CASBAA Connections Q1 2012

Date: Jan 2012

Advertising is crucial, given the combined challenges of new distribution and growing penetration

The adspend hallenge

Advertising takes centre stage amid diversity of delivery systems

Just as the world economy seems about to hit the buffers and adspend of all kinds ecomes more fragile, and the pay-TV ad stream is under more competitive pressure than ever, the Asia Pacific multichannel-TV networks are concentrating more firepower on their sales efforts.

And there are good reasons to view the upside. Asians are consuming a more diverse range of content than ever before; the aggregate of advertising minutage experienced by a pay-TV audience of more than a billion people continues to grow. Asian economies – most of all the media economies – will remain robust for the foreseeable future.

During its year-end meeting in November, the Council of Governors set out what it felt should be CASBAA’s priorities for 2012 and in line with their requests we have established a roadmap for our major concerns on industry issues.

One of the major talking points is advertising. It is crucial, given the combined challenges of new distribution and growing penetration beyond the average 50% growth across the region. With the lion's share of the high-net-worth audience, subscription TV is more attractive than ever to subscribers, advertisers and investors.

The Association’s ad strategy for 2012 has received a significant boost under the leadership of new Board Member Mark Patterson, CEO, Asia Pacific, of GroupM. As the regional head of a global media investment management group, Mark brings a strategic commitment to dvertising to the Association’s board.

CASBAA kicked off the year by commissioning research to measure the benefits of allocating TV budgets on multichannel TV vis-à-vis free-to-air TV. The research, conducted by Universal McCann, covered seven major markets: Australia, Hong Kong, India, Malaysia, the Philippines, Singapore and Taiwan. The results clearly show that, for a regional campaign, switching a ortion of the budget on to regional multichannel-TV outlets will allow a higher reach at a lower cost-per-thousand rate for clients.

A similar trend was also monitored when demographic data was analysed according to gender, age and socio-economic groups. With multichannel TV's fast-rising penetration in Asia, it can no longer be considered a niche platform, but a valuable marketing tool garnering the greatest reach and efficiency. While pay TV remains dominant, social media, online TV and mobile TV will be the key developments during 2012. Social media play a key role in helping us discover new content.

Of course, over-the-top TV (OTT) will become increasingly commonplace in homes across the major Asian markets. It’s a natural evolution of the personalised video content that consumers have come to expect.

These strategies are why CASBAA’s newly constituted OTT & Connected Media Group is so important to CASBAA’s future. The group will tackle some of the most exciting opportunities presented to our industry in almost decade, but these opportunities come with unprecedented business, regulatory and technical challenges, which will affect every corner of our industry The Board of Directors is very aware that CASBAA will need to coordinate its approaches to these issues more carefully than ever before.

Meanwhile, CASBAA is planning to engage better with the next generation of our industry leadership with “Young CASBAA“ initiatives.

Finally, in another sign of further evolution within CASBAA, our long-standing and uchrespected CEO, Simon Twiston Davies, will retire from the Association at the end of this year.

Simon has tirelessly promoted the interests of the Association and our industry for 12 years and he will be a very tough act to follow. The Board of Directors has appointed a search committee to seek a new CEO, whom we hope will be in place by Q3 2012 so that an orderly transition can be effected in time for the Annual Convention.

Marcel Fenez

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