2010 Q2 Industry Report – Steady growth recorded in Online Display Advertising Campaigns

Market Overview

The online display advertising market for 2010 Quarter 2 (Q2) in Hong Kong recorded a positive growth in the aspect of the number of campaigns and total ad spend. In 2010Q2, the industry summed up to a total of HKD$198 million in ad spend and 3,300* campaigns; which increased by 25% and 17% respectively when compared to Quarter 1(Q1), and rose by 23% and 11% respectively according to that in 2009Q2. There were 1,500* advertisers participated in those campaigns; which was 12% more than that in the previous quarter; while it dropped by 39% in accordance with that in the same period in 2009.

Chart 1: Online Display Advertising Campaigns in 2010Q1 and 2010Q2

Chart 2: Top 15 publishers in 2010 Q2 by ad spend

There was no significant change in the list of top publisher and top industry from 2010 Q2 to Q1. Yahoo!HK and Atnext.com were still the top publishers in 2010Q2 grouped by ad spend and amounted a total of HKD$60 million and more; whilst Yahoo!HK, Discuss.com.hk and Uwants remained top 3 publishers on the list by number of campaigns accounted for 1,900* in total. It reflects that the strategy for most advertisers focus on mass market to enable high exposure. On the other hand, there is no change in the top 5 industry by ad spend, still led by Accounting/Finance/Insurance industry, followed by Travel and Accommodation industry, Computer and Electronic Products industry, Education and Learning, and lastly Shopping and Retail industry.

When examining the period of the first 6 months in 2010 and 2009 full year, it showed no surprise in market growth or drop that both total ad spend and number of campaigns were half as that in the previous whole year. The significant change found in the number of advertisers only; for those the figure in 2010Q1&Q2 was one-third as that in 2009 full year.

Market Highlights

1) The trend of higher ad spend per campaign and per advertiser

The higher growth rate in ad spend (25%) than that in number of campaigns (17%) and number of advertiser (12%) implied the trend of higher ad spend per campaign and ad spend per advertiser. More diversified media plan was adopted by using more channels to promote one single campaign in order to increase the gross impressions from advertiser's perspective. From www.admomo.com, comparing 2010 Q1 and Q2, the ad spend per campaign shows an apparent growth in Automotive industry (144.1%), Household (135.3%) and Health and Beauty industry (42.3%) in ad spend.

2) Appearance of new-new advertisers

Though the number of advertisers in 2010Q1&Q2 was only one-third of that in 2009 full year, the online display advertising industry was supported by uprising number of new-new advertisers, for whom their banner ads were firstly found in Hong Kong in 2010Q2. They dispersed in Health and beauty industry, Shopping and retail industry, Accounting/Finance/Insurance industry and Education/Learning industry. More international brands, like Dunhill, Aigle and Sport.B, and brands from Mainland China, e.g. Fudan University and Agriculture Bank, newly participated in Hong Kong online display advertising market in 2010Q2. Meanwhile, the ad spend from those new-new advertisers was relatively high. For instance, Sport B., a new line under Agnes'b, already spent around HKD$1M solely in 2010Q2 and 3 campaigns held. Also, Fudan University, one of the famous universities from China, invested totally HKD$833K in just one campaign in the same period.

To conclude, there is a sign of positive growth in terms of ad spend per campaign, as well as ad spend per advertiser in 2010Q2 and the trend is likely to continue in the following quarters due to the expanding online channels and digital marketing budget of advertisers. It is also suggested that more global brands will participate in local online display advertising market, known as new-new advertisers to earn their brand awareness in Hong Kong. To gather more information on online display advertising, please visit our website via http://www.admomo.com/.

* Figures rounded to hundred

McDonald's Purchasing with Free Coca Cola Glass Promotions 2009/2010. Which year achieved greater impact on the market?

McDonald's launched purchasing with free Coca Cola Glass Promotions in 2009 and 2010 respectively. We will compare these two years' marketing strategies, online exposure and achieved results in terms of online advertising, website traffics and e-buzz.

A. Comparison on Online Advertising

2009/10 Campaign Creative

The scale of 2010's promotion is comparatively larger than the previous one in 2009 in terms of number of creative and number of publishers. Both 2009's and 2010's strategies focused on the mass market that revealed in the selections of publishers. In comparison, 2009's marketing strategy also targeted on the young generation that included some online games and sports related websites like NBA, HK RGOAL and Sun Zone in the media plan. In 2010, it extended the focus on the mass market by adding Discuss.com.hk and ON.CC on the publisher list.

B. Comparison on Website Traffic

After launching 2009's campaign, Alexa's statistics shown that the promotion triggered a peak of daily reach in the official website. Compared to the one in 2010, there was no significant change on website traffic during the promotion period.

C. Comparison on E-Buzz

2009's campaign aroused a tremendous e-buzz on the campaign launch day. It recorded 750 posts in one single day in numerous forums and blogs. During the campaign period, 576 topics and 3,586 posts were shown in 37 portals. There were totally 1,877 visitors involved in the discussions and 940,000 people who read the posts. In the period of the two campaigns in 2010, online posts cannot even reach one-fourth of the previous promotion whenever compared to the number of related topics, number of posts and people who involved in discussions. In terms of online coverage, although it is better than 2009's one that related posts were traced in more forums, 40 in total. Only 150,000 people recorded who read the related posts and it greatly decreased by 84%.

Conclusion

It is no doubt that the scale of 2010's campaign is relatively larger than 2009's. However, in terms of website traffic and e-buzz, the result of campaign does not perform as well as 2009's. McDonald's re-launched “Purchase with free Coca Cola Glass” campaign, yet it cannot alter the fact in lack of freshness and excitement even when repackaging as 2010 FIFA Coca Cola Glass. Utilising the boom of FIFA as strategy, but it ultimately resulted in a competition on gaining market interests and disperses mass focus on the campaigns.

(Source by Admomo & K-matrix)