Digital Marketing. Hong Kong Advantages and Opportunities. Olivier Legrand, Head of Marketing Solutions, Asia Pacific & Japan LinkedIn
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1 From a marketer s perspective, we felt it necessary to have a presence in Hong Kong because Hong Kong is a hub for headquarters more than 2,400 global companies have set up their regional headquarters here. Having an office here and being able to deliver our services close to these companies is important. Olivier Legrand, Head of Marketing Solutions, Asia Pacific & Japan LinkedIn The robust growth of the internet and mobile economy in the region has led to an upsurge in demand for digital advertising and marketing services. Global adspend grew at 5.5 percent in 2014 to US$537 billion, with internet advertising accounting for around one-quarter (US $121 billion). Over 50 percent of companies plan to increase their digital marketing budget in 2015 (Gartner). Asia Pacific accounted for 28.6 percent of global digital adspend in 2014 (ZenithOptimedia). By 2019, digital will be the largest medium for advertising in China (Media Partners Asia). In 2015, ecommerce transactions in China are projected to hit USD 540 billion. By 2020, China s ecommerce market is expected to be larger than those of the US, UK, Japan, Germany and France combined (KPMG). Strategically located in the heart of Asia, Hong Kong is the ideal gateway to servicing key markets in this region. Hong Kong Advantages and Opportunities Ideal Gateway to Robust Growth in Asia Pacific By 2016, Asia Pacific is expected to account for over one third of all global mobile ad spend, reaching US$9.5 billion (Gartner) Asia Pacific is the 2nd largest digital advertising market in the world in 2014 with China being the Asia Pacific s leader in digital advertising, accounting for over 46 percent of all regional expenditures, a trend that will continue through 2018 (emarketer) There were over 649 million internet users in China in 2014, with the proportion of users who went online with a mobile device continued to rise. The country s internet penetration rate is only 47.9 percent (China Internet Network Information Center). China Singles Day shopping spree on 11 November 2014 set world record in online sales at US$9.3 billion, reaching shoppers in 200 countries In 2014, nearly 430 million people in China used a mobile search engine, which was 77.1 percent of all mobile internet users in the country. (China Internet Network Information Center) Total digital search ad spending in China is forecast to reach $14.79 billion in 2015, up from $11.14 billion in Total mobile internet ad spending is expected to rise 90 percent in 2015 in China (emarketer) Geographically Hong Kong serves as an ideal regional hub to access the booming digital advertising market in Asia Pacific and China A Vibrant Market with Strong Demand Hong Kong has 87 percent smartphone penetration rate, 96 percent mobile internet usage rate, which are highest in Asia Pacific (Nielsen, Google & Ipsos) In Hong Kong, advertising spending will be 1.07 percent of gross domestic product by 2018, much higher than in other Asian economies (PWC). 84 percent of marketers in Hong Kong will increase their digital marketing budget in 2015 (Nielsen) Social media will continue to be the third largest advertising platform in 2015, taking 8 percent of advertising spend ahead of magazines (7 percent), display (7 percent) and mobile (6 percent) (Nielsen) Hong Kong is ahead of the curve in mobile marketing adoption, marketers are more ready to adopt mobile channels compared to Australia and Singapore (Experian-The Digitized Pocket) Hong Kong has a highly developed consumer and financial market, which offers an excellent testing ground for marketing concepts and techniques Excellent ICT Infrastructure 239 percent mobile penetration rate and household broadband penetration rate >83 percent, representing one of the highest penetration rates in the world The world s fastest speed for internet access (Akamai Technologies, 2014) 4G services utilising Long Term Evolution (LTE) technology are widely deployed in Hong Kong. Mobile service subscribers can enjoy data downlink speeds of up to 300 Mbps which enables fast and excellent download quality for videostreaming and web browsing on mobile devices Over 30,000 public wi-fi access points all around the city World-class connectivity provides an excellent online and mobile platform for digital marketers
