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Insight
Aug 12

Differences between
Digital Creative Automation and Dynamic Creative Optimisation

The ad landscape is saturated with digital assets—photos, music, videos, animations, and interactive ads—all intended to capture the consumer’s attention.1 From a boosted social post to multi-channel ad delivery, the question we often ask is, “Is this ad reaching the right audience?”

In today’s content-rich world, there’s no avoiding it. You’ve got to make sure your ads are relevant to your buyer persona, that they’re quality-controlled, and you’ve also got to scale these efforts. You’d eventually wonder how many more ads you need to serve and if you can optimise and save costs.

All without creative teams burning out.

The best way to keep up? Eliminate the manual creative process. Dynamic Creative Optimisation (DCO) and Digital Creative Automation (DCA) are two types of automation tools worth considering. Though they sound similar, their uses are fairly different.

So, what are the differences between DCO and DCA?

DCO: A complex tool that fuses programmatic media buy with creative automation

As the name suggests, there are two parts to it 2:

  • Dynamic Creative allows ad components to be swapped in real-time to build new creatives automatically.
  • Dynamic Creative Optimisation uses “artificial intelligence and machine learning technology to create and serves the most effective combination of creative elements for each viewer” 3, informed by real-time data, testing, and live analytics.

“This technique enables you to create multiple iterations at speed. By combining the dynamic elements with analytics, it becomes easier to resonate with your audience and optimise creatives for an increase in relevance and ad performance.”4

In short, DCO is a useful tool that enables visual asset creation on the fly. However, what is DCO’s most unique feature is also its biggest limitation.

Challenges to know include:

  • The complex features of DCO have a steeper learning curve.
  • The platforms that offer DCO require integration and these could be limited to one platform rather than multiple DSPs.
  • Most DCO platforms only produce HTML5 banners, not other formats, such as video.
  • Existing templates on these platforms cannot accommodate different kinds of content.
  • Only simpler elements can be swapped in and out, hence there are limitations on editing, revising, or adjusting layouts for different ad versions.

Though DCO is powerful, its creative flexibility is a limitation worth considering, particularly if that’s a workflow you find important. In this case, it’s worth trying a hyper-focused asset-creation tool: DCA.

DCA: A managed service that speeds up personalised creative production

Unlike DCO, Digital Creative Automation (DCA) focuses entirely on removing manual adjustments to creative assets through automation.

Why would this matter?

Imagine taking a single creative asset and localising it for multiple markets, in different regions, with different languages.

“Most creative teams spend between 30-50% of their time managing the manual process of design adaptation, forming a creative bottleneck that ultimately compromises the agility of a marketing agency or team.” 2

DCA helps you eliminate these manual workflows and creates space for your team to work on what impacts ROI: creativity.6

By optimising the creation of better, more relevant visuals, you can keep up with the sheer amount of creative assets needed for your ad campaigns and you can maximise each asset’s visual impact.

Why DCA?

There are 3 reasons why DCA is ideal for those who are seeking creative automation solutions and need flexible content production.

1. DCA is platform agnostic

Our biggest flex is how integrative DCA is. It’s not tied to a specific DSP or media platform, so it’s flexible enough to produce various types of ad assets for any server. This saves you time and costs, especially if you’re new to adding an automated component to your workflows.

2. DCA is flexible across multiple types of creative production

With DCA smart template, you can adapt any type of content—think static visual, video animation, HTML5 Banners etc.—to your needs. DCA lets you churn out creative assets across multiple channels, modify languages for different countries, and target varying audience segments.

3. DCA helps you better understand your consumers through personalised creative

Having personalised ad variations lets you test and gather consumer insights. This helps you understand how your consumers respond to different types of creative content and what resonates with them. Focusing on what works then leads to overall improved campaign performance and better ROI.

Conclusion

These creative automation solutions are ideal for different situations, so which tool should you go for? We recommend first examining your needs and what automation can do for you.

If you already have a robust media buy workflow in place, are looking to understand what content speaks to your audience, or you’re looking to try out automation, DCA is our recommended option. It’s the solution to root out inefficiency, create resonant and engaging ads, and help you capture consumer attention.

See how we’ve helped Grab save 80% in man-hour costs.

If you’re ready to launch a personalised ad campaign with DCA, get in touch to schedule a demo.

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News
Aug 10

Top 5 agencies in Malaysia that mastered the art of digital marketing

Digital customer experiences are now just as important (and sometimes even more so) than in-person experiences in building trusted relationships with brands, said a recent report by Adobe called Adobe 2022 Trust Report. The report found that for 71% of consumers, relevant, personalised content delivered at the right time increases their trust, while 57% of consumers will stop purchasing from a brand that does not provide personal experiences. At the same time, McKinsey’s “The New Digital Age” survey also found that companies will have to build new digital businesses to stay economically viable as they look towards 2023.

Clearly having a digital presence today can make or break a brand. With the speed of change in all things tech and digital, often clients in our part of the world rely on their agency partners to guide and create an elevated experience for their consumers. Hence, agencies that are able to integrate advanced technology with marketing and advertising to produce modern and relevant campaigns are fast becoming one of the most sought after firms.

To find out which agencies excelled in their digital capabilities, the team at A+M turned to our Agency of the Year 2022 Malaysia submissions to find out which were the agencies that managed to leverage innovative digital means to produce thumb-stopping campaigns. Listed alphabetically, these are the top five winners that impressed our independent panel of judges with their modern and smart ways of operation for the Digital Agency of the Year category.

Ampersand Advisory 

Established in 2017, Ampersand Advisory specialises in audience insights and segmentation; driving scale and measuring performance; as well as digital audit and optimisation. It offers consulting and data services, digital content services, as well as connections and media services.  When the pandemic hit, Ampersand Advisory capitalised on the need for digital solutions that fast engulfed clients seeking to transform their media planning and buying approaches. As such, it was able to appeal to businesses looking to transform, and build a standout presence online.

