11th November, 2009 By Francis Fong Chairman Hong Kong Association of Interactive Marketing

Respondents Demographics The respondents of this survey are mostly executives in Media and Marketing Agencies (19%), the Service industry (24%), or the IT&T sector (21%). Other respondents are quite equally distributed among those in the manufacturing & trading business, retail, government or institutions or other industries. Most are age 36 or above (43%), or aged between 26-35 (35%), with a small group aged between 19 to 25 (7%). 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.

The respondents of this survey are mostly executives in Media and Marketing Agencies (19%), the Service industry (24%), or the IT&T sector (21%).

Other respondents are quite equally distributed among those in the manufacturing & trading business, retail, government or institutions or other industries.

Most are age 36 or above (43%), or aged between 26-35 (35%), with a small group aged between 19 to 25 (7%).

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.

User Behaviour 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. 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. Question: Have you used mobile phones for marketing in past 6 months??

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.

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.

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. 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%). 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%). User Behaviour 34% 8% 22% 14% 22% Question: Why do you not consider using mobile phones for marketing?

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.

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%).

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%).

User Behaviour In spite of those concerns though, marketers found many reasons to support mobile marketing. 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. 32% 18% 7% 14% 26% Question: What do you think are the business benefits of mobile marketing?

In spite of those concerns though, marketers found many reasons to support mobile marketing.

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.

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% 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. 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. 95% 64% 64% 61% 61% 45%

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.

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.

Market Demand 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. 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. Question: What percentage of your total advertising budget did you spend on mobile advertising? 4% 36% 18% 42%

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.

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.

Awareness of Service Providers 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. 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%

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.

Conclusion 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. 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. 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. 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. 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.

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.

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.

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.

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.

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.