Audience Environment

Interactive

Digital Marketing Trends

HCMC July 17, 2007 Prepared by: Russ Conrad Managing Director New Media Vietnam

Agenda Vietnam Internet Trends

Web 2.0 Trends

Marketing 2.0 Trends

Key drivers of online advertising Growth

GDP Growth

VIETNAM HAS IT ALL

Growth in Internet Advertising

Improved Internet Infrastructure

Lower Internet and ADSL Cost

Greater Investment in Web Content

Increased Demand for Digital Advertising

Time

Higher Internet Penetration

Vietnams Digital Generation has a diverse user base

Factory Worker in Saigon Export processing district Net Pay = $50 per month $1.50 haircuts $.60 shampoo $1.00 Hair ties $.18 per hr Internet chat and gaming

Internet user growth pace in Vietnam in past 5 years

8, , 4, Number of users 2, , 8, , 4, 2, , , , , , , , , , ec- 3 ec- 4 ec- 5 Time ecpr- 7

14,683,783 10,710,980

15,760,702

6,345,049 3,098,007

(Source: Vietnam National Internet Center http://www.thongkeinternet.vn/jsp/trangchu/index.jsp )

Vietnam is the leading SEA country in terms of # of users

Country

Total population

Online Audience

Mobile

ID MY PH SG TH VN

221,900,701 27,392,442 85,712,221 3,601,745 63,456,000 83,944,402

15,300,000 11,000,000 12,000,000 2,400,000 11,900,000 15,760,000

INCREASED ADVERTISING BUDGETS, AND THE MASS REACH OF THE INTERNET IN VIETNAM, WILL CREATE A LEAP FROM AFFECT IN ADVERTISING

Mobile Phone Consumption

Count y Total population Online Audience Mobile population Penet ation

ID MY PH SG TH VN

221,900,701 27,392,442 85,712,221 3,601,745 63,456,000 83,944,402

15,300,000 11,000,000 12,000,000 2,400,000 11,900,000 15,760,000

46,900,000 17,500,000 34,800,000 4,100,000 32,400,000 13,000,000

21% 64% 41% 114% 51% 15%

Vietnam has the lowest Mobile Penetration in South East Asia With the fastest growing GDP, Mobile penetration will not be far behind 4 local companies have been investing in Fixed WiMAX services: VNPT, FPT Telecom, VTC and Viettel since 2006.

Web .0 Video

The business 2.0 opportunities in S.E. Asia (Localization)

Web 1.0
The mostly read only Web Opportunity 250,000 Web Sites
DoubleClick Ofoto Akamai mp3.com Britannica Online Personal Websites Domain Name Speculation Page Views User Screen Scraping Generated Publishing Content Content Management Directories(Taxonomy) Stickiness

2.0
Collective Intelligence

Published Content

Adwords Flickr BitTorrent iTunes Wikipedia Blogging SEO & SEM CPC, CPA Published Web Services Content Participation Wikis Tagging (Folksonomy) Syndication

User Generated Content

1996: 45 Million Global Users

2006: 1 Billion + Global Users

Social Networking
Globalization meets Web 2.0

Email Marketing
Advertorials

Blog Marketing Web Analytics

Widgets
Web Seeding

MARKETING .0
Ad Serving

Webisodes

Viral Ads
Search Marketing

Branded Games
Flash Microsites

Red Bull Engages via a Can Sculpture Contest

Red Bull Art of the Can young adults create sculptures out of red Bull cans and submit photos of their handiwork to the web. The prize is a trip for two to Switzerland.

Axe Launches brand Using Marketing .0 Best Practices

Formed a band like the pussy cat dolls Created web only videos release on Youtube. Utilize edgy humor that crosses borders

Boom Chicka Wah Wah USA Super market Boom Chicka Wah Wah USA home Boom Chicka Wah Wah Japan

Viral Ad reaches 2m visitors spending avg. 8:54 min

Axe Thailand

Axe Results

Country

Date entered

Market share

Thailand Columbia USA Japan Philippines Britain Argentina Chile India

1995 00 00 2007 19 5 1991 19 6 19 1999

10.9% 11. % 1 .5% 14% 19% 19.5% 0. % 1.5% .6%

USA released web based videos showing the Axe affect.Millions forwarded it to friends Axe grew from Zero to a $500 million business in 006. Japan Axe entered the market with a viral video that showed teens snowboarding down a mountain with girls following. 6 weeks after launch axe had 1 % market share.
Source: Business week July 2, 2007

Mitsubishi tries TV-to-Online cross-media marketing TV-tocrossSuperbowl TV Commercial Mitsubishi website

15 Second TV Advertisement drove over 11 million hits in the 6 hours to the seewhathappens.com

66% of these people watched the full 50 second spot + times

Case Study: Doritos Crash the Super Bowl

Doritos asked users to create their own Superbowl Commercial

DORITOS stats 1,100 movies 2,149,762 streams 17,949 loves 14,775 comments
5,000,000 media impressions

Integrated Digital Marketing

An Idea is nothing more nor less than a new combination of old elements Jack Foster

