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How Do You Integrate
Digital Marketing
Into Your Business?
Agenda
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•
•
•
•

Overview
What’s out there?
What’s coming?
What’s relevant for me?
How do I take advantage of the opportunities?
Digital Marketing?
Digital marketing is marketing that makes use
of electronic devices such as computers, tablets,
smartphones, cellphones, digital billboards, and
game consoles to engage with consumers and
other business partners

Wikipedia
Digital Marketing
Social
Media

e-Mail
Content

Digital
Marketing
Platforms

APP’s
Gaming

Digital
Signage
Ecommerce

Digital
Media
Analytics
Why would you
want to integrate it
into your business?
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
Communities With Over 100 Million Active Users
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
China
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
In 2012 China is already almost at par
with US and Japan combined

Source: eMarketer
Chinese shoppers are adopting e-commerce at
increasing pace

Source: China Internet Watch
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
Agenda
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•
•
•
•

Overview
What’s out there?
What’s coming?
What’s relevant for me?
How do I take advantage of the opportunities?
What’s Out There, Social Media?
•
•
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•

Facebook
Google+
LinkedIn
Instagram
YouTube
Pinterest
Twitter
Baidu
SnapChat
WeiXin
Yelp
Pandora
Trip Advisor
Tumblr
Quora
Flickr
• Over 1 Billion Users
• Average 75 minutes per day
• Income $ 5.1 Billion 2012
• Giving increased visibility to “suggested posts”
– Paid for

• 15% of all mobile advertising
Google's new social network, looks a bit
like facebook, works a bit like twitter
Circles
• Categorising your Google + contacts into groups.
–
–
–
–

EASY to do
Add as many circles as you like
One person in several circles
Potential issue over-organise

Photos
• Functionality pretty much the same as facebook
• Likely photos in Google + will rank VERY highly in Google Image search soon
• At upload create a new album or add to an existing album.
• After uploaded “add tag” just like facebook
• Tagged pictures appear on your profile and “pictures of you” in the photo section (like
facebook).
• Missing from “tagging level” is tagging on upload, so need to go into each image
• Additional functionalities: edit the picture, text and adding comments (speech bubble at right
of picture)
Hangouts
• Hanging out with lots of people
simultaneously using video chat
• Add one or several of your circles to
your “hang out”.
• People invited to join your “hang out” receive a post
in their stream
• If less than 25 people in a hang out they will also get
a notification that they are invited
• If start a hangout but one is already going on, notified
and can join the current one instead
• Hangout open, since anyone can invite anyone else,
people you don’t know may and can join
• Instant Photo Upload from Mobile
– Automatically puts all photos you take on your phone to
a private album on your Google +
– You then decide whether to share them with any circles
– Currently only for Android

• Sparks
– Personalised content feed into your stream, you tell “Sparks”
what you are “in to” and they will send you stuff that’s relevant to you

• Huddle
– “group chat”, allows you to chat with several people at once over your mobile
– Text messaging on steroids
– Only for Android

• Is Google + just another facebook?
– BIG difference can categorise your sharing
– Google + profile and posts are also public, the profiles can be seen by everyone, and
each “post” has its own unique URL making Google + a contender with Twitter for
indexable shared content
– This initiative from Google proves they are taking social seriously
– Merging Google properties into Google + and integrating it with the SERPs WILL
have an impact
Twitter is an online social
networking service and
microblogging service that
enables its users to send and
read text-based messages of up to 140
characters, known as "tweets”
• 340 million tweets daily
• 1.6 billion search queries per day
YouTube is a video-sharing
website, created in February
2005 and owned by Google
since late 2006, on which
users can upload, view and
share videos.
• 72 hours of video uploaded every minute
• Social networking website for people
in professional occupations.
• Launched on May 5, 2003
• June 2013, 225 million acquired users in
more than 200 countries and territories
Instagram
• Online photo/video-sharing
and social networking service
• Take pictures and videos
• Apply digital filters
• Share them on a variety of
social networking services,
such as Facebook, Twitter, Tumblr and Flickr.
• 2010: 1 million users
• 2012: 100 million users
• 58 photos uploaded every second
Pinterest
• Pinboard-style
photo-sharing website
• Users create and manage
theme-based image collections
such as events, interests, and hobbies.
• Users can browse other pinboards for images,
• "re-pin" images to their own pinboards
• "like" photos
SnapChat
• Photos, videos, text
and drawings
• Send to controlled
list of recipients
• Set time limit for recipients
to view 1 to 10 seconds, then hidden from recipient's
device and deleted from snapchat server
• Just over 1 year old
• 60 million photos per day
• 5 Billion snaps per year
• The service allows users
to post multimedia and
other content to a shortform blog.
• 110 million active users
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
Time Spent On Platform

(Million Hours)

