ISSUES THAT WILL

AFFECT CORPORATE

COMMUNICATIONS AND PUBLIC

AFFAIRS STRATEGIES IN ASIA

PACIFIC

20

DAVID BRAIN, PRESIDENT & CEO, EDELMAN ASIA PACIFIC, MIDDLE EAST & AFRICA MARCH 2014

ECONOMIC GROWTH HAS

GONE FROM A RANGE OF

2-10% TO 0-6%

= GOVERNMENTS (ELECTED OR NOT) UNDER PRESSURE TO SHOW THEY ARE PERFORMING WHICH CAN MAKE THEM UNPREDICTABLE TOWARDS BUSINESS AND BRANDS, ESPECIALLY ‘FOREIGN’ ONES

#1

= MORE IMPORTANT THAN EVER TO SHOW WIDER ECONOMIC, SOCIAL AND ENVIRONMENTAL CONTRIBUTION

HOWEVER, ECONOMIES ARE STILL

GROWING AND AP HAS MORE PEOPLE

STILL ENTERING THE ‘MIDDLE CLASS’

THAN ALL OTHER REGIONS COMBINED

#2

= HUGE APPETITE FOR PRODUCTS AND BRANDS THAT MARK PERSONAL PROGRESSION AND SIGNIFY SELF WORTH

HOWEVER, ECONOMIES ARE STILL

GROWING AND AP HAS MORE PEOPLE

STILL ENTERING THE ‘MIDDLE CLASS’

THAN ALL OTHER REGIONS COMBINED

#2

= TRUST IN COMPANIES THAT OFFER DECENT CAREERS AND PROPER PARTNERSHIP

= HQ WILL LOOK TO APAC FOR GROWTH AND TO PA/COMMS TO PROMOTE AND PROTECT

FROM TIER ONE TO

TIER TWO, THREE,

FOUR AND FIVE

#3

= AS WEALTH SPREADS, COMMUNICATIONS AND MARKETING HAS TO FOLLOW IT TO NEWER AND SMALLER CITIES AND REGIONS

= REGIONAL ISSUES/STAKEHOLDERS DIFFERENT AND NEED DIFFERENT PROGRAMMING AND COMS STRUCTURES AND RESOURCES

FROM TIER ONE TO

TIER TWO, THREE,

FOUR AND FIVE

#3

THE RISE OF INEQUALITY

…BETWEEN RICH AND POOR, URBAN AND RURAL,

EDUCATED AND UNEDUCATED, CONNECTED AND

UNCONNECTED IS PUTTING PRESSURE ON

GOVERNMENTS, CULTURES, BUSINESSES AND BRANDS

TO BE SEEN TO BE FAIRER AND MORE INCLUSIVE, AND

NOW BETWEEN TRUSTERS AND MISTRUSTERS!

#4

= INCREASINGLY IMPORTANT TO CONTRIBUTE ON SOCIAL MOBILITY / SOCIAL INCLUSION

THE RISE OF PLURALITY

EVEN IN ONE PARTY STATES, SOCIAL MEDIA HAS

SPARKED AN EXPLOSION IN SELF EXPRESSION

AND ACTIVISM THAT CAN FOCUS VERY QUICKLY

ON POLITICS, BUSINESS OR BRANDS IN BOTH A

NEGATIVE AND POSITIVE WAY (BOTH ONLINE AND

OFFLINE)

#5

= INCREASINGLY IMPORTANT, AS IN WEST, NOT TO BE DRAWN INTO POLARISING ISSUE(*)

THE RISE OF PLURALITY

EVEN IN ONE PARTY STATES, SOCIAL MEDIA HAS

SPARKED AN EXPLOSION IN SELF EXPRESSION

AND ACTIVISM THAT CAN FOCUS VERY QUICKLY

ON POLITICS, BUSINESS OR BRANDS IN BOTH A

NEGATIVE AND POSITIVE WAY (BOTH ONLINE AND

OFFLINE)

#5

…AND YET, IN MANY MARKETS

BUSINESS MUCH MORE TRUSTED

THAN GOVERNMENT SO BUSINESS

NEEDS TO LEAD DEBATE

#6

50%

Q11-14. [BUSINESS IN GENERAL & GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust) Informed Publics, 20-country global total.