2 Canadian Digital Marketing Firm Going from Strength to Strength People are the key to our success in Asia Pacific and there is no other place like Hong Kong in terms of talent pool. Jeff Kwok Director of Business Development, Asia Neverblue & Pulse Mobile Neverblue & Pulse Mobile set up its regional head office in Hong Kong to capture explosive growth in Asia Pacific Headquartered in Victoria, British Columbia, Canada, Neverblue & Pulse Mobile are GlobalWide Media businesses. GlobalWide is a leading digital marketing company group based in Los Angeles, specialising in generating online sales and transactions for clients from various industries, including travel and online retail. The company drives ecommerce transactions by harnessing the internet s top web and mobile inventory via a full spectrum of online marketing channels. Its clients are mostly large brands with a global presence. Asia is the largest and fastest growing digital market in the world. Our Hong Kong office positions us to meet and exceed our client demand and deepen our existing Asian relationships, Jeff Kwok, Director of Business Development, Asia, Neverblue & Pulse Mobile, said. Hong Kong is at the heart of Asia, within roughly three hours flying time to other Asian cities. With more than seven million inhabitants, the city is a market in itself and has attracted companies from all over the world to set up their regional offices here. Hong Kong is famous as a fast-paced business environment and for digital marketing; we need this speed and efficiency to grow our market, he added. With more than 10 years of experience in digital marketing, Neverblue & Pulse Mobile s new strategy is to focus on ecommerce and mobile commerce transactions for clients. Alibaba, Taobao and Expedia Group are some of the company s key clients. To cope with business expansion and increase operation efficiency, the staff size has grown from two to 10 since its establishment in Hong Kong. Neverblue & Pulse Mobile s business model is based on cost per acquisition, i.e. the advertiser only pays when an advert generates a sale or creates a new user. This get before you pay concept enables advertisers to minimise overheads and maximise returns. Mobile Growth Kwok is particularly impressed with the growth of mobile devices in the city. Hong Kong people are spending more time on their mobile phones than personal computers, partly because of the limited space at home, and partly because they like to shop and dine out, which increases the demand for mobile internet, Kwok said. Kwok attributed the company s rapid growth to a unique vision, a clear strategy to support that vision, the commitment to longterm success, and the right talent to support the operations. People are the key to our success in Asia Pacific and there is no other place like Hong Kong in terms of talent pool, he said. Neverblue & Pulse Mobile found InvestHK s support very helpful, ranging from introductions to potential business partners in the industry to practical issues such as visa applications. Neverblue & Pulse Mobile Headquartered in Victoria, Canada Has 10 years of experience in digital marketing Original date of publication: May 2015
3 Mastering Big Data Data agency Fifty-five is accelerating its global expansion with its launch in Hong Kong Hong Kong is our first step to Asia. It s where most of our clients are based and it is a fast-growing market. Cedric Delzenne, Programme Manager Head of Hong Kong office Fifty-five Fifty-five is a data agency which helps advertisers leverage their data to increase business performance and adopt a smarter marketing approach. It helps business collect, enrich and activate their data to find new customers, foster engagement, increase conversion, and drive sales across online and offline channels. Clients are mainly from the fashion, luxury, hospitality and retail industries. We ve considered a couple of options and have eventually chosen to set up in Hong Kong as it is our first step to Asia. It s where most of our clients are based and is a fast-growing market, Cedric Delzenne, Programme Manager, Head of Hong Kong office, said. Big data now stands at the crossroads of many company s IT, advertising, marketing and ecommerce activities. One of Fiftyfive s goals is to help clients increase customers online purchase through reliable data. Instead of being driven by intuition, a company s decision should be fact-based, Delzenne said. Fifty-five is a certified Jeune Entreprise Innovante (Young Innovative Company) and is supported by Bpifrance, the French agency for innovation and SME development. Together with about 2,000 selected startups, Fifty-five is a member of the Bpifrance Excellence Network. Delzenne attributed this success to a very selective recruitment process, and giving employees the time and support to be innovative. We encourage our employees to be at the forefront of innovation for our clients. Innovation is at the core of everything we do, he said. He moved to Hong Kong five years ago. The longer I stay, the more I love this city. Hong Kong is the only place I know where one can work hard but still have a balanced way of living. It is very easy to make connections and is a great city for entrepreneurs and startups, he said. Delzenne has also witnessed a big improvement in how innovation is supported by the Hong Kong SAR Government. He found InvestHK s StartmeupHK Venture Programme phenomenal and noted the number of high profile international speakers being attracted to events in the city. He also appreciated the department s support in the setting up process, especially in providing market information, publicity support and connections to potential partners. Fifty-five Founded in France in 2010 Offices in Paris, London and Hong Kong Original date of publication: May 2015