A notable brand that the agency has worked with is Shiseido, where it developed a unique new media platform development in virtual reality that drove engagement, product sampling, eCommerce and social buzz, the Shiseido Ultimune Virtual Reality.

According to Ampersand Advisory, people are still its greatest assets. As such, the agency ensures that its team is physically, emotionally, and financially protected. For instance, it provided all its staff with large monitors to extend their screens, as they worked from home. Financially, the agency took a firm policy decision to not cut its staff’s salaries, despite the initial fall in revenue and cuts in ad spend in 2020, even giving out bonuses in the next year. Additionally, it offered flexible working hours and removed mandatory check-ins online and offline, ensuring the welfare of its team.

At the same time, as Ampersand Advisory hired more staff, it continued with its digital acceleration programme to train them quickly. Key elements included loose monitoring, media training sessions, rigorous digital training, data analytics workshops, and encouraging its staff to undertake tests and get certified. These initiatives on the manpower front proved effective, as both staff strength and retention grew.

Digitas Malaysia 

Touting itself to be a transformation and connected marketing agency, Digitas Malaysia helps clients manage and accelerate growth through first-party data, insights and actions. The connected intelligence empowers brands to create better consumer connections through technology, creativity and smart media across all ecosystem touchpoints. What sets Digitas Malaysia apart from other digital agencies is its core capabilities, where data is at the heart of every work produced. Leveraging technology, Digitas Malaysia pushes boundaries and develops bespoke solutions tailored to each clients’ unique challenges. According to the agency, this has enabled it to deliver personalised and meaningful consumer connections, helping brands fully optimise their customer experiences, delivering clear and measurable ROI.

In addition, Digitas Malaysia establishes strategic partnerships with technology vendors, platforms and content channels to give its clients an additional competitive edge. For instance, its Power of Community Commerce partnership with TikTok enables select clients to take advantage of social commerce, while its close collaboration with Media Prima has resulted in numerous exclusively branded programmes across digital platforms.

Digitas Malaysia explained that its business is all about its people. As such, the agency ensures the welfare of its staff with several initiatives, such as an Employee Assistance Programme, which provides free professional counselling to its staff members through this time of stress and uncertainty. In addition, it financially rewards its team by promoting and rewarding high performing staff members. Not neglecting the technical skillset of its staff, Digitas Malaysia is also committed to digital upskilling, where 50% of all staff has attended enhanced digital skills training via proprietary training courses on Marcel, the Groupe’s global AI collaboration and knowledge platform.  Currently, the agency works with brands such as Mercedes-Benz, Prudential, Coca-Cola, Samsung, and Nestlé.

Entropia – part of Accenture Song

Starting out as a media agency with technology at the heart of its services and solutions, Entropia – part of Accenture Song has now evolved to offer a complete suite of services in a crossover of online and offline worlds, such as customer experience design, data consulting, digital transformation solutions, IR 4.0 services, and most recently, demystifying the metaverse for clients.

Its acquisition by Accenture in 2021 opened up new opportunities for the agency’s clients to relook at their integrated brand experience, spanning the entire value chain, including product, pricing, access, communication, and commerce, among others. With a vision to break industry traditions and norms, the agency set out to blend consultancy and agency, paving future-oriented modes of thinking and working, and merging the domains of influence in marketing geared toward the fourth industrial revolution.

Bringing acceleration to its offering, the agency has partnered with various technology ecosystem partners such as AWS (cloud), Sitecore & Adobe (CMS and marketing cloud), Edgeverve, an Infosys company (customer service, distribution network digitisation, and procurement), and Bambuser (experiential commerce) to bring cloud, CX and commerce platforms to the region. In addition to these partnerships, Entropia – part of Accenture Song has also built its own IP in the areas of customer 360 and advanced profiling, predictive marketing and sales analytics, IoT-driven CX measurement and feedback systems. According to the agency, all these platforms have a strong roadmap in tune with the evolving needs of brands in the digital technology space.

On the manpower front, the agency said that it has made new hires proficient in strategy building, creative work, media, social, UX, martech, data, tech, XR, and eCommerce. This can be attributed to how the agency helped its employees adapt with work buddy programmes, and encouraged more open-door conversations.  Notable client brands that the agency has worked with include Pepsi, Unilever, Merck, Hartalega, Panasonic Malaysia and Oppo.

FCB SHOUT 

FCB SHOUT, previously known as FCB Malaysia, rebranded itself and formed a new holding group five years after an independent buy-out, giving the agency a new lease of life as it became one of Malaysia’s “hottest creative shops”. Its challenger mentality and agile working culture enabled it to hold strong and emerge out of the pandemic stronger and more determined, evident in the significant rise in organic business growth, and a high client retention rate. In fact, FCB SHOUT managed to turn 2021, a year of adversity, into its most profitable year since buying the agency, with more than a 100% rise in profit growth, the agency said.

The agency’s success can be attributed to the creative tools it has at its disposal, due to its affiliation with FCB. Ranging from brand bedrock, which helps define brand purpose; definitive design, to build brand assets; and people and patterns, which humanises data.

To help define brand purpose, which the agency believes it to be a powerful concoction of inspired storytelling and engaging story-doing, FCB SHOUT starts by interrogating the brand’s past, understanding its present and anticipating its future. Once the brand purpose is defined, the team is able to make better decisions more quickly and with more confidence.  In addition, FCB SHOUT’s proprietary tool uses data to map behaviours and recognise patterns emerging in the world, both within the category and those that are specific to the business and the brand. With that knowledge, the agency is then able to uncover the most significant opportunities to maximise how and when people engage.

Beyond campaigns, FCB SHOUT also invests heavily in its people – making its staff its priority, and ensuring that jobs were maintained despite the changing circumstances. With its lean operating principles removing all the layers and costs normally associated with a traditional network agency, FCB SHOUT successfully navigated the economic downturn of 2021 without having to implement any salary cuts or retrench any of its people. The agency’s efforts paid off, evident from its success at maintaining staff turnover at 11%. In fact, it even went to great lengths to persist with its training programmes, moving from classrooms to webinar. In addition, when others were downsizing, FCB SHOUT doubled down on talent, and added 10 new hires across all disciplines, ending the year as a 40-strong team.It currently works with notable brands such as RHB Bank, Spritzer, Domino’s Pizza and others.

