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The Headlines a month in news

By: Matt Eaton, Hong Kong
Published: Apr 04, 2008

1 Oriental Press debuts Ontv

Media The Oriental Press Group has launched an online TV arm called Ontv to distribute news content to Chinese language readers aged 20 to 35 year with high internet usage.

Paula Yang, chief sales manager for on.cc, part of the Oriental Press Group, said Ontv integrates TV and the internet to allow readers to interact and access its online TV portal anytime.

The news comes hot on the heels of a February announcement from Next that the media group is trialing an interactive news site through its Apple Daily platform.

Next Media's Apple Action News will feature three main sections - news, features and sport - and will offer advertising opportunities including online banner ads and TV-style advertising.

Yang said unlike terrestrial and pay TV, Ontv will give marketers a platform to launch one-to-one marketing campaigns.

She said existing clients from on.cc had already shown interest in the platform, particularly those from the banking, finance and FMCG sectors.

Key ad formats include allowing readers to click through to the company's TV spot that link to websites, a "video skin" option that allows readers to engage in mini-games as well as a tailor-made web TV channel.

Yang added that increasingly advertisers understand the value of brand awareness on the web. Ontv currently comprises five channels from news, finance, entertainment, lifestyle to news commentary.

 

2 Yeo's adds colour to soy dream

Marketing Beverage company Yeo's has kicked off a major campaign to creating awareness of its new line of organic soy drinks, taking a swipe at artificial beverages along the way.

Targeting health conscious consumers, Yeo's is aiming to build share against its major soy competitor in Hong Kong Soy Life.

The campaign, which runs until May, is aimed at demonstrating that the average person has consumed a lot of chemical drinks with added chemical additives. Unlike most healthy product advertising, the tone of soy dream's campaign is portrayed as if it is a fun drink brand.

M&C Saatchi developed the creative for the campaign, featuring multi-coloured people to reflect the ingestion of chemicals and artificial additives contrast with normal people.

Fann Yuen, general manager for Yeo's Hong Kong, said M&C Saatchi helps to transform and express the unique attribute of the product in an interesting and appealing way.

Yeo's handled media buying and planning internally with media channels TVB, the Oriental Daily, The Sun, Headline Daily and am730 as well as magazines, bus shelters and MTR used as part of the campaign.

Apart from traditional media, there will also be a road show, participation in organic fairs and in store display in major supermarket chains.

 

3 Calvin Klein towers Victoria Harbor

Advertising Calvin Klein's a 27-story billboard across the former Ritz Carlton Hotel in Central looks likely to produce a flurry of me-too type billboards across Hong Kong.

Marketing hears a number of banking and fashion brands have approached Brandwrap, the company responsible for Calvin Klein's mega-billboard, about erecting similar style commercials.

Jeremy Tang, founder of Brandwrap, said surprisingly the mega-formate billboard is cheaper on a per square basis, but the logistics of erecting the building wraps are "technically a nightmare".

"For brands, there's really only a window of one to two weeks to generate good PR around it," he said.

Kennis Chan, Calvin Klein marketing executive, said to date, the mega-format poster had received positive feedback from customers and local media including the South China Morning Post.

Calvin Klein's ad will remain until the Ritz Carlton Hotel is demolished in late April.

 

4 DDB creatives in new agency venture

Advertising Christine Pong, former group creative chief for DDB has partnered another DDB creative director Derek Wong, who left the agency in early March, to set up a creative agency called Two Hundred.

Pong, boasts 28 years of creative experience in 4A's agencies, said she was feeling "detached from creativity" and to bogged down in administrative work instead of engaging clients and understanding consumer needs.

Derek Wong, who started as a writer and served as a creative director at DDB for the past 10 years, shared similar sentiments.

He said the traditional agency structures were restrained by internal communications and procedures that restricted creativity from playing an active role in long term brand building.

The duo have decided to set up Two Hundred, meaning each will give 100% and be directly involved in helping marketers to build their brands and connect with consumers.

Pong explained the traditional role of agencies is a passive role of taking briefs from clients but she said creatives should be interacting with clients and actively involved in formulating a brief to create integrated campaigns.

 

5 Enqii readies for OOH onslaught

Digital Out-of-home group Enqii is preparing to officially roll out its services around Asia, using Hong Kong as a base for regional expansion.

Enqii set up in March last year when it acquired Digital View Media, the company has since purchased two additional companies Redeemit and Screen Edge and all three have been renamed under the Enqii banner.