4 You must be committed to what you do. There are always good times and bad times and you must have the courage and strength to keep things going when something knocks you down. Specifically for startups in the creative industries, one must strive to deliver the best project and as original as possible. Do not follow, but lead. João Seabra, Partner and Executive Creative Director Jump Willy Having gone through the process of starting a business from scratch, Seabra s motto is never give up. Founded in 2007 in Porto, Portugal, Jump Willy is a creative studio with a multidisciplinary team which develops, conceptualises, and produces custom made content in all forms of digital media for advertisements, corporate videos, branded entertainment and animation TV series. It quickly expanded to London, Los Angeles, and now Hong Kong, working with dozens of brands around the world. Useful Links Create Hong Kong Cyberport Digital + Direct Marketing Association Asia HK Advertisers Association The Association of Accredited Advertising Agencies of Hong Kong Hong Kong Association of Interactive Marketing Hong Kong Innovation & Technology Fund Hong Kong Institute of Marketing Hong Kong Science and Technology Parks Corporation Hong Kong Wireless Technology Industry Association SME Funding Schemes Contact Doris Fong Head of Creative Industries 25/F, Fairmont House, 8 Cotton Tree Drive, Central, Hong Kong Tel: (852) Fax: (852) dfong@investhk.gov.hk InvestHK is the department of the Hong Kong Special Administrative Region (HKSAR) Government responsible for Foreign Direct Investment, supporting overseas and Mainland businesses to set up and expand in Hong Kong. We partner with clients on a long-term basis and are available at any stage of their business development process. Copyright Invest Hong Kong, May All rights reserved. 25/F, Fairmont House, 8 Cotton Tree Drive, Central, Hong Kong Tel: (852) enq@investhk.gov.hk
5 LinkedIn Expands Hong Kong Operations Two years after setting up in Hong Kong, LinkedIn has moved to a bigger and more prominent office, signifying the firm s commitment to the city People live here, operate and develop their business here, meet their partners and potential clients from this part of the world. We felt it s the natural place for us. Olivier Legrand, Senior Director, Marketing Solutions LinkedIn APAC & Japan LinkedIn, the largest global online professional network, has nearly doubled its global revenue to US$473.2 million in the first quarter of 2014 than the same period in In 2012, it established an office in Hong Kong to develop North Asia business. Since then, Hong Kong members has doubled to 900,000. In 2014, two years after its opening, LinkedIn Hong Kong has expanded and moved to a 10,000 square foot office at Hysan Place, Causeway Bay, with more than 50 employees. We crossed the 50-million member mark in Asia in February 2014, Olivier Legrand, Senior Director, Marketing Solutions, LinkedIn APAC & Japan said. Hong Kong is a strategic growth market in Asia Pacific to us. The city has the highest growth through mobile and is among a few countries in the region that is leading the mobile moment. According to Legrand, more than 50 percent of traffic on LinkedIn comes from mobile devices as compared to desktop. The Hong Kong office has different functions, including LinkedIn Marketing Solutions and Talent Solutions. Serving clients and members across North Asia, LinkedIn believes in a member first approach. They are mainly involved in a diverse range of industries, especially in financial services, IT services, higher education, telecommunications, and marketing and advertising sectors. Asia s Business Hub to Connect to Professionals From a marketer s perspective, we felt it necessary to have a presence in Hong Kong because Hong Kong is a hub for headquarters - more than 2,400 global companies have set up their regional headquarters here, Legrand said. Having an office here and being able to deliver our services close to these companies is important. Other factors that were equally attractive included Hong Kong s strategic location in the heart of Asia. It is located very close to other places that are important to us like Taiwan, Japan