Kingdom Digital 

Established in 2007, Kingdom Digital strives to push the creative boundaries in the work it produces, while still putting relationships first in everything it does. By humanising the way brands present themselves and speak to their customers, the agency creates a relatable, strong and distinct brand personality that customers can relate to, whether it is through social media content or digital campaigns. The agency also follows a “Relationships Matter” core belief which revolves around building pleasant and long-lasting relationships with clients, consumer and brands, as well as co-workers.

Digital creative automation is Kingdom Digital’s bespoke solution to help brands achieve personalisation at scale. This platform-agnostic service has helped clients such as Grab and PropertyGuru save production time, reduce creative man-hour cost, and enter markets faster with hyper-targeted campaigns.

According to Kingdom Digital, teamwork makes the dream work. With more than 45 active direct brands on the roster concurrently, the agency ensures that adequate support is provided to its clients, while ensuring internal resources are kept at optimal efficiency. As such, the agency was actively hiring throughout 2021 to expand the team, despite other organisations having recruitment freezes. In fact, Kingdom Digital made 73 new hires last year.

Beyond simply hiring and expanding the team, the agency ensures that it nurtures its existing employees. From annual performance reviews, a mentoring system between seniors and juniors where juniors are exposed to the best practices, to training, workshops, and masterclasses where its staff are encouraged to participate, Kingdom Digital provides a conducive environment for its team to grow and learn.

With its humanised approach, capable team, and effective technology, the agency has worked with a diverse range of brands from various verticals, including Grab, Digi, Shiseido, Nissan, Hong Leong Bank, and Sime Darby Property. Most recently, the digital creative agency Kingdom Digital was acquired by Hakuhodo to accelerate Kingdom Digital’s expansion in Southeast Asia.

News
Aug 10

Hakuhodo and DAC launch H+ to create a new Asia-wide digital network offering

H+ aims to grow digital revenue outside of Japan, satisfy client needs and further integrate Hakuhodo DY’s overseas holdings.

Two of Hakuhodo DY Holdings’ largest agency networks are teaming up to create a new APAC-wide digital service network called
H+, in a bid to export Japanese know-how and expand theirtechnology offerings across Asia.

Hakuhodo Inc. (Hakuhodo), the holding company’s largest creative and brand agency, and D.A.Consortium (DAC), its leading digital media agency, plan to focus on Asia-wide digital growth with team members from both networks across the region collaborating in the new cross-company organisation.

H+ will be led out of Thailand by DAC executive offi cer and head of its Global Business Group,Michihiko Suganuma, together with Yusuke Miyabe, Hakuhodo’s global business transformationdivision and Asia DX division leader. Both have relocated from Tokyo to Bangkok whereSuganuma will lead H+ operations and supply, while Miyabe will focus on growth and demand.

“APAC has always been a fantastically dynamic region of the world, and now in particular israpidly making up for lost time and looking for innovation and opportunity again,” Suganumasays. “Across advertising, owned media, commerce and CRM, clients are looking to haveengaging conversations with consumers. With data and technology at the core, H+ is focused onempowering our clients to do just that.”

While Hakuhodo’s agency network alone has nearly 100 companies in Asia-Pacifi c outside ofJapan, both Hakuhodo and DAC have identifi ed 22 of their digital-fi rst companies to form the H+network initially in ten markets across APAC.

Although the H+ network represents a collaborative service offering between agencies, ratherthan a new entity or agency brand, H+ will be hiring new staff in these companies to coordinateand facilitate H+ services, while also choosing existing select staff from Hakuhodo and DAC towork on each project.

Getting employees across different Asian markets and agency networks to cooperate and workseamlessly work together is “the diffi cult part,” admits Suganuma, but says Miyabe, himself and others headquartered in Japan are committed to seeing each client’s needs through tocompletion.

“For instance, let’s say there is a client from Japan aiming to reach 10 countries that we’ve plotted here, then we will make a special task force unit to support the client. We will appoint key members in each business to realise their request,” Suganuma says.

In Bangkok, H+ will be led out of the same location as Hakuhodo-owned Winter Egency and now expects collaborate with DAC-owned I-DAC Bangkok to a much greater degree than before.

Suganuma tells Campaign this was one of two main motivations behind starting H+, to not only raise sales revenue but also to realise the goal of integrating their agencies’ services. “We want to be united. That is why we made a consolidated brand in H+”.

L to R: Michihiko Suganuma and Yusuke Miyabe

Expansion across Asia

Of course, this integration is not merely expected in-market, but on an Asia-wide level. Hakuhodo has been steadily growing its ability to help clients with digital transformation (DX) in the region. Last week alone, Hakuhodo invested in Japanese artificial intelligence company
Laboro.AI for exactly this reason, then also bought an 80% stake in leading Malaysian digital agency Kingdom Digital, adding it as a subsidiary.

“Continuing to accelerate our growth outside of Japan has always been a key priority for Hakuhodo and DAC,” said Shuntaro Ito, head of Hakuhodo international. “This is why we feel that launching a new group offering, which can strategically power all of our in-market companies, is the perfect decision at this time.”

DAC, meanwhile, is looking to replicate its digital media success in Japan, where it claims to have12% of the market share, by expanding its extensive adtech and publisher partnerships across Asia, backed by the operational strength of 500 traders, 350 engineers and 50 data scientists.

“We are trying to bring this know-how in building client success to all the regions,” Suganuma says. We have been taking care of Japan clients asking us in Hakuhodo or DAC to cover several regions, but we are going to put more focus on acquiring clients overseas. Eventually H+ willspread past Asia but for now the focus is Asia.”

