What Western Marketers Can Learn From The East

As a digital marketer, addressing the global audience is part of your everyday. If not, there is a good chance that you're focused on the North American and/or European markets only.

As a business operator or a marketing entrepeneur, you're goal is trying to find the balance between lead generation, providing great user experience, and maintaining an effective business model that's profitable.

In this summary that we created, we were inspired by online marketing successes from South East Asia and the surrounding countries.

Why? For one, Asia is a massive market. If your products are tailored to win this crowd, you unlock a huge population that you would have never encountered, targeted or previously reached through alternative means.

If you are selling goods that can be delivered anywhere in the world, you're already two feet in to scaling globally.

But, if you've never considered or you're not looking to target the eastern market, there is still a long list of marketing lessons to learn from China, Japan, Korea, India, Indonesia, Singapore and other markets in the East. This is due to sheer differences in thinking and fundamental market conditions.

As a marketer or business builder, it is critical to keep up with possibilities and uncover new perspectives.

By keeping your eyes as open as your perspective, discovering business opportunities and marketing channels that provide high return on investment becomes easier, and the state that Asia is in at this point in time, bleeds itself as a incubator for international business. SO let's start with the foundation.

The State of Digital Marketing in Asia

Facebook Advertising Costs

Tackling one of the biggest elephants in room of marketing outside of Asia, Facebook Advertising pricing is meticulous. Having said that, let us look at 2017 benchmarks from Nanigans and AdEspresso. Based on these numbers, we see clear patterns regarding costs between countries:

• The average Cost Per Click (CPC) is about $0.35 globally.
• $0.28 in the U.S., $0.67 in Australia and New Zealand
• $0.47 in Hong Kong, Taiwan and Macau, $0.12 in India, $0.36 in South Korea and about $0.11 in Southeast Asia including Cambodia, Indonesia, Laos, Malaysia, The Philippines, Singapore, Thailand, and Vietnam.
• The average cost per like is $0.23 in the U.S., about $0.18 in Australia and New Zealand, and $0.11 in Asia.
• The average cost per app install is $2.74 in the U.S., about $1.4 in Europe and $0.90 in Asia.

The image above, taken from AdEspresso, shows the average Cost Per Click (CPC) in the US alone of the Facebook Ads in the Q3 of 2016. That was 27.29 cents while it was 27.40 cents in average of all other countries, including Asian countries. Moreover, the Cost per 1000 Impressions (CPM) during the 3rd quarter was $7.19 in the USA alone, while the overall average for other countries included in the study was $7.34.

You can see how eastern markets provide higher bang for bucks because of the lower advertising competition. Your money stretches further if you do your research right on targeting traffic with intent. Furthermore, it is good to note how each country varies. Hence, it is important to take a look at each territory, rather than generalizing every region or generalise all of Asia into one.

Google AdWords Costs

Let us move on to another advertising giant, the Google Adwords.

Like Facebook Ads, there are many nuances and variations every market segment. Lucky for us, we have baseline numbers to understand advertising cost comparisons between the East and the West.

Wordstream has compared the average Cost Per Click (CPC) from several countries in the world to the US. While ASEANUp compared Asian countries to the US.

From these sources, here is the breakdown:

• The average CPC in the US for 20 industries is $1 to $2.
• Singapore and Thailand’s CPC were 58% lower than the US (from $0.42 to $0.84)
• Indonesia’s CPC was 62% lower than the US (from $0.38 to $0.76)
• Malaysia’s CPC was 75% lower than the US (from $0.25 to $0.50)
• Philippines’ CPC was 75% lower than the US (from $0.25 to $0.50)

Looking at these numbers, you can find significant price differences between countries. Please take note that these costs change very often and you will have to balance your customer acquisition costs with the corresponding customer lifetime values.

Proud to Create their Own

Asia is innovative enough to create their own. Their work can be inspired by cultural differences or adapting to unique local challenges and advantages.

