Tag: Industry Insights

Singapore – Ad spend across the Asia Pacific region is projected to rise by 5.8% in 2025, outpacing both global GDP and ad investment forecasts, while EMEA and the Americas are set for slower growth, according to a report by Dentsu.

The report revealed a slight acceleration in APAC ad spend, rising from a 5.4% growth rate in 2024. This momentum is fueled by the region’s expanding digital landscape, with Southeast Asia emerging as a key driver. SEA is set to outpace the rest of APAC, with ad spend projected to grow by 6.8%—more than double its 2024 growth rate.

The report further highlighted that while India (6.5%) and China (4.5%) will see slower growth in 2025, key markets like the Philippines (15.4%) and Malaysia (5.1%) are set to perform strongly. Meanwhile, Australia is set for a steady 3.8% rise in ad spend, driven by its digital-first market.

Prerna Mehrotra, chief client officer and practice president of media at dentsu APAC, explained, “Two engines of growth, the dynamism of China and India and the unrelenting modernisation of Southeast Asia, are driving the region’s robust advertising investment. Amidst diverse market development profiles, one constant stands true: digital dominance. As it barrels towards digital maturity, the APAC region will shape the momentum of connected commerce, retail media, and AI-powered programmatic. Brands that master the balance between automation and strategic oversight will be the ones to lead the next wave of innovation.”

Matt Farrington, president of investment & trading at Dentsu APAC, added, “We are seeing a rapid transformation of Asia-Pacific’s advertising landscape and a shift in the platforms advertisers are choosing to invest in. This is reflected through growing ad spends year-on-year, with Southeast Asia emerging as a sub-regional powerhouse, outpacing other parts of the region. The greatest growth is coming through continued spend migration into digital and connected media, which now accounts for 70% of the total spend across Asia-Pacific.” 

The report also highlighted the ongoing disruption in search and retail media, which is expected to grow at a 10% CAGR through 2031, driven by e-commerce giants like Tmall, Shopee, Lazada, and Flipkart.

Dentsu reports that India is experiencing an ad boom, with digital media ad spend set to grow by 20% in 2025—three times the industry’s overall growth rate. In China, ad spend across the “Big 6” platforms—Tencent, ByteDance, Baidu, Alibaba, Douyin/TikTok, and Xiaohongshu—is also expected to rise by 6.7% year-over-year, with Douyin/TikTok leading at 11%. These platforms continue to dominate the market, driven by AI-powered media buying.

“Brands are increasingly turning to mega-app environments—think Douyin/TikTok, Xiahongshu, and the Meta family of apps—that cater to all moments of the customer journey and that are completely reshaping how customers discover, search, and purchase,” Farrington explained. 

“Additionally, brands are seeing more opportunity in retail media to unlock new, commerce-driven solutions. This is particularly prevalent in the largest and fastest-growing markets, such as India, China, and Southeast Asia, where we continue to see a proliferation of retailers becoming ad networks in their own right,” he added.

Dentsu also highlighted Australia’s ongoing digital ad growth, with video ad spend expected to rise 8.7% year-on-year, driven by key events like the 2025 national elections.

“Australia is facing slower growth relative to its regional peers but is still positioned for a modest 3.7% increase in spend, driven by the accelerated digitisation of channels such as TV, OOH, and audio,” Farrington said. 

As we approach 2025, several key trends are poised to significantly affect the advertising industry. It is undeniable that ongoing advancements in advertising technologies such as personalised connected TV (CTV) and Free Ad-supported streaming TV services, as well as rapidly evolving AI technologies will influence advertiser strategies moving forward. 

The following insights shed light on the key trends likely to make an impact on the marketing and advertising sector in 2025.

Putting Data Front and Centre 

Data is becoming the cornerstone of advertising strategies as brands move beyond traditional methods like third-party cookies to build more robust and sustainable first-party data ecosystems. Nexxen’s Head of Client Success, Tanja Williams, explains that advertisers are increasingly investing in advanced data solutions to drive precise targeting, measure ROI, and personalise consumer experiences. 

“We’re seeing advertisers focus on developing their first-party data as they look for ways to reduce their reliance on cookies,” she explains. “This shift is empowering brands to own their data strategies, create direct connections with their consumers and better tailor their messaging.” 

The acceleration of subscription video-on-demand (SVOD) platforms and Free Ad-Supported Streaming TV (FAST) channels are reshaping the TV landscape. The arrival of VOZ Trading and Streaming, plus initiatives like Foxtel’s Video Futures Collective further adds to the momentum, creating new opportunities but complexities for advertisers. Automatic Content Recognition (ACR) data is emerging as a key data source to navigate the complexities of this fragmented media landscape. 

“Advertisers are increasingly seeing the value of ACR data to bridge the gap between streaming and linear TV,” Williams notes. “By providing real-time insights into what content and ads are being consumed/viewed and where, ACR allows brands to identify overlapping audiences, tailor messaging across screens and ensure they’re reaching the right viewers.” 

