The day Lim Kok Wing kicked my ass!Facebook pays $17m tax in Australia, profits in Malaysia before tax. ISSUE255ULY 2020 | WEEKENDER 3 EDITOR’S NOTE To all marketers who never advertise

p o p c u l t u r e

WEEKENDERISSUE #255 JULY 2020

www.marketingmagazine.com.my

The dayLim Kok Wingkicked my ass!

p o p c u l t u r e

WEEKENDER

Howone man’s insolence changed my life

WARC releases Future of Strategy Report 2020

MARKETING WEEKENDER is published by Sledgehammer Communications (M) Sdn Bhd 22B, Jalan Tun Mohd Fuad 1, Taman Tun Dr. Ismail 60000 Kuala Lumpur, Malaysia. Tel: 603-7726 2588 [email protected]. www.marketingmagazine.com.my © All Rights Reserved By: Sledgehammer Communications (M) Sdn Bhd (289967-W) No part of this magazine may be reproduced in any form without prior permission in writing from the publisher. While every effort has been made to ensure the accuracy of the information in this publication, the publisher assumes no responsibility for errors, omissions and/ or for any consequences of reliance upon information in this publication. The opinions expressed in this publication do not necessarily represent the views of the publisher or editor. Advertisements are the sole responsibility of the advertisers.

Once upon a time, Y Bhg. Tan Sri Dato’ Sri Paduka Dr Limkokwing was simply Lim Kok Wing...

09

26% of respondents surveyed have seen headcounts decreased, and a further 18% were...

I will just talk about automotive advertising for the high end market. Brand owners in this category already know that cars are now cheaper by at least RM10,000 or more...03

08

EDITOR'S NOTE

To all marketerswho never advertise with us.

Marketing Is Making Shopping Social with LivestreamingRetailers are hurting. In-store sales are experiencing double-digit declines with stores either...

COVER STORY

Facebook Australia earned $674 million in local ad revenue...

16 20Facebook pays$17m tax in Australia, profits in Malaysia before tax.

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EDITOR’S NOTE

To all marketerswho never advertise

with us.

I will just talk about automotive advertising for the high end market.

Brand owners in this category already know that cars are now cheaper by at least RM10,000 or more.

The new sales tax relief will see a 100% SST exemption on

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EDITOR’S NOTE

CKD vehicles and 50% sales tax reduction on CBU models till the end of this year.

Which means brand like Mercedes, BMW, Audi, Volvo, Lexus are looking good for readers of this magazine.

The more affluent of our readers also drive brands like MINI Clubman, Porsche Panamera and Cayenne, while

owning two houses/apartments, multiple credits cards while their children go to top private colleges.

Am I being facetious?

No.

I am telling you this because your media planners won’t.

It is easier of them to offload bulk media inventory bought at a volume discount earlier this year (probably yet to be paid for) from monolithic media owners as they need to clear their In tray.

To meet their KPIs, they are conveniently aided by templated metric charts from the same sources you can count on your left hand, and proprietary tools that need to be desperately monetised.

Please don’t blame them.

But why are you trapped in all this?

Because you squeezed them for every sen (in some ruthless competitive pitch process) to meet your KPI, and now the blind are leading the blind.

... It is easier of them to offload bulk media inventory bought at a volume discount earlier this year (probably yet to be paid for) from monolithic media owners and need to clear their In tray...

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EDITOR’S NOTE

ROI and all that bullshit flew out the window at the same time, replaced by Likes, Followers and Viewers, in turn dictated by an algorithm that’s darker than dark social.

Sorry, I digress.

Back to car brands.

Simple math: how much commission does your salesperson make for each car sold? About RM15,000 tops?

For less than half that cost, you can get a circulation of 40,000 and I haven’t even got started on readership yet.

These are first movers, pace makers (no pun intended) and most of them have aged gracefully (deep pockets).

The younger ones can hardly buy a house on their own, but I don’t need to tell you that.

You are an astute marketer who now have to get tactical with everything: sales, sales, sales.

Bottom line: we sell more cars for your buck.

To justify this to your board, just tell them it’s “cluster marketing”. They’ll figure the

...You are an astute marketer who now have to get tactical with everything: sales, sales, sales. Bottom line: we sell more cars for your buck...

rest out when incremental sales in niche segments add up to a bountiful harvest by the end of the year.