Aug. 2012 – May 2013
QQ from Tencent
• IM, online games, music
shopping, microblogging,
group & voice chat
• Chat rooms, dating
• 798 million active users, peak 176 million
simultaneous
• Diamond membership
– 7 levels

• Revenue driven by added value services
• Social Mobile Network from TenCent
• Launched October 2010
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May 2011 5 million users
End 2011 50 million users
March 2012 100 million users
April 2012 rebranded as WeChat for international market
September 2012 200 million users
January 2013 300 million
Today largest in World
May 2013 Rainie Yang product endorser
India Varun Dhawan & Parineeti Chopra from Bollywood
July 2013 70 million users outside China, Lionel Messi latest product
ambassador
1. Download loads of new animated stickers from the Sticker Shop ($0.99)
2. Save favorite content clippings from chats or Moments
3. Add friends nearby easily with the new Hold Together function
4. Swipe to the right to return from a chat.
5. Double tap the Chats tab to cycle through unread chats
6. Scan bar code, cover of the book or album, street view and word
7. Play games with your friends in Game Center (preinstalled airplane war)
8. Combined credit/debit cards and mobile paying
9. Input by voice
10. Double-tab the text to show full text
Tencent
Blogs, diaries, photos, music
Customize to personal taste (paid)
Canary Diamond to access everything
at no further charge
• Mobile at extra cost
•
•
•
•
Sina Weibo
• Hybrid of FB & Twitter
• Microblogging
• Strong in Tier 1 cities
• Position threatened by Weixin
• Revenue driven by advertising
Tencent Weibo
• Microblogging
• 140 characters
• Web / SMS / Smartphone
• 277 million users
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
• Pengyou literally “Friend”
• Emphasis on real people
• Social & Corporate areas
– Friends can become fans of companies

• 259 million users
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“Everyones website”
Facebook copy
Aimed at college students
Claimed 160 million users
– Later modified to 31 million active in last month
• Many services:
– Chinese language-search engine for websites, audio files, and images.
– 57 search and community services including Baidu Baike, an online collaboratively built
encyclopedia, and a searchable, keyword-based discussion forum.

• October 2012, Baidu ranked 5th overall in the Alexa Internet rankings
• During Q4 of 2010, 4.02 billion search queries in China,
Baidu market share 56.6%.
• China's internet-search revenue share in Q2 2011 by Baidu is 76%
• Baidu provides an index of over 740 million web pages, 80 million images,
and 10 million multimedia files.
• Baidu offers multimedia content including MP3 music, and movies, and is
the first in China to offer Wireless Application Protocol (WAP) and
personal digital assistant (PDA)-based mobile search.
• Baidu released its low-cost smartphone, Changhong H5018
e-commerce
• Network, Attention & Gift economies
• Auction based business model
• Multiple product listing by different buyers
and sellers, including used goods
• Users in 150 markets
• 88 million active users
• 150 million listings globally
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Started with books
16 categories 15 years later
$2.8 Billion within 5 years, today $48 Billion
152 Million customers
51,000 employees
Largest on-line seller of music in 120 days
Co-branded web store with ToysRUs
eMarketer/iResearch Inc.
2010 Reasons for Online Shopping

Rich product
information, can selfhelpful choose
products, 6.1%

Others, 0.6%

Able to buy the
products which are
hard to find offline,
6.4%
Rich product
assortment, more
choices, 15.9%

Price is cheaper than
offline stores, 51.8%
Convenient, delivery
to door, 19.3%

2011.4. iResearch Inc.
Why do potential eShoppers Not shop online
• Credibility is still the top barrier
2010 Reasons for China Potential eShoppers Not Ordering Online
Can't find the products online

17.6%

Don't have online banking, inconvenient payment

18.4%

Website registration and shopping process is too complicated

19.7%

Picing is higher

24.0%

Online Consumer service is not convenient

25.3%

Slow delivery of online shopping

25.6%

Credibility

Worrying about websites' credibility

50.3%

Worrying about product quality

70.6%
0%

2011.4. iResearch Inc.

10%

20%

30%

40%

50%

60%

70%

80%
How do they get product information?
Vertical 2010 Information Source before Purchase for China eShoppers
specialty
Others
forums
1%
6%
Shopping
Navigation
Websites, rebate
websites
8%

Offline
Stores
7%

Search Engine
11%

Go to shopping
websites directly
68%

2011.4. iResearch Inc.
Current market dominated by C2C but by 2015 B2C
transactions are expected to make up 40% of the market

Brands can establish
online relationships of
their own to influence
purchase
Dominant C2C e-commerce platform based
on a marketplace model like eBay. It
facilitates consumer -to-consumer retail by
providing a platform for small businesses and
individual entrepreneurs to open online retail
stores. Unlike eBay however its revenues
come from seller-paid rankings in search
results (“Taobao Express”) and its sale of userdefined storefronts (“Taobao Hot Store”).
Sellers’ positions on the results list depend on
their bidding prices. They also pay on a perclick basis for their positions.
. iResearch Inc.
51.5% SOM in Revenue

