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The Chinese Digital Marketing Landscape
So,	
  What	
  does	
  this	
  mean	
  for	
  Marketers?
The	
  MulBple	
  Faces	
  of	
  China	
  

                                                                                             WHAT	
  IT	
  MEANS	
  TO	
  
                                                                                               MARKETERS	
  
                                                                                    As	
  of	
  June	
  2010,	
  China	
  had	
  420	
  
                                                                                    million	
  neBzens,	
  and	
  Internet	
  
                                                                                    penetraBon	
  rate	
  had	
  climbed	
  to	
  
                                                                                    31.8%	
  	
  
                                                                                    	
  
                                                                                    Keep	
  in	
  mind	
  that	
  those	
  top	
  Ber	
  
                                                                                    1	
  ciBes	
  only	
  account	
  for	
  less	
  
                                                                                    10%	
  of	
  the	
  total	
  internet	
  
                                                                                    populaBon.	
  
                                                                                    	
  
                                                                                    It	
  is	
  important	
  to	
  craP	
  your	
  
                                                                                    internet	
  strategy	
  according	
  to	
  
                                                                                    these	
  	
  different	
  consumer	
  
                                                                                    needs.	
  




©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
In	
  China,	
  Internet	
  is	
  equal	
  to	
  trust	
  

         TRUSTWORTHY	
  MEDIA	
  CHANNELS	
  
         Here	
  is	
  a	
  list	
  of	
  different	
  forms	
  of	
  communicaBon.	
  	
  How	
  much	
  do	
  you	
  trust	
  each	
  of	
  them?	
  

                                               Recommenda5ons	
  from	
  friends	
  and	
  family	
  
                                                       Consumer	
  product	
  review	
  from	
  website	
  
                                                                      Product	
  labels	
  on	
  packaging	
  
                                                           Expert	
  product	
  review	
  from	
  website	
  
                                                                        Consumer	
  opinion	
  in	
  blogs	
  
                                                           Independent	
  reviews	
  in	
  publica5ons	
  
                                                         Consumer	
  opinion	
  on	
  message	
  boards	
  
                                                                Consumer	
  opinion	
  in	
  chat	
  rooms	
  
                                                               Manufacturers	
  /	
  brands	
  websites	
  
                                                                                     Email	
  newsleIers	
  
                                                                                             Magazine	
  ad	
  
                                                                                                      TV	
  ads	
  
                            Products/brands	
  that	
  appear	
  in	
  movies	
  or	
  within	
  TV	
  
                                                                                       programs	
  
                                                             Ads	
  that	
  appear	
  on	
  search	
  engines	
  
                                                                                         Newspaper	
  ads	
  
                                                                                                 Radio	
  ads	
  


©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Site	
  Layout	
  Looks	
  Different	
  	
  


                                                                                               WHAT	
  IT	
  MEANS	
  TO	
  
                                                                                                 MARKETERS	
  
                                                                                          When	
  marketers	
  try	
  to	
  
                                                                                          build	
  their	
  Chinese	
  
                                                                                          websites,	
  they	
  should	
  
                                                                                          always	
  balance	
  between	
  
                                                                                          the	
  needs	
  looking	
  ‘good’	
  
                                                                                          and	
  looking	
  ‘busy’	
  
                                                                                          	
  
                                                                                          The	
  visually	
  clean	
  sites	
  of	
  
                                                                                          the	
  West	
  do	
  not	
  
                                                                                          necessarily	
  translate	
  to	
  
                                                                                          Chinese	
  sites.	
  Note	
  the	
  
                                                                                          layout	
  of	
  Sohu	
  and	
  Sina	
  to	
  
                                                                                          the	
  leP.	
  	
  




©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Measurement is Company Confidential



                                                            WHAT	
  IT	
  MEANS	
  TO	
  MARKETERS	
  
                                                       Many	
  Chinese	
  websites	
  are	
  resistant	
  to	
  
                                                       place	
  tracking	
  code	
  on	
  their	
  site	
  but	
  
                                                       normally	
  will	
  provide	
  you	
  with	
  some	
  
                                                       level	
  of	
  analyBcs.	
  	
  
                                                       	
  
                                                       You	
  may	
  need	
  to	
  push	
  the	
  Publisher	
  for	
  
                                                       click	
  and	
  impression	
  data	
  but	
  given	
  
                                                       many	
  Chinese	
  sites	
  now	
  use	
  commercial	
  
                                                       website	
  analyBcs	
  pla]orms	
  it	
  is	
  freely	
  
                                                       available.	
  Some	
  Publishers	
  just	
  don’t	
  
                                                       like	
  to	
  share	
  site	
  informaBon	
  outside	
  
                                                       their	
  company.	
  	
