1. We Can Broaden Our Ways in TMT Space
Edward Ng, the Commercial Director of Kinetic China
Edward Ng, as the Commercial Director of Kinetic China, has over 10 years managerial
experience in various industries including advertising and media, venture capital, real estate,
manufacturing, and professional audit. His wide variety of experience provide view to the
trend and growth of media and advertising in a different angles. Let’s share some time with
the ambitious leader. I am sure he can cast his unique light on OOH advertising from
financial view.
Media industry is not alone
Based on his multi-industry working experience, Edward shows me the meaning of TMT.
Literally, TMT means Technology, Media and Telecommunication (the definition of TMT is
not related to this topic but the topic below). In the actual world we live, every single things
aren’t isolated from others. For investment part, our investors can be shareholder of Kinetic
or our business partners. For Advertising part, the industry is absolutely not isolated from
other industries. Even they all keep in close relations. He takes example on real estate
industry where the real restate operators can be our client and also be our media supplier.
So it’s an interconnected world in which each parts can’t be divided from others. As such,
the growth and future of media industry is interdependent.
[The impression that advertising and media industry is solely related to consumer market is
not incomplete. My view is that they are more about interdependent and demand and
supply, and in association to assorted areas. For out of home alone, real estate industry is
both media resource partner as well as key customers. For example, the partnership with a
key real estate player can ensure the supply of a unique and standardized outdoor media
resources over China, and vice versa agency to provide one stop marketing and media
planning solution. Any good example from finance industry, that hot money bring in
capital to develop new media network and technology innovation and vice versa agency to
provide O2O solution. The agency should grasp any business opportunity, as any party of
different industry can be a potential business partner from demand and supply side.]
What TMT space means to us?
There are three elements which is requisite, that is, Technology, Media and
telecommunication. We have known it’s an integrated market where each industry is
seeking for development road. To choose where and how to participate in the evolving and
emerging market will be the key challenge in the TMT space. These TMT leaders have to face
new frontiers in technology, media and telecom markets. And more importantly, they have
to reshape the organizations and change the ways of working and partnering to meet the
2. demands of different landscape. So it’s a complex situation we are stuck in. the follow-up
Merger & Acquisition (M&A), Initial Public Offerings (IPO), debt underwriting, risk
management and other financial needs is required in every each companies.
[As we know the term of “TMT”, which stand for Technology, Media and Telecommunication,
and that’s the area venture capitalists and investment bankers interested most in this
decade. We can definitely see the opportunity of media from investment perspective, by
considering technology innovation to media and integration with telecommunication.
Already we see a lot of integration between OOH and mobile marketing, that should be
further enhanced through the popularity of 4G network and smart phone, and new
technology and idea of mobile application. And technology can resolve the issue that OOH
don’t have sufficient measurement on customer response and return on investment, that is
the competitive advantage of digital media nowadays.]
Can we apply DSP into OOH?
Technology plays an important role in TMT space, for it not only updates OOH hardware, but
also diversifies media formats for us, especially for OOH. In addition, technology can make
data and research more accurate which is what we are seeking for now.
Edward thinks besides the improvement of OOH hardware, new OOH operating way starts
to strike a pose on the stage. The definition of DSP is Demand-Side Platform where Edward
assumes advertisers get the particular OOH ads position through bidding. So what DSP can
bring to us? Firstly, precise marketing makes ads more effective and gets more Reach &
Frequency rates. Through catching and analyzing potential customers, we know where they
are and what they are interested in. Compared with past operating way, our goal has been
changed, from quantity-focus to quality-focus.
Secondly, DSP can help us deal with OOH pricing problem. Until now, we all complain the
OOH price can’t reflect the real market without transparency and fairness. But DSP can be
the game changer and show us what the real market is going on and what price is
appropriate. According to his talking, I can feel Edward really calls on the real marketization
in OOH. Although the idea is brand-new for all OOH industrialists, but they are all starting to
accept it and figure out what next steps are. By then, media agency will have a new function
and provide new products & services to our clients.
New inputs on O2O
With the boom development of E-Commerce, online business seems to win in the
online-offline battle. But please don’t forget the truth that people spend more and more
time out-of-home. Even for the Phubbing, they still need get out, see OOH ads and connect
with ads by QR Codes, Bluetooth and so on. Technically, online giants like Suning and TaoBao
also offer OOH spending.
3. Do you see it’s a new environment we are living, that is, O2O. And you must have noticed
many people have talked about O2O for a while. But what’s new for us? What inputs can we
give to O2O? Edward thinks there will be much more opportunities in O2O market. Based on
interesting interactive games, people are willing to be engaged in OOH and have more fun
offline.
Technology, Media and Telecommunication companies are constantly evolving and seeking
new opportunities. In the meanwhile, TMT players really need innovative business models to
catch opportunities and fend off competitors. As a TMT player, Kinetic has the confidence to
broaden the OOH road in the future.