Tmall.com is China’s no. 1 B2C
platform owned by Alibaba/Taobao.
Unlike Taobao, Tmall sells mostly
quality and brand name goods : over
70,000 international and Chinese
brands from more than 50,000
merchants and serves more than 180
million buyers.
P&G, Adidas, UNIQLO, GAP, Nine
West, Reebok, Ray-Ban, New
Balance, Umbro, Lenovo, Dell,Nokia, P
hilips, Samsung, Logitech and Lipton
22.7% SOM in Revenue

Second largest B2C e-tailer in China
started out as a 3C specialist but has
expanded aggressively to outpace its
main rival Dangdang . Sells mainly
electronics and home appliances, but
also books and clothing. 360Buy also
has a full online travel service, and a
separate luxury mall for couture
brands at 360Top.com.
3.5% SOM in Revenue

Amazon entered China in 2004 by
acquiring a local shopping site called
Joyo.com. Originally an IT information and
download site it turned into an online
bookstore then expanded into
commodities. It now focuses on its core
products more in the manner of a
western company, rather than trying to
cover everything as Chinese businesses
attempt to do.
The biggest ‘brick &mortar’ electronics
retailer wants to transform itself into an
e-tailer so that it doesn't suffer the same
fate of similar chains crumbling to dust in
the US and the UK. Suning will soon
diversify into online travel booking following the path led by 360Buy.
3.1% SOM in Revenue
Agenda
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Overview
What’s out there?
What’s coming?
What’s relevant for me?
How do I take advantage of the opportunities?
What’s Coming Next?
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Data, loads of data
Move from collecting to connecting data
Structured vs. Unstructured data
Integration of technologies
Monetization of Social Media

– 146 million to App Store & Google Play last 30 days
– Ads

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•
•

Ads in APPs
Proliferation of Android devices
Shift towards image based communications
Chrome & Android merge
4G
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910
Agenda
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Overview
What’s out there?
What’s coming?
What’s relevant for me?
How do I take advantage of the opportunities?
So What Should You Do?
• Get engaged
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–
–
–

Talk to your customers
What are their media habits
How and when do they like to hear from you?
How often?

• Develop a strategy
• Make someone responsible

– To manage social media & e-commerce
– Who can respond to what – be clear!

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Set objectives
Measure against them
Linkage
Buy ads??
Viral?????
Tracking & Analytics
• Identify unique visitors?
• Track them over time
• Issue: gateway IP addresses

– JavaScript & HTTP cookies very unreliable on
mobile browsers
– Need to create unique user identities on the server side

• Can you see visits from the same person across
different devices? PC, tablet & smartphone
• Can you link visits, downloads and any other
interaction to sales?
• Can you link on-line & off-line activity?
All Marketing Programmes
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Relevance
User experience
Ease of participation
Relationship with brand
Data protection
Agenda
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•
•

Overview
What’s out there?
What’s coming?
What’s relevant for me?
How do I take advantage of the opportunities?
The Challenge for Companies has transitioned
from generating engaging conversations
to creating content that consumers will
independently and virally share
• Managing product reviews on e-commerce
and social networking sites critical to success
• Make sure frontline staff fully on-board
Some Tips
1. Be real – advertising on social media, whether it is paid or unpaid, is a
chance to put a human face to the brand, and an opportunity to engage
with customers in just the same way that great service can in a shop.
2. But not too real – if you’re running a coffee shop, you’ll only alienate
customers by expounding on global politics. But it never does any harm to
emphasise that, say, your coffee is fair trade.
3. Follow the right people – Britain’s police forces got into trouble for paying
too much attention to Kirstie Allsopp and Lady Gaga on Twitter, and not
enough to the public. Every business should follow those who are already
customers, and those who could be. Which is still unlikely to be Lady Gaga.
4. Engage in the conversation – if a fan says you’re great, retweet it. If they
say you’re rubbish, ask for more details.
5. But don’t be too public – there’s no shame in asking a customer to email
you if you want a little more privacy.
Some Tips
6.

Think multimedia – pictures, audio and even video are all almost
effortless thanks to the smartphone. If you operate from a particularly
interesting venue, or a customer doesn’t mind you using them as a case
study, get cracking.
7. But don’t compromise on quality – a poorly produced video is just as
damaging as a misspelt blog post.
8. Stay current – few things are worse than a site that hasn’t been updated
in weeks, especially on Facebook or Twitter. These are living, breathing
places, not simply shopfronts.
9. Put someone in charge – you wouldn’t dream of not taking your cash to
the bank regularly, so think of updating Twitter or Facebook as similarly
important. It’s a tool for retaining and recruiting customers, after all. And
it may be a good chance for a bright young employee who would benefit
from “social media experience”.
10. Don’t forget the law – if you retain a list of customers, you are
responsible for keeping their data safe. And no one wants to think you
just sold on their details.
Why brands matter in China
1. Western brands are generally perceived as higher quality and safer,
with more ‘cool-factor’.
 According to BCG, 61% of Chinese would pay more for US-made products.
In certain categories, the preference is even higher.

