Are we ever going to catch up to Asia? It’s a refrain heard far more frequently on our shores in recent years.
Take automobiles. The Detroit versus Tokyo battle has resulted in more Toyotas sold here than GM, Ford or Chrysler. The topic of green energy often centers on what Washington is or isn’t doing juxtaposed against Beijing’s moves (or perceived indifference). Finally, what transpires in Seoul with Samsung is always contrasted with Apple’s moves in Silicon Valley.
The latest front in the East-West skirmish is in mobile marketing. Once again, the U.S. marketplace finds itself at a perceived disadvantage. So it’s fair to ask the question once again: Are we ever going to catch up to Asia?
Thanks to smartphones going mainstream in the U.S., the leader now wears red, white and blue—at least in terms of ad dollars. According to eMarketer’s December 2012 report, the U.S. surpassed Asia for the first time in mobile ad spending last year (including banners, video and rich media but not text) and by a fairly significant margin—$3.8 billion to $2.7 billion. By 2016, per eMarketer, the U.S. will exceed $20 billion, while Asia will reach $6 billion.
Indeed, America could be leaving Asia in the rear-view mirror when it comes to mobile ads, as promising mobile purveyors like SessionM, LeadBolt, MoPub, Greystripe and Millennial Media stockpile clients. Additionally, Facebook and Twitter’s iterations can’t be underestimated as brands warm up to social-mobile ads. But could the country that brought the world Jackson Pollock and the Jackson 5 still trail the land of math and science when it comes to mobile creativity? Absolutely, say those who have worked in digital marketing in both regions. The U.S. is still pretty much the bird dog chasing sky-high Asia when it comes to innovation, particularly in mobile commerce, they contend.
Three main reasons are at play. First, numerous Asian consumers use their cellphones—whether smartphones or Web-enabled feature phones—as their main computers, transacting purchases and playing games as actively as Americans do on their desktops and laptops. Second, the mobile infrastructure in most Asian countries—specifically South Korea and Japan—kills what’s seen in the U.S. And last but not least, Asians don’t hate mobile ads the way Americans do, according to some experts. “There is more acceptance of ads as a value-exchange mentality in Asia, particularly Japan,” says Andreas Bodczek, CEO of social gaming firm SponsorPay. “The whole mobile ecosystem is more vibrant.”
American marketers still have a lot of evolving to do, explains Xavier Facon, CTO of mobile ads firm Crisp Media. “What you are seeing here in the U.S. way too often is a media agency that just wants to check the mobile box and put something together badly on a short timeline,” he says. “Over there, they spend six months cultivating a mobile campaign, and what comes out is truly impressive. All of our showcase campaigns come out of Asia right now.”
Facon adds that Asian marketers have the luxury of lower-cost display ads, allowing brands to allocate funds towards innovative tools such as augmented reality. “[Cost-per-thousand] rates for publishers can be as little as $3 or $4 for Korea and Japan,” he says. “In the U.S., you might pay $10 to $15 for a premium brand campaign.”
Asia’s M-Commerce Tips
Contrary to eMarketer’s forecasts, Facon sees brands increasingly target the massive number of on-the-go shoppers in the region. “Coca-Cola and Häagen-Dazs have begun to invest in Asia mobile heavily,” he says.
Unilever and Procter & Gamble also are notable innovators in rich media and QR code marketing in Asia, while Kellogg, Kraft and Johnson & Johnson are reportedly hiking their mobile spends in the region. Campbell Soup has been testing augmented reality, mobile display, mobile video and mobile search in Asia. “One of the benefits of being a global brand is we can learn so much from other markets,” says Adam Kmiec, Campbell’s global digital marketing and social media director. “Asia has been ahead of the curve when it comes to mobile for nearly a decade. We view mobile in Asia not just as a great way to meaningfully connect with consumers, but also a way to see what the trends will be in Latin America, the U.S. and other emerging markets over the next few years.”
Doron Wesly, head of market strategy for Tremor Video, worked in digital advertising in Asia from 2008-10 and noted how U.S. marketers could learn from Asia’s ability to convert text-message campaigns into sales. “They are using mobile very much as one-to-one marketing, with SMS offers when people walk by near stores,” he explains. “They are combining mobile payments with mobile advertising—something that’s not really done here in the U.S.”
Underscoring Wesly’s point, brands still consider Asia to be the bellwether for mobile commerce. With consumers there consistently buying stuff on their cellphones, says Marc van der Chijs, CEO of Spil Games Asia, the region offers a wealth of knowledge for digital direct marketers. “Mobile commerce is much more advanced,” he says. “Companies like Taobao, which is the Chinese version of eBay, have very advanced mobile apps that are easy to use.”