WhatsApp Jarrod on 018-220 0682 to find out more; if nothing else, as a motoring aficionado, he can wax lyrical about your brand.

If RM5,000 is too expensive for you to give a shot at a potential conversion of at least 5 buyers, then you can still shoot blanks with your media planner.

After all, we are at the bottom of their menu, as we can never compete with Soup of the Day.

Neither should you.

“THERE ARE ONLY TWO THINGS IN A BUSINESS THAT MAKE MONEY - INNOVATION AND MARKETING, EVERYTHING ELSE IS COST.”Peter Drucker

“CREATIVITY IS SEEING WHAT EVERYONE ELSE HAS SEEN AND THINKING WHAT NO ONE ELSE HAS THOUGHT.”Albert Einstein

“YOU CANNOT BOIL AN EGG BY STARING AT IT.”Karthik Siva

“IF YOU WANT A TEAM OF SMART, CREATIVE PEOPLE TO DO EXTRAORDINARY THINGS, DON’T PUT THEM IN A DRAB, ORDINARY SPACE.”Tom Kelley

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LETTER TO EDITOR

Good Morning Ham,

Bob Hoffman in your last issue tries to explain what an algorithm is at the beginning of his article. He says in layman’s terms, algo-rithm is a fancy name for a mathe-matical formula.

I’ll put it in even simpler terms by saying, an algorithm is based on your behaviour.

You are being shown more of what you consume or like to con-sume.

The Facebook algorithm is not an all evil devil that’s showing you controversial things just to keep you hooked on their plat-form and get better numbers.

It is tailoring content to what you have been consuming.

If you have been consuming hate or controversial content, it will show you more of that.

Bob mentions that: “For exam-ple, when you go to Facebook, you are shown a completely different page than I see when I go to Face-book. Your page has your friends, ads from companies that Facebook thinks you will be interested in, and articles that Facebook thinks you will like. Mine has completely different friends, different ads, and different articles.”

Yes, in the statement above he is right. Everybody’s Facebook feed is different.

I for an example don’t see much hate or controversy on my feed.

What I generally see on my feed other than what my friends posts is, football related videos from The English Premier League (EPL), news from The Edge/ The Star Online, Sebastion Maniscal-co (comedian) videos as i have been enjoying his style of come-dy on YouTube, and Paul Chow-dhry (comedian) videos as well because I have been consuming some of his older funny videos.

Why do I keep getting back on Facebook when I’m bored or why is it “addictive” to me?

Simple.

I get to see some football, some world news, and some comedy videos which keeps me educated/entertained.

In fact, the reason I tend to not want to stay on social media plat-forms like Facebook too much is because I get caught up watch-ing many videos of the previous nights EPL matches (the goals) and etc. I got to get off it so that

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LETTER TO EDITOR

I can get back to focusing on my work!

The medium (Facebook/social media) is not perfect, but nor is it bad.

It’s just our preferred way of how we consume news and things these days.

Much like how we read the newspapers/traditional media in the past and bought the head-lines/controversy that they sold us.

We were headline readers back then and we are also head-line readers today.

Try watching more uplifting (example: Sadhguru) videos, comedy videos, football/sport videos, exercising/workout vid-eos and watch how your feed changes tremendously.

You are in control.Not Facebook, not any social

media app. ThanksHans Gill

... The medium (Facebook/social media) is not perfect, but nor is it bad. It’s just our preferred way of how we consume news and things these days...

FACEBOOK PAYS$17M TAX IN AUSTRALIA, PROFITS IN MALAYSIA BEFORE TAX.

Facebook Australia earned $674 million in local ad revenue in 2019, but it trimmed its income tax bill to a little under $17 million through a reselling arrangement that minimised its profits to $22.7 million.

Facebook’s accounts in Aus-tralia for 2019 show it booked lo-cal ad revenues of $167.1 million, classifying it as revenue from con-tracts with customers.

Facebook incurred an income tax expense of $16.8 million in 2019, up from $11.8 million the previous year, leaving the social media giant with Australian prof-its of $22.7 million, down from $23.3 million in 2018.