FAST channels, which continue to grow rapidly, highlight the importance of leveraging planning and measurement tools powered by ACR data. “FAST channels are not just cost-effective, they also offer niche and highly engaging content,” she notes. “ACR data enables advertisers to optimise campaigns in this space by unlocking insights into viewing habits and delivering personalised ads that resonate across platforms.” 

She also highlights how data analytics and cross-screen measurement tools are enabling advertisers to measure the effectiveness of their investments more accurately. “Advertisers are leveraging programmatic technology and converged insights to engage audiences in a fragmented media environment,” she says. “With advanced attribution modelling, exclusive data sets like ACR and the ability to measure across screens, brands can make data-informed decisions that maximise campaign performance and ROI.” 

AI Opportunity 

As we move further into an era of AI-driven advertising and data analytics, Jay Kim, Director of Analytics & Platform Solutions in APAC at Nexxen, discusses the benefits organisations can gain by embracing AI and integrating it with advanced data and analytics tools. 

“Continuing to integrate AI into data analytics tools is going to be a major way to strengthen those solutions, enabling deeper insights and faster, more accurate predictions,” he says. 

“By providing predictive insights from real-time data, we’ll be able to help advertisers optimise their campaigns and anticipate trends even more effectively, empowering them to adapt strategies quickly and thus maximise ROI.” 

Kim adds that as AI becomes more deeply embedded in data workflows, organisations will need to carefully balance innovation with ethical considerations. 

“As this technology evolves, it will be critical to ensure the data used to train AI models is representative of diverse demographic groups and its AI systems are regularly audited to ensure biases are quickly identified and corrected.” 

Engaging the Next Generation of Audiences 

With Gen Z and Millennials increasingly shaping consumer trends, Nexxen’s Senior Sales Director for Southeast Asia, Amresh Kumar, explains how advertisers can adapt their strategies to resonate with these demographics in 2025. 

“As has been made clear in recent years, brands taking a position on contentious social issues can backfire. Even younger consumers will react poorly if an advertiser is perceived to be engaging in insincere ‘wokewashing’ in an attempt to pander to socially conscious demographics,” he says. 

“Values such as authenticity and transparency appeal to both younger and older generations, so advertisers may like to try doubling down on those things.” 

Kumar adds that brands are expected to leverage new technology, interactive experiences and high-quality content to captivate younger audiences. 

“When it comes to grabbing and holding the attention of younger, digitally native audiences, businesses are now in a CX arms race. In the past, there has been a focus on gamification, and that will likely continue, but I also predict there will be increased interest in things like interactive video content and possibly AR and VR.” 

“Technology may advance and attention spans may shorten, but humans will always be attracted to narratives with which they can emotionally connect. The form of the brand experience – experiential marketing, influencer content, micro-content – isn’t as important as its function, which should be to forge or deepen an emotional connection between the brand and the consumer.

“With modern insights tools like Nexxen Discovery, advertisers can analyse content engagement and user behaviours across digital and social. These solutions will be critical at engaging the next generation of audiences,” he concludes. 

Retail Media is Set to Bloom 

Retail media – the advertising of brands not just on retail shelves but across websites, apps, in-store screens and other digital properties – is set to see major growth, according to Janice Chan, VP Platform & Client Service, APAC. Retail media enables advertisers to connect with shoppers at pivotal moments in their buying journey, driving higher engagement and sales. 

PwC estimates the retail media category in Australia will hit $2.6 billion by 2026. “Major Australian retailers are already making significant moves in this space, together with the acceleration of DOOH (in-store digital screens and shopping malls) and the growth of e-commerce,” says Chan. 

Retail media is also expanding beyond traditional retailers. “We’re seeing financial services launch media networks, which will allow advertisers to reach customers through their physical and digital channels (branches, ATMs, publications and digital platforms), using de-identified transaction data to help with targeting,” she adds. 

As retail media continues to expand in Australia, Chan says advertisers are benefiting from improved engagement and precise targeting in a contextual and timely manner, resulting in higher sales return. 

“Apart from ad space and inventory opportunities, retailers’ first- party data plays a key role in providing insights and measurement for brands to better tailor their ads, target new shopping audiences, and measure the campaign effectiveness,” she says.

Chan adds that retail media has been activated programmatically in various forms, and more standardised full-funnel capabilities will continue to be built out. The standard for measurement and metrics will also need to advance alongside industry growth and in consideration with the evolving privacy laws in Australia. 

“We expect to see a lot of innovation and growth in the retail media space, as retailers and brands connect their data to expand and energise their marketing strategies,” she concludes. 

In today’s digital landscape, understanding consumer behaviour isn’t just crucial–it’s also paramount for brands to maximise their online strategy. Brands must gain insight into what drives customers to make online purchases, identifying key factors such as product preferences, trending categories, and consumer pain points. 

