Video Continues to Gain Ground in SEA
One of the biggest trends to emerge in Southeast Asia is video. To be fair, it has been strong for some time, but from the onset of COVID has really picked up steam. Part of this is due to the mobile connectivity rate in the region. The connectivity rate is defined by the percentage of people connected as a proportion of the population. Whereas, North America in 2018 had a connectivity rate of approximately 104%, SEA had a rate closer to 141%. And with video usage at very high levels through mobile, companies like YouTube, Facebook have been able to capitalize on this trend.
One of the great things about video it has such a high engagement rate. In this way it can become very additive, and people tend to spend long periods of time on video once the engagement is started. When asked where they would like to see the brands they like and identity with, by far video is the king. And this is very pronounced in SEA. Watching your favorite brand on video can be a very stimulating experience, and people tend to stay. In the Philippines, for example, the average person spends about 23 minutes on YouTube per visit. Brands are a big topic for viewers to search through video, but content ranges from sports and education, to fashion and lifestyle.
Producers early on have learned that consumers in SEA value local content. Southeast Asia can be very diverse and local culture is strong. Generally, this will also help the producer in the long run build its brand as locals come to believe their culture is valued. Individuals want to feel that the content relates to them and that they identify. And although at times viewers want so see content that is from outside, most of what they prefer has meaning that is much closer to home.
Finally, there is no better way currently to see a higher ROI for the advertiser than through video. Click through rates are among some of the highest with video compared to other mobile apps. Retail and Food & Beverage brands resonate particularly well with consumers in SEA. What is sure: serious marketers are looking at the best way to spend their hard-won budget on video in SEA to boost results.