  




©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Consumers	
  are	
  Shopping	
  Online	
  

                                                                         WHAT	
  IT	
  MEANS	
  TO	
  
                                                                           MARKETERS	
  
                                                                 Online	
  shopping	
  is	
  a	
  form	
  of	
  
                                                                 entertainment	
  in	
  China.	
  	
  
                                                                 	
  
                                                                 NeBzens	
  spend	
  hours	
  just	
  
                                                                 browsing	
  shopping	
  sites	
  and	
  
                                                                 increasing	
  buying	
  online	
  goods	
  
                                                                 (cosmeBcs,	
  clothing	
  and	
  
                                                                 electronics	
  being	
  among	
  the	
  
                                                                 most	
  popular	
  sectors	
  
                                                                 	
  
                                                                 Note:	
  many	
  Western	
  brands	
  are	
  
                                                                 seang	
  up	
  ‘official’	
  Taobao	
  
                                                                 shops.	
  	
  




©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Digital	
  MarkeBng	
  is	
  MulB-­‐Channel	
  

                                                                    WHAT	
  IT	
  MEANS	
  TO	
  
                                                                      MARKETERS	
  
                                                           Many	
  marketers	
  jump	
  into	
  a	
  
                                                           digital	
  markeBng	
  campaign	
  and	
  
                                                           only	
  posiBon	
  ‘media	
  buying’	
  as	
  
                                                           their	
  online	
  promoBons	
  
                                                           strategy.	
  	
  
                                                           	
  
                                                           Chinese	
  neBzens	
  have	
  diverse	
  
                                                           internet	
  behaviors	
  and	
  respond/
                                                           trust	
  the	
  various	
  digital	
  channels	
  
                                                           differently.	
  Consider	
  using	
  
                                                           mulBple	
  channels	
  at	
  different	
  
                                                           points	
  within	
  a	
  campaign	
  to	
  
                                                           produce	
  the	
  most	
  effecBve	
  
                                                           outcome.	
  




©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
LocaBon	
  Based	
  Services	
  
                                                                                      WHAT	
  IT	
  MEANS	
  TO	
  MARKETERS	
  
                                                                           LocaBon	
  based	
  services	
  are	
  slowly	
  gaining	
  
                                                                           interest	
  with	
  certain	
  sectors.	
  As	
  a	
  marketer	
  
                                                                           you	
  can	
  leverage	
  these	
  pla]orms	
  with	
  some	
  of	
  
                                                                           these	
  ideas;	
  
                                                                           	
  
                                                                           1.  Reserved	
  parking	
  spot	
  for	
  the	
  Mayor	
  
                                                                           2.  EscalaBng	
  rewards	
  for	
  checking	
  in	
  and	
  
                                                                                  bringing	
  more	
  friends	
  along	
  
                                                                           3.  The	
  Mayor	
  gets	
  a	
  free	
  pass	
  to	
  the	
  front	
  of	
  
                                                                                  the	
  line.	
  
                                                                           4.  Free	
  boile	
  of	
  wine	
  during	
  the	
  week	
  of	
  
                                                                                  your	
  birthday	
  —	
  worth	
  your	
  age	
  in	
  dollars	
  
                                                                           5.  Free	
  round	
  of	
  shots	
  for	
  the	
  Mayor	
  —	
  and	
  
                                                                                  five	
  friends	
  
                                                                           6.  Free	
  hotel	
  room	
  upgrade	
  for	
  the	
  Mayor	
  




©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Mobile	
  is	
  Bigger	
  than	
  the	
  PC	
  




                                                                     WHAT	
  IT	
  MEANS	
  TO	
  MARKETERS	
  
            Studies	
  show	
  that	
  teenagers	
  are	
  no	
  longer	
  checking	
  their	
  email	
  regularly,	
  instead	
  they	
  connect	
  to	
  their	
  friends	
  
            either	
  through	
  a	
  social	
  network	
  (like	
  renren)	
  or	
  mobile.	
  Having	
  a	
  mobile	
  strategy	
  is	
  a	
  must	
  in	
  2011	
  




©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Search	
  Beyond	
  Google	
  

                                                                                   WHAT	
  IT	
  MEANS	
  TO	
  MARKETERS	
  
                                                                         Search	
  is	
  important.	
  While	
  many	
  marketers	
  
                                                                         are	
  focusing	
  on	
  doing	
  Paid	
  Search,	
  you	
  may	
  
                                                                         want	
  to	
  take	
  a	
  more	
  “holisBc”	
  approach	
  and	
  
                                                                         include	
  SEO	
  in	
  your	
  Search	
  Strategy	
  for	
  China.	
  