By using data analytics, brands can track browsing patterns, search behaviours, and product interactions to pinpoint what resonates with their audience. This approach allows for a tailored product offering and personalised recommendations, ensuring that the brand meets the specific needs and desires of its target consumers.

For this E-Commerce Marketing 2024 interview, we sat down with Ben Moreau, vice president for Southeast Asia at Lexer to discuss factors in driving growth in the e-commerce space, and how marketers can tap the promising e-commerce marketing opportunities in Asia-Pacific this year and beyond.

E-commerce beyond the purchase journey

For Ben, e-commerce is no longer about being the medium for the customer’s purchasing journey, but rather about customers seamlessly moving between in-store and online interactions based on convenience and context.

“For instance, a sales associate can now engage with a customer on the shop floor via WhatsApp, sending them a link to complete their purchase online. Likewise, a customer may have an immersive social commerce experience and opt for in-store pickup,” he stated.

Ben also highlighted how the lines between channels are blurring, just as the lines between sales, service, marketing, and support are. This implies that e-commerce is no longer just a separate thing–but rather interconnected with other channels like social media, payment solutions, amongst others.

“For retailers, customer expectations have risen dramatically, and their tolerance for irrelevant marketing or poor experiences has dropped. With the data retailers have, customers expect CDPs to help manage and leverage this information to meet their needs,” he said.

He further added, “This goes beyond the traditional idea of ‘personalisation’ where brands simply reflect customer data back to them. It’s about relevance—understanding why customers want to buy from you, what they want to buy, and how they want to buy. Getting this right is key to driving growth.”

What e-commerce opportunities lie ahead

According to Ben, a major opportunity lies in how brands understand their customers and apply their vast data resources to guide customers toward the shortest path to purchase. In order to do that, brands need to do the following:

  • Capturing relevant information at each touchpoint, such as knowing a customer visited a store, tried on a product, and shared their thoughts with a sales associate.
  • Breaking down data silos between channels to ensure this information can be effectively used.
  • Making this data accessible across channels—whether in-store, through customer service, or via online chat—so that the brand can better serve its customers.

“The challenge is deconstructing the silos between e-commerce and physical stores to mirror the customer’s fluid engagement with brands, while also enhancing the ability to build richer customer profiles beyond just purchase history,” he explained.

Another big opportunity in the e-commerce industry is AI integration, with Ben mentioning how AI is transforming retail in three critical areas: capital, capability, and capacity.

“In the early days of retail, stores knew their customers intimately. However, as retail has scaled and e-commerce exploded, the volume of customer data has proliferated, making it harder to maintain that personal touch,” he said.

In their case at Lexer, Ben shares that the company is leveraging AI to drive growth and retention through meaningful, relevant customer engagements. Moreover, he stated that AI allowed them at Lexer to bridge the gap between sales, service, and support, putting the customer at the centre of the experience.

“For example, imagine a customer who shops both in-store and online, recently made another purchase, and receives a personal message from the CEO thanking them for their loyalty. This type of experience—enabled by AI—has far more impact than a generic triggered email and can be delivered at scale with minimal overhead to the retailer,” he said.

Foreseeing what lies ahead of the e-commerce scene

Ben recognises the fact that not all customers are created equal, noting that for most retail brands, 20% of customers generate around 70-80% of their revenue. This means that some customers drive higher margins, while others rely on discounts and frequently return items. With that in mind, Ben says that it is essential to allocate resources toward a brand’s best customers and its future best customers.

“At Lexer, we help brands identify where to focus time and effort, applying customer-centric strategies where they will yield the greatest returns, and lighter touches where appropriate,” he said.

When asked about what he foresees in the landscape of e-commerce in APAC, he first stated that there is a growing emphasis on customer experience and satisfaction, beyond simply pushing products.

“Brands realise that competing solely on price is unsustainable and they need to grow margins. Growing spend from customers who provide good margins is key. First, you need to identify these, then you need to ensure you get the highest share of the category or wallet from these customers versus the competition. For brands prioritising customer experience, this will likely necessitate a rethink of how online marketplaces fit into their broader strategies,” Ben stated.

He also highlighted that despite the rise of e-commerce, most retail still happens in-store, even for Gen Z customers. For him, the in-store experience is incredibly powerful, but it’s also where it’s hardest for brands to deliver personalised experiences. 

“So much valuable data is lost in physical stores, while so little is applied to delight customers and drive sales. Brands invest heavily in personalizing e-commerce, but these efforts often don’t extend to the in-store environment,” he said.

Ben added, “At Lexer, we operate at the intersection of customer data and customer engagement, providing solutions for both sales associates and digital marketers. We believe that creating relevant customer experiences is powered by data, scaled with AI, and shouldn’t be confined to marketing teams alone.”

***

For brands to thrive in the competitive online marketplace, they must thoroughly understand the what, why, and how of consumer purchasing behaviour. By leveraging data to identify product preferences, understanding the motivations behind buying decisions, and optimising the customer journey across various digital touchpoints, brands can create a more personalised and seamless shopping experience. 