Being that about 50% of all ad budgets come from the brands represented in this room, then its important that everyone think about activities they can do with their 5% digital budget

Other Marketing .0 Activities

Axe Viral show axe feather other Red bull art of a can Mitsubishi show offline to online Doritos yahoo Choose your ending

content
Web .0 video Web .0 what is it? wikipedia definition Marketing .0 What is it? wikipedia definition Examples of Marketing .0 Fotune article mickey mouse Biz week article unilever. Take the key points from the oreilly article and highlight and talk about them. this into marketing .0. lessons to take from web .0. Ask a few questions to the audience push

Im honored to speak today. When roger asked me to help organize this event I had no idea how many Agencies companies and individual interest there would be in a seminar like this. I never expected to speak to a packed room but I think its a testament to the interest and intrigue into the new form of media that is less than 1% advertising spend. I sat down to put this presentation together on Saturday night. I was in a caf that normally has internet. However the internet was having problems. I turned to my phones gprs function and spent hours using wikipedia to compile all the content for this presetnation. While this is not a seminar that focuses on Mobile marketing I want to put in a small plug. I hope I can provide you with some information or insight into digital media that you can successfully implement in your marketing plans. When ever I am asked to speak at an event like this I usually fight for the topic of New Trends. It is a very broad topic and allows me to brush up on what is the latest buzz words in the industry. Today I havd chosen to focus on a few buzz words that may be mis understood. Web .0 Markting .0 and Integrated digital marketing.

Conclusion Internet advertising is the future. Take baby steps test and learn before you invest big money. The knowledge of what works in Vietnam is being created by the individuals in this room. Whats great in vietnam is that we dont have to reinvent the wheel. We need to look at the pieces of global campaings that were effective and package it in ways that will connect with Vietnamese. For example instead of Pimp by ride = pimp my bike.

Where Web .0 Started The web .0 phenomenon is what is taking hold right now in Vietnam and has lead to a huge grown in the internet. Examples include:
Yahoo 60 over 1 million users Clip.vn video sharing that started Flickr Photo sharing over 500 000 users

Web .0 lessons:
The service automatically gets better the more people use it. Network effects from user contributions are the key to market dominance in the web .0 era

Total Ad Spend (US$)

Asiapac 000 2001 2002 2003 2004 2005 2006 2007 2008 1 0 69,819 69,988 73,961 78,801 82,760 87,698 94,467 102,148 Australia 59 5 5,649 5,758 6,296 6,948 7,514 7,920 8,378 8,826 Hong Kong 546 1,867 1,850 1,847 2,247 2,499 2,762 2,902 3,125 Japan 42,388 41,679 38,845 38,813 40,323 40,928 41,750 44,173 45,536 S Korea 5,945 5,871 6,776 7,059 6,798 6,579 6,652 6,785 6,968 Taiwan 1,793 1,939 1,961 2,145 1,751 1,814 1,893 1,990 2,103 Thailand 1,275 1,494 1,687 1,943 2,100 2,198 2,339 2,506 2,698 Vietnam 131 147 162 214 263 297 343 392 451

Source: Zenith Optimedia WPP Report

Online ad spend (US$)

Asiapac 2000 2001 2002 2003 2004 2005 2006 2007 2008 777 883 1,116 1,569 2,408 3,434 4,207 4,985 5,733 Australia 61 45 123 174 286 436 589 736 883 Hong Kong 14 10 10 15 16 17 18 20 22 Japan 545 679 781 1,093 1,677 2,485 3,027 3,583 4,111 S Korea 119 112 162 236 343 394 446 490 539 Taiwan 26 25 29 33 59 73 90 107 117 Thailand 6 4 4 4 9 11 22 30 40 0.3 0.3 0.4 3.0 5.0 8.0 Vietnam

Source: Zenith Optimedia, WPP Report

Online as % of total (US$)

Asiapac 2000 2001 2002 2003 2004 2005 2006 2007 2008 1.1% 1.3% 1.6% 2.1% 3.1% 4.1% 4.8% 5.3% 5.6% Australia 1.0% 0.8% 2.1% 2.8% 4.1% 5.8% 7.4% 8.8% 10.0% Hong Kong 0.4% 0.5% 0.5% 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% Japan 1.3% 1.6% 2.0% 2.8% 4.2% 6.1% 7.3% 8.1% 9.0% S Korea 2.0% 1.9% 2.4% 3.3% 5.0% 6.0% 6.7% 7.2% 7.7% Taiwan 1.5% 1.3% 1.5% 1.5% 3.4% 4.0% 4.8% 5.4% 5.6% Thailand 0.4% 0.3% 0.2% 0.2% 0.4% 0.5% 0.9% 1.2% 1.5% Vietnam 0.0% 0.0% 0.0% 0.1% 0.1% 0.1% 0.9% 1.2% 1.7%

In 2008, Vietnam will pass its peer SEA countries in Percentage of budgets that go online
Source: Zenith Optimedia, WPP Report

Online as % of Total Adspend

2010 By 2010, the digital ad market is estimated to be $30,000,000 in Vietnam. What does this mean to Advertisers?