These include the following:

1. While Google is the dominant search engine in most of the world, you may already know that it is not the case in China because of the "Great Firewall of China." They use Baidu instead, their very own search engine.
2. Vietnam's own browser, Coc Coc, was created out of the need that the Vietnamese language had its own nuances for web search. The browser is a top performer in their country.

E-commerce is also becoming powerful in China. That fact is reflected on the popularity of their retail sites, Tmall and Taobao. Taobao is already quite popular that it already appeared in the 10th place in the global top 10 websites.

Relationships are Emphasized in Business

Many Asian cultures place higher value in warming up with social relationships, getting to know the seller more before signing up any deal with them. Relationships and trust comes first, business eventually follows. The process can take a while but it is the kind of relationship that can withstand more difficult challenges.

In fact, Asian consumers are among the most connected consumers with online brands. They tend to closely follow brands on social media, read reviews and look for more information about products and services online. They proactively reach out the brands and seek a deeper connection.

Innovations in the East

China, being a copycat is a history. Innovation has taken over this country and is now as highly competitive as big companies of the West. Tencent and Alibaba were considered as forward-focused companies and had U.S. companies catching up. WeChat and Alipay are still the best of their kind and has no comparison with anything yet.

The success of Samsung is based on the fact that they invest heavily on their people. They search for talent wherever they can find them. Aside from that, its innovation is based on extensive training, repeatable methods and creative products.

Country Highlights

China

Because of the “Great Firewall of China,” its people had to come up with their own solutions. It blocks foreign social sites like Youtube, Google and Facebook, hence their online environment stands with no competition from outside of their country. They created their own instead as follows:

Baidu. In a large country where Google is blocked, this is the default search engine.

WeChat. A cross between Facebook and WhatsApp with the largest user base from China; a simple messaging platform that turned into a network with feeds, wallet and game center.

QQ. Comprehensive platform with instant messaging, emails, chat forums and music streaming. This is a very effective platform when engaging and influencing buyers.

Here is a slide deck revealing the 8 helpful strategies and tips on scaling mobile users in China by Edith Yeung.

Japan

Michiaki Lee mentioned how Japanese businessmen understand their customers first and what they want to achieve. Business owners in Japan take the time to visit customer sites.

Then, they develop products that are based on what the customers need. After commitments have been delivered, they help customers integrate their products into their system.

They build businesses while acquiring personal trust with customers. It may take time, but the end result is what is more important.

Line. One of Japan’s popular messaging apps that has a simple concept. It had to be for smartphone and must be useful for communication. It should also be able to send messages without having to incur extra fees on any wireless carrier. The turning point of the app was when it added stickers. It is interesting to note that emojis originated from Japan even before Line was created.

Korea

In South Korea, if you want to pitch your product, you would typically use a celebrity endorser. This is called "spruiking" and Korea leads the world in this strategy. Ordinary people don't make as much of an impact for Koreans as much as it does in the West. In addition, Korea is one of the Asian countries that manages to always push the boundaries in innovation.

One good example is KakaoTalk, Korea’s leading messaging app. It is one of the first world-class smartphone applications back when there were not many apps that offer free messaging, game hosting and other digital content.

Singapore

In Singapore, the focus is on increased transparency and authenticity in marketing. This is because they know that consumers are getting wiser, making it harder to get away with unrealistic marketing. Singaporean entities evolved their marketing and have successfully implemented digital marketing strategies into some of their most successful brands:

SingTel, Singapore’s leading telecommunications company - Singtel found success in the use of informational infographics and award-winning videos. They incorporated these in their marketing campaigns along with putting customers first.

Changi Airport - Changi Airport launched a new digital marketing platform in 2016 known as Now Boarding. It is basically an information hub with varied resources like travel tips, special offers for travelers and events taking place near the airport. Using that platform, it has transformed Changi Airport into a lifestyle and shopping center.

Below is a slide deck featuring the future of marketing Singapore. This is a prospective analysis and explanation of the marketing and business world in Singapore.