The H+ offering

The H+ logo helps illustrate its new integrated service portfolio. The four different colours on the + symbol represent its four main business areas: digital advertising, owned (brand asset and social channel support), commerce and CRM (including data services). In each area, H+ says ithas key partnerships in place with major platforms, tech and data providers.

The ‘H’, we’re told, represents both ‘Hakuhodo’ and ‘human-centric’ nature of the offerings. Those familiar with Hakuhodo will know it does not refer to consumers, but‘sei-katsu-sha’, a Japanese term for more a human-centered consumer as a multi-faceted individual.

This approach, Suganuma says, “is what drives us to look at people as a sum total of their lives, preferences, aspirations and dreams; and to seek out the evolving lifestyle experiences that will inform engaging communications.”

Based around this approach is a proprietary technique called ‘InsightOut’ that Hakuhodo developed more than a decade ago to turn data into ideas. The leaders of H+ says both concepts are at the core of its unique planning process, which uses all its data and technology partnerships to convert the underlying motivations and behaviour of sei-katsu-sha into actionable insights for clients and society.

“We start from a sei-katsu-sha insight to fi nd a new opportunity in the market and then we workon a digital solution or with media agency to increase media efficiency,” Miyabe tells Campaign. “We need to provide both to clients. This is the concept”.

The core of H+, its leaders say, is symbolised by the center point in the + sign where all the offerings come together.

Says Suganuma: “We are here to bring all these four areas into one central nodal point.”

News
Aug 02

Hakuhodo acquires Malaysian digital creative agency Kingdom Digital

Integrated marketing and innovation company Hakuhodo has acquired digital creative agency Kingdom Digital to accelerate Kingdom Digital’s expansion in Southeast Asia. According to Kingdom digital, there will be no key personnel changes within the agency, and currently, there are no conflicting clients as well. Kingdom Digital declined to disclose the cost of the acquisition.

Kingdom Digital specialises in social media and content marketing, digital 360 campaigns, web experiences, and video production among others, with a wide portfolio of clients including Grab, Digi, Tohtonku, KyoChon and Mead Johnson Nutrition. It currently has a workforce of 160 experts. Meanwhile, Hakuhodo has offices in 20 countries and regions and a pool of 10,000 specialists globally.

Vin Chinnaraja, chairman of Kingdom Digital, said that with Hakuhodo’s regional presence, Kingdom Digital can deliver multinational work for its clients and brands. “We are looking forward to combining Hakuhodo’s sei-katsu-sha data driven marketing with our innovative digital services like our Digital Creative Automation (DCA) platform to deliver hyper-personalised experiences for our clients and brands,” Chinnaraja said.

Shuntaro Ito, senior corporate officer, Hakuhodo and president and CEO, Hakuhodo International said: “We are absolutely delighted to welcome Kingdom Digital, which is regarded so highly in the industry, as a member of the Hakuhodo Group at this milestone juncture. I’m certain Kingdom Digital will be able to contribute to our clients’ growth by providing them with sophisticated digital solutions in a Malaysian digital marketplace that will only continue to develop in the future. I look forward to Kingdom Digital being a leading presence, alongside Hakuhodo Malaysia, in further strengthening our digital capabilities in Malaysia and ASEAN.”

Meanwhile, Ryan Ong, CEO of Kingdom Digital said: “With Hakuhodo’s acquisition of Kingdom Digital, we will be able to draw on their infrastructure, creativity, and insights to continue deliver the high standard of work that we are known for. Most of all, both Hakuhodo Inc. and Kingdom Digital share the same vision and values and us coming together will broaden and deepen our services for all our clients.”

In 2020, Hakuhodo acquired the majority stake in Growww Media to reinforce its capabilities to provide integrated marketing in Taiwan, where many Japanese companies have a presence. The acquisition also aimed to shore up the group’s services in a wide range of domains besides advertising, including large event and exhibition planning and operation, the building of UX-heavy digital campaigns, and PR.

Separately, just last month, Woon Hoh, Hakuhodo’s regional chief creative officer, left after 17 years with the agency. He started his career with Hakuhodo in Indonesia and eventually rose up the ranks to oversee ASEAN markets including Malaysia, Singapore, Indonesia and Thailand. He also won a slew of local and international awards during his time with the agency.

News
Aug 02

Hakuhodo takes majority stake in Malaysia’s Kingdom Digital

The deal will strengthen the Japanese network’s capabilities in Malaysia’s digital advertising market, and the two firms will also target southeast Asia with their digital advertising solutions.

Japan-based network Hakuhodo has acquired an 80% stake in Malaysian independent digital agency Kingdom Digital Solutions. The terms of the deal weren’t disclosed.

Kingdom Digital, founded in 2007, has 156 employees and will now become a subsidiary of Hakuhodo. The Japanese network has worked with Kingdom Digital previously, and this acquisition will strengthen its capabilities in Malaysia’s digital advertising market, the companies stated. The two firms will provide solutions to local, multinational, and Japanese clients in the ASEAN market.

Kingdom Digital provides digital campaigns, social media and content marketing and digital creative automation, to clients in Malaysia and ASEAN. The agency has won Malaysia Independent Agency of the Year (Gold) at Campaign’s Agency of the Year 2021.

This deal will help Kingdom Digital “realise and speed up our ASEAN expansion ambitions, tapping into Hakuhodo’s regional presence to be able to deliver multinational work for our clients and brands,” noted Vin Chinnaraja, chairman of Kingdom Digital. This deal would allow Kingdom Digital to combine Hakuhodo’s creativity and sei-katsu-sha insight with its Digital Creative Automation (DCA) platform.

Shuntaro Ito, senior corporate officer, Hakuhodo, and president & CEO, Hakuhodo International said Hakuhodo opened its first overseas office in Malaysia 50 years ago. “I look forward to Kingdom Digital being a leading presence, alongside Hakuhodo Malaysia, in further strengthening our digital capabilities in Malaysia and Asean,” he added.