Contextual advertising might be considered a modern phenomenon, but it is one of the oldest tricks in a marketer’s playbook. From advertisements for cold cream in early women’s journals to the first-ever car advertisement in Scientific American, contextual placement has long played a key role in enticing prospective customers. 

Today, however, the media environment is considerably more sophisticated, and capitalising on the e-commerce boom of recent years calls for a strategy that meets customers in the right place and in the right mindset.

There’s no questioning the value of the prize on offer. E-commerce presents an immeasurable opportunity for Asia Pacific’s marketing community, with an estimated market size of US$4.2 trillion in 2024. This is expected to reach US$6.76 trillion by 2029, growing at a CAGR of 10% over the next five years. 

In the past, brands looking to ramp up e-commerce sales, either on their own platforms or via digital marketplaces, had limited advertising options. Banner ads and pop-ups were commonplace, often appearing in inappropriate places and completely out of context, much to browsers’ frustration. 

Now, with heightened consumer expectations and growing awareness around data privacy, the playing field looks very different. With Google’s sunsetting of the cookie progressing at a glacial pace, context-based marketing has emerged as the clear cut privacy-friendly alternative to previous data-intensive strategies.

Why context is king in today’s digital advertising realm

In a vast market like APAC, context matters deeply. As home to a wide range of people, ethnicities and cultures, not to mention 60% of the world’s population, APAC poses both an exciting and challenging landscape for e-commerce brands. 

In order to be successful in this space, marketers need to thoroughly understand their target audience’s preferences, interests and passions. By delving into the consumer’s psyche and emotional drivers at precise moments, and assessing the advertising creative that cuts through with specific audiences, brands can deliver highly relevant ads. 

Correspondingly, consumers are increasingly demanding personalised experiences. But even without access to device IDs and third-party cookies, marketers can still deliver hyper-personalised experiences by curating creative that matches the page content (or video) the user is viewing. 

Cutting edge technology to deliver highly relevant e-commerce ad creative

AI-powered contextual advertising is undoubtedly one of the biggest game-changers across the digital landscape of recent years. With fast-advancing innovations in contextual platform capabilities, buyers now have a new and compelling opportunity presented to them.

Given the seemingly infinite number of pages and users on offer, it’s these AI-powered platforms that are best poised to deliver business’s commercial objectives at the necessary scale.

But what exactly should e-commerce-focused marketers be looking for? In essence, the ability to forensically delve into context is what will separate the best from the rest. The most innovative platforms now offer not just in-depth keyword search analysis, but rigorous web page and video analysis that ranks thousands of pieces of creative at speed. 

Then, combining all these data points, standout platforms will match ad creative with high-attention online inventory, giving each placement a greatly increased chance of successfully driving conversions.

That’s why it’s essential to have the right platform partner: to gain a serious analytical leg up, while also having a compelling case to reach relevant publishers. 

Successful partnerships between marketers and publishers are those that create a win-win situation. Publishers can benefit from advanced contextual advertising to increase monetisation opportunities, while advertisers can be assured that their creative is appearing alongside content that is suitable for their brands.

In a cookieless and privacy-conscious world, e-commerce brands require new ways to deliver targeted ads to consumers digitally. Contextual advertising, in many ways, may be as old as the industry itself, but it has rapidly risen to meet the demands of the modern age. With advanced advertising platforms as partners, marketers can seize on the billion-dollar opportunity presented, while also delivering ad creative that is the perfect match for today’s privacy-focused consumer.

This thought leadership is written by Sorrel Kesby, Head of Global Commercial Operations at GumGum

In digital commerce, the challenge of budget allocation is ever-present. Should marketers channel more resources into attracting the right audience, or should they optimise their websites to convert visitors into customers? This is a question that demands careful consideration. Too often, businesses lean heavily towards one end of the spectrum—either pouring funds into ads for acquisition or investing in their website at the expense of a seamless customer journey. However, in today’s competitive landscape, where every brand vies for attention, the key to success lies in finding the right balance. It’s not just about drawing in customers but strategically engaging those most likely to convert into loyal brand advocates.

The Importance of Balanced Marketing Investment

Effective digital marketing isn’t just about bringing in an audience; it’s about converting this audience into loyal customers. Spending heavily on customer acquisition might drive high traffic, but if the website isn’t optimised, visitors are likely to leave without purchasing. On the other hand, a perfectly optimised website without sufficient traffic is like a beautifully designed store in a deserted area. Both aspects need attention to ensure you can maximise your ROI, and we all know that even the most well-crafted ads can fail to deliver results.

A balanced marketing investment ensures that every dollar spent on attracting an audience is supported by a website capable of delivering a positive user experience. This holistic approach leads to higher conversion rates and customer satisfaction, ultimately supporting business growth.

Understanding Audience Acquisition and Its Impact

Several factors influence the cost of acquiring an audience, such as keyword competition, audience targeting, and content relevance. For example, platforms like Google Ads use a quality score to determine the cost-per-click (CPC) of ads. This score is influenced by the relevance of the ad, the quality of the landing page, and the expected click-through rate.

