1. 11th November, 2009 By Francis Fong Chairman Hong Kong Association of Interactive Marketing
2. Respondents Demographics <ul><li>The respondents of this survey are mostly executives in Media and Marketing Agencies (19%), the Service industry (24%), or the IT&T sector (21%). </li></ul><ul><li>Other respondents are quite equally distributed among those in the manufacturing & trading business, retail, government or institutions or other industries. </li></ul><ul><li>Most are age 36 or above (43%), or aged between 26-35 (35%), with a small group aged between 19 to 25 (7%). </li></ul><ul><li>Respondents were asked a series of questions to investigate and understand what the state of Mobile Marketing was in Hong Kong, and what opportunities might exist for marketers, service providers and platform owners. </li></ul>
3. User Behaviour <ul><li>Of all those surveyed, almost 70% of all responded favorably in that they either are already employing mobile marketing, or intend to use mobile marketing in within the next 6 months or less. Of that figure, 36% said they were already using mobile marketing. </li></ul><ul><li>This is a very encouraging piece of information, because it points out that representatively more than a third of all marketers in Hong Kong are already mobile marketers. </li></ul>Question: Have you used mobile phones for marketing in past 6 months??
4. <ul><li>On the converse, around 30% of all respondents do not have plans to use mobile marketing in the next 6 months, or have no opinion on mobile marketing. </li></ul><ul><li>We believe a large part of this is because of misconceptions that mobile marketing is expensive (22%), that because their company size is too small mobile marketing is not right for them (22%), and that it is perceived as being not effective (14%). </li></ul><ul><li>While those reasons might deter certain marketers from choosing mobile marketing, a large reason they choose not to try mobile marketing is because they do not know how to use it for business (34%). </li></ul>User Behaviour 34% 8% 22% 14% 22% Question: Why do you not consider using mobile phones for marketing?
5. User Behaviour <ul><li>In spite of those concerns though, marketers found many reasons to support mobile marketing. </li></ul><ul><li>Most marketers believe that mobile marketing can reach their target market directly (32%) and can deliver a more personalized media (26%). Whereas, some marketers believe that it is cost effective (18%) and can be a marketing and publicity tool that can be measured (14%). Only 7% of respondents felt that mobile marketing could yield a higher ROI than other media. </li></ul>32% 18% 7% 14% 26% Question: What do you think are the business benefits of mobile marketing?
6. Awareness & Business Application Question: Which of the following mobile marketing tools have you heard of? 53% 26% 21% 70% 41% 38% 36% 70% 13% 17% 48% 29% 23% 49% 31% 12% <ul><li>While 34% of marketers do not know how to apply mobile marketing to their business, 100% of all respondents are aware of mobile marketing tools, and most are savvy with current mobile marketing tools. </li></ul><ul><li>Among the mobile marketing tools respondents are aware of, SMS had the most overwhelming awareness of 95%, with high awareness of Mobile Application Downloads (61%) like iPhone Apps, Bluetooth (64%), Location-Based Services (61%) and Mobile WAP (64%). Interestingly, 2D barcode also ranked a notable awareness rating of 45% among all respondents. </li></ul>95% 64% 64% 61% 61% 45%
7. Market Demand <ul><li>In terms of the demand for mobile marketing services in Hong Kong, there remains a healthy need. Of all those that indicated they intend to use mobile marketing, their anticipated budget allocation remains low at 5% or less of their annual budget, with 42% respondents in that group. 18% intend to spend between 6-10% of their budget on mobile marketing, with only 4% aiming to spend between 11-20% of their budget on mobile marketing. </li></ul><ul><li>Representing a huge potential pool of business for mobile marketing service providers, 36% of respondents have yet to take the plunge into the world of mobile marketing. </li></ul>Question: What percentage of your total advertising budget did you spend on mobile advertising? 4% 36% 18% 42%
8. Awareness of Service Providers <ul><li>The lack of understanding of mobile marketing may be due to the fact that when asked if they thought there were enough digital/interactive agencies in Hong Kong that know how to create effective mobile marketing campaigns only 18% responded with a “Yes”, while an overwhelming 47% believed there are not enough such agencies. Standing on the fence were 35% who were sure. </li></ul>Question: Do you think there are enough digital/interactive agencies that know how to create effective mobile marketing campaigns for your company or service? 18% 35% 47%
9. Conclusion <ul><li>There is a positive future for mobile marketing practitioners and service providers in Hong Kong. This can be seen by the high awareness of mobile marketing tools, a willingness to test the tools, and a preparedness to budget for it. </li></ul><ul><li>There is high awareness of mobile marketing tools among professionals, with 95% aware of SMS marketing, and more than half of respondents being aware of more advanced mobile marketing tools such as mobile WAP, LBS, Bluetooth and app downloads. </li></ul><ul><li>32% of respondents believe mobile marketing can reach their target market directly, and almost 30% believe it is a more personalized media. However almost 80% of marketers either spend less than 5% or none of their budget on mobile advertising. </li></ul><ul><li>We believe this is because 34% of respondents don’t know how to use it, and 22% think its too expensive. These hurdle can easily be overcome by working with professionals, unfortunately 35% of respondents don’t know of digital/interactive agencies that can create effective mobile marketing campaigns, and 47% don’t believe there are enough of such agencies in Hong Kong to assist them. </li></ul><ul><li>This is a great opportunity for mobile marketing professionals, because in spite of the reluctance to engage, almost 70% of respondents either currently use mobile marketing or are planning to deploy mobile marketing campaigns within the next 6 months or less. </li></ul>