News
Aug 02

Kingdom Digital joins Hakuhodo Inc. Network

KUALA LUMPUR, 2 AUGUST 2022 – Kingdom Digital, one of Malaysia’s most awarded digital creative agencies, has joined Hakuhodo Inc..

Established in 2007, Kingdom Digital’s growth over the past 15 years has been organic with clients across a variety of key categories. The growth has enabled Kingdom Digital to attract high-calibre, loyal talent who now count over 160 experts delivering amazing work and results for local, regional and multi-national brands.

Growth and expansion have always been at the heart of Kingdom Digital. To help them achieve it, and at speed and scale, they have found the partner in Hakuhodo Inc. who provide Kingdom Digital the ready-made platform via their regional presence.

Vin Chinnaraja, Chairman of Kingdom Digital commented:

“We have found the perfect partner in Hakuhodo Inc. for Kingdom Digital to accelerate our Southeast Asia expansion ambitions. With Hakuhodo’s regional presence we are able to deliver multi-national work for our clients and brands from day one. We are also looking forward to combining Hakuhodo’s Sei-katsu-sha insights with our innovative digital services like our Digital Creative Automation (DCA) platform to deliver hyper-personalized experiences for our clients and brands.“

Founded in 1895, Hakuhodo is an integrated marketing and innovation company with offices in 20 countries and regions and over 10,000 specialists working around the world. The centrepiece of the Hakuhodo DY Group, Hakuhodo is the second largest advertising agency in the world according to Ad Age’s “Agency Report 2022.”

Shuntaro Ito, Senior Corporate Officer, Hakuhodo and President & CEO, Hakuhodo International said:

“Malaysia was the first country in which Hakuhodo set up an overseas office—Hakuhodo Malaysia—in 1973, and next year will mark the 50th anniversary of our first foray overseas. We are absolutely delighted to welcome Kingdom Digital, which is regarded so highly in the industry, as a member of the Hakuhodo Group at this milestone juncture.

I’m certain Kingdom Digital will be able to contribute to our clients’ growth by providing them with sophisticated digital solutions in a Malaysian digital marketplace that will only continue to develop in the future. I look forward to Kingdom Digital being a leading presence, alongside Hakuhodo Malaysia, in further strengthening our digital capabilities in Malaysia and ASEAN.”

Ryan Ong, CEO of Kingdom Digital expressed that the agency is perfectly poised to capitalise on this partnership. “With Hakuhodo’s acquisition of Kingdom Digital, we will be able to draw on their infrastructure, creativity, and insights to continue deliver the high standard of work that we are known for. Most of all, both Hakuhodo Inc. and Kingdom Digital share the same vision and values and us coming together will broaden and deepen our services for all our clients.

From the top left: Wei-Chun Chu (Hakuhodo International), Edmund Lou (Kingdom Digital), Xiao Yee, Lui (Kingdom Digital), Ryusuke Oda (Hakuhodo Malaysia), Steven Yap (Kingdom Digital), Hisashi Hirano (Hakuhodo Inc.), Yusuke Miyabe (Hakuhodo International)

From the bottom left: Hideaki Sato (Hakuhodo International), Yasutoshi Hiratsuka (Hakuhodo International), Vin Chinnaraja (Kingdom Digital), Ryan Ong (Kingdom Digital)

About Hakuhodo Inc.

Founded in 1895, Hakuhodo is an integrated marketing solutions company headquartered in Tokyo, Japan. With offices in 20 countries and regions, and over 10,000 specialists working in Japan and around the world, Hakuhodo is the world’s second largest advertising agency according to Ad Age’s “Agency Report 2022.” The company is the core agency of the Hakuhodo DY Group.

Sei-katsu-sha insight is the foundation for Hakuhodo’s thinking, planning, and brand building. It reminds us that consumers are more than shoppers performing an economic function. They have heartbeats. They are individuals with distinct lifestyles. Hakuhodo introduced this term in the 1980s to emphasize its commitment to a comprehensive, 360-degree perspective on consumers’ lives.

With sei-katsu-sha insight as its cornerstone, Hakuhodo combines creativity, integrative capabilities, and data and technology to play a leading role in evolving companies’ marketing activities and generating innovation for the digitalized era. This enables the company to impact and provide value to sei-katsu-sha and society.

Renowned for its creativity, Hakuhodo has won the Grand Prix at Cannes Lions International Festival of Creativity twice, and was named Network of the Year at ADFEST 2021.

To learn more, visit: www.hakuhodo-global.com

For further information or any enquiries, please contact:
Sheryl Tan
Marketing Manager
Kingdom Digital
E-mail: sheryl.tan@kingdomdigital.com.my

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Insight
Jul 26

Not just for Gen-Z, it’s time to elevate consumer experiences with AR & VR

Augmented Reality (AR) and Virtual Reality (VR) aren’t for the future. They’ve been around and they’re only becoming more prevalent. Though they’re associated with Gen-Z platforms like Snapchat and Roblox, they’ve also crept into the mainstream consumer’s daily life.

This was most evident during COVID-19 restrictions when majority were confined to their homes. Consumers drastically shifted to the digital-scape and businesses followed suit. To bridge the physical-virtual gap, businesses used AR and VR to ease consumers’ purchasing journey and emulate the traditional, in-store experience. Consumers could visit virtual pop-up stores, try-on products from their couch, and interact with brands in ways that weren’t available before. Brands that pivoted and catered to consumers’ needs during this period remained top-of-mind and boosted sales.

Very quickly, imagination, immersive interaction, and ultra-convenience came to characterise this period of online shopping. Though we have emerged into hybrid living, consumer expectations have been raised permanently. Failing to meet these expectations will result in consumers losing interest. AR and VR present a unique solution to meet and even elevate these expectations.

