Usage of and investment in digital marketing on the rise in Asia
ConvergenceAsia staff
30/03/2009

The results of the fifth annual marketing and advertising industry survey conducted by the Asia Digital Marketing Association (ADMA) indicate that 95 per cent of all respondents allocate budget towards digital marketing, and 58 per cent expect to spend more as a direct response to the current global financial crisis. The Asia Digital Marketing Association (ADMA) is the voice of, and advocate for, the digital marketing industry in Asia (excluding Japan).

Well over half of the respondents employed by advertisers said their budgets increased in 2008 over 2007, and 83 per cent expect their budgets to remain the same or increase in 2009, despite the cautious economic climate. Over two thirds of those surveyed said that their online budgets have increased over last year.

“The survey conclusively shows that digital marketing is now mainstream,” said David Ketchum, Chairman of the ADMA. “The vast majority of marketers and advertisers are active online, and the overall sentiment is that digital is a solid, measureable place to invest your promotional budget in troubled economic times.”

Among the barriers to increased digital spending noted by respondents were lack of experience and understanding of the use and benefits of digital marketing, and the fact that it is not yet part of some companies’ corporate culture. Of those who spend less than 10 per cent of their budget online, 26 per cent of these said they were not convinced of the benefits of digital marketing, and 24 per cent said that digital marketing was not well suited to reach their target audiences.

Despite the widespread use of digital marketing, the range of tactics used from the entire range of digital tools is relatively limited. Corporate websites, search engine optimisation, and behavioural targeting are the strategies expected to be of greatest importance in the coming year, and although just 28 per cent of respondents say their companies maintain a corporate blog, a quarter of those without blogs say they intend to launch one in 2009. Mobile device advertising, text message promotions, widgets & gadgets, and online games are considered promising but are less often utilised.

The survey was conducted online by Aha! Research among 345 marketers, agencies and advertisers regionwide, in conjunction with the Direct Marketing Association of Singapore, the Vietnam Marketing Association, the Mobile Marketing Association, the Hong Kong Direct Marketing Association and the Hong Kong Institute of Marketing.

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