Headquartered in London, it has offices in New York, Toronto, Dubai, Hong Kong and Melbourne. Earlier this year Enqii launched its Shanghai operation.

While the company holds the bulk of its clients in the US, Ajay Chowdhury, Enqii group CEO, said Asia was currently the fastest growing region for the company.

In Hong Kong its clients include UA Cinemas, Sheraton Hotels, Toys ‘R' Us and Airport Express.

Chowdhury said Enqii would continue to seek out acquisitions in the local market, but added it was too early to reveal details.

"The market will continue to consolidate, we hope to announce something soon. The market needs people with scale," he said.

Joe Rossi, president of Enqii Asia, said the media markets across Greater China are growing at a rapid rate and that the company would use its digital OOH platforms to tackle established players like Focus Media.

Rossi said currently Enqii was involved in a very high-end project with the Dairy Farm group, owner of Wellcome supermarkets.

"When we go to speak to retailers, their eyes start to glaze at the opportunities. We've never seen a bigger pipeline of opportunity than we have today," he said.

But he stressed issues such as measuring clients marketing spend on the digital outdoor sector was still a concern.

"Measurement is the holy grail at the moment and we want to get it right," Rossi added.

 

6 More luxury for Hong Kong readers

Media The growth of the luxury market in Hong Kong continues to fuel the magazine market with two new publications targeting luxury brands making their debut in March.

The Hong Kong Economic Journal has launched its inaugural issue of Lifestyle Journal, aimed at broadening its access to luxury advertisers.

The Chinese language monthly magazine is distributed free with HKEJ and has an initial print run of 60,000 copies.

Metro Publishing has also unveiled a new title, MetroBox, aimed at working professionals aged 25 to 45 years with high spending power.

The weekly magazine will be distributed during lunch time at key commercial areas such as Central, Tsim Sha Tsui and Admiralty every Thursdays and Fridays.

Mandy Wong, head of marketing for Metro Publishing Hong Kong, said the magazine will target high-end consumer brands from fashion, handbags and the automotive sector.

Louis Vuitton purchased the a cover wrap of the first issue along with other advertisers including Giordano, Clinique, ToyWatch, Samsung and Intel.

Pandora Ip, head of business development for Hong Kong Economic Journal, said launching Lifestyle Journal a "natural extension" to its lifestyle related content.

She added not many publications reach the newspaper's group of readers that are elegant, low profile, intellectual with high spending power.

Luxury brands such as Gucci, Chloe and Graff diamonds advertised in the first issue of Lifestyle Journal and Ip said some advertisers have signed up for the year but declined to reveal the specific brands.

 

7 SCMP delivers strong performance (SRI CAN YOU USE THE SCMP PIC FROM MARCH)

Media The SCMP Group said it has reported solid revenue and profitability levels in the competitive media environment in Hong Kong.

The group unveiled an increase of 3% to $1.25 billion in group revenue compared with $1.21 billion in 2006.

Its full 2007 years results revealed its net profit has increased 62% from $338.6 million to $548.1 million.

The group said its business benefited from the Hong Kong, mainland and Macau markets, boosted by consumer spending and business expansion across most industries.

The group's display advertising revenue grew 10%, with a 79% increase in online advertising revenue.

On the advertising front, IPO listings faltered, but its share of IOP listings revenue increased from 87% to 94% between 2006 and 2007.

SCMP Magazines including Cosmopolitan, Harper's Bazaar, and CosmoGirl, also benefited from advertising dollars and circulation sales.

Facing weak financial market, the group plans to increase its online revenues by enhancing its investor relations website SCMPIR.com to drive more page views and advertisers.

 

8 Moet enters luxury spirit market in China

Marketing Moet Hennessey Asia Pacific has tapped on branding agency Design Bridge to create a luxury white spirit brand for Wenjun, following acquisition of the distillery based in Sichuan targeting affluent Chinese.

Design Bridge has developed a new brand positioning for Wenjun from graphic and structural packaging, retail concepts, point-of-purchase materials to a website.

Mark Budden, managing director for Design Bridge, said the challenge was to build a luxury baijiu brand around the famous legend, whilst defining a new level for the white spirit market keeping it relevant for the target consumers.

Cheah Sufei, senior client manager for Design Bridge, said Wenjun is created for the modern Chinese consumer of luxury.

