Southeast Asia Must Slash Sales Promos and Broaden Content Platforms

Whilst the near-term outlook for Asia-Pacific has been muted by global economic headwinds, the region's long-term potential remains strong. It has been said that APAC is where speed meets scale and diversity. With that, any agency network, regardless of its focus on scale or agility, will have the opportunity to flex an approach that meets the needs of different brands and businesses operating in the region 

Southeast Asia (SEA) in particular is experiencing strong economic growth and is well-positioned for continued expansion and development. Increasingly, brands across APAC are expanding their reach beyond their home markets and making a beeline for SEA, with notable examples in food and beverage, fashion, and technology. Chinese brands like Mixue and Chagee are rapidly increasing their presence in the region, as are local brands like Tao Kae Noi from Thailand and TWG from Singapore. There is a growing opportunity in helping local Asian brands scale across SEA and in the broader APAC region through effective marketing and brand building.

Established platforms like Google and Meta have had significant success across many APAC markets, including SEA. Marketers and agencies alike view both as necessary and foundational to media plans. However, over the past few years, many regional and local digital ecosystems have started to mature with more options and innovation development, even as consumers have embraced them as part of their everyday life and digital media consumption. 

In SEA, Shopee and Lazada dominate e-commerce shopping, whilst TikTok's presence in Thailand, Vietnam, and Indonesia rivals that of Meta's. Local platforms like LINE and Zalo also have significant penetration in Thailand and Vietnam, respectively. These are but some examples of how the convergence of social, video, content and commerce in the platforms has fuelled their growth and evolved how consumers in SEA engage with media and brands. 

However, short-termism in marketing has led to the over-reliance on immediate results and quick wins at the expense of long-term brand equity building and sustainable growth. A clear example has been the rapid rise of double-digit shopping festivals. Whilst initially used to jumpstart the e-commerce sector, it has since led to a cycle of dependency on sales promotions and discounts, which can damage brand perception and profitability in the long run. Adding to the challenge is the region's lack of data-driven evidence needed to prove the long-term impact of brand-led growth, exacerbating the focus on short-term gains to deliver immediate ROI and satisfy quarterly reporting cycles.

Fragmentation in media and the marketplace has also created siloes in client marketing and agency structures. A key growth opportunity will stem from the ability to bridge these siloes. From bringing media and content together to create seamless omnichannel brand experiences, to connecting brand building with performance marketing for a full funnel approach, these growth opportunities tap into evolving consumer behaviours and content preferences, and fundamentally consider a consumer journey that is no longer linear.

Brands will need to reconsider an over-dependence on any one or two platforms, using a broader and more integrated approach to channels and platforms that reflect the diversity of the region. Content should also flex to consider cultural and consumer nuances. There will also be a need to consider less traditional measurement methods and metrics to understand better how channels and content impact the brand and business, not only in the short-term but also in the long-term.

SEA's large and active social media user base, coupled with diverse content consumption habits, is fuelling rapid expansion. Creators now have immense influence on how audiences consume content, spend their money, and purchase products. Furthermore, the advent of generative AI tools offer creators the ability to produce and tailor content to individual preferences, behaviours, and interests in the form of blog posts, social media posts, and product descriptions in a fraction of the time it currently takes them, giving them greater ability to create, enhance, and extend their influence.

This is also being driven by gen z, who, as they establish themselves in the workforce and increase their spending power, have become a major consumer force. Being digitally native and heavily reliant on social media, they are not only reshaping how they consume content but also influencing how content is created for others in their community. For example, they are drawn to authenticity and relatability, often preferring micro-influencers over macro-influencers. They are also interested in brands that align with their values and are open to engaging about those values through the content that they consume and create. 

While gen z may switch brands more easily, they are also capable of strong and values-driven loyalty, and therefore, brands will need to resonate with their beliefs and engage them in authentic ways, building towards a longer-term brand-consumer relationship. 

Finally, one cannot talk about growth without touching on AI. Adoption is unavoidable. However, the use of AI will need to be balanced. This means using AI to automate routine tasks, analyse data, and enhance productivity, freeing up time for humans to focus on areas requiring creativity, critical thinking, complex problem-solving and ethical considerations.

As I take on my new role as Southeast Asia managing director at Assembly, after spending almost two decades with agency holding companies, I am especially excited about what sets us apart in the region. Our heritage in performance marketing, combined with the depth and breadth of expertise in this space, gives us an advantage in truly understanding how to make brands perform. 

Our recent acquisition and integration with ADK Global has also made us the region's largest full-service challenger agency. Our growth has enabled us to lead more effectively, while remaining small enough to care. This balance is a counterpoint to the AI-driven marketing world, where creativity and critical thinking are key to helping brands grow and differentiate themselves.

I am most looking forward to bringing media, content, data and tech together, to build omnichannel experiences in a nuanced and relevant way for SEA, thereby helping our clients' brands perform and build towards longer-term growth. We have a strong talent base across key SEA markets, well-positioning Assembly Global to make an impact in the region, and I am excited to be leading the charge.