To optimise customer acquisition and spend, marketers should focus on the following:

  • Keyword Optimisation: Using relevant and specific keywords to effectively reach the target audience.
  • Content Relevance: Crafting messages that closely match the intent and needs of the audience.
  • Quality Score Improvement: Enhancing the quality score by ensuring the landing page offers a good user experience and aligns with the content that attracted the audience. This also includes the website speed performance measurements used by Google PageSpeed.

By managing these factors, marketers can lower their CPC and get more value from their audience acquisition budget.

The Impact of Website Performance on Ad Costs

Website performance directly affects Google Ads Quality Score. A slow-loading website not only frustrates customers but also impacts your Quality Score, therefore increasing CPC. Improving your website’s speed can significantly enhance your ad performance and reduce costs per ad. Focus on optimising page load times, enhancing server response times, and mobile friendliness.

Key elements of website optimisation for a lower CPC include:

  • Speed: Slow-loading websites can frustrate users and increase bounce rates. Tools like Google PageSpeed Insights can help identify areas for improvement.
  • Mobile Responsiveness: With a significant portion of traffic coming from mobile devices, ensuring your website is mobile-friendly is critical.
  • Intuitive Navigation: A website should be easy to navigate, allowing users to find what they are looking for quickly and effortlessly. 

In addition to Google Ads, platforms like TikTok, Facebook, and Instagram are common ways to reach targeted audiences, each with its own cost structure. Facebook Ads, for example, often have a lower CPC compared to Google, while TikTok and Instagram require creative, visually driven content to engage users effectively. Regardless of the platform, it’s essential that your website aligns with the tone and expectations set by your ads. Consistency between the ad and the landing page ensures a seamless user experience, which is crucial for maximising conversions.

Creating a Seamless Journey from Audience to Conversion

Consistency between the content that attracts your audience, and the landing page experience is crucial for a seamless customer journey. When a user engages with your content, they develop certain expectations. If the landing page fails to meet these expectations, it can lead to higher bounce rates, lower conversion rates and wasted ad spend.

Best practices for ensuring alignment include:

  • Matching Ad Content to Your Landing Page: The landing page should deliver on the promises made in the content that attracted the audience. If content promotes a specific offer, the landing page should prominently feature this offer.
  • Consistent Messaging and Design: Maintain a consistent tone, style, and visual design between the content and the landing page to build trust and ensure a smooth transition.
  • Personalised Landing Pages: Use dynamic content to tailor the landing page to the visitor’s interests and behaviours, enhancing relevance and engagement.

Tools and Metrics to Measure Success

Effectively balancing your investment between acquisition and conversion requires careful analysis of key performance indicators. By consistently monitoring these metrics, you can make data-driven decisions that optimise both your marketing strategies and your website’s ability to convert customers. Focus on understanding user behaviour, identifying where drop off is happening, and assessing the overall effectiveness of your conversion efforts.

Key metrics to look out for include:

  • Bounce Rate: Indicates the percentage of visitors who leave after viewing only one page, helping you identify potential irrelevant content or experience design issues.
  • Conversion Rate: Measures the percentage of visitors who complete a desired action, usually a purchase, revealing how effectively your site turns traffic into sales.
  • Average Session Duration: Shows how long visitors spend on your site, reflecting their engagement and interest in your content.
  • Page Load Time: Provided by tools like Google PageSpeed, this metric measures how quickly your pages load, which directly impacts user experience and conversion rates.

Conclusion

Achieving the right balance between marketing investment and website performance is essential for Digital Commerce success. It’s not just about where you allocate your budget, but how well your ads and website collaborate to create a seamless customer journey. By strategically aligning your marketing spend with website optimisation, you can maximise ROI and drive higher conversions. Evaluate your current strategies, make the necessary adjustments, and ensure that every step of the digital experience—from ad click to purchase—guides your audience toward becoming loyal customers.

This thought leadership is written by Sebastian Klett, General Manager at Balance.

Singapore – Nearly half of retailers in Singapore (43%) face challenges with brand awareness during the initial stages of the consumer journey, according to a survey conducted by Twilio. 

The survey revealed that overcoming ad and email fatigue is the most significant challenge for 32% of retailers trying to build brand awareness. Other major obstacles include a limited understanding of consumer behaviour (29%), and difficulties in measuring the effectiveness of marketing efforts (28%).

Additionally, a significant number of Singapore retailers also face challenges in brand conversion (24%) and retention (22%). To address these issues, 45% of retailers leverage customer data to personalise experiences, 22% expand the number of channels used to connect with customers, and 18% increase the frequency of communications.

Fortunately, the survey found that many Singaporean businesses are on the right track, with 45% of retailers recognising the power of leveraging customer data to understand their customers’ needs.