India

Digital marketing in India has grown in the past years. Business-friendly initiatives make it possible for more companies to invest in the country. In addition, talents are emerging not only in the programming world but also in branding and content marketing.

PayTM is India’s popular electronic payment system. PayTM was invented when India's Prime Minister Narendra Modi abolish the usage of note of Rs 500 and Rs 1000. Eighty six per cent (86%) of the cash in India became invalid. PayTM was launched with online wallet services after online payment transactions were enabled.

Case Studies from the East

What makes a business successful? Is there any specific formula in Asia?

There are times when engineering is the secret ingredient. On the other hand, you will see success stories that are applications of the same technology for other markets.

Now, it is likely you are not building the next Uber or Netflix. You might be running a humble web design agency or a 30-person restaurant.

Let us look at the universally applicable lessons from these success stories, regardless of industry and business size.

Ride Hailing: Grab and Go-Jek

Transportation is one of the hottest industries for disruption. How does this look like in Asia? Let us inspect two notable successes, Grab and Go-Jek.

Recently, Grab raised another $2 billion, approaching a $6 billion valuation. This positions the ride-hailing company as the most valuable startup in Southeast Asia. A key ingredient of Grab’s success is the focus on its market’s unique needs. Most notably, they accepted only cash payments, during times when Uber required credit cards.

Let us take a look also at Indonesia’s Go-Jek, which claims that they are beating Uber and Grab in their home country. This ride-hailing service is different in a way that perfectly fits Indonesia, motorbikes. Unlike your typical Uber car or Grab-powered cab, Go-Jek established its place while focusing on the country’s favorite mode of transport.

Ecommerce: Lazada and Zalora

Lazada and Zalora are two ecommerce brands that started as ventures under Rocket Internet. Lazada can be found in Indonesia, Malaysia, Philippines, Singapore, and more. Similar to its sibling, Zalora is present in different Southeast Asian markets.

While they both started under the same parent, their paths have divided. For one, Alibaba now owns most of Lazada. The group also has different partnerships for each country where it operates. On the other hand, Lazada is controlled by different entities in Thailand and the Philippines.

These ecommerce properties, unlike western counterparts, are facing different challenges. For one, they are taking on delivery logistics. That is a big contrast compared to Amazon that can easily work with existing couriers, like the United States Postal Service.

E-commerce: Rakuten

Japan's famous Rakuten, Inc., an internet service-based business, mainly provides internet services, finance and other related offers. The internet service includes advertising and sales, online shopping, managing hotel reservations, e-commerce site management, and much more.

Rakuten does not only cater Japanese consumers, as it also serves over 25 other regions.

This Japanese internet giant can be compared to Amazon and Google. Their dominance is based on their focus on expanding in their home country, considering its unique market needs.

While they are expanding globally, and is now the parent of brands like Viber, their success rooted from focus on growing in Japan.

Electronics: Xiaomi

Have you heard of Xiaomi? While they are not popular in many western economies, you better take a closer look.

Here is an interesting piece of recent news, Xiaomi has overtaken Fitbit and Apple in the wearables category. If you are more familiar with the Apple Watch than this Chinese brands, this information inspires you to look at other markets.

Xiaomi is also known for their smartphones. Hugo Barra, who was Google’s VP for Android, was with this chinese electronics company. But aside from smartphones, they also sell TVs, desk lamps, and air purifiers, positioning the company as a go-to brand for hardware.PAGE_BREAK: PageBreak

Tips from the East: Practical Lessons for Western Marketers

As a marketer or business owner, there is a lot to learn from Asia’s unique environment. Let us look at some case studies and specific tips that you can apply globally. These insights are designed to help you generate more leads, deliver great user experiences, and pursue effective business models.

Adapt to Payment Methods

As mentioned previously, popular ride-hailing app, Grab is known for accepting cash payments. This enabled them to rival Uber in markets where credit cards are not as common.

If we look at Hong Kong, it would not take you long before you find locals using their Octopus Card. This is a popular way to pay for public transport and even supermarkets. Its wide adoption boosts conversion rates as it takes advantage of the popular payment method.