TRUST IN BUSINESS VS. GOVERNMENT

GOVERNMENT

16

BUSINESS

GLOBAL GAP OF 14 PERCENTAGE POINTS BETWEEN TRUST IN BUSINESS AND GOVERNMENT

HIGHER TRUST

IN GOVERNMENT HIGHER TRUST IN BUSINESS

20+ PT. HIGHER TRUST IN BUSINESS

58%

63%

73%

70%

58%

82%

45%

79%

45%

58%

38% 41%

45%

72%

56%

62%

43%

53%

57%

49%

59%

77%

43%

71%

54%

39%

82%

51%

44%

17%

28%

34%

23%

53%

19%

53%

24%

37%

18%

21%

27%

54%

42%

51%

32%

45%

49% 45%

56%

76%

43%

75%

60%

45%

88%

63%

MORE THAN EVER, REGULATORY ISSUES

ARE REVENUE AND PROFIT ISSUES

#7

A CALL FOR GREATER REGULATION ACROSS ALL SECTORS

19

GOVERNMENT REGULATION OF BUSINESS AND SECTORS - CHINA

Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q262. When it comes to government regulation of the financial services industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q263. When it comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics

57% 51% 52%

84%

19% 19% 21%

3%

Government Regulation of

Business

Government Regulation of

Financial Services Industry

Government Regulation of

the Energy Industry

Government Regulation of

the Food & Beverage Industry

Not Enough Too Much

MORE THAN EVER, REGULATORY ISSUES

ARE REVENUE AND PROFIT ISSUES

#7

= DOES YOUR BUSINESS UNDERSTAND THIS?

= ARE YOU RESOURCED SUFFICIENTLY?

FOOD QUALITY AND FOOD SAFETY ARE

‘ELECTRIC RAIL’ TOPICS IN MANY

MARKETS

= WHICH DRIVES A FIERCE GOVERNMENT AND SOCIAL SPOTLIGHT AND REACTION TO ANY FOREIGN FIRM HELD RESPONSIBLE

#8

RISE OF OBESITY

ASIANS ARE GETTING FATTER AND HEART ATTACKS AND

DIABETES ARE INCREASING (ESPECIALLY AMONGST

CHILDREN) WITH THE ATTENDANT NEED FOR BRANDS TO

BE SEEN TO EDUCATE AND INFORM

#9

= ARE WE DOING ENOUGH?

= IS IT IN LINE/IN ASSOCIATION WITH GOVERNMENT APPROACHES?

ENVIRONMENTAL ISSUES ARE

NOW MUCH, MUCH MORE

IMPORTANT

SMOG, CONTAMINATED WATER, RADIATION, WOOD

SMOKE, LITTER, DEFORESTATION AND EROSION HAVE

GONE FROM BEING ACADEMIC SUBJECTS TO ISSUES

THAT MAKE LOTS OF PEOPLE VERY ANGRY

#10

= ENVIRONMENTAL ACTION AND COMMUNICATION WILL BECOME A LICENSE TO OPERATE ISSUE IN MANY MARKETS

ATTACKS ON ‘FOREIGN’ FIRMS AND

BRANDS ARE ON THE INCREASE (?)

…AS GROWTH SLOWS AND PRESSURE TO

PROTECT AND PROMOTE LOCAL CHAMPIONS

AND LOCAL INTERESTS GROWS

#11

= WE ARE MISSION CRITICAL IN AP

ASEAN, APEC AND

THE NEW TRADE BLOCKS

#12

Trans-Pacific Partnership (TPP)

(12 Nations)

•Australia

•Brunei

•Canada

•Chile

•Japan

•Malaysia

•Mexico

•New Zealand

•Peru

•Singapore

•US

•Vietnam

Regional Comprehensive Economic Partnership

(RCEP)

(16 Nations)

•Australia

•China

•India

•Japan

•South Korea

•New Zealand

•(PLUS THE ASEAN 10)

•Brunei Darussalam

•Cambodia

•Indonesia

•Laos

•Malaysia

•Myanmar

•Philippines

•Singapore

•Thailand

•Vietnam

“WE’VE GONE FROM 5

FREE TRADE AGREEMENTS IN THE

REGION TO 75 AND

ANOTHER 82 BEING

NEGOTIATED.” –

SINGAPOREAN PRIME MINISTER LEE

HSIEN LOONG, ON BUREAUCRACY OF

FREE TRADE (FTA) AGREEMENTS IN

THE ASIA REGION.