2. The World Luxury Association found 86% of Chinese consumers refuse
to buy luxury goods labeled “Made in China”.
3. 61% of Chinese have less confidence in local food than in 2011, and 28%
expect to replace their domestic purchases with imports says Ipsos.

4. 75% of China’s affluent middle class live in ‘smaller cities’ where there
are no bricks & mortar stores stocking the foreign brands they want.
 There are over 200 cities with a million plus people in China, and going
online is the easiest and most efficient way to reach them.
How can brands influence shoppers online?
• Traffic Building
• Positive Review
Generation
• eMerchandising
• ePackaging
• eCouponing
• ePromotions
• Mobile Wallets
• In-store mobile
• Social Shopper
Traffic building on key sites

• Consistent online content strategies across multiple platforms
deliver better results.
• Always offer the “buy now’ option
Positive review generation

• More than 40% of Chinese online shoppers read and post
product reviews online
– about double the percentage of online shoppers in the U.S. (Source:
BCG)
eMerchandising/ePackaging/
eCouponing/ePromotions
In store mobile to mobile sites
 Payments: Mobile
payments via mobile wallet
applications
 Purchasing : purchase on a
website, pre-order for pick
up, order for home delivery
 Rewards: Scan loyalty card,
receive rewards for coming
to a store, enter products
reward information
China Social Shopper
• 95% of Internet users in Tier 1, 2 and 3 cities in China are
registered on at least one social media site
– Spend 46 minutes /day on social media sites, (37 minutes in the U.S., 7
minutes in Japan.)

•
•
•
•
•
•
•

Tencent Weibo (310 million)
Sina Weibo (250 million),
Renren, (137 million).
Kaixin, (116 million)
Mogujie
LinkChic
Xinxian
Things to remember about China e-commerce
1. Incredible growth rate
• E-commerce in China will go from representing 3.3
percent of the country’s total retail value today to
7.4 percent in 2015.
• It took the United States ten years to achieve that growth.
2. Availability and geographical limitations
• Up to 25% of ecommerce demand is
for products consumers
cannot find in physical
stores
Limited geographic coverage of
physical retailers due to sheer size
of the market.
– Many consumers, especially the
younger ones, first enter in contact
with a brand or type of product on
the Internet.
–
3. New rules apply
• Unique relationship between search engines and
retail sites
• In most markets, shopping begins with a Google search.
• In China, Taobao.com blocks the spider of the top search
engine, Baidu.com.
 Most shoppers start their search within Taobao.
4. Credibility is paramount
• Managing product reviews
on e-commerce/social
networking sites is critical
to success.
• Chinese consumers are the most
likely in the world to check for
product recommendations on
social networking sites.
• Only 19 percent of consumers in
China go to official brand or
manufacturer sites, compared
with 41 to 60 percent in Japan, the
United States, and the European
Union.
5. Buy now, pay later
• Most payments are only processed after until the
shopper receives the order.

•

Alipay has grown to become China's biggest online payment company by
processing more than 1 billion yuan ($146 million) in transactions every day and is
expected to surpass PayPal's transaction volume within two years.
6. Affordable shipping /convenience
• The low cost of shipping and speed of deliveries in
China gives e-commerce an ongoing boost.
7. High purchase frequency
8. Increasingly higher spend
• Within five years, most of
today’s online shoppers in
China will be spending
RMB 6,220 (or about
$980) per year, twice
what they are today.
• That’s close to the U.S.
average of $1,000.
9. Home grown models rule
• Western business models have failed in China with growth
coming from local players who deliver solutions based on local
market knowledge.
 Taobao actively makes product recommendations and provides
suggestions and tips, promoting a sense of social community,
entertainment news and fashion trends, along with product reviews
and practical tips for online shoppers.
 Flexible and innovative technology platforms adapted to
Chinese environment



Censorship / local rules
Local competition
10. Retailers can be a barrier to brands
engaging with shoppers
• Retailers have a lot of power and they are brand neutral so
winning them over is the number 1 challenge
And don’t forget!
Basic rules of retail still apply
1. Availability and visibility
–
–

Treat online as any other channel and make sure your brand is seen
Sound 4P strategy and engage etailers like the B&M stores

2. Information and education
–

The more facts shoppers can get from your brand/site, the better
they’ll feel about being well informed enough to buy.