In the Philippines, ecommerce store Lazada’s most popular payment method is “Cash on Delivery,” removing the risk for buyers and inviting shoppers who do not happen to have a credit card. They also accept installment payments, credit cards, and Alipay.

Let us look at now your business.

What payment methods do you currently accept? Stripe? PayPal?

Consider adding multiple payment methods. If your target market is the technology early adopter, accepting Bitcoin could give you a boost.

Don’t you already have a PayPal Merchant account? Take the time to set it up and offer it as an alternative payment method. Why not also consider accepting wire transfers, cheques, and bank deposits?

You may want to look at your target market. Are they international? Focusing on enterprises?

Based on your buyer, consider payment flexibility, as well as installment plans and guarantees.

Finally, be sure to communicate your payment options. If your prospects never learn that you accept PayPal, it is just like not accepting PayPal.This could easily be a game-changer if your conversion rate has slowed down just because a willing and able prospects did not find your payment methods and terms convenient.

A study done by YouGov revealed that 50% of consumers tend to cancel their online reservations and purchase when their preferred payment method is not available. Indeed a good idea to every marketers to include a number of payment options for their business.

In fact, the use of alternative payment forms or methods other than credit and debit cards significantly rise to 59% in 2017 from 43% in 2012, according to a study done by WorldPay. The transaction values for every payment method also significantly increased from 2012 to 2017.

Take Advantage of Low Advertising Costs

There is a good reason why several market segments in the US are associated to high advertising costs. Marketers flood opportunities whenever they find high spenders. Interestingly, there is always a new opportunity to uncover. In the case of many eastern markets, advertising costs are merely a small fraction compared to their US counterparts.

With higher competition, the same advertising techniques become less effective. Costs go up while conversions go down.

Learning from the East’s generally lower advertising price, consider markets that you have never touched before.

Perhaps, the right expansion for your business is to take advantage of places where Facebook Ads are still heavily underpriced.

Introduce Successful Concepts to New Markets

Netflix only became available worldwide in 2016, due to business issues like licenses. Asia did not have to wait. There are well-adapted local players, this includes iFlix, Hooq, and Viki.

The same goes for Amazon’s absence in Asia. The East produces alternatives like Lazada, Zalora, and popular classified ads websites in each country.These products borrowed proven patterns from the West.

As the bigger western players figure out expansion, eastern alternatives took advantage of their absence, gaining a foothold while the opportunity has not yet been filled. What does this mean to your business, especially if you are not building an Uber or Netflix?

Exploring a new market does not always refer to expanding to different countries. For example, it is easy to find a course on using Google Sheets for accountants. You can repackage such products for other markets. You can build a spreadsheet tutorial course specifically for designers, web developers, or even stay-at-home moms.

This is to illustrate how same concepts can be designed for other markets, taking advantage of a proven product category.

Start Small

Even Facebook started small, beginning as a social tool for Zuckerberg’s classmates. The same applies to brands in Asia.

Xiaomi is intensely focused on the Chinese market. To expand, they are increasing their presence in India, the US, and other parts of the world.

Later, we would not be surprised to find Xiaomi as a leader in more global categories. As cited, they have already overtaken Apple and Fitbit in the wearables market.

It is all about focusing your products somewhere realistic, then expanding after gaining enough traction.

For your local business or startup, understand the power of starting small.

Begin by serving your local town. That does not mean you cannot have larger ambitions. On the contrary, starting with a small market segment is necessary to establish any sort of success, let alone global expansion.

Localize Your Marketing

To build a popular brand, it is best to “think global, act local”.

Chinese messaging app WeChat is a great example. To grow in specific Asian segments, they used TV ads with local stars.

While you are not necessarily in the business of buying TV ads or hiring celebrities, the principle here is to appeal to local tastes, differentiating a product that may have many alternatives.

Localizing your communications is one effective method to introduce a product category to a new market. It is another thing to craft your marketing message to fit the audience.