The target audience are made up of affluent Chinese between 30 to 40, with discerning taste and a renewed pride and appreciation in Chinese heritage.

A campaign for Wenjun will break in key cities in China such as Beijing and Guangzhou in August this year.

 

 

9 Kraft media moves to Aegis

Accounts FMCG giant Kraft has handed its entire media buying and planning business, estimated at more than US$110 million, to Aegis Media, ousting WPP's MindShare.

Aegis will be in charge of Kraft brands including Oreo, Tang and Maxwell House. The agency will also be responsible for the newly acquired biscuit brands from Danone including Prince, Tuc and Shark.

Aegis Media had been handling media for the Danone Biscuits brands prior to the Kraft acquisition.

KF Lee, CEO of Aegis Media Greater China, said integration across all media channels was key to the win.

 

10 BBDO ends joint venture in China

Agencies Omnicom Group's BBDO CNUAC has ended its sino-foreign joint venture with China National United Advertising Corporation to become a wholly foreign enterprise.

The agency, now known as BBDO China, has launched a month-long campaign in Shanghai and Beijing on Touch Media, in taxis and online about the name change.

Tan Tze Kiat, general manager for BBDO China, said the company name change has no effect on the agency.

"The name might have changed but nothing changed. Our people are still the same and our dedication to the work is still the same", she said.

BBDO entered China in 1991 in a joint venture with CNUAC, a subsidiary of Xinhua News Agency.

 

11 Where are Hong Kong online users going?

Online Social networking, sports, shopping and classifieds sites have been highlighted as the most popular form on online activity, according to Hitwise Hong Kong.

The report shows social networking sites and online forums are the dominant sub-category from a list of more than 165 sectors, representing 16.24% of all internet visits by Hong Kong users.

YouTube was the leading player in the Hong Kong social networking and forums category with 13 % share of visits, followed by Facebook with 12.4% for the week ending 15 March 2008.

Sports was also a leading industry in the Hong Kong market, with Hitwise data showing sport sites like Hong Kong Jockey Club and the HKJC Football Betting Limited taking visitation stats to 4.35%.

Shopping and classified websites accounted for 3.17% market share of visits across the same time period.

 

12 TVB cements free TV dominance

Media Television Broadcasts (TVB) will add two additional channels to its programming arsenal by the end of this year, on top of its current offering which includes HD Jade, TVB Jade and TVB Pearl.

Speaking at the company's annual financial results, company secretary Adrian Mak said its fourth channel, Jade 2, will launch in April.

TVB's 2007 result show a minor increase (1%) in gross profit from HK$ 4.2 billion to HK$ 4.3 billion in 2006.

The group's earnings before income tax grew to HK$1.5 billion, an increase of 8% on its 2006 figure of HK$1.4 billion.

TVB's pay-TV business booked a loss of HK$135 million.

Mediacom, one of TVB's media agencies, said the group's fifth channel, the 24-hour channel for August's Olympic Games, will give it an opportunity to draw additional advertising revenue.

 

13 MTR ad revenue nears $600m

OOH The MTR Corporation recorded a strong 11% jump in advertising revenue in 2007, buoyed by positive response to its plasma TV network and multi-media system on the Airport Express.

In the year to 31 December 2007, MTR's advertising revenue increased 11% to HK$593 million. MTR's merger with KCR looks to have strengthened its position for more ad revenue. Excluding the rail merger with KCR, revenue increase 9.6% to HK$585 million.

JCDecaux Pearl & Dean holds exclusive rights to manage advertising on behalf of the MTR.

An company statement said the replacement of seatback TV, combined with the new multimedia system on the Airport Express, and the enhancement of the MTR Plasma TV network had contributed to the growth.

 

14 Smartone's home revolution

Marketing Smartone-Vodafone is hoping to take a slice of the home phone market after research revealed most customers are dissatisfied with their home phone service.

To support its move into the home market, Smartone launched a 45-second TVC for HomePhone+, an innovative wireless fixed-line product and service.

A series of online, out-of-home and billboard ads, developed by OgilvyOne, launched in March along with print executions in major Chinese newspapers targeting seniors and home owners.

The Smartone line of in-home products is aimed at stealing market share from the likes of PCCW, Hutchison and Hong Kong Broadband.

"Creativity and innovation was of utmost importance in this product and this campaign. It's a revolutionary product, so together with Ogilvy Public Relations, we have started a revolution," Sean Rach, managing director OgilvyOne Worldwide Hong Kong, said in a statement.