and Korea. So we set up an operation here to be responsible for North Asia, he said. There s a great connection to our mission statement of connecting the world s professionals, making them more productive and successful. People live here, operate and develop their business here, meet their partners and potential clients from this part of the world. We felt it s the natural place for us, he added. Strong Business Uptake LinkedIn saw strong uptake of its solutions, especially Marketing Solutions and Talent Solutions, and a lot of interest from marketers. Cathay Pacific is a very successful client case as they used LinkedIn to increase brand awareness among people who travelled business class between the US and Asia two years ago. Legrand found the setting up process efficient. When we decided to open the Hong Kong office, our finance director leveraged InvestHK s support. We continue to be very pleased with our choice to be in Hong Kong to develop our business in this part of the world, he concluded. LinkedIn Established in 2003 Professional social networking with more than 300 million members worldwide Supports 23 local languages, including eight Asian languages Employs more than 5,400 staff worldwide investhk.gov.hk Original date of publication: July 2014 Copyright Invest Hong Kong, May All rights reserved.
6 More Face for Hong Kong The opening of Facebook s new office in Hong Kong heralds an exciting journey ahead With a mobile penetration rate as high as 238 percent and the fact that 83 percent of homes in Hong Kong have high-speed internet, social media like Facebook would be one of the best and easiest ways to capture new customers. Jayne Leung, Head of Greater China Facebook According to Facebook, more than half of Hong Kong s population (4.4 million people) use the social network and spend 13 minutes on average each time they log on. Facebook is a natural fit to the mobile platform. With a mobile penetration rate as high as 238 percent and the fact that 83 percent of homes in Hong Kong have high-speed internet, social media like Facebook would be one of the best and easiest ways to capture new customers, Jayne Leung, Head of Greater China, Facebook, said. Personalised Marketing Today, advertisers have a plethora of choice when it comes to media options to reach their target audiences. Facebook is a platform for brands and it aims to make their marketing personal. It offers a range of tools for marketers to reach, target, optimise, measure and scale efforts. This makes it possible to maximise brand awareness at each consumer touch point, drive and meet conversion goals through multiple ad placements such as news feed and mobile news feed ads and other formats, and reach the most relevant target audience. The sales and marketing team in Hong Kong office is structured by key verticals which have high growth potential, e.g. FMCG, retail, mobile technology, financial services and travel. Our objective is to personalise marketing - the Facebook you see is different from the Facebook I see as we have different profiles and interests. This is our unique marketing edge, Leung said. According to a survey commissioned by Facebook and conducted by market researcher TNS in January 2014, Facebook outranks popular messaging applications and is the most favoured digital platform in Hong Kong. The survey also found that traditional media made less of a mark, with respondents planning to spend eight percent more time on Facebook, while spending 15 percent less time reading newspapers and watching television, and 21 percent less time browsing magazines. According to Leung, Hong Kong users particularly like watching or posting videos on Facebook and this would be a potential avenue for companies seeking to raise their profile in the city. With advertising as the major income stream, Facebook Hong Kong will actively promote to brands, SMEs and advertising agencies alike on how to use this social media site to grow their business. Facebook is also helping Mainland Chinese companies to make use of social media to promote their brands internationally. The whole idea of investing in this new Facebook office space stems from the fact that in Hong Kong, there is ample opportunity to further expand our business, especially in view of the very positive market response since we launched in The majority of our team handle sales and marketing support to better serve our clients, including multinational corporations, small and medium enterprises, and advertising agencies, etc. Looking ahead, we plan to recruit additional staff, Leung said. Facebook 1.32 billion monthly active users as of 30 June ,185 employees as of 30 June investhk.gov.hk Original date of publication: November 2014 Copyright Invest Hong Kong, May All rights reserved.
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