KUALA LUMPUR — In the future, advertising companies will shift their focus and market products to segmented audiences instead of the masses, according to Syndicate Sdn Bhd (Syndicate) co-founder Yee Loon Leong.
He said that marketers and advertisers would take notice of the effectiveness of streamlining content to be more relevant to the intended audience.
“We believe the future of advertising would be centred around content as we think that quality would be the driving factor for advertising agencies.
“Although now it is true that some agencies are focusing on social media influencers, we have to look further than that as influencers may not be as effective or relatable in the perspective of the consumer,” he said.
He explained that in terms of content, consumers are often swayed by messages which they can empathise with or captures their interest, rather than overexposing a brand.
Yee added that in today’s world of content, consumers are saturated with ads occupying much of the space in websites and other platforms, so it is important that each message stands out rather than being washed away.
“It is better if we don’t tell much about the brand but instead create a story around it to attract the attention of the audience,” he said.
Yee also said that advertising methods such as display ads are slowly dying as these are more commoditised, and has caused the industry to compete for the lowest rates, such as the lowest cost per click.
“The bulk of the revenue from the industry still comes from display ads, whether it is a publisher or site owner. There is also social media, where advertisers are putting more focus into influencers, and they are also starting to buy display ads by themselves such as buying ads on facebook
“The industry is actually struggling,”
Syndicate is a marketing company which provides companies with smart technology, content marketing expertise, and a pool of creative talent — journalists, photographers, designers, videographers.
“There is a pool of creators in our supply, and we facilitate their preferences, rates, their subject interest based on the brands, campaigns, and we advocate brands to set up their own content hub whether it is branded, like Redbull, or unbranded, like makeup.com, which markets products by Loreal,” he said.
Why the focus on content? Yee said that today’s consumers are generally be exposed to a lot of content from many different channels — such as social media, or newsletters due a saturated market where audiences often see similar messages from different companies within the same industries.
“When the content is pretty much the same, even though the companies are different, it does not attract the attention of the audience as they can’t relate to it,”
Syndicate currently has three components for revenue, and around 30% of its revenue comes from its content creators.
Another major source of income is its distribution services where the company would takes content and publishes it across many different platforms such as blogs, websites — this constitutes around 15% of revenue.
Meanwhile, management fees contribute 10%, and licensing, the remainder 50%.
“The center of gravity is always the content creators. That is why we have a platform to communicate with them as a part of our engagement. We plan to have an event to create awareness among these creators, and also gather their insights and feedback.
“Content is crucial for us so before we take it to the market, we need to streamline some guidelines and processes that are deemed favourable to all parties,” he said.
Syndicate caters to many different industries as it is multi-format in terms of articles, videos, and infographics.