For financial year ending 31 December 2019, Facebook Malay-sia declared revenues of RM20.297 million for 2019, and they made a profit of RM300,276 before tax. Based on official submissions, it made a loss of after tax. So did they pay RM943,995 in tax to the Malaysian government for last year? Click here for details.

9ISSUE255JULY2020 | WEEKENDERCOVER STORY

How oneman’s insolence changed my life BY THE HAMMER

Once upon a time, Y Bhg. Tan Sri Dato’ Sri Paduka Dr Limkokwing was simply Lim Kok Wing.

And I wanted to be a copywriter.

So a very very long time ago, I walked the streets of Kuala Lumpur poking my turban in agencies as I ticked off my job options in the Malay Mail classifieds every day.

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COVER STORY

Nobody wanted me, as I had no experience and no degree in hand.

Then one day I knocked on the doors of Wings Creative Consultants, Lim Kok Wing’s ad agency after he left his high-paying job at McCann Erickson. I made my way up the stairs of his shoplot office along the Loke Yew roundabout just above a famous “coffee house”.

He made me wait for hours before he saw me, and when he asked whether I had any work to show him I told him I had never worked in an agency before. That drove him into a rage and he started berating me on my sloppiness before he threw me out of his office.

... He made me wait for hours before he saw me, and when he asked whether I had any work to show him I told him I had never worked in an agency before. That drove him into a rage and he started berating me on my sloppiness before he threw me out of his office.

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COVER STORY

Dejected, I walked back to the Pudu Raya bus station from where I’d take the bus home to Rawang. As I was side-stepping my way through the bustle of Petaling Street it hit me that he was rude, but he was also right.

So I went home, locked myself up for a few days and starting writing fictitious ads from print ads I ripped off the newspapers.

On the left side of the flat paper folder I had the original ad and on the right side my version of how to do it better – headline, visual, body text and all.

I came back to see him the following week.

This time I waited from my scheduled appointment at 10am till almost 4.30pm before he finally accorded me an audience.

All through, I was sitting in the reception and was in full view of what was going on in his office with his staff and work.

The man was just brutal, and I

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COVER STORY

even saw him kick some visuals around the floor to the horror of some star Art Director who looked like he was ready to throw in the towel.

So when my turn came, I was both lunch-less and

terrified. Quietly he leafed through

my make believe portfolio with about

10 examples which was assorted in a RM1.20 pink flat file.

After a few grunts, he appeared somewhat surprised even though one can never tell from his expressionless face. I was ready to bolt at any hint of rejection and the exit door was not very

far away.

... After a few grunts,he appeared somewhat surprised even though one can never tell from his expressionless face. I was ready to bolt at any hint of rejection and the exit door was not very far away...

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COVER STORY

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COVER STORY

Then he stood up, chucked my folder to the far side of his table and said will be in touch. This time, I was glad he dismissed me because I knew I had something that was possible.

I was going to make it!

The following day I had an appointment with McCann-Erickson and got my foot into the door when I told the MD I was

the best copywriter in the world and that I’ll work for free.

As the McCann mantra goes “Truth Well Told”, I must confess I was actually hired because they mistook me for another turbanned friend of mine who was making waves as a writer in Ogilvy then.

Anyway with a starting salary of RM250 my job was to run the projector, make coffee and throw out headlines at will to passing copywriters in the corridor.

The rest will be hopefully chronicled in a book for release next year.

Lim Kok Wing (his name was disjointed then) also came from McCann-Erickson and the financial director shared stories of how he had to increase Lim Kok Wing’s salary every month because he was just too good to lose as a creative art director.

He even had his own driver who waited patiently in the reception!

This pissed off the white bosses because visiting clients always did a double-take at Lim Kok Wing’s driver who was understandably immaculately dressed for the role.

... The following day I had an appointment with McCann-Erickson and got my foot into the door when I told the MD I was the best copywriter in the world and that I’ll work for free...

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COVER STORY

Aloof, alone and adrift on his own raft in the wild sea, only Lim Kok Wing knows where he is going. I even visited him in his office in London once, and it was always a game to guess what he was thinking. Nothing has changed since.

After his last divorce, I checked on him to see how he was coping. He replied he just wanted to move on and build his empire at a feverish pace, like a man possessed. This was evident in his eyes.