= WATCH SPECIFIC AGENDAS AND BE AWARE THAT THE BUREAUCRATS HAVE MORE FORUMS TO COMPARE NOTES/POLICIES ON YOU AND YOUR ISSUES

ASEAN, APEC AND

THE NEW TRADE BLOCKS

= YOU MUST BE JOINED UP

#12

THIS IS THE AGE OF 24/7,

ALWAYS ON CORPORATE COMMS

#13

ASIA IS THE WORLD’S MOST ENGAGED ONLINE

REGION AND THE INTERNET HAS BECOME AN

AVENUE OF COMMUNICATION, COMMUNITY, SELF

EXPRESSION AND ENTERTAINMENT FAR BEYOND

THE EXPERIENCE IN THE ‘WEST’ (AND MOBILE IS

BECOMING THE ON-RAMP)

30

THIS IS THE AGE OF 24/7,

ALWAYS ON CORPORATE COMMS

#13 ASIA IS THE WORLD’S MOST ENGAGED ONLINE REGION

AND THE INTERNET HAS BECOME AN AVENUE OF

COMMUNICATION, COMMUNITY, SELF EXPRESSION AND

ENTERTAINMENT FAR BEYOND THE EXPERIENCE IN THE

‘WEST’ (AND MOBILE IS BECOMING THE ON-RAMP)

= GET IN TOUCH WITH YOUR INNER NERD, OR HIRE ONE

= YOU OR YOUR AGENCY MUST HAVE 24/7 LISTENING AND ANALYTICS AND A RESPONSIVE CULTURE

= HUGE OPPORTUNITY TO BOTH PROMOTE AND PROTECT REPUTATION WITH STAKEHOLDERS

GOOGLE (BAIDU, ETC.) IS NOT A SEARCH

ENGINE; IT’S A CORPORATE REPUTATION

MANAGEMENT SYSTEM

#14

= YOU SHOULD MONITOR KEY WORD SEARCH TRENDS WEEKLY

= YOU SHOULD MANAGE YOUR FRONT PAGE THROUGH AD-WORDS BUYS AND HIGH SOCIAL MEDIA ACTIVITY

= YOU SHOULD TASK YOUR TEAMS/AGENCIES WITH BRAND AND CATEGORY SEARCH OBJECTIVES

= CONTENT IS KING

COMMUNICATIONS IS MOVING

FROM THE PURELY TEXTUAL AND

RATIONAL TO THE VISUAL AND

EMOTIONAL

#15

PHOTO BY// YINGUO ON FLICKR

“IN 2011, VIDEO COMPRISED THE

MAJORITY OF CONSUMER INTERNET

TRAFFIC FOR THE FIRST TIME,

MAKING UP 53% OF ALL UPLOADS AND

DOWNLOADS. BY 2015, CURRENT

VIDEO TRAFFIC WILL MORE THAN

QUADRUPLE, AND THE WEB WILL BE

TWO-THIRDS VIDEO.”

- CISCO

UNDERSTAND HOW CONTENT

INFLUENCES SEARCH

60%

40%

20%

0%

BLOGS

MAPS

NEWS

BOOKS

SHOPPING

IMAGES

VIDEO

(SEARCH METRICS)