The survey also highlighted Singapore consumers’ preferences for brand engagement. Notably, over 6 in 10 or 63% of consumers prefer interacting with brands through digital channels, including websites, mobile apps, email marketing, and e-commerce or social commerce sites. However, a quarter of consumers remain most responsive to brand interactions at brick-and-mortar shops.

Aligned with Singapore consumers’ preference for digital channels, Twilio’s survey found that local retailers are prioritising engagement strategies to strengthen their connections on these platforms. Over the next 12 months, Singaporean retailers plan to explore new customer engagement methods, including influencer marketing (29%), gamification (22%), and live streaming (18%).

Nicholas Kontopoulos, vice president of marketing for Asia Pacific & Japan at Twilio, said, “In an increasingly noisy and competitive landscape, retail businesses are challenged to retain their customers’ attention and ensure that they are considered at all stages of the consumer journey. Retailers must look beyond run-of-the-mill methods and consider how they can elevate their marketing efforts to create a more engaging brand experience and reach customers on their preferred channels. This can go hand-in-hand with using AI and zero- and first-party data to create more precise and personalised communications.”

“In order to increase top-of-mind awareness and enhance brand visibility at various stages of the customer journey, retailers are looking into ways to increase touchpoints with their customers. However, the brands that will truly stand out and cut through the noise will be those that understand the value of creating hyper-personalised customer interactions, especially as individualisation becomes more important to today’s customers,” Kontopoulos added. 

Today, Artificial Intelligence (AI) in e-commerce is pervasive. Big brands, food giants, and fashion labels are leveraging AI to create immersive consumer interactions and highly personalised buying experiences. The success stories are plentiful, highlighting how AI-driven campaigns have developed customer-relevant content, driven up interest, strengthened brand images, and improved engagement and sales.

Hyper personalisation is the buzzword of the moment. According to a 2022 Salesforce survey on customer engagement strategies, 73% of customers now expect companies to understand their unique needs and expectations. This shift towards a digital-first shopping experience is only expected to grow.

The Allure of Hyper-Personalisation

This trend is driving many companies to use AI to meet these expectations. AI powers exclusive playlists based on previous listening choices, specific clothing designs and colours, travel advice, and even lifestyle recommendations. For many, this hyper-personalisation is both interesting and welcome.

Take Shopify, for example. They’re using AI to generate product descriptions. Sephora has integrated voice search capabilities into its online beauty marketplace, and Burger King employs AI algorithms to create visuals and content for personalised advertisements. This level of personalisation is immersive and engaging, enhancing brand recall and boosting business.

Concerns About Over-Personalisation

However, not all customers appreciate this high level of personalisation. Some worry that online shopping will become too customised, leaving them with no real choice. They fear that everything they might need will be served to them on a platter, stripping away the joy of discovery in shopping.

How AI Transforms E-Commerce

In the current fast-changing and competitive e-commerce landscape, AI and Machine Learning are invaluable. They help organisations make sense of vast amounts of data, deliver powerful search experiences, offer relevant product recommendations, and enhance customer engagement. AI learns customer behaviour by tracking their activities on e-commerce sites, using this data to recommend products tailored to their preferences. This creates a tailored, relevant, and often entertaining shopping experience.

AI also boosts productivity by automating repetitive tasks within the e-commerce workflow, improving efficiency and reducing operational costs. These savings can then be reinvested in other areas of the business. Dynamic pricing is another significant benefit, with AI adjusting prices based on real-time customer behaviour, supply and demand trends, and competition. This real-time pricing helps e-commerce companies remain competitive and attract more buyers.

AI’s role extends to product search and customer support. Optimised search engines guide shoppers to the products they seek, enhancing the online shopping experience. AI-driven chatbots and customer service initiatives handle customer inquiries efficiently, providing 24/7 support and increasing customer loyalty and repeat purchases.

The Pesky Problems of AI

While AI-driven hyper-personalisation has many benefits, it also has its drawbacks.

1. Overwhelming the Customer: Imagine walking into a store and being bombarded by salespeople with various products. Similarly, too many recommendations can overwhelm online shoppers, confusing them and potentially driving them away.

2. Losing the Human Touch: AI-driven recommendations, while accurate, can create a sense of discomfort among customers who feel watched and judged. This lack of human interaction can be off-putting, especially for older generations.

3. Eliminating the Brand Discovery Experience: Hyper personalisation can pre-empt consumers’ needs, presenting them with products before they even realise they want them. This convenience can detract from the enjoyment of browsing and discovering new brands and products.

4. Data Privacy Concerns: Hyper personalisation relies on vast amounts of consumer data, raising concerns about privacy and security. The collection and use of this data can make both e-commerce companies and their customers vulnerable to data breaches, cyberattacks, and online scams.

Striking a Balance

AI has undeniably transformed e-commerce, helping consumers navigate the cluttered online shopping space and enabling companies to improve customer experiences, strengthen marketing campaigns, and boost customer engagement. However, when it comes to hyper-personalisation, brands must strike a balance. They need to ensure that customers feel involved in the shopping process rather than being served everything on a plate in a calculated manner.

