Businesses are investing only 8.7% of their total budget on mobile optimised ads, whereas consumers are spending 31% of their time browsing on mobile. Clearly, Malaysian businesses are not investing where they need to be, Nicole Tan (pictured), country director of Facebook Malaysia, said.
"This shows that businesses are investing where customers spend lesser time, resulting in a US$262 million missed mobile ad spend opportunity in Malaysia," she added. Quoting the eMarketer 2016 studies and GlobalWebIndex 2017, Tan also pointed out that while majority of ad spend is found to be on print (39% of total ad spend), consumers are only spending 5% of their time on the medium.
Tan said mobile has definitely changed the customer journey. She added,
Businesses can no longer wait for customers to find them. In order to grow, businesses have to be discovered.
Businesses nowadays need to provide people with a seamless shopping journey, especially as mobile usage is changing people’s expectations of brand experience and the way they consume goods.
“In Malaysia, people spend 187 minutes each day on their mobile phones, and we're launching the Discover Growth campaign to help businesses unlock growth opportunities on mobile,” she added.
Malaysia's e-commerce scene has also seen a 47% growth since 2015, and the sector is now worth US$2.41 billion. While e-commerce contributes less than 1% of sales in Southeast Asia today, Tan said, the sector is predicted to grow 10-fold by 2020, creating both opportunities and challenges for the consumer goods industry.
Brand building ahead of peak shopping season
Facebook also said shopping season for consumers in Malaysia begins as early as October, with 18% more daily online purchases than average. This means brands need to tap into brand building in September, ahead of the peak shopping season.
Data also found that 88% more online purchases happened in the last quarter of 2016 compared to the rest of the year, peaking on the biggest shopping day of the year – 11/11 (3.1 times more online purchases than average). Holiday season purchases spill over into January, with 36% more daily online purchases made through Facebook than the 2016 average. Facebook currently has 21 million users in Malaysia.
Almost 61% of Malaysians purchasing online through Facebook being Millennials. Millennials are defined as people aged 18 to 34 at the time of data collection in 2016.