes
Netflix is the world’s top video streaming service that allows users to watch content on screens ranging from a smartphones to a smart television. Netflix launched its services in India in January 2016. At a price point of 500 rupees, the Netflix subscription is steep when compared with home-grown competitors like Eros Now whose subscription starts at Rs.49 per month which is 10 % of Netflix’s price, while Hotstar is available for free. And then, there is rampant piracy.
The wealthier consumer who have the ability to pay for its subscription and are aware of the western shows are being targeted by Netflix that will initially offer western content, before adding more Indian entertainment.
Marketing Technology Surprises: Companies Invest More In Marketing Technologies That Are Easy-To-Use
Marketing is becoming more digital and because of this, it seems that technology is increasingly becoming an integral part.
Econsultancy surveyed around 450 marketing, digital and ecommerce professionals based in Australia and New Zealand about their marketing technology, how they use various technologies, and their current and future marketing technology priorities.
One of the surprising findings is illustrated in the graph below.
In order to find out why companies were investing in various marketing technologies, Econsultancy listed 15 different systems and asked marketers to tell, for each:
The size of the circle corresponds to the investment made in the technology.
As it is visible from the graph that there are certain technologies (mainly social listening and management) that seem to have large investment relative to their criticality. What this probably means, is that marketers show a tendency to invest in a non-critical technology as long as it is easy to use!
Growth in Australian Advertising Spend
Australia’s advertising expenditure grew 4.5% in 2015 taking the size of the media agency market to a gigantic A$ 7.9 billion, with digital seeing a 20% growth.
According to Standard Media Index there was an overall increase of A$ 338million being spend on Australian media.
In spite of strong growth from digital media, it was Cinema that had a record year spend and was up by 37.2%. It was partly influenced by big releases such as Star Wars. The good old radio was up 7.8%.
As the digital screens proliferated, the Out-of-home sector made a comeback in 2015, up 16% in spend.
Change in Australian Newspaper Readership
Smartphones are gaining popularity as a platform for reading news in Australia and is becoming one of the fastest growing medium.
According to a data released by New Enhanced Media Metrics Australia, the readership on smartphone devices has increased 8% to 3.6m.
On the other hand, a whopping 9.8m readers still access the news content on their laptops or desktops. The Tablet news apps have readership at 3m.
The combined figure for digital readers is 11.6m which is behind the 13.8m that read print which is soon on a decline.