Asian Local Search and Media Association ALSMA Asian Local Search and Media Association

A quick overlook The largest continent 60% of the world’s population lives in Asia The only two countries with a population that exceeds 1 billion Two of the top 3 economies in the world The largest Muslim country in the world

What is ALSMA? The Asian Local Search and Media Association was formerly known as ADPAI – Asian Directories Publishers Association. We represent several directories companies as well as regional companies that are engaged in the local search and local media areas. We count among our members companies such as Sensis (Australia), GETIT (India), Global Yellow Pages (Singapore), PCCW YP (Hong Kong), Shanghai YP (China) and NTT (Japan) as well as MMRD (Myanmar), Tele Directories (Brunei) and Directel Macau.

The YP business in Asia Relatively young industry when compared with western countries Traditionally low penetrations Mostly small to medium size companies Still very dependent on print Digital catching up quite fast

Patterns now emerging Transitioning from print to digital Managing the print decline is the major challenge Increased focus on services vs. products Embarking on agency and re-sellers programs Sales transformation/re-training is crucial Relying only on their own local market for future growth

From Print to Digital Australia Brunei China Hong Kong Japan Taiwan Macau Singapore Vietnam Hong Kong Taiwan UAE Myanmar More than 50% I have chosen not to name the companies as it would be difficult for you to identify the country they are based on. Also, please take into account the huge differences between the countries and territories when analyzing this slide. Myanmar is understandably in that position because access to the internet is severely curtailed for example. Additionally, the transition form print to digital in some of the companies on that middle tier was slowed down due to a lot of factors that range from the ownership of the company to the size of the addressable market. 11% to 50% Less than 10% Percentage of Revenue derived from Digital products and services

From Print to Digital Australia: “digital agency” UAE: “Integrated Media Solutions Partner” HK: “multi-media advertising company serving the SME market”, “print products contribute less than 20% of total revenues Macau: “Your local media company” Singapore: “Solution Company” Vietnam: “leader in advertising on local search and media” It’s clear that most of them already define themselves not as a Yellow Pages company but as a digital company. Some of them have also completely abandoned any reference to the YP brand on their company names.

Managing print decline In the low double digits for the region But mentioned as crucial by almost all companies Increased operational efficiency in order to reduce costs Taiwan: trying to improve print effectiveness through targeted distribution; community directories Japan: re-assessing all the print products, downscaling a possibility

Focus on Services Most offered services: websites, SEO, Mobile Optimized Landing Pages, videos, SEM, listing submission To be launched: e-commerce, mobile payments Products offered: IYP, mobile apps HK: YP Mall UAE: “niche verticals, that need great content and partnerships” Philippines: USSD enhanced by location-based system Most of the companies are already offering digital products such as YP mobile apps or other verticals. These can be by business area – such as restaurants or tourism – or based on a very specific community.

Re-sellers programs Vast majority already re-selling Google, Facebook, Yahoo, Baidu, TomTom, Nokia and even Yandex HK and Taiwan: IPTV (parent company business) Taiwan and Singapore: outdoors Singapore: partnership with Microsoft to offer SMB cloud solutions China: value-added services from China Telecom

Re-training the Sales Force Higher turn-out compared with the past Using external trainers to re-train the sales force Selling based on ROI and using bundles Japan: “sales transformation is the key factor” India: “move towards performance/delivery based products and solutions” Still, from all the surveys completed this is one of the most recurring problems that YP companies face in Asia and one that is proving the most difficult to tackle.

Local market for growth Companies are mostly focused on growing their internal markets by selling to new segments Regional expansion seldom a major future driver When addressing the Asian market, companies tend to prefer partnerships Taiwan: “regional travel and entertainment mobile app”

What’s next Use the power of the brand and the existing relationship to keep their customers while transitioning from print to digital Growth based on digital products and services albeit with a lower margin Need to lower structural costs so to achieve profitability UAE: “We will no longer be in the products/services business but in the customer relationship business” In Asia, established relationships are key for your business growth. Clients will buy and keep on buying from you if they trust you and your company. We will have to find solutions to enhance the visibility of our customers and and provide measurable ROI. Only by doing so will we we succeed in then coming years.

Thank you Oscar Sousa Marques oscar@yp.mo