The following is a speech by the Deputy Secretary for Commerce and Economic Development (Communications and Technology), Mr Alan Siu, at the Digital Media Marketing Conference“Digital Media Marketing Makes $EN$E” on September 18, 2009:
Mr Cheong (Mr S K Cheong, Chairman of the Chartered Institute of Marketing, Hong Kong), Mr Fong (Mr Ken Fong, Chairman of the Hong Kong Wireless Technology Industry Association), Distinguished Guests, Ladies and Gentlemen,
It gives me great pleasure to speak to you all today.
Hong Kong is among one of the first movers in digitalization in the region. We are proficient Internet users, and there is also rapid proliferation in the development of public Wi-Fi services in the territory. Indeed, about 2/3 of Hong Kong population is hooked up to the Internet and spends an average of 2.5 hours online daily.
Our marketing activities are indeed evolving rapidly. Traditional marketing is now complemented with digital media tools such as blogs and online forums for collecting user reviews and comments.
I am certain that all of you, as marketing experts, must be very familiar with the 4Ps concept in marketing. Today, I would like to share with you my version of 4Ps, specially tailored for this conference on digital media marketing.
The first P is – pain killer.
There is a famous quotation by John Wanamaker which has been haunting many marketing managers, “Half the money I spend on advertising is wasted; the trouble is I don't know which half.”
The new media platforms help kill this pain. They are mines for you to dig up invaluable information which enables you to get to know your customers better.
Let's take the social networking revolution as an exhibition. Nowadays, people gather on Facebook instead of meeting face-to-face. They share every bits of their life on micro-blogging platforms such as Twitter. Indeed, about half of the “netizens” in Hong Kong are actively involving in blogging and social networking . At the same time, news and trends spread faster than wild fire on Youtube in form of videos. From these online materials and chatters, you will have a better idea on how your customers are reacting to your products and marketing campaigns.
As you ride on the wave of digitalisation, the Government is making the endeavour to facilitate. Hong Kong's light handed and market driven regulatory approach on telecommunications has served us well. We are served by multiple fixed and wireless city-wide broadband networks all commercially funded and operated, forming an excellent communications infrastructure for our robust economy. There are now more than 7,900 WiFi hotspots covering more than 4,700 locations, making us one of the world's leading cities in the field. Increase in WiFi access and cost reduction of 3G Data allow the public to spend more time on the Internet while they are on the move.
The next P is – Pandora's Box.
I reckon that we all have the following experience. When you subscribe to an online newsletter, or be a member of a certain site, you end up being buried by millions of unsolicited messages and emails. It is just like opening the virtual Pandora's Box. Spamming is one of the most effective ways to offend your customers. People hate it, this is proved by statistics. As a matter of fact, there have been almost 2 million registrations on the Do-Not-Call Registers maintained by the Telecommunications Authority. You certainly don't want to stuff unwanted information down the throat of your customers like this.
In the meantime, the Government is actively tackling the problem of unsolicited electronic messages. The Unsolicited Electronic Messages Ordinance regulates the sending of commercial electronic messages, including pre-recorded messages sent to telephones, messages through short messaging services, faxes and emails.
The Government has been monitoring the implementation of the Ordinance and other non-legislative anti-spamming measures. For example, the Office of the Telecommunications Authority (OFTA) has established spam reporting channels with other regions such as the Mainland, USA and UK through which OFTA can refer spam emails originated from these regions to the relevant agencies for follow-up enforcement action. Through these international anti-spamming cooperation platforms, enforcement agencies can share intelligence and solution as regards the spam issue, in accordance with the relevant laws and regulations of each jurisdiction.
The third P I wish to share with you is – pacemaker.
As stated by the renounced marketing guru Steve Jobs, “Innovation distinguishes between a leader and a follower”. To win in digital media marketing, the new battlefield, you need to be a pacemaker.
While Hong Kong has an edge in the various creative industries sectors including the advertising sector, we cannot turn a blind eye to the keen competition from our neighbouring regions and cities.
We are here to help you to be the leader, the pacemaker.
CreateHK, a dedicated office, has been established to provide a focus for Government's efforts in support of the creative industries. With the establishment of CreateHK, there is strengthened co-ordination within the Government to drive creative industries development. We are responding more effectively to industries' demands and better serving the trade through a one-stop service.
In addition to managing the $300 million Film Development Fund, the $250 million Design Smart Initiative and the $30 million Film Guarantee Fund, the dedicated office is responsible for administering the $300 million CreateSmart Initiative, a new fund established to provide financial support in the coming three years to initiatives that are conducive to the development of the creative industries but not covered by other Government funding initiatives.
CreateHK is the champion to drive the development of the creative economy.
Last but not least, the fourth P which I wish to share with you is – Peer. Learn from your peers. The organizer today has provided a platform for marketing and advertising experts to share views and exchange ideas. I hope you all will get most out of today's conference and I wish the event and your businesses every success.
Ends/Friday, September 18, 2009