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The digital economy in Southeast Asia (SEA) is rapidly developing and is expected to reach a whopping US$100 billion by the end of 2023, according to research by Bain & Co, Temasek and Google. But amidst this progress, brands are facing a crisis. Customers are leaving, and marketing strategies that have worked well in the past are starting to falter.
HubSpot data highlights that nearly nine out of 10 business leaders in Singapore find it harder to reach prospects in 2023 compared to the previous year. Additionally, more than 8 out of 10 companies are facing slowing growth, with previously effective strategies seeing lower profits.
It is becoming increasingly clear that customer expectations have evolved beyond just price and product. Today, customers want deeper, more authentic connections, personalized experiences, and brands that truly understand them. To succeed in this new era, marketers in Southeast Asia need to embrace key trends and rewrite their marketing strategies for 2024.
AI is becoming mission-critical for marketers
Unsurprisingly, artificial intelligence (AI) took center stage in the conversation in 2023, with increased investment in this technology within the Asia-Pacific region. Dataiku predicts a staggering 67% increase in AI and machine learning (ML) investment across the region by 2024. Within SEA, he expects AI adoption to continue into 2024. AI is no longer new to marketers, but it is becoming the ultimate marketing assistant, streamlining workflows, increasing efficiency, and fostering deeper customer connections.
This is especially true for generative AI applications. Generative AI applications help marketers develop high-quality, personalized content and create unique experiences that resonate with their audiences at a faster pace.
Content creation has emerged as the top use case for generative AI among 89% of marketers in Singapore, with nearly seven in 10 (68%) saying that content created using generative AI , states that it performs better than content developed without generative AI.
Freeing up marketers’ valuable time for deeper connections with customers by automating labor-intensive tasks is also a key use case for AI. A marketer spends an average of five hours per day (more than half of her workday) on low-impact tasks such as keyword research, data cleanup, and content formatting. By automating these mundane tasks, AI gives marketers back valuable time to engage with customers, understand their needs, and collaborate on solutions.
Of course, concerns about the quality of AI-generated content, potential brand mismatches, and the need for effective implementation strategies are pertinent considerations. However, the industry is rapidly maturing, and the AI tools themselves are constantly evolving, powered by advanced fact-checking capabilities and enhanced compliance mechanisms.
Knowledge gaps also create adoption challenges, with 35% of Singapore respondents in a HubSpot survey admitting they don’t know where to start with generative AI tools.
As companies hire AI implementation experts, marketers become more comfortable using AI, and AI tools improve their fact-checking capabilities, we can expect these concerns to be overcome.
It is also expected that some of these efforts will be led by the government. For example, Singapore recently announced its latest National AI Strategy, a national blueprint focused on preparing the economy to embrace and leverage AI, and other major Southeast Asian economies are following suit . In addition to public sector support, companies should also consider implementing intensive training initiatives to develop a future-ready workforce with the necessary skill sets to keep pace with advances in AI. is needed.
Social commerce and short-form video content offer huge growth opportunities
Southeast Asia is home to some of the world’s most avid social media users. According to GWI data, social media users in the region spend around three hours on these platforms every day, about 35 minutes more than the global average. Social media has emerged as the preferred channel for product discovery among Gen Z, Millennial, and Gen X consumers, and these platforms have the potential to deliver strong ROI, making them essential marketing channels. We are heading in the direction of becoming
This trend is expected to continue into 2024 in the form of social commerce, in line with the continued growth of e-commerce in Southeast Asia. To optimize revenue, marketers are expected to ramp up investment in influencer partnerships, social selling tools, and even personalized in-app customer service, all of which can be delivered seamlessly and frictionlessly through social platforms. We aim to create a shopping experience like no other. However, not all platforms and formats are created equal.
While Facebook remains the most used social media platform in the world, video-centric platforms such as TikTok, Instagram, and YouTube are expected to see the most growth in 2024. This is consistent with user behavior as social media videos have become an important source of information. Online discovery in Southeast Asia. When it comes to social media marketing, short-form videos offer the highest ROI and will continue to be the preferred format for marketers looking to attract digital-first audiences in the region, according to HubSpot research. More likely.
Additionally, influencers are a powerful tool in a marketer’s strategy. According to Milieu Insight, more than half of Southeast Asians follow influencers on social media, while a Cube Asia survey found that 82% of SEA respondents said their purchasing decisions were influenced by endorsements from influencers and celebrities. It was shown that he felt that he was being treated.
While influencer content doesn’t necessarily directly lead to conversions, when an influencer promotes your product or service, it can significantly increase brand awareness and help customers and prospects become more familiar with your brand. can. Marketers in Southeast Asia will continue collaborating with influencers in 2024, with micro-influencers likely to be the most popular. Working with micro-influencers is not only often less costly, it can also facilitate access to a close-knit, engaged, and loyal community, which is essential in an era of less connected customers. Masu.
First-party data and social media targeting will be key as Google phases out third-party cookies
Marketers in SEA will rely on social media targeting and first-party data to reach their audiences in response to Google’s phase-out of third-party cookies. The shift towards prioritizing data privacy and the increasing amount of related regulations across Southeast Asia has prompted adjustments in marketing strategies, but
Google’s phasing out of third-party cookies is expected to be particularly significant as a significant number of marketing activities traditionally rely on these cookies.
Despite these challenges, marketers in Southeast Asia are preparing for 2024 armed with powerful alternatives: social media targeting and first-party data. Social media platforms provide a valuable source of user data and allow marketers to attract targeted users through finely tailored advertising campaigns. This level of hyper-personalization, driven by these platform-specific targeting capabilities, is set to have greater impact compared to broader approaches using third-party cookies.
First-party data, complemented by AI content development capabilities, also allows marketers to create personalized content for their target audience, significantly improving customer experience, relevancy, and potential conversion rates. Masu. Marketers must ensure they have systems in place, such as customer relationship management tools, to effectively collect and track first-party customer data in compliance with data privacy regulations, and enable more personalized outreach and better user experience. Data needs to be analyzed to gain insights that drive the experience.
Overcoming disconnection through a single source of truth
One of the significant challenges plaguing many marketing teams is disparate data, which inhibits collaboration and creates a disconnect between marketers and their audiences. Teams often work on a variety of disparate platforms that aren’t well integrated with each other, leading to siled data and workflows. More than 80% of marketers in Singapore suffer from disconnected data and systems, struggling to access critical data or draw meaningful conclusions. As Southeast Asia’s economies become more digital, this challenge will inevitably become more prevalent.
Conversely, the rapid adoption of digital products and services in Southeast Asia offers marketers the opportunity to gain deeper insights about their customers using data captured at each digital touchpoint across the end-to-end customer journey. born. By integrating data with tools such as customer relationship management (CRM) platforms, marketers can create a single source of truth. This not only facilitates seamless collaboration and sales coordination, but also unlocks powerful analytical capabilities. Marketers who use connected tools and data, especially when powered by her AI capabilities, are more likely to collaborate better with their sales teams and customers, thereby successfully achieving their marketing goals. .
As 2024 progresses, the most successful marketers will be those who deeply understand customer needs through data-backed insights and work to solve customer problems at the root, rather than band-aiding them. . To move forward, keep pace, and even stay ahead of industry trends, you need to incorporate the right technology into your outreach strategy, allowing marketers to connect through their preferred channels in today’s digital-first economy. You’ll be able to effectively target and reach your customers and prospects.
This article was written by Kat Warboys, HubSpot APAC Senior Marketing Director.
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