Internet companies still optimistic about their future
China Post; Apr 16, 2001
Is the Internet bubble busted in Taiwan? Or, is it still a primrose path ahead? After certain well-known dot-com companies in Taiwan stopped operations not long ago, the Internet executives, venture capitalists, stock market analysts, bankers, and the public have been pondering the future of the Internet business in Taiwan.
As venture capitalists are stepping on their brakes, the major Internet companies still take a rosy view about Taiwan Internet business in the future. The Internet business in Taiwan is not busted and will not be in the future. This is the unanimous view of all the major players in the Internet field here.
The high ranking executives from Yahoo Kimo Taiwan, PCCW, udn.com, AC Nelson, and Far EasTone Telecommunications Co., Ltd. voiced their consensus last Friday at a seminar on Internet marketing held in Taipei. They were invited to present their views on Internet marketing to the members of the Taipei Chapter of the International Advertising Association (IAA).
Mainstream media The Internet will absolutely become one of the mainstream media, according to AC Nelson, an international market survey company. "There are busted dot-com companies, but not a busted Internet industry," said the president of AC Nelson's Taiwan operations.
Taiwan Internet advertisement spending is increasing steadily The advertising dollars spent on Taiwan's Internet business in the first quarter of this year have surpassed those spent on broadcast media for the first time, according to AC Nelson. Over the last three years Internet advertising spending in Taiwan has increased at annual growth rates of 30 percent to 40 percent. This growth will continue in the years to come.
AC Nelson's survey conducted in Taiwan showed that about 60 percent of Web surfers browsed advertisements on the Internet. Of which, 29 percent actually watched the advertisements on the Internet in detail, and 30 percent simply viewed the advertisements. These figures show that Internet marketing is still effective.
Most of the Web surfers in Taiwan are students and young people under 30 years old with monthly incomes of less than NT$70,000. The percentage of Web surfers with monthly income above NT$100,000 is very limited, according to AC Nelson. When planning Internet marketing, these figures are an important references to make Internet advertisements effective.
Internet content A household, which has the habit of going surfing on the Web, accessed the WWW 11 times per month on average. Each time such a household visited 16 different Web sites on average and read 55 Web pages. The household would pore over 618 Web pages per month.
These figures show the average tolerance of Web surfers in Taiwan. Internet marketers should do their best to hold the attention of Web surfers with high quality content. Dot-com firms presenting low quality content go bust much more quickly than Web sites serving high quality content.
Dot-com companies in Taiwan lost NT$800 million last year, according to AC Nelson. However, the Internet is definitely a new and promising media form, which would reach for more customers, stated Rose Tsou, general manager of Yahoo Taiwan. Taiwan has an Internet population of seven million, roughly one third of the total population of Taiwan.
The apparent bust of the Internet bubble was partly due to the lag of the general public in accepting new technologies. Experts felt that the lag in accepting new technology in Taiwan is about three to four years. After a new Internet concept is introduced, the consumers may take three to four years to understand its benefits and applications.
Marketing techniques Companies with Web sites are encouraged to do more Internet marketing to generate income. Among these Internet marketing practices are the use of animated and audio effects on Web pages, Rose Tsou suggested. Yahoo Taiwan is promoting the use of new animated multimedia presentation techniques on its Web pages to attract more "eyeballs" and to push more interactive advertisements to consumers. A second technique is to launch seasonal promotional activities on the Web.
Another technique is to initiate "issues or topics". The fourth technique is to make new product launches and special promotional projects in cooperation with companies, which have a need for Internet advertisements. Yahoo Taiwan launched many special cooperative promotional projects with a cellular phone company and a shampoo manufacturer, and also set up Pampers' Parents Club.
Giving away free coupons through the Web site or providing consumers with a trial use of a new product are also useful Internet marketing techniques. Yahoo Taiwan is analyzing customers' database and consumer behavior in order to generate more sales through the network.
Core value Udn.com (United Daily Network) is doing everything to promote the idea of "Content has value". This past January it offers its members access to its knowledge database accumulated over the past 50 years. "Members are willing to pay a fee to get our information," said Alvin Liu, chief operating officer of udn.com, which is very positive about its move into the Internet business.
It has a cooperative arrangement with Yahoo Taiwan to provide its news service to Yahoo's customers. Selling information to business customers is easier than selling to end-users, stated Alvin Liu. In order to cater to overseas Chinese readers and those in Mainland China, udn.com also offers a simplified Chinese version of its Web site.
Alvin Liu likened the Internet revolution to the "Cultural revolution" of Mainland China. Those who survive the Internet revolution will come out strong. The Internet is definitely an important marketing tool, which should not be overlooked by today's business leaders.
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