Brands that integrated AR and VR into their marketing strategies discovered two main benefits:

1. Improving brand recall + recognition

Source: Pocket Lint

VR promises a fun, immersive experience1 that eliminates the need for ad-blockers and invites the consumer to interact voluntarily. During a VR in-game advertising study, YuMe Research discovered that:

  • 74% found VR ads less intrusive than digital advertising
  • 69% said the ad was well-integrated
  • 26% of respondents felt that seeing a brand in a virtual world was more memorable than a digital video ad

This erases two common marketing gripes—ad avoidance and the lack of ad recall. YuMe research lead Mireya Arteaga says, “[The] study indicates that VR advertising is highly memorable in any format.” Notably, video ads do deliver the highest rate of ad recall in the VR world.2

This kind of branded messaging goes beyond interactivity and engagement, it also offers consumers the opportunity to own their ad experience,2 further shifting the brand-consumer dynamic.

Naturally, there are challenges that come with crafting highly immersive ads. For example, while advertising in multiplayer VR games enables the transference of high emotional engagement to an advertised brand—and is an opportunity to deliver an ad with high recall—crafting a noticeable ad unit within an engaging game is a challenge in itself.2

Source: Games Radar

Fortnite X Travis Scott

When done right, in-game VR advertising yields astronomical results. Take Travis Scott’s Astronomical concert in Fortnite. The game involved players as early as during the virtual stage’s construction, showcasing the changes in what promised to be an exciting event.3

Fortnite followed these pre-launch tactics with a clever in-game launch, offering players a new level and features in conjunction with the concert event. Interested players could also complete tasks to win digital merchandise, such as a Travis Scott avatar skin.3

This concert was a success. 12 million people joined the Astronomical concert, proving that Fortnite wasn’t just a game, but a virtual universe. Players could shop, fight, and attend events. This showed that community spaces with engaged users offer opportunities to building brand presence.3

2. Increasing buyer confidence

Shopping with VR or making use of telepresence—participating in events virtually where users feel the “sensation of being elsewhere beyond their immediate environment”—positively impacts consumer perceptions of a product.

Consumers can interact with the product, thereby eliminating the need for physical prototypes or samples virtually.4 This increases consumer product knowledge, attitude, and purchasing intention.4 Of note, telepresence reduces consumer beliefs regarding product risk more effectively compared to print, video, or online ads.4 With VR, businesses can better serve customers and help them navigate their shopping journeys by mitigating frictions caused by a lack of physical product interaction.4

Similar to VR, AR creates an engaging shopping environment by helping consumers “try-on” products before purchasing. Consumers are more likely to recognise the brand, remember product details,5 and feel more confident. Shopping becomes more rewarding with less risk 5 and consumers are less likely to encounter post-buy disappointment or decide to return the product. A 2020 study by Deloitte showed AR in action, helping several home-goods companies lower returns and increase their conversion rates.6

Source: Makeup AR filter developed by us for LANEIGE

Purchasing online comes with some degree of uncertainty, particularly in beauty. Product photography may not reflect reality and the risk of buying the wrong product may put a consumer off online purchases. AR, or virtual try-ons, are meant to eliminate those worries.

L’Oréal & Modiface

An example of AR reducing barrier-to-purchase is L’Oréal’s project with Modiface, enabling lipstick try-ons via a selfie or a mobile phone’s front camera.7 Global Chief Digital Officer, Rochet, shares, “…Virtual makeup [try-ons] [are] the base of any experience. At the end of the day, the only barrier to buying [a product] is wondering what it will look like.”8

L’Oréal’s AR addition helped reduce that barrier. Consumers double their engagement time and tripled conversion whenever this AR feature was available on one of L’Oréal’s brands’ websites or apps. Shopping is intended to be an enjoyable experience and this AR feature contributes to that. Instead of navigating a makeup counter, people can, and are “…trying 42 looks because it’s fun and entertaining.” Rochet further adds, “People are really playing with it and are really starting to spend time with the brand.” 8

Conclusion

Consumers in the aftermath of the pandemic are tech-savvy and aware of how immersive and ultra-convenient online shopping can be. Their expectations are higher than ever. Integrated AR and VR marketing strategies can help brands navigate, meet, and surpass these expectations.

The question is, are brands in Asia ready to integrate AR and VR as part of their digital marketing strategy to better engage with the consumer?

Talk to us if you need help strengthening your digital presence.

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Insight
Jul 07

This is why people don’t skip TikTok ads

Audiences don’t like ads. In fact, 42.7% of people worldwide use an ad blocker1 just to escape the flood of advertisements. That is, until TikTok.

This video app flipped the idea that ads are unenjoyable. At a glance, stats show:

  • 72% of TikTok users consider ads on the platform inspiring2
  • 45% of users feel more connected to brands that offer value on TikTok 2
  • 49% of users said TikTok helped them make purchase decisions 2

These numbers indicate that brand discovery and ads are symbiotic with the short-video platform. The question is, why?

Well, TikTok is highly user-centric. When users engage with the app, TikTok rewards them by showing them content they want to see.3 Their engagement leads to video entertainment (including ads!) tailored to their preferences. Hence, you get an invested audience that responds favourably to ad content. With the right ads, “the average TikTok campaign ROAS was 2X the median campaign performance benchmark in commissioned studies.”4

So how can brands reach an audience like this? To answer that, we need to deconstruct what makes TikTok ads so engaging.

3 reasons why we watch TikTok ads

They are non-disruptive and engaging

TikTok ads are the antithesis of traditional ads.

Anne Hunter, VP of consumer insights platform Disqo, explains: TikTok’s ad variety, and their integration into the content in a way that’s less interruptive than traditional ads, seem to contribute to their appeal to users.5

She goes on to say, “Display ads don’t have the same emotional resonance as we’re seeing with TikTok formats in an environment where having fun and being playful is part of the raison d’être to be on the platform.”

Take a look at this KFC ad where the brand leans into TikTok’s playful environment. The copy is delivered impactfully with a funny, recognisable character. Though it is clearly an ad, the entertaining concept helped KFC rack up 1.1 million views and 55.9k organic shares.