                                                                         	
  
                                                                         Paid	
  search	
  and	
  search	
  opBmizaBon	
  on	
  Baidu	
  
                                                                         is	
  not	
  the	
  same	
  as	
  Google.	
  	
  	
  




©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Group	
  Buying	
  

                                                                              WHAT	
  IT	
  MEANS	
  TO	
  MARKETERS	
  
                                                                    Group	
  buying	
  sites	
  grew	
  dramaBcally	
  from	
  4	
  at	
  
                                                                    the	
  beginning	
  of	
  2009	
  to	
  nearly	
  1,700	
  by	
  Dec	
  
                                                                    2010.	
  With	
  many	
  of	
  sites	
  looking	
  for	
  unique	
  
                                                                    offers	
  and	
  venues,	
  marketers	
  of	
  parBcular	
  
                                                                    brands	
  can	
  leverage	
  these	
  sites	
  needs	
  for	
  fresh	
  
                                                                    daily	
  offers	
  to	
  achieve	
  greater	
  market	
  
                                                                    awareness.	
  
                                                                    	
  
                                                                    500	
  billion	
  yuan	
  (75.4	
  billion	
  U.S.	
  dollars)	
  was	
  
                                                                    made	
  in	
  group	
  buying	
  sector	
  in	
  China	
  2010	
  
                                                                    	
  
                                                                    	
  




©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Social	
  media	
  is	
  King	
  




                                                                      WHAT	
  IT	
  MEANS	
  TO	
  MARKETERS	
  
            Like	
  Search,	
  social	
  media	
  has	
  gone	
  mainstream	
  in	
  China.	
  	
  Chinese	
  neBzens	
  are	
  acBvely	
  engaging	
  on	
  all	
  forms	
  of	
  
            social	
  media	
  (such	
  as	
  SNS,	
  BBS	
  and	
  micro-­‐sites).	
  



©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Pay	
  AienBon	
  or	
  Get	
  Replaced	
  




                                                                    WHAT	
  IT	
  MEANS	
  TO	
  MARKETERS	
  
            China	
  leads	
  the	
  world	
  in	
  developing	
  duplicated	
  products.	
  You	
  must	
  always	
  look	
  at	
  innovaBons	
  to	
  ensure	
  you	
  
            stay	
  ahead	
  or	
  risk	
  being	
  replaced.	
  



©	
  2011	
  SinoTech	
  Group	
  (China)	
  Limited
Thank You!
Dr	
  Mathew	
  McDougall|	
  mai@digitaljungle.com.cn|	
  www.digitaljungle.com.cn

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Chinese Digital Marketing - Implications for Marketers

