The FINANCIAL — Smartphone penetration in the Asia-Pacific region is booming. In fact, penetration in a number of markets in the region is approaching saturation point, having already eclipsed penetration levels in the U.S. and many European nations, according to The Nielsen Company.
In Southeast Asia alone, smartphone owners spent an average of more than three hours per day on their smartphones in June 2013. They spent the most time using chat apps, social networking and entertainment activities like games and multimedia. Even though smartphone penetration hasn’t yet reached 100 percent, app usage is burgeoning. Globally, one in every five mobile users (1.2 billion) is using apps, according to Portio Research. In Asia-Pacific, apps for games, social networking and multimedia are among the most-used, according to The Nielsen Company.
Viewing video via smartphone is also starting to gain traction in Asia, particularly in more developed markets like Hong Kong and Singapore. Comparatively, adoption of mobile video in developing Asia-Pacific markets has been slower to gain traction. Consequently, mobile video content is a growing consideration for both advertisers and media owners. Importantly, engagement among the consumers that are watching video on their mobile handsets is very high. Consumers who are watching mobile video in the majority of Asia-Pacific markets are doing so more than 10 times per week on average, which illustrates the exciting opportunities for marketers to build a lasting connection with users.
Soaring smartphone ownership and usage is also presenting a huge mobile commerce opportunity in the region, according to The Nielsen Company. While mobile commerce is still largely untapped in a majority of Asia-Pacific markets, it’s very well progressed in markets like Korea and Japan. In fact, close to nine in 10 (89%) Japanese consumers and around two-thirds (67%) of Korean consumers participated in mobile commerce activities in July 2013. Singapore, Hong Kong, Malaysia and Australia might be the next big mobile commerce markets, as this technology wave is beginning to catch on. As this growth gains momentum, mobile commerce will play an increasingly critical role in shaping the future of retail in Asia.
The increase in smartphone usage in the region is also paving the way for advertisers to connect with consumers. Although mobile advertising is still very much in a nascent phase, many agencies and advertisers are experimenting with formats to see what works and what doesn’t, and receptiveness to mobile ads is growing among smartphone owners in Asia-Pacific. Currently, the ads that support free content without disrupting the user experience are the ones that are the most widely accepted. Subsequently, advertisers looking to leverage mobile platforms should focus on providing an engaging experience that doesn’t interfere with a user’s overall experience, according to The Nielsen Company.
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