Apply personalized marketing based on the segment.

For one, Brennan Dunn has been advocating website personalization. He suggests that a company may target different markets with the same product. In this case, the key is to customize your messaging based on the website visitor.

Let us say you decided to diversify your web design business. Perhaps, you are based in Australia and are now looking to expand in New Zealand.

Maybe, you are a fitness coach who targets busy corporate executives. To expand, you may consider crafting a different message for the digital nomad market.

Without necessary changing your product’s specifications, tweaking the marketing and communications go a long way.

You could be selling a slightly modified product, but the heavy lifting depends on your marketing channels and how you position the problems you are solving.

Maximize Customer Loyalty

Nielsen uncovered that 86% of Chinese respondents would choose retailers based on loyalty programs.

Let us say that you introduce a popular solution to a new market, much like bringing a Netflix alternative to a country that does not yet have access to the service.

As the current default choice, even when larger players compete with you, your existing relationships will be a key differentiating factor.

When Uber arrived in Asian countries, Grab already had a foothold. Having said that, nothing stops consumers from using multiple ride-hailing services, so they had to appeal to loyalty and familiarity.

No matter how big or small your business is, you are facing competition from bigger players and new entrants.

Do you sell yet another CRM app? Are you yet another logo designer?

Take advantage of your existing relationships, so there is less incentive for your customers to turn to your competitors. If you are running a barbershop, appeal to the fact that you already know your client’s preferences.

If you offer social media marketing services, leverage your knowledge about existing clients. Volunteer new services based on how you understand their needs. Even if a SaaS app or a larger agency offers an alternative, it will be hard to beat your relationship.

Share incentives to stay by offering promos and providing an advantage based on the information and relationship you already have.

Be Present Offline

While your product may be comparable to the competition, you can differentiate with your local presence.

Line, a popular mobile messaging app, is known for its physical stores, selling branded merchandise. While this WhatsApp competitor is best known in Japan and other Asian countries, they recently opened a store in Times Square, showing their dedication to expand beyond the East.

Now, how can smaller businesses apply the same principles? Showing up offline can be done in small ways.

Say you are part of a marketing agency, your physical presence can be established by merely organizing meetups and conferences.

If your interactions with the audience has been predominantly online, consider running local events to establish relationships that your competitors cannot rival with.

Look for Untapped Marketing Channels

Facebook and Google, as effective as they are, are highly crowded.

Independent celebrities are building highly-influential brands on YouTube. Today’s ecommerce companies are growing out of Facebook Ads. Airbnb grew out of hacking CraigsList. Course creators are taking advantage of Udemy’s massive audience to run highly-profitable, independent businesses.

Sure, you need to find your main lead generation channel, but it does not have to be the usual suspects.

Like eastern businesses, you don't have to default to the top growth channels like Google Adwords or Facebook Ads. For example, China’s messaging giant WeChat allows developers to distribute ‘mini programs’ under their marketplace, similar to the App Store.

With creativity, look for podcasts you can sponsor, small websites that allow native ads, classified ads websites, up-and-coming social networks, or even live events!

If you understand your target audience, look for under-used marketing channels where you can easily stand out and lowering your customer acquisition costs.

Concluding Statements:

As a marketer, you are focused on chasing opportunities.

If you are a marketing manager working in a team, you have influence over your strategies and marketing channels.

As a business owner or operator, you have full ownership over the business direction.

Whichever the case is, you have seen how success stories in Asia chased opportunities from a different perspective.

Thanks to the different cultures and market environments, they came up with solutions that western businesses have not produced.

If you are looking to expand in Asia, our advice should be very useful.

Even if you intend to focus on the western market, you can still leverage on methodologies that have come from Asia. Your key highlights and takeaways:

• Asia has the middle segmentation of countries and territories
• Expand your payment methods available, money is money
• Introduce your successfully tested business models to other markets
• Differentiate through offline marketing and relationships
• Look for untapped markets, especially when and where advertising is underpriced