Content Economy in Southeast Asia
Content Economy in Southeast Asia
The "content economy" refers to a realm where people and organisations primarily create and share digital content for revenue generation.
This includes content creators who build online audiences and earn income through various channels such as advertising, subscriptions, merchandise, and brand collaborations.
This trend is growing quickly, driven by social media platforms and a rising demand for digital content.
At Velten Advisors, we recognise the growing importance of influencer marketing, particularly in Southeast Asia.
Influencer marketing is fundamentally reshaping the e-commerce scene in Southeast Asia, presently making up 20 percent of online sales and expected to hit $125 billion by 2027.
TikTok Shop and Instagram have transformed from basic social media platforms into powerful selling tools for influencers. This represents a groundbreaking shift in the digital landscape.
Traditional advertising is on the decline. Today, influencers are becoming the new storytellers, building authentic connections, especially with Gen Z and millennial audiences.
The 2024 Southeast Asia eCommerce Influencer Marketing Report, created through a collaboration between impact.com and Cube Asia, showcases the evolving shopping behaviours in Southeast Asia and their implications for marketing strategies.
The report analyses extensive surveys carried out with consumers, brands, agencies, facilitators, and influencers from Singapore, Malaysia, Indonesia, the Philippines, Thailand, and Vietnam.
The report highlights six key trends:
- Trust is the new currency: 80% of consumers in Southeast Asia rely on influencer recommendations for their purchases, with Thailand at the forefront at 92%. Building genuine partnerships proves to be more impactful than merely concentrating on follower numbers.
- Influencers impact : Influencers play a role in the complete customer journey, extending beyond just awareness. Different tiers of influencers fulfil distinct roles: mega-influencers create awareness, whereas micro and nano influencers focus on driving conversions.
- Growth of subscription services: Influencers are significantly increasing subscription registrations, especially in the "Health, Wellness & Food" and "News & Literature" categories. Malaysia shows the highest influencer effect on subscriptions at 89%.
- Impact of travel decisions: 78% of people say that influencers have impacted their flight bookings, while 80% reported that their accommodation choices were influenced by content from these influencers.
- Live commerce is on the rise: 88% of Southeast Asians engaged with live commerce in the past year, with TikTok leading as the preferred platform (used by 75%). Major attractions are significant discounts (71%), product evaluations (66%), and entertainment value (50%).
- Platform Adoption: Companies are dedicating resources to specific tools and platforms for effectively handling influencer partnerships.
The report highlights that influencers have become vital to marketing strategies across Southeast Asia, significantly boosting conversions for both physical goods and travel or subscription services. It emphasises that brands that do not embrace influencer marketing may fall behind.
Velten Advisors meets the business, finance, and tax requirements of content creators and influencers. Additionally, we support agencies and brands in navigating the tax challenges that come from working with influencers.
Get In Touch
For more information please contact Michael Velten.
michael@veltenadvisors.com
+6590687547
391B Orchard Rd, Level 22, Ngee Ann City Tower B, Singapore 238874