 

15 CCTV names Olympic online ad partner

Online CCTV has awarded video networking company VideOnline exclusive rights to sell advertising packages for its online coverage of the Beijing Olympic Games.

CCTV.com will use VideOnline's ad insertion network to deliver targeted online advertisements for the Beijing 2008 Olympic Games for Mainland China, Macao and SAR coverage.

The deal covers CCTV's live online broadcasts of the Olympic Games, as well as its video-on-demand channels and mobile phone coverage.

Wenbin Wang, general manager of CCTV.com, said the deal was a "milestone in the history of the Olympic Games broadcast in the new digital media age."

CCTV.com holds exclusive online and mobile broadcast rights.

 

16 Ming Pao Weekly makes Taiwan debut

Media One Media Group (OMG) will launch its flagship entertainment magazine Ming Pao Weekly in Taiwan in the second quarter this year.

The company will sub-license the title to a media company in Taiwan but OMG declined to comment on the company of choice.

The weekly title will be in traditional Chinese and will feature entertainment and lifestyle news, fashion trends and celebrities.

Peter Brack, CEO for One Media Group is optimistic about Taiwan's economic prospects and is confident that the title will be well received in that magazine market.

"We hope this move will be the first of several sub-licensing initiatives, leveraging our strong proprietary home-grown titles," he added.

 

17 Fleishman-Hillard grows health division

Agencies Healthcare giant Bristol-Myers Squibb has has handed its 2008 hepatitis B mass media education campaign to Fleishman-Hillard China.

The mass media education campaign will be led by Stephanie Yu, healthcare practice leader for Fleishman-Hillard China.

China's Pharma Marketing & Distribution Summit predicted that China will be the world's largest pharmaceutical market by 2010.

Hepatitis B is one of the top 10 disease areas that Bristol-Myers Squibb focuses on globally.

The firm picked Fleishman-Hillard as its media agency after a pitch from last year. The ongoing healthcare campaign will be held until the end of 2008.

"We chose Fleishman-Hillard as our communications partner because they bring us strategic solutions that help us overcome communications bottlenecks," Stella Ling, director of corporate affairs for Bristol-Myers Squibb China, said.

 

18 now TV claims leadership position

Broadcasting PCCW has reported solid gains in its media and interactive businesses, with subscribers to its now TV service up 16% in 2007.

PCCW said the number of subscribers to now TV were currently at 882,000, making it Hong Kong's largest pay-TV operator.

The company also reported a 70% jump in revenue in from its TV and content business, hitting HK$1.7 billion.

A PCCW statement said its quadruple-play interactive strategy was behind the strong result.

"Building on our quadruple-play operations, we have strengthened PCCW's leadership of a consumer market that was ready to embrace new ways of enhancing everyday Hong Kong life via technology," Alex Arena, group managing director, said.

 

19 Edelman launches digital offering

Digital Edelman public relations has launched a regional unit, Edelman Digital, as clients and consumers focus shifts online.

A five-year study conducted by Edelman Asia Pacific Stakeholder, reported in 2007 that web-based media had become the second-most trusted source of news and information, followed by television. Traditional media-newspaper-still dominates among all mediums.

Edelman Digital will be led by Singapore-based John Kerr, who reports to Asia-Pacific president Alan VanderMolen.

VanderMolen said companies need to engage in transparent dialogue through web and mobile-based channels to drive specific business outcome. Otherwise they will be at a competitive disadvantage.

 

20 i-Cable takes back UEFA media rights

Sports The i-Cable Group has beaten its competitor, now TV, to secure the exclusive rights to broadcast the UEFA Champions League and the UEFA Cup in Hong Kong from 2009 for the three seasons.

Now TV, which has held the UEFA media rights for the past two years, said it lost the deal due to insufficient budget to offer UEFA.

A UEFA spokesman said its extended partnership will enable the company to demonstrate the importance of the UEFA Champions League and the UEFA Cup to Hong Kong football fans.

"I believe it is our commitment and our track record to produce and promote sports events that enable us to win the rights over our competitors," Ronald Chiu, Executive Director of i-CABLE Sports Limited, commented.

The firm was recently granted internet and mobile platform broadcast right for the Olympic Games. Meanwhile, it has 18 months to prepare for the launch of the football programming before the start of the football season in September, 2009.