AI-driven hyper-personalisation offers numerous benefits, but it’s essential to address the concerns it raises and find a middle ground that satisfies both the business and its customers.

This thought leadership is written by Vikram Kharvi, CEO at Bloomingdale Public Relations.

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

Indonesia – Meta is the most effective platform for driving offline and online sales, giving the highest return on ad spend (ROAS) delivered at 1.8x across traditional and digital platforms, a study from Kantar showed. 

According to the latest Kantar study commissioned by Meta, despite economic challenges in Southeast Asia, consumer confidence is rebounding, with the region projected to achieve 1.6x economic growth over the next decade. As businesses and brands seek to engage the evolving Southeast Asian consumer effectively, optimising marketing budgets and choosing the right engagement channels are crucial for maximising efficiency.

The study’s findings highlight Meta as the most effective platform for driving omnichannel sales, seamlessly integrating offline and online channels, with the highest ROAS of 1.8x. Meta contributes 16% of incremental media sales with only a 10% share of spend, surpassing both other digital platforms and TV. Additionally, Meta attracts the highest number of new buyers across digital platforms at the lowest cost, underscoring its ability to achieve substantial business outcomes.

Kantar’s study also analysed how many people who saw a media campaign on Meta’s platforms and other media made a purchase. It revealed that campaigns on Meta achieved the highest conversion rate at 22%, compared to 20% on TV and 13% on other digital media. This means that 1 in 5 viewers who encountered an ad campaign on Meta made a purchase.

In terms of reach, Meta achieved a substantial 59%, closely trailing TV while outperforming other digital channels at 43%. Meta also led in incremental reach across its platforms with 6%, compared to only 2% on other digital platforms.

When integrated with TV, media campaigns on Meta platforms demonstrated superior synergy, yielding a 12% additional impact on sales. In contrast, campaigns combining other digital platforms with TV achieved an 8% impact, with a 33% overlap in reach. This underscores the effectiveness of integrated media strategies involving Meta.

Meta, as a platform, was also found to bring in new shoppers at the lowest cost. Ads on Meta platforms help drive maximum value for marketing dollars, as the study showed that Meta delivered the highest number of new buyers across digital platforms at the lowest cost of $3.90 per recruit.

Furthermore, among tech-savvy demographics such as Gen Z and Millennials, Meta leads in digital media-driven sales, capturing 44% of the digital sales market. 

Kishore Parthasarathy, director of marketing communications for Southeast Asia at Meta, said, “At Meta, we strive towards the gold standard in measurement based on data and science. We look at our advertiser’s total marketing plan to ensure we deliver actionable insights across the marketing funnel. Kantar’s latest study has enabled us to measure holistically, providing robust ROI, reach, and shopper behaviour to inform our clients and partners planning and creative strategies.” 

Harjyot Singh, APAC media and digital lead at PepsiCo, also shared, “At PepsiCo, we prioritise creating meaningful experiences for our consumers. By harnessing the power of consumer insights and utilising Meta platforms, we craft relevant and impactful interactions. This approach resonates with our audience, driving enhanced consumer engagement and sustainable business growth.”

Formed from the unification of two prominent creative agencies within the industry – Wunderman Thompson and VMLY&R, VML has established itself as an agency equipped to support clients on creative brand strategies and transformation initiatives, all powered by deep data, marketing technology, and platform expertise. With this in mind, it takes a special type of leadership to ensure that all these capabilities are met and delivered proficiently.

For Samir Gupte, CEO of VML Indonesia, leading this agency is built on an approach that focuses on a culture of transparency, respect, an environment that motivates everyone to do better, and a leader that leads by doing and supporting at the same time. 

Making internal improvements

Elaborating more on his leadership philosophy, Samir says that the biggest barriers to growth are mostly ‘internal’, citing that the pain points are not so much about the work itself, but about the peripheral issues.

Whether it is interpersonal dynamics, clarity on what every individual or team needs to achieve, or making hard processes easier, Samir explains that his focus is ensuring that all those internal hurdles are reshaped to help people to do their best.

“We cannot possibly control or manage what happens in people’s lives outside the office. But what we can do is create a culture where people love to come to work to create the work they love. They need to be happy with what they are creating or contributing to,” he added.

Visualising and organising goals

One of the unique initiatives implemented by Samir to keep the team engaged is a ‘Vision’ workshop with their leadership team, which breaks down their goals and ambitions into a concrete, tangible and measurable road map which could be tracked every month.

Samir also shares that VML Indonesia has a ‘Rising’ Leadership Team initiative that prepares team members to become future leaders of VML Indonesia, bi-monthly town halls for progress updates where they discuss key issues, celebrate wins, and welcome new joiners.

Furthermore, Samir mentions that VML Indonesia focuses greatly on training by creating a ‘Business 101’ session to strengthen the business orientation for the team, open dialogues in the office with a special channel for people to ask questions and address concerns, and a ‘regional leadership development programme to provide larger exposure, and to learn from the other leaders within the region, which can be shared with the wider teams.