3. Leverage WOM
–

Use reviews and the power of peer endorsement on and off line

4. Drive sales
–

Insure all touchpoints converge to a sale across the paid, owned and
earned media channels
Thank Your Customers
If I tell my Facebook friends about your brand,
it’s not because I like your brand,
but because I like my friends

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Integrate Digital Marketing into Your Business: Martin Randall at SMECC - 20130910

  • 1. How Do You Integrate Digital Marketing Into Your Business?
  • 2. Agenda • • • • • Overview What’s out there? What’s coming? What’s relevant for me? How do I take advantage of the opportunities?
  • 3. Digital Marketing? Digital marketing is marketing that makes use of electronic devices such as computers, tablets, smartphones, cellphones, digital billboards, and game consoles to engage with consumers and other business partners Wikipedia
  • 5. Why would you want to integrate it into your business?
  • 7. Communities With Over 100 Million Active Users
  • 13. In 2012 China is already almost at par with US and Japan combined Source: eMarketer
  • 14. Chinese shoppers are adopting e-commerce at increasing pace Source: China Internet Watch
  • 16. Agenda • • • • • Overview What’s out there? What’s coming? What’s relevant for me? How do I take advantage of the opportunities?
  • 17. What’s Out There, Social Media? • • • • • • • • • • • • • • • • Facebook Google+ LinkedIn Instagram YouTube Pinterest Twitter Baidu SnapChat WeiXin Yelp Pandora Trip Advisor Tumblr Quora Flickr
  • 18. • Over 1 Billion Users • Average 75 minutes per day • Income $ 5.1 Billion 2012
  • 19. • Giving increased visibility to “suggested posts” – Paid for • 15% of all mobile advertising
  • 20. Google's new social network, looks a bit like facebook, works a bit like twitter Circles • Categorising your Google + contacts into groups. – – – – EASY to do Add as many circles as you like One person in several circles Potential issue over-organise Photos • Functionality pretty much the same as facebook • Likely photos in Google + will rank VERY highly in Google Image search soon • At upload create a new album or add to an existing album. • After uploaded “add tag” just like facebook • Tagged pictures appear on your profile and “pictures of you” in the photo section (like facebook). • Missing from “tagging level” is tagging on upload, so need to go into each image • Additional functionalities: edit the picture, text and adding comments (speech bubble at right of picture)
  • 21. Hangouts • Hanging out with lots of people simultaneously using video chat • Add one or several of your circles to your “hang out”. • People invited to join your “hang out” receive a post in their stream • If less than 25 people in a hang out they will also get a notification that they are invited • If start a hangout but one is already going on, notified and can join the current one instead • Hangout open, since anyone can invite anyone else, people you don’t know may and can join
  • 22. • Instant Photo Upload from Mobile – Automatically puts all photos you take on your phone to a private album on your Google + – You then decide whether to share them with any circles – Currently only for Android • Sparks – Personalised content feed into your stream, you tell “Sparks” what you are “in to” and they will send you stuff that’s relevant to you • Huddle – “group chat”, allows you to chat with several people at once over your mobile – Text messaging on steroids – Only for Android • Is Google + just another facebook? – BIG difference can categorise your sharing – Google + profile and posts are also public, the profiles can be seen by everyone, and each “post” has its own unique URL making Google + a contender with Twitter for indexable shared content – This initiative from Google proves they are taking social seriously – Merging Google properties into Google + and integrating it with the SERPs WILL have an impact
  • 23. Twitter is an online social networking service and microblogging service that enables its users to send and read text-based messages of up to 140 characters, known as "tweets” • 340 million tweets daily • 1.6 billion search queries per day
  • 24. YouTube is a video-sharing website, created in February 2005 and owned by Google since late 2006, on which users can upload, view and share videos. • 72 hours of video uploaded every minute
  • 25. • Social networking website for people in professional occupations. • Launched on May 5, 2003 • June 2013, 225 million acquired users in more than 200 countries and territories
  • 26. Instagram • Online photo/video-sharing and social networking service • Take pictures and videos • Apply digital filters • Share them on a variety of social networking services, such as Facebook, Twitter, Tumblr and Flickr. • 2010: 1 million users • 2012: 100 million users • 58 photos uploaded every second
  • 27. Pinterest • Pinboard-style photo-sharing website • Users create and manage theme-based image collections such as events, interests, and hobbies. • Users can browse other pinboards for images, • "re-pin" images to their own pinboards • "like" photos
  • 28. SnapChat • Photos, videos, text and drawings • Send to controlled list of recipients • Set time limit for recipients to view 1 to 10 seconds, then hidden from recipient's device and deleted from snapchat server • Just over 1 year old • 60 million photos per day • 5 Billion snaps per year