Hubris does not exist in his dictionary and for good reason. Always a city boy he grew up the hard way, watching his rich classmates enjoying the good life he never had.

His powers of seduction are legendary: from wooing clients, winning over Prime Ministers and Presidents, to associates and potential friends. Wealth creation is just a byproduct of his relentlessness.

The reason I said seduction is because he was excellent at photo shoots and had a way with the ladies. His calm and persuasive demeanor has uncovered some rare young beauties in the flesh. Let’s just say he hypnotises them

into believing they are poised for stardom. He did subsequently marry one of them.

One industry leader, who was a Datuk then and a billionaire now, told me I would be selling my soul if I ever worked with him. I can’t mention the person as I’m jinxed for always getting him wrong. But the advice rang true - in Limkokwing’s world there is only one emperor.

With all the hammering that is going on in social media against him these days, I thought I’d pen another side of this enigma for the entertainment of readers.

BTW, I wish to declare that this article is not a sponsored piece by Limkokwing. Even though all donations are welcomed these days.

... The reason I said seduction is because he was excellent at photo shoots and had a way with the ladies. His calm and persuasive demeanor has uncovered some rare young beauties in the flesh...

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LIVESTREAMING

Retailers are hurting. In-store sales are experiencing double-

digit declines with stores either completely shut or operating at limited capacity. Without foot traffic, brands that are reliant on in-store sales are forced to go where audiences are, which, in these strange times, is on social networks. A study across 30 markets showed a 61% increase in social media use during the peak of the pandemic and

messaging across Facebook, Instagram and WhatsApp have surged by 50% in countries hardest hit by the virus.

Moving the shopping experience to social networks has been relatively easy thanks to pre-pandemic planning by social media and e-commerce platforms who anticipated that the combination of livestreaming and online shopping would eventually take off. COVID-19 has only accelerated the

Marketing Is Making Shopping Social with

Livestreaming

By Greg PaullCo-founder and Principal, R3

Messaging across Facebook, Instagram and WhatsAppsurged by 50% in countries hardest hit by COVID.

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LIVESTREAMING

inevitable. Today, you can shop on Instagram or TikTok or Twitch, or log into Taobao or Lazada and watch people sell a range of products while interacting with viewers in real-time. Checkout is only one click away.

The Perfect StormThree factors have been

critical to the growth of e-commerce livestreaming: the role of influencers, the expanding functionality of social platforms, and enforced social distancing. Nowhere has this been more apparent than in China where

by the end of 2020, the country will have 524 million online livestreaming users. This means 40% of China’s population and 62% of the country’s internet users will be livestreamers. The total scale of China’s livestreaming e-commerce industry reached RMB 433 billion (USD 62 billion) in 2019 and is expected to double by the end of 2020.

Globally, e-commerce livestreaming is picking up. The pace in other markets has been slower than China where super apps make reach exponential, but the future of retail is clearly pointing in this direction. Brands like Tommy Hilfiger and H&M have been experimenting with self-hosted e-commerce livestreaming, showcasing new collections and trends in North America and Europe from a distance. In Southeast Asia, markets like Thailand and Indonesia have experienced early success with programming through shopping apps, though work still needs to be done in areas of production, platform adoption and audience awareness for it to become the lucrative retail channel it can be.

... In Southeast Asia, markets like Thailand and Indonesia have experienced early success with programming through shopping apps, though work still needs to be done in areas of production, platform adoption and audience awareness for it to become the lucrative retail channel it can be...

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LIVESTREAMING

Growth Factor #1 – The Rise of the Super Host

Although Southeast Asians are active on the same social media channels as their Western counterparts, overall use is quite different. Southeast Asian influencers create content that resonates with highly local audiences, complete with their own cultural background, language, and social codes. In comparison to Western influencers, they produce more unedited, “raw” content, and are more inclined to share views on their passions and interact with followers in their own unique way. For this reason, marketers need to invest in identifying the right host for an e-commerce livestream to ensure that outcomes align with KPIs.