36

AVERAGE URBAN DAILY COMMUTE IS

ONE HOUR

= IMPORTANCE OF MOBILE

TRADITIONAL MEDIA IN AP STILL

MASSIVELY POWERFUL AND

INFLUENTIAL, BUT LESS

‘TRADITIONAL’ THAN IT WAS

#16

= NEW OPPORTUNITIES FOR SPONSORSHIPS AND ‘NATIVE’ JOURNALISM

= ONLINE THIRST FOR PIX, VIDEO AND INFO-GRAPHIC

= NEW ‘SPONSORED LINK’ TECHNOLOGIES LIKE OUTBRAIN CAN MAKE YOUR BEST COVERAGE LAST MONTHS

38

#17 MEDIA IS CONVERGING IN AP AS

IT IS EVERYWHERE ELSE

A NEW MEDIA ECOSYSTEM

TRADITIONAL HYBRID

OWNED SOCIAL

OF WEIBO TWEETS

LINK TO CONTENT

OF TWEETS IN SINGAPORE LINK TO

CONTENT. MOST RT:

OF TWEETS IN KOREA LINK TO

CONTENT. MOST RT:

1

5 OF TWEETS IN INDIA LINK TO

CONTENT. MOST RT:

MEDIA IS CONVERGING IN AP AS

IT IS EVERYWHERE ELSE

#17

= TRADITIONAL, SOCIAL, HYBRID AND OWNED MEDIA STRATEGY AND EXECUTION NEEDS TO BE INTEGRATED AND MANAGED WITH CONTENT, SEARCH AND NOW PAID AT THE CORE

THE INTEGRATION

OF EVERYTHING

#18

THE RISE OF

SKEPTICISM

#19

AP REMAINS THE

OPTIMISTIC REGION

#20

TRUST IN GOVERNMENT, MEDIA AND BUSINESS REMAINS

HIGH AND MOST MIDDLE CLASS PEOPLE ARE OPTIMISTIC

(COMPARED TO THOSE IN THE ‘WEST’) AND BELIEVE THEIR

LIVES ARE GETTING BETTER AND THAT THEIR CHILDREN

WILL HAVE MORE OPPORTUNITIES THAN THEY DID AND

THEY WANT THE BRANDS AND LIFESTYLES THAT MARK

THEIR PROGRESS AND ACHIEVEMENT

GLOBAL 54

UAE 79

China 79

Singapore 73

Indonesia 72

India 69

Malaysia 65

Canada 60

Netherlands 60

Mexico 59

Hong Kong 59

Australia 58

Brazil 57

Germany 57

Argentina 53

U.K. 52

Sweden 51

S. Korea 51

S. Africa 50

U.S. 49

France 46

Japan 44

Italy 43

Turkey 41

Spain 39

Ireland 39

Russia 37

Poland 35

GLOBAL 57

China 80

Singapore 76

India 71

Mexico 68

Hong Kong 67

UAE 66

Malaysia 64

Canada 62

Indonesia 62

U.S. 59

Netherlands 59

Brazil 55

Germany 55

France 54

Sweden 54

U.K. 53

Italy 51

Australia 50

Poland 48

S. Korea 47

Ireland 46

Argentina 45

Spain 42

Turkey 42

Japan 41

Russia 36

Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs. 20-country global total (does not include Argentina, Hong Kong, Malaysia, Singapore, South Africa, Turkey, UAE).

46

BIG TRUST

INCREASES FROM

2013

UAE +13 pts.

Indonesia +10 pts.

Australia + 8 pts.

Argentina + 8 pts.

THE TRUST INDEX: SLIGHT DECLINE IN TRUST OVER THE PAST YEAR WITH STRONG REGIONAL VARIATIONS; MAJOR DECLINES IN POLAND, U.S. & MEXICO

2013 2014

BIG TRUST

DECREASES FROM

2013

Poland -13 pts.

U.S. -10 pts.

Mexico -9 pts.

TRU

STE

RS

N

EU

TRA

L D

ISTR

US

TER

S

THE ONLY COMMON THING BETWEEN

DEVELOPING ECONOMIES IS SPEED OF

CHANGE AND EXISTENCE OF A BRIDGE

GENERATION

CHANGE IN DEVELOPED ECONOMIES HAS BEEN

INCREMENTAL, BUT ACROSS AP WE HAVE SEEN

BILLIONS GO FROM POVERTY TO MIDDLE CLASS IN ONE

GENERATION AND THIS CHANGES EVERYTHING

= WE SHOULDN’T FORGET

= WE SHOULDN’T LET HQ FORGET EITHER

^CLICK

THANK YOU