  • 29. • The service allows users to post multimedia and other content to a shortform blog. • 110 million active users
  • 31. Time Spent On Platform (Million Hours) Aug. 2012 – May 2013
  • 32. QQ from Tencent • IM, online games, music shopping, microblogging, group & voice chat • Chat rooms, dating • 798 million active users, peak 176 million simultaneous • Diamond membership – 7 levels • Revenue driven by added value services
  • 33. • Social Mobile Network from TenCent • Launched October 2010 • • • • • • • • • • May 2011 5 million users End 2011 50 million users March 2012 100 million users April 2012 rebranded as WeChat for international market September 2012 200 million users January 2013 300 million Today largest in World May 2013 Rainie Yang product endorser India Varun Dhawan & Parineeti Chopra from Bollywood July 2013 70 million users outside China, Lionel Messi latest product ambassador
  • 34. 1. Download loads of new animated stickers from the Sticker Shop ($0.99) 2. Save favorite content clippings from chats or Moments 3. Add friends nearby easily with the new Hold Together function 4. Swipe to the right to return from a chat. 5. Double tap the Chats tab to cycle through unread chats 6. Scan bar code, cover of the book or album, street view and word 7. Play games with your friends in Game Center (preinstalled airplane war) 8. Combined credit/debit cards and mobile paying 9. Input by voice 10. Double-tab the text to show full text
  • 35. Tencent Blogs, diaries, photos, music Customize to personal taste (paid) Canary Diamond to access everything at no further charge • Mobile at extra cost • • • •
  • 36. Sina Weibo • Hybrid of FB & Twitter • Microblogging • Strong in Tier 1 cities • Position threatened by Weixin • Revenue driven by advertising
  • 37. Tencent Weibo • Microblogging • 140 characters • Web / SMS / Smartphone • 277 million users
  • 39. • Pengyou literally “Friend” • Emphasis on real people • Social & Corporate areas – Friends can become fans of companies • 259 million users
  • 40. • • • • “Everyones website” Facebook copy Aimed at college students Claimed 160 million users – Later modified to 31 million active in last month
  • 41. • Many services: – Chinese language-search engine for websites, audio files, and images. – 57 search and community services including Baidu Baike, an online collaboratively built encyclopedia, and a searchable, keyword-based discussion forum. • October 2012, Baidu ranked 5th overall in the Alexa Internet rankings • During Q4 of 2010, 4.02 billion search queries in China, Baidu market share 56.6%. • China's internet-search revenue share in Q2 2011 by Baidu is 76% • Baidu provides an index of over 740 million web pages, 80 million images, and 10 million multimedia files. • Baidu offers multimedia content including MP3 music, and movies, and is the first in China to offer Wireless Application Protocol (WAP) and personal digital assistant (PDA)-based mobile search. • Baidu released its low-cost smartphone, Changhong H5018
  • 43. • Network, Attention & Gift economies • Auction based business model • Multiple product listing by different buyers and sellers, including used goods • Users in 150 markets • 88 million active users • 150 million listings globally
  • 44. • • • • • • • Started with books 16 categories 15 years later $2.8 Billion within 5 years, today $48 Billion 152 Million customers 51,000 employees Largest on-line seller of music in 120 days Co-branded web store with ToysRUs
  • 46. 2010 Reasons for Online Shopping Rich product information, can selfhelpful choose products, 6.1% Others, 0.6% Able to buy the products which are hard to find offline, 6.4% Rich product assortment, more choices, 15.9% Price is cheaper than offline stores, 51.8% Convenient, delivery to door, 19.3% 2011.4. iResearch Inc.
  • 47. Why do potential eShoppers Not shop online • Credibility is still the top barrier 2010 Reasons for China Potential eShoppers Not Ordering Online Can't find the products online 17.6% Don't have online banking, inconvenient payment 18.4% Website registration and shopping process is too complicated 19.7% Picing is higher 24.0% Online Consumer service is not convenient 25.3% Slow delivery of online shopping 25.6% Credibility Worrying about websites' credibility 50.3% Worrying about product quality 70.6% 0% 2011.4. iResearch Inc. 10% 20% 30% 40% 50% 60% 70% 80%
  • 48. How do they get product information? Vertical 2010 Information Source before Purchase for China eShoppers specialty Others forums 1% 6% Shopping Navigation Websites, rebate websites 8% Offline Stores 7% Search Engine 11% Go to shopping websites directly 68% 2011.4. iResearch Inc.
  • 49. Current market dominated by C2C but by 2015 B2C transactions are expected to make up 40% of the market Brands can establish online relationships of their own to influence purchase
  • 50. Dominant C2C e-commerce platform based on a marketplace model like eBay. It facilitates consumer -to-consumer retail by providing a platform for small businesses and individual entrepreneurs to open online retail stores. Unlike eBay however its revenues come from seller-paid rankings in search results (“Taobao Express”) and its sale of userdefined storefronts (“Taobao Hot Store”). Sellers’ positions on the results list depend on their bidding prices. They also pay on a perclick basis for their positions.
