Moving Beyond Facebook: Digital Opportunities for Myanmar June 2015

Yangon, Myanmar

Facebook is Everywhere, but… q  It is a very robust answer to a very simple media problem:

“How can we re-create online the social experience that exists offline?”

q  It cannot reflect the very special characteristics of every market.

q  It is limited by the way it is designed, and its design changes frequently.

q  It brings together a lot of traffic and potential advertisers … that you can build on.

q  It doesn’t speak Myanmar at all and most languages in SE Asia are still mostly foreign to it.

So how do you build around Facebook? Based on my experience there are two “strategies” to follow:

1.  Tried and (usually) true. Find a media solution that works in other markets and create the best version of that solution for Myanmar.

2.  Find a uniquely Myanmar media problem and then develop a uniquely local solution.

In both of these cases, you will need to think about the unique Myanmar circumstances and solve for them in your strategy.

Here’s a list from the vantage point of Silicon Valley? 1.  Language – Myanmar and several regional languages

2.  Audience – young, male, divided between urban and rural

3.  Mobile – mobile page views account for over 70% of all Myanmar web traffic

4.  Under-developed infrastructure – transportation, logistics, education, communications

5.  Finance – lower income, under-developed electronic payments

6.  Advertising – small industry with little to no experience of online marketing

Business Models and Strategies Digital businesses tend to fall in a few major groups defined by model and strategy.

Let’s look at some examples – Tried and true and local unique.

Businesses Models

q  Content/Programming: - Advertising - Paid Content

q  Classifieds/Directories

q  eCommerce

q  Services

Success Drivers

q  Audience definition/ Content costs

q  Marketing strength

q  Inventory/Marketing/Logistics/Payments

q  Technology/Payments/

Content: Tried and True Rappler.com •  Philippine based news site •  Online only •  Video driven •  Unique social features •  Revenue model : Advertising •  Audience: Urban, 18 to 35 y/o. •  Mobile

q  Rural; High illiteracy

q  Internet Penetration <1%: Mobile penetration >50%

q  Indian restrictions on broadcast news.

q Growing rural incomes

Content: Local Solution

Content: Gram Vaani – Local Solutions

q  Mostly urban; mobile

q  Internet Penetration >70%: Mobile penetration 100%

q Recent history of food chain scandals.

q Rapid decline in traditional media employment opportunities

Content: Local Solution

Content: News & Market (上下游)

Classifieds: Tried and True

Quikr.com •  Indian free classified site •  Top 25 site by traffic •  Mobile friendly •  8 language versions •  Revenue model : Fee for

services •  Audience: Urban, 18 to

35 year olds.

Classifieds: Local Solution

Shaadi.com •  Indian matrimonials site •  Top 500 site by traffic •  Mobile friendly •  Revenue model : Fee for services •  Audience: Urban, 18 to 35 year olds.

eCommerce: Tried and True Bukalapak.com •  Indonesian online

shopping site •  Home delivery •  Multiple payment options •  Mobile friendly

q  Rural populations targeted; limited literacy

q Mobile commerce driven

q Partnerships key to success: - Local shopkeepers - Consumer product distributors

q Limited working capital sources to drive revenue expansion for local shopkeepers

eCommerce: Local Solution

eCommerce: Local Solution

StoreKing.in •  eCommerce Service •  Kiosks installed in rural shops •  Payments made in person •  Product delivered through product distribution

Services: Tried and True

Coc Coc •  Vietnam’s #1 Search Engine •  Local developers •  Unique character input tools •  Multiple online services built

around search – local, maps, advertising

q  Large urban online audiences

q  Mobile internet penetration reaching 50 to 60%

q Low investment in urban infrastructure, in lieu of large sports projects

q Large protests at state of urban environment and waste or ruling elites (regardless of party).

Services: Local Solution

Colab.re •  Mobile Social Network for citizens •  Urban problems and improvements •  Data access and special

communications tools for a fee •  Clients include city governments and

agencies, utilities.

Services: Local Solution

q  Myanmar as a market may be your biggest obstacle, but … it may also be your most important strategic advantage

q  Remember you are solving a media problem. What is your unique solution? Remember a solution often extends beyond “online”.

q Advertising models are hard. - Advertising is national first, local will need to be built. - 3rd parties share in the revenue (Facebook, ad networks).

q Paid content and services may offer some answers, but payment solutions will need to be developed.

Summary and Advice