@kentuckyfriedchicken Get ready. @lilihayes is launching the new KFC Sandwich. (Cuz we paid her to!) #TryTheKFCSandwich #ad ♬ original sound – KFC

Source: TikTok @kentuckyfriedchicken

They are authentic — and the community expects that

TikTok is a place for original content. Audiences expect authenticity and naturally, ad content should accommodate that.

Creator @ola_nowak shares, “Brands should not only care about showcasing their products but should also care about building an engaged audience around their brand.”6

One example of how brands can be seen as authentic is to collaborate with creators. Palmer’s worked with @tonyyounmd, a creator known for his real, no-holds-barred reactions. The brand leveraged his existing persona, leading to an ad that feels organic and invited active engagement.

They are un-produced

56% of users and 67% of creators feel closer to brands on TikTok, especially when they publish human, unpolished videos.2

Un-produced videos are like regular, organic content: entertaining, easy to consume, and most importantly, relatable. Brands don’t take themselves too seriously. They lean into what works on TikTok and put their brand’s unique spin on it. This often means:

  • Trying on-trend audio
  • Jumping on new transitions and filters
  • Using closed captions and text overlay

Of note is leveraging trending audio. The right audio makes the ad relevant. 73% of TikTok users said they would stop scrolling and watch ads with audio7, increasing watch time and overall engagement. This influences if the ad is shown on the home feed, boosts discoverability, and aids brand awareness.

So, what does an un-produced ad look like? Here’s a campaign that perfectly embodies that.

Case Study: SleepTown Singapore

Results8:

  • 360K+ Reach
  • 2.6M + Video Views
  • 1.7K+ New Followers

Who are they and what did they need?8

  • SleepTown is a direct-to-consumer mattress brand targeting the Singaporean market.
  • They wanted to raise awareness of their Cooling Mattress products during 11.11 and 12.12 Mega Sales and drive traffic to their merchant sites.

What did they do?8

  • To highlight their product’s USP, they took advantage of trending period dramas and created a series of ads set in the ancient Chinese palace featuring classic characters, storylines, and scenes their audiences are familiar with.
  • They localised the ad by incorporating Singlish, keeping the overall content informal, relatable, and above all, hilarious.
  • They utilised a TikTok native ad format, Spark Ads, to boost organic brand posts as if they were the usual in-feed content.

The brand garnered record highs in sales and thanks to their humorous storytelling, spread through word-of-mouth as viewers tagged and shared the videos amongst their social circles. 8

Conclusion

The most successful TikTok ads embody this piece of advice: “Don’t make ads, make TikToks.”6 They are user-centric and prioritise what audiences want out of their TikTok experience. When users enjoy the ad content on TikTok, they feel connected to the brand. And this then translates into tangible business results

To learn more about what ticks on TikTok, check out these articles:

If you’re ready to get your brand on TikTok, see how we can help you. Get in touch.

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Insight
Jun 02

Creative automation enables brand trust & loyalty

As the ad landscape continues to grow, advertisements will become more prevalent and customer attention will decline. Marketing and creative teams will have less time to focus on creativity as they grapple with increasing demand for content. Yet, creativity remains the number one factor driving business ROI. 1

The answer? Creative automation. While it does not automate the genius that is creativity, it creates space for that magic to happen. Automating repetitive tasks helps teams scale personalisation without worrying about maintaining brand consistency. 2

Why scaling personalisation matters

Every customer is different, so your ads need to deliver the right message to the right audience at the right time. Messages without personalisation are generic. Worse, they fail to convey the value of your brand and why it should interest your consumer.

Personalisation corrects that. It gives your ads a personal touch by tailoring variables to your customer. These could be language, copywriting elements like CTAs, ad formats, locations, and visuals (including video).

Now imagine modifying these variables day-in-day-out for multiple audience segments, across dozens of ad variations. It’s repetitive, slows down lead time, and burns out creatives.

With creative automation, your team can focus on what matters. They’ll be able to keep up with content churn, get to market faster, and produce impactful assets. In turn, this improves ad performance and creates a better customer experience.

How creative automation helps with brand consistency

As you increase your personalisation efforts, it’s paramount to maintain brand consistency. Each touchpoint is an opportunity to remind customers why your brand is familiar and trustworthy. This is done by consistently delivering messaging that is aligned with the brand’s “core values, brand promise, and brand identity elements.”3

These could be visual elements such as typeface and colour palette, or something more abstract like language and brand voice. Regardless, consistency helps your brand stay cohesive and recognisable across marketing channels, thus building brand familiarity.

Creative automation ensures brand consistency at every touchpoint by:

  • Keeping to the brand guidelines regardless of versions and formats
  • Maintaining quality control even with a high volume of creative production under time constraints.
  • Reducing potential human errors during repetitive creative tasks

Is personalisation worth investing in?

The numbers speak for themselves:

  • 80% of consumers are more likely to purchase from a brand that provides personalised experiences. – Epsilon 4
  • 86% of marketers have seen a measurable lift in business results from their personalisation campaigns. – Evergage 5
  • 55% of marketers say the top benefit of personalisation is increased visitor engagement and improved customer experience. – Evergage5

Using creative automation to reduce tedium means more time to focus on what matters. Your brand can gather feedback on what elements and combinations work best for your audience and campaign.

Our proprietary Digital Creative Automation (DCA) system does all the above cost-effectively. Best of all, this system is platform agnostic — meaning digital creative assets produced will be compatible with any platform or media you’re targeting. Our clients like Grab have used DCA and seen up to 80% savings in resources while improving campaign performance.

Conclusion

A word of caution, creative automation is not the end-all-be-all. Without something great to automate, what would the result be like? The point of creative automation is to make way for what impacts business ROI: creativity.

“By empowering marketers to scale content creation and distribution independently and in line with brand guidelines, creatives can concentrate on what they do best: creating original, memorable campaigns that strengthen brand identity and inspire trust.” 1

Looking to personalise your ads? Or maybe you want to take creative production to the next level?
Schedule a demo to see how DCA can help you. Get in touch.