  • 52. 51.5% SOM in Revenue Tmall.com is China’s no. 1 B2C platform owned by Alibaba/Taobao. Unlike Taobao, Tmall sells mostly quality and brand name goods : over 70,000 international and Chinese brands from more than 50,000 merchants and serves more than 180 million buyers. P&G, Adidas, UNIQLO, GAP, Nine West, Reebok, Ray-Ban, New Balance, Umbro, Lenovo, Dell,Nokia, P hilips, Samsung, Logitech and Lipton
  • 53. 22.7% SOM in Revenue Second largest B2C e-tailer in China started out as a 3C specialist but has expanded aggressively to outpace its main rival Dangdang . Sells mainly electronics and home appliances, but also books and clothing. 360Buy also has a full online travel service, and a separate luxury mall for couture brands at 360Top.com.
  • 54. 3.5% SOM in Revenue Amazon entered China in 2004 by acquiring a local shopping site called Joyo.com. Originally an IT information and download site it turned into an online bookstore then expanded into commodities. It now focuses on its core products more in the manner of a western company, rather than trying to cover everything as Chinese businesses attempt to do.
  • 55. The biggest ‘brick &mortar’ electronics retailer wants to transform itself into an e-tailer so that it doesn't suffer the same fate of similar chains crumbling to dust in the US and the UK. Suning will soon diversify into online travel booking following the path led by 360Buy. 3.1% SOM in Revenue
  • 56. Agenda • • • • • Overview What’s out there? What’s coming? What’s relevant for me? How do I take advantage of the opportunities?
  • 57. What’s Coming Next? • • • • • Data, loads of data Move from collecting to connecting data Structured vs. Unstructured data Integration of technologies Monetization of Social Media – 146 million to App Store & Google Play last 30 days – Ads • • • • • Ads in APPs Proliferation of Android devices Shift towards image based communications Chrome & Android merge 4G
  • 62. Agenda • • • • • Overview What’s out there? What’s coming? What’s relevant for me? How do I take advantage of the opportunities?
  • 63. So What Should You Do? • Get engaged – – – – Talk to your customers What are their media habits How and when do they like to hear from you? How often? • Develop a strategy • Make someone responsible – To manage social media & e-commerce – Who can respond to what – be clear! • • • • • Set objectives Measure against them Linkage Buy ads?? Viral?????
  • 64. Tracking & Analytics • Identify unique visitors? • Track them over time • Issue: gateway IP addresses – JavaScript & HTTP cookies very unreliable on mobile browsers – Need to create unique user identities on the server side • Can you see visits from the same person across different devices? PC, tablet & smartphone • Can you link visits, downloads and any other interaction to sales? • Can you link on-line & off-line activity?
  • 65. All Marketing Programmes • • • • • Relevance User experience Ease of participation Relationship with brand Data protection
  • 66. Agenda • • • • • Overview What’s out there? What’s coming? What’s relevant for me? How do I take advantage of the opportunities?
  • 67. The Challenge for Companies has transitioned from generating engaging conversations to creating content that consumers will independently and virally share
  • 68. • Managing product reviews on e-commerce and social networking sites critical to success • Make sure frontline staff fully on-board
  • 69. Some Tips 1. Be real – advertising on social media, whether it is paid or unpaid, is a chance to put a human face to the brand, and an opportunity to engage with customers in just the same way that great service can in a shop. 2. But not too real – if you’re running a coffee shop, you’ll only alienate customers by expounding on global politics. But it never does any harm to emphasise that, say, your coffee is fair trade. 3. Follow the right people – Britain’s police forces got into trouble for paying too much attention to Kirstie Allsopp and Lady Gaga on Twitter, and not enough to the public. Every business should follow those who are already customers, and those who could be. Which is still unlikely to be Lady Gaga. 4. Engage in the conversation – if a fan says you’re great, retweet it. If they say you’re rubbish, ask for more details. 5. But don’t be too public – there’s no shame in asking a customer to email you if you want a little more privacy.
  • 70. Some Tips 6. Think multimedia – pictures, audio and even video are all almost effortless thanks to the smartphone. If you operate from a particularly interesting venue, or a customer doesn’t mind you using them as a case study, get cracking. 7. But don’t compromise on quality – a poorly produced video is just as damaging as a misspelt blog post. 8. Stay current – few things are worse than a site that hasn’t been updated in weeks, especially on Facebook or Twitter. These are living, breathing places, not simply shopfronts. 9. Put someone in charge – you wouldn’t dream of not taking your cash to the bank regularly, so think of updating Twitter or Facebook as similarly important. It’s a tool for retaining and recruiting customers, after all. And it may be a good chance for a bright young employee who would benefit from “social media experience”. 10. Don’t forget the law – if you retain a list of customers, you are responsible for keeping their data safe. And no one wants to think you just sold on their details.