An influencer with a broader global or regional following is not a guarantee of local sales. In 2019, Kim Kardashian partnered with Alibaba’s Tmall to promote her KKW Fragrance line during Single’s Day. Joining her on the broadcast was popular Chinese livestreamer Viya. At the time, Viya had almost 10 million fans on Weibo, whereas Kardashian had nearly 150 million fans on Instagram. Kardashian’s stream

on Tmall logged 100,000 viewers while Viya drew an audience of 13 million.

Growth Factor #2 – Choosing the Right Platform

Though some of the social and media platforms which dominate the social influencer market in Southeast Asia might be familiar, like Instagram and YouTube, significant cultural differences

... In 2019, Kim Kardashian partnered with Alibaba’s Tmall to promote her KKW Fragrance line during Single’s Day. Joining her on the broadcast was popular Chinese livestreamer Viya. At the time, Viya had almost 10 million fans on Weibo, whereas Kardashian had nearly 150 million fans on Instagram. Kardashian’s stream on Tmall logged 100,000 viewers while Viya drew an audience of 13 million...

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LIVESTREAMING

between the region’s countries demand that marketers take a hyperlocal approach with their influencer marketing strategies.

Beauty brands like Shiseido and Bobbi Brown have used Lazada’s Lazlive e-commerce livestreaming capability to encourage shoppers in Thailand to buy skincare and cosmetics during the lockdown. Training is also given to offline salespersons so that they can use livestreaming to earn commission through online sales. Hosts and products on these broadcasts are tailored for the local market. In one livestream, Shiseido drew 90,000 viewers and sold 40 times GMW compared to a regular hour on Lazada.

Growth Factor #3 – The 3 C’s of Social Shopping

Livestreaming is an ideal platform for retail as it appeals to current concerns and preferences of shoppers. Brands that can deliver engaging programming while providing comfort, community and control, will win new audiences and drive visibility and conversion through the medium.

• Comfort: People want to shop where they are and when they want. Enforced social distancing measures mean that livestreaming provides an outlet for shoppers to interact with a brand in the safety and security of their own home.

• Community: Good livestreams can become a chance for brands and celebrities to have a meaningful conversation with their viewers. The ability to post comments and ask questions in real-time provides people with the feeling that their opinions are heard and any concerns are addressed.

• Control: With livestreaming, viewers don’t feel the pressure of dealing with store associates. If they lose interest in the product at any time, they are free to log off and tune out.

Greg Paull is principal and co-founder of R3 Worldwide, a global independent consultancy focused on driving transformation for marketers and their agencies. www.rthree.com

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STRATEGY

26% of respondents surveyed have seen headcounts decreased, and a further 18% were expecting them down the line. This is just one of the findings included in The Future of Strategy 2020 report, released today by WARC, following its annual worldwide survey of more than 1,200 senior strategists.

Fielded in May and June 2020, this year’s report focuses on the impact that the COVID-19 pandemic has had on strategy, across headcounts, budgets, and the role of strategy during the crisis.

WARC releases Future of Strategy

Report 2020Global survey of senior strategists reveals challenges brought

on by COVID-19 crisis

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STRATEGY

WARC’s Future of Strategy 2020 key findings are:

• COVID-19 drives an increasing appreciation of strategy

Brands have had to lean on their strategists more than ever before as the pandemic has forced them to rapidly pivot away from planned marketing strategies.

• Headcounts decrease despite the value of strategy increasing

There has been a significant impact of COVID-19 on headcounts in strategy teams, despite strategists telling us that they are in more demand and feel more valued than ever. The impact has been acutely felt at junior levels - reminiscent of the 2008/09 crash.

• Budget cuts have a knock-on effect

COVID-19 has reduced the media spend of the majority of brands, which have responded by cancelling or shifting planned work. This has meant a change in role for some strategists, who have had to pivot their focus to advising clients on how to respond and recover.

• Short-termism and a shift in purpose

There has been a huge shift to short-termism as a result of budget cuts and a need to drive sales quickly as recession bites. Strategists feel this is a real threat to their role and the value they are able to provide. 72% of respondents said their clients are focusing more on short-term strategies as a result of the crisis.

Download sample report PDF. The full report, which includes expert commentary and opinion from around the world, quantitative and qualitative data analysis, as well as advice, is available to WARC subscribers on warc.com

The COVID-19 crisis will fundamentally change the way agencies work

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