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Insight
May 18

Should brands be using virtual influencers?

With the excitement that comes with Metaverse, we cannot NOT talk about virtual influencers. Whether they’re animated or an uncanny mimicry of a real-life human being, these CGI characters are capable of influencing purchasing behaviour and have amassed followers of their own.

You might think virtual influencers began with the Metaverse, but the culture behind this type of influence dates back to 1980s Japan. Japanese anime and idol culture existed long before we had the technology to generate CGI humans.1

In fact, though tech advancements now enable production teams to create human-like virtual influencers—complete with a custom personality2 —animated virtual influencers are still popular. For this reason, we’ll use the term “virtual influencer” to cover both human-like and animated influencers in this article.

Are virtual influencers legit?

In a thesis by W.E.M Wolff, titled A Trend or is the Future of Influencer Marketing Virtual?3 , virtual influencers were noted to be successful at two things.

  1. Impacting purchase intention
    It was found that virtual influencers can generate social responses and behavioural change, and this is due to their ability to “create rapport with consumers and being perceived as authentic social beings.”4
  2. Gaining engagement
    It was discovered that virtual influencers have 3x more engagement than real life, social media influencers.5

These findings further support a recent online survey by The Influencer Marketing Factory. They found:

“Virtual influencers can convince others to spend their own money… [with] 35% of the survey’s respondents [saying] they’ve bought a product or service promoted by a virtual influencer.”6

In a nutshell, virtual influencers bring plenty to the table. So much so that they’ve been leveraged to different degrees of success by different brands. Majority of which are recognisable names.

How have brands used virtual influencers?

Brands as early innovators have used virtual influencers to inject freshness into their marketing. From VTubers to vocaloids, to the hyper-real influencers, different brands and industries have found effective ways to partner up and market with them.

1. Luo Tianyi & NESCAFÉ Smoovlatté

Source: Vocaloid News

Luo Tianyi (洛天依) is a vocaloid and as of right now, China’s biggest virtual pop star. She was created independent of a specific brand and takes on campaigns and collaborations much like a regular influencer would. A recent collaboration involved the bottled coffee brand, NESCAFÉ.

The campaign7:

  • Aimed to gain ground with younger audiences who are uninterested in bottled coffee through a demonstration of innovation and an understanding of youth culture.
  • Targeted Tianyi’s fans through Bilibili, China’s biggest youth culture website; Nescafe teased the campaign during 11.11 by airing a customised video featuring the virtual influencer.
  • Leveraged Tianyi to provide a personalised experience that involved scanning the Smoovlatté bottle via mobile phone in order to offer the consumer one-to-one interaction with Tianyi. Users could then play micro-games to unlock a personal voice message, entirely customised to them based on location, weather, and time of day.
  • Users could share these greetings on WeChat, spurring posts and discussions with friends.

2. Lil Miquela & Samsung #TeamGalaxy

Lil Miquela is an independent virtual influencer with a realistic appearance. A big part of her branding comes from how authentic or real she seems. She’s portrayed as an effortless, cool, and self-aware character with values that align with today’s Gen-Z. From carefully constructed social posts depicting a “messy” real life to her witty bio stating, “19-year-old Robot living in LA”, she’s an embodiment of the term authentic.

The campaign8:

  • Samsung launched the 2019 #TeamGalaxy campaign with four members—Steve Aoki, Millie Bobby Brown, Ninja, and Lil Miquela—meant to embody their tagline, #DoWhatYouCan’t.
  • #DoWhatYouCan’t is an extension of Samsung’s philosophy—to defy barriers, to do what inspires you, and to confront your limits. Miquela as a reflection of technology trends, innovation, and authenticity, aligns neatly with Samsung on both their tech and philosophical fronts.
  • Samsung also linked the Galaxy phone’s limitless possibilities with Miquela’s own infinite potential as a virtual influencer, singer, and activist.8

To work with virtual influencers, or not?

Source: DMEXCO 

Virtual influencer services largely fall into two categories. The first, working with a virtual influencer the way you would with a real life one. The second is to create a virtual influencer from scratch for a brand. Either way, both offer a host of creative opportunities and experiences.9

The benefits of leveraging virtual influencers include:

  • Lower costs per follower
    Do you know, the price of working with a virtual influencer is much more affordable compared to an influencer with the same number of followers?
  • Full control over behaviour and messaging
    There is more room to prevent unwanted messaging or perceptions to be shown to the audience without compromising the unique personality of the virtual influencers.
  • Brand-aligned personalisation
    If creating a virtual influencer from scratch, they can be modelled to reflect a brand’s persona and values. This means the virtual influencer will be one-of-a-kind.
  • Giving the brand a good impression
    Utilising virtual influencers can help a brand appear as if it’s fresh and in line with the young, tech-enthusiastic generation’s interests.

However, potential cons of utilising virtual influencers are:

  • A lack of authenticity
    A virtual influencer might come across as “not-human” and lack the genuine quality, as they are ultimately fictional characters. Hence, unable to connect or develop trust with customers.
  • Discomfort and backlash
    Consumers unfamiliar with virtual influencers or with preconceived perceptions may not react well to a campaign utilising them.
  • High development and production costs
    If deciding to create a virtual influencer from scratch, this will require high production costs.

The big question with virtual influencers often is, do they replace real life influencers? Though it is tempting to consider this, Didi Pirinyuang, Executive Creative Director at Ensemble Worldwide, shares an interesting perspective.

“The rise of virtual influencers is not an indication that they are human replacements, but rather, a form of escapism and fantasy that provides audiences with a canvas to project their voices, interests, and personalities.”2 In other words, knowing the influencer is a virtual rendition, or a fake, doesn’t matter. What matters is how consumers relate to these virtual influencers.

All in all, as people still value the human touch, virtual influencers won’t be replacing real life influencers just yet. But they present interesting new ways to relate to customers and for brands to expand into the soon-to-come metaverse.

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