  • 71. Why brands matter in China 1. Western brands are generally perceived as higher quality and safer, with more ‘cool-factor’.  According to BCG, 61% of Chinese would pay more for US-made products. In certain categories, the preference is even higher. 2. The World Luxury Association found 86% of Chinese consumers refuse to buy luxury goods labeled “Made in China”. 3. 61% of Chinese have less confidence in local food than in 2011, and 28% expect to replace their domestic purchases with imports says Ipsos. 4. 75% of China’s affluent middle class live in ‘smaller cities’ where there are no bricks & mortar stores stocking the foreign brands they want.  There are over 200 cities with a million plus people in China, and going online is the easiest and most efficient way to reach them.
  • 72. How can brands influence shoppers online? • Traffic Building • Positive Review Generation • eMerchandising • ePackaging • eCouponing • ePromotions • Mobile Wallets • In-store mobile • Social Shopper
  • 73. Traffic building on key sites • Consistent online content strategies across multiple platforms deliver better results. • Always offer the “buy now’ option
  • 74. Positive review generation • More than 40% of Chinese online shoppers read and post product reviews online – about double the percentage of online shoppers in the U.S. (Source: BCG)
  • 76. In store mobile to mobile sites  Payments: Mobile payments via mobile wallet applications  Purchasing : purchase on a website, pre-order for pick up, order for home delivery  Rewards: Scan loyalty card, receive rewards for coming to a store, enter products reward information
  • 77. China Social Shopper • 95% of Internet users in Tier 1, 2 and 3 cities in China are registered on at least one social media site – Spend 46 minutes /day on social media sites, (37 minutes in the U.S., 7 minutes in Japan.) • • • • • • • Tencent Weibo (310 million) Sina Weibo (250 million), Renren, (137 million). Kaixin, (116 million) Mogujie LinkChic Xinxian
  • 78. Things to remember about China e-commerce
  • 79. 1. Incredible growth rate • E-commerce in China will go from representing 3.3 percent of the country’s total retail value today to 7.4 percent in 2015. • It took the United States ten years to achieve that growth.
  • 80. 2. Availability and geographical limitations • Up to 25% of ecommerce demand is for products consumers cannot find in physical stores Limited geographic coverage of physical retailers due to sheer size of the market. – Many consumers, especially the younger ones, first enter in contact with a brand or type of product on the Internet. –
  • 81. 3. New rules apply • Unique relationship between search engines and retail sites • In most markets, shopping begins with a Google search. • In China, Taobao.com blocks the spider of the top search engine, Baidu.com.  Most shoppers start their search within Taobao.
  • 82. 4. Credibility is paramount • Managing product reviews on e-commerce/social networking sites is critical to success. • Chinese consumers are the most likely in the world to check for product recommendations on social networking sites. • Only 19 percent of consumers in China go to official brand or manufacturer sites, compared with 41 to 60 percent in Japan, the United States, and the European Union.
  • 83. 5. Buy now, pay later • Most payments are only processed after until the shopper receives the order. • Alipay has grown to become China's biggest online payment company by processing more than 1 billion yuan ($146 million) in transactions every day and is expected to surpass PayPal's transaction volume within two years.
  • 84. 6. Affordable shipping /convenience • The low cost of shipping and speed of deliveries in China gives e-commerce an ongoing boost.
  • 85. 7. High purchase frequency
  • 86. 8. Increasingly higher spend • Within five years, most of today’s online shoppers in China will be spending RMB 6,220 (or about $980) per year, twice what they are today. • That’s close to the U.S. average of $1,000.
  • 87. 9. Home grown models rule • Western business models have failed in China with growth coming from local players who deliver solutions based on local market knowledge.  Taobao actively makes product recommendations and provides suggestions and tips, promoting a sense of social community, entertainment news and fashion trends, along with product reviews and practical tips for online shoppers.  Flexible and innovative technology platforms adapted to Chinese environment   Censorship / local rules Local competition
  • 88. 10. Retailers can be a barrier to brands engaging with shoppers • Retailers have a lot of power and they are brand neutral so winning them over is the number 1 challenge
  • 89. And don’t forget! Basic rules of retail still apply 1. Availability and visibility – – Treat online as any other channel and make sure your brand is seen Sound 4P strategy and engage etailers like the B&M stores 2. Information and education – The more facts shoppers can get from your brand/site, the better they’ll feel about being well informed enough to buy. 3. Leverage WOM – Use reviews and the power of peer endorsement on and off line 4. Drive sales – Insure all touchpoints converge to a sale across the paid, owned and earned media channels
  • 91. If I tell my Facebook friends about your brand, it’s not because I like your brand, but because I like my friends