Prioritising quality execution

Talking about the challenges faced by VML Indonesia, Samir mentioned the rise of smaller agencies which positioned themselves as the ‘cheaper & faster’ alternative. “A lot of execution work did shift to these smaller local agencies, but we did not want to compete against these,” he explained.

However, Samir said that sticking to their quality of offering allowed for them to thrive within the current landscape where clients are now looking for business solutions that go beyond basic communication and execution.

“In the increased competitive scenario, clients want to know how to make their brands meaningful, differentiated and relevant to their audiences. Through VML’s offering connecting Brand Experience, Customer Experience and Commerce, we have been able to drive sustainable growth for their brands and in turn our business,” Samir mentioned.

Driving creative success

Reflecting on their approach, Samir shares that VML Indonesia has seen some great changes internally. There is now a stronger sense of ownership with everyone seeing a clear vision for the company and their roles as well as a positive and collaborative atmosphere in the workplace that promotes transparency, more meaningful conversations, and initiatives that really resonate with the team.

Through these improvements, VML Indonesia has acquired significant achievements during the last six months, being the first Indonesian agency to secure a Grand Prix award and the only agency from Indonesia to win a Cannes Lion for 2024. The Indonesian team also led and won an ASEAN-level pitch which was spread across eight markets, and their six month attrition rate has significantly decreased this year and well below the average of the industry in Indonesia.

Talking about how he approaches his way of leading, Samir shared, “First, if a person feels more confident and better about themself after interacting with you, and is inspired to do better, you have done your job. Second, not all conversations or meetings start well- but make sure to end all conversations on a positive note. Whether it is a difficult conversation or a critical feedback, focus on the positive impact that you want to achieve. Lastly, focus on the problem that you want to solve, not on the person or the situation.”

Malaysia – AirAsia Group has appointed Allenie Caccam as its new head of business growth to bolster its market presence and growth trajectory. With a robust background in marketing leadership, Caccam brings a wealth of experience and strategic insight to her new role.

In an exclusive interview with MARKETECH APAC, Caccam discussed her vision, responsibilities, and plans for driving business growth at AirAsia Group.

Leveraging marketing leadership experience

In her new role, Caccam shared that her team will be responsible for supporting the establishment of business operations and the go-to-market strategy for new markets, targeting specific geographies for AirAsia Group. This involves project management from the initial sale phase through to the inaugural launch, working closely with cross-functional departments such as ground operations, network, route revenue, regulatory, communications, and marketing.

Additionally, her team is also tasked with identifying growth opportunities in terms of channel and customer. 

“We are actively looking into new channels to support underserved markets for AirAsia and interline solutions to increase our reach and feed our Asia and Pacific network, where AirAsia is strong,” she explained. 

Caccam believes that her extensive experience in marketing at AirAsia Philippines has equipped her with a strategic perspective vital for her new role.

“My marketing experience has trained me to strategically look into the different angles of the business and align our strategies with customer insights to determine maximum demand and revenue potential,” she said. 

She also noted the crucial importance of the ability to commercialise a product in her role, ensuring the service is brought to market comprehensively through market research, distribution, promotion, customer support, and operation. For Caccam, this remains a vital skill in identifying growth opportunities and achieving successful implementation in the highly competitive airline industry.

Now, as she leads the go-to-market strategy for new market development, Caccam underscores her clear priorities for AirAsia Group.

“AirAsia’s tagline has always been ‘Now Everyone Can Fly’ and our strength has always been our broad network of over 130 destinations. Serving the underserved underpins our operations. Our focus is to not only fly the most popular routes but also bring in more passengers to our network from markets we are not yet serving or even where no other airline is serving, all the while making sure that it helps build the trade, economy, and tourism of both markets, which is a win-win for everyone,” she emphasised. 

Adapting to the evolving travel landscape 

Caccam foresees the evolving landscape of travel and tourism significantly impacting AirAsia’s growth strategy. She believes that travel will continue to be an integral part of people’s lifestyles, and as more channels emerge to offer customised travel experiences, the industry will become increasingly competitive.

“AirAsia will continue to harp on our strengths: our service, our network, our customer data built up over 20 years, and our affordable fares. We plan to use these huge assets to serve more underserved routes to connect Asia to the world,” Caccam said. 

For Caccam, online channels are reaching maturity, particularly in Asian markets where digital is a top priority. Customers are rapidly transitioning to the generation of digital natives, and online media is no longer considered “new.”

“It is now a game of great raw content and relatability rather than glossy and hard-selling advertisements. In line with this, AirAsia will continue to produce relatable content through our social media channels and our own internal and external ambassadors and use these avenues to remarket our service,” she added. 

“AirAsia’s tagline has always been, ‘Now Everyone Can Fly’ and with this role, I will be able to contribute more to making this vision a reality,” Caccam concluded.