Starbox Group Holdings Ltd. (hereinafter referred to as 'Starbox') was successfully listed on August 23, 2022, with a global issue of 5,000,000 shares at a tender price of $4.00 per share.
During the process of listing in the US, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with NASDAQ and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and providing feedback on various industry-related issues for NASDAQ.
Market scale of cash rebates and coupons in Southeast Asia
The increasing dependence on the internet and online applications, as well as the use of mobile devices, has translated into growth in Southeast Asian e-commerce industries. Online shoppers are increasingly using cashback and coupons for their purchases. The growing popularity of smartphones and mobile payments have made mobile shopping particularly popular, which in turn has driven the growth of cashback and coupons in Southeast Asia.
In 2021, the market size of the Southeast Asia cashback and coupon industry was approximately $2.132 billion, a compound annual growth rate of about 58.4% compared to the approximately $213.9 million in 2016. Looking ahead, mobile consumption will become the main engine for the development of mobile payments, e-commerce, cashbacks, and coupons in Southeast Asia. Cashbacks and coupons are powerful incentives for consumers, encouraging them to return to their favorite online shopping websites and spend more. Cashback promotions have created higher conversion rates and increased average order value. It is estimated that by 2026, the market size of cashbacks and coupons in Southeast Asia will reach approximately $7.035 billion, with a compound annual growth rate from 2022 to 2026 of about 23.1%.
Southeast Asia Cash Rebates and Coupons Market Size
2016 - 2026 (forecast)
Source: Frost & Sullivan report
Market prospects
Cash rebates and coupons are an increasing trend in the e-commerce market. When customers make purchases, they receive a certain amount of reward. In Southeast Asian e-commerce platforms, the practice of offering cash rebates and coupons is on the rise.
Cash rebates and coupons, as loyalty programs, primarily encourage repeat customers by returning a certain percentage of their consumption amount and helping them save money on their next purchase. The more they spend, the higher the cash rebate rate they receive. Customers can only use the cash rebates at merchants that offer them. This not only encourages higher purchase value but also ensures that customers continue to return for the benefits they have received. It helps merchants retain customers while enhancing their customer experience.
In addition, cashback and coupon service providers offer a wide range of products and services through cashback websites, including groceries, entertainment, dating services, online banking, flights, and travel insurance. Cashback websites sometimes have user communities where savvy buyers share their experiences and savings tips. This will further enhance the customer's shopping experience.
Overview of Southeast Asian Digital Advertising Market
Economic prosperity, favorable policies from regional and local governments, and the continuous development of network infrastructure have become indispensable driving forces for the development of online business patterns. In recent years, consumers have been constrained by COVID-19 pandemic prevention and control measures, spending more time and resources on their own media channels such as websites, mobile applications, and customer service channels. On the supply side, marketing and advertising expenditures have also shifted as merchants diversify their digital marketing efforts in paid and owned media.
In addition, as data and analytics become increasingly crucial in formulating targeted personalized strategies, the overall structural transformation of consumer behavior and marketing activities has greatly stimulated demand for digital advertising services. As a result, from 2016 to 2021, the market size of the Southeast Asian digital advertising industry increased from about $5.3 billion to about $10 billion, with an annual compound growth rate of approximately 13.4%.
Looking ahead, it is expected that online business models will continue to be a growth trend. The market size of the Southeast Asian digital advertising industry is projected to reach approximately $15.9 billion by 2026, with a compound annual growth rate of about 9.3% from 2022 to 2026.
Southeast Asia digital advertising market size2016 - 2026 (forecast)
Source: Frost & Sullivan report
Market-driven factors
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Progress in technology and analytical tools
Although digital advertising service providers offer in-depth insights into developing digital advertising strategies and execution plans, advanced technologies such as big data and artificial intelligence have become indispensable value-added tools in their daily operations to achieve service efficiency and accuracy. Leading digital advertising service providers can use artificial intelligence and machine learning to track customer information such as demographics, location, purchasing patterns, and preferences, analyze collected data, and recommend relevant advertising content to the end customers of businesses. With cloud-based automated user analytics, digital advertising companies can distinguish their core audience, evaluate the effectiveness of marketing campaigns, thereby precisely shaping their digital advertising strategies and providing optimized results.
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Supportive policies to promote online ecosystems
In December 2021, the Association of Southeast Asian Nations (ASEAN) countries signed the ASEAN E-commerce Agreement, which establishes common principles and rules to promote the development of e-commerce in the region and enhance the capacity to implement corresponding policies. The agreement aims to facilitate cross-border e-commerce transactions in the region and create a favorable environment for the development of e-commerce. Each member country will cooperate in areas such as information technology infrastructure, electronic payment, settlement, and trade facilitation. Favorable policy support has shaped the online platform landscape, thereby driving demand for digital advertising services.
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The booming economic situation and the continuously growing internet penetration and usage
The steady growth of the Southeast Asian economy and the transformation into a consumer-driven economy have driven the development of the digital advertising industry in Southeast Asia. From 2016 to 2021, the nominal GDP of Southeast Asia has steadily increased from about $2559 billion to about $3355 billion, with an annual compound growth rate of approximately 5.6%. The continuous increase in income has led to improved living standards and increased consumers' spending on various goods and services. In addition, the number of internet users in Southeast Asia reached over 420 million in 2021, and the internet penetration rates of major economies such as Malaysia, Singapore, Thailand, the Philippines, and Indonesia have all exceeded 80%, reflecting significant progress compared to 2016. An increasing number of internet users have turned into potential customer groups, and digital advertising companies may reach out to end customers in a more convenient and precise manner.
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The rise of programmatic ad buying in the digital advertising industry
Programmatic advertising buying involves the automatic purchase and sale of digital ads through real-time bidding on demand-side platforms. Demand-side platforms are software used by advertisers to purchase mobile, search, and video ads, while publishers list their advertising inventory in the market. Programmatic advertising buying enables digital advertising service providers to use machine learning and artificial intelligence, leveraging data algorithms and insights to deliver ads to specific user groups at the right time. The development of such buying programs can improve operational efficiency, especially in promoting digital advertising campaigns to the right customers, thereby enhancing the profitability of businesses and digital advertising service providers.
Frost & Sullivan has extensive research experience in the e-commerce industry and has assisted well-known enterprises in successfully listing on capital markets. Successful listings include: Dajian YunCang (NASDAQ: GCT), Youhe Holdings (2347.HK), YesAsia (2209.HK), Huaxin Holdings (8442.HK), Shangjin International (2528.HK), Topshop International (6110.HK), Baby Tree (1761.HK), Seko China (NASDAQ: SECO), Babbel (8297.HK), Jumei.com (NYSE.JME), Vipshop (NYSE.VIPS), and others.
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