  • 1. The Chinese Digital Marketing Landscape So,  What  does  this  mean  for  Marketers?
  • 2. The  MulBple  Faces  of  China   WHAT  IT  MEANS  TO   MARKETERS   As  of  June  2010,  China  had  420   million  neBzens,  and  Internet   penetraBon  rate  had  climbed  to   31.8%       Keep  in  mind  that  those  top  Ber   1  ciBes  only  account  for  less   10%  of  the  total  internet   populaBon.     It  is  important  to  craP  your   internet  strategy  according  to   these    different  consumer   needs.   ©  2011  SinoTech  Group  (China)  Limited
  • 3. In  China,  Internet  is  equal  to  trust   TRUSTWORTHY  MEDIA  CHANNELS   Here  is  a  list  of  different  forms  of  communicaBon.    How  much  do  you  trust  each  of  them?   Recommenda5ons  from  friends  and  family   Consumer  product  review  from  website   Product  labels  on  packaging   Expert  product  review  from  website   Consumer  opinion  in  blogs   Independent  reviews  in  publica5ons   Consumer  opinion  on  message  boards   Consumer  opinion  in  chat  rooms   Manufacturers  /  brands  websites   Email  newsleIers   Magazine  ad   TV  ads   Products/brands  that  appear  in  movies  or  within  TV   programs   Ads  that  appear  on  search  engines   Newspaper  ads   Radio  ads   ©  2011  SinoTech  Group  (China)  Limited
  • 4. Site  Layout  Looks  Different     WHAT  IT  MEANS  TO   MARKETERS   When  marketers  try  to   build  their  Chinese   websites,  they  should   always  balance  between   the  needs  looking  ‘good’   and  looking  ‘busy’     The  visually  clean  sites  of   the  West  do  not   necessarily  translate  to   Chinese  sites.  Note  the   layout  of  Sohu  and  Sina  to   the  leP.     ©  2011  SinoTech  Group  (China)  Limited
  • 5. Measurement is Company Confidential WHAT  IT  MEANS  TO  MARKETERS   Many  Chinese  websites  are  resistant  to   place  tracking  code  on  their  site  but   normally  will  provide  you  with  some   level  of  analyBcs.       You  may  need  to  push  the  Publisher  for   click  and  impression  data  but  given   many  Chinese  sites  now  use  commercial   website  analyBcs  pla]orms  it  is  freely   available.  Some  Publishers  just  don’t   like  to  share  site  informaBon  outside   their  company.     ©  2011  SinoTech  Group  (China)  Limited
  • 6. Consumers  are  Shopping  Online   WHAT  IT  MEANS  TO   MARKETERS   Online  shopping  is  a  form  of   entertainment  in  China.       NeBzens  spend  hours  just   browsing  shopping  sites  and   increasing  buying  online  goods   (cosmeBcs,  clothing  and   electronics  being  among  the   most  popular  sectors     Note:  many  Western  brands  are   seang  up  ‘official’  Taobao   shops.     ©  2011  SinoTech  Group  (China)  Limited
  • 7. Digital  MarkeBng  is  MulB-­‐Channel   WHAT  IT  MEANS  TO   MARKETERS   Many  marketers  jump  into  a   digital  markeBng  campaign  and   only  posiBon  ‘media  buying’  as   their  online  promoBons   strategy.       Chinese  neBzens  have  diverse   internet  behaviors  and  respond/ trust  the  various  digital  channels   differently.  Consider  using   mulBple  channels  at  different   points  within  a  campaign  to   produce  the  most  effecBve   outcome.   ©  2011  SinoTech  Group  (China)  Limited
  • 8. LocaBon  Based  Services   WHAT  IT  MEANS  TO  MARKETERS   LocaBon  based  services  are  slowly  gaining   interest  with  certain  sectors.  As  a  marketer   you  can  leverage  these  pla]orms  with  some  of   these  ideas;     1.  Reserved  parking  spot  for  the  Mayor   2.  EscalaBng  rewards  for  checking  in  and   bringing  more  friends  along   3.  The  Mayor  gets  a  free  pass  to  the  front  of   the  line.   4.  Free  boile  of  wine  during  the  week  of   your  birthday  —  worth  your  age  in  dollars   5.  Free  round  of  shots  for  the  Mayor  —  and   five  friends   6.  Free  hotel  room  upgrade  for  the  Mayor   ©  2011  SinoTech  Group  (China)  Limited
  • 9. Mobile  is  Bigger  than  the  PC   WHAT  IT  MEANS  TO  MARKETERS   Studies  show  that  teenagers  are  no  longer  checking  their  email  regularly,  instead  they  connect  to  their  friends   either  through  a  social  network  (like  renren)  or  mobile.  Having  a  mobile  strategy  is  a  must  in  2011   ©  2011  SinoTech  Group  (China)  Limited
  • 10. Search  Beyond  Google   WHAT  IT  MEANS  TO  MARKETERS   Search  is  important.  While  many  marketers   are  focusing  on  doing  Paid  Search,  you  may   want  to  take  a  more  “holisBc”  approach  and   include  SEO  in  your  Search  Strategy  for  China.     Paid  search  and  search  opBmizaBon  on  Baidu   is  not  the  same  as  Google.       ©  2011  SinoTech  Group  (China)  Limited
  • 11. Group  Buying   WHAT  IT  MEANS  TO  MARKETERS   Group  buying  sites  grew  dramaBcally  from  4  at   the  beginning  of  2009  to  nearly  1,700  by  Dec   2010.  With  many  of  sites  looking  for  unique   offers  and  venues,  marketers  of  parBcular   brands  can  leverage  these  sites  needs  for  fresh   daily  offers  to  achieve  greater  market   awareness.     500  billion  yuan  (75.4  billion  U.S.  dollars)  was   made  in  group  buying  sector  in  China  2010       ©  2011  SinoTech  Group  (China)  Limited
  • 12. Social  media  is  King   WHAT  IT  MEANS  TO  MARKETERS   Like  Search,  social  media  has  gone  mainstream  in  China.    Chinese  neBzens  are  acBvely  engaging  on  all  forms  of   social  media  (such  as  SNS,  BBS  and  micro-­‐sites).   ©  2011  SinoTech  Group  (China)  Limited
  • 13. Pay  AienBon  or  Get  Replaced   WHAT  IT  MEANS  TO  MARKETERS   China  leads  the  world  in  developing  duplicated  products.  You  must  always  look  at  innovaBons  to  ensure  you   stay  ahead  or  risk  being  replaced.   ©  2011  SinoTech  Group  (China)  Limited
  • 14. Thank You! Dr  Mathew  McDougall|  mai@digitaljungle.com.cn|  www.digitaljungle.com.cn