HK mobile marketers must use data to stand out in saturated market

HK mobile marketers must use data to stand out in saturated marketMobile ad success in Hong Kong is increasingly dependent on two factors: data and share of voice (SOV), research from the Vpon Big Data Group indicates.

The decreasing click-through-rate (CTR) of mobile ads is meanwhile highlighting an important of increasing SOV and improving the way CMOs and ad agencies use data to target customers, the group said in its Hong Kong Mobile Advertising Statistics and Trends [PDF] report.

In a press statement, Vpon Big Data Group APAC GM Arthur Chan noted that the advertising environment is becoming so competitive that advertisers need pay close attention to mobile trends to formulate advertising strategies with an adequate budget allocation.

According to the report, Hong Kong mobile users received 16 app ads a day on average in Q1 2017, which excludes social media and instant messaging ads. It is a 30% increase from last year's 12 app ads.

Meanwhile, interstitial ads saw a lower CTR performance, down from 3.5% last year to 3.0% in Q1 2017. Banner ads maintained its level at 0.38%.

Most industries experienced the decline in CTR, except Digital and Electronics, according to the report. The industry bucked the trend by growing interstitial ad CTO from 3.51% last year to 3.56% in Q1 2017.

Chan acknowledged that more advertisers are spending on mobile and are aware of the current situation. However, it is clear that it is becoming harder to target key customer segment as the number of ads they receive increases.

The report highlighted two areas advertisers need to focus on addressing the increasingly competitive mobile ad market.

The first is how advertisers utilize data and reduce data wastage. Chan noted that his company helped American Express in China (known as AMEX in the country) to encourage card usage overseas by narrowly targeting Chinese passport bearers through mobile behavior analysis and delivering ads to potential credit card holders using “multi-dimensional data intersections.”

“Eventually, AMEX has achieved a 500% increase in overseas transaction revenue, and overseas transactions volume increased by 2.6 times," Chan said. The second area is to increase the SOV. The report noted that the average daily impression of a mobile ad campaign is around 55,000, accounting for 0.022% of daily available impressions in Hong Kong. To succeed, brands need to increase their SOV.

“Only few industries, such as Beauty, and Digital & Electronics, have adjusted their mobile ad spending in response to the latest development in order to maintain a fair SOV. It implies that the number of reach has to be enough to meet the threshold in order to bring a better result.”

First published in CMO Innovation