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Download Presentation WHAT CAN SOCIAL MEDIA IN CHINA TEACH THE WORLD? DR. LINDA XU – CHIEF CLIENT OFFICER KANTAR MEDIA CIC Why social media in China is so different The Chinese Internet serves as a powerful platform for entertainment, information, socializing, and purchasing Limited Variety of Media Not Trusted Limited Socializing Unbalanced Shopping Entertainment Access Social Media 2008 in China is: 2010 Unique, 2011 Fragmented, 2012 and Dynamic 2013 2014 2015 BATS make China’s landscape uniquely PRACTICAL V I P VIRAL INFORMATIVE PRACTICAL Sogou Wechat Weibo Baidu Weibo Wechat Tenpay Wechat BATS: Baidu, Alibaba (Tmall/Alipay), Tencent (Wechat/QQ), Sina (Weibo) Weidian Firewall has driven localization and much more ACCESSABLE Baidu Search/百度搜索 Tieba/贴吧 Taobao/淘宝 Tmall/天猫 Alipay/支付宝 Wechat/微信 QQ X Blocked Weibo/微博 WeChat public accounts functions are innovative and comprehensive Gamification drives netizens participation to Brands can feed group-buying and better deliver discount content to consumers, and brand/product feature insert e-commerce site within banner Gamification E-commerce Discounts, credit and other Forum FM Magazine membership Third-party Third-party services can be Membership WeChat plugins Third-party Service (Forum,plugins FM, utilized on WeChat Feature Magazine…) plugins make to enhance more functions consumer loyalty possible on Real-time Other WeChat Customer Service Functions Real-time customer Scan bar code to services to answer get product stock followers’ information questions/complaints Brands enjoy new ways to connect with customers Membership Service Product Sampling Store Search Customer Service E-commerce Survey Brand Community Product Information Campaign Channel (Post and HTML5) Influence of social platform in China Social media user base steadily grows in China Social Media User Base in China 731 Million 688 649 666.3 (December 2016) 618 624.1 564 587.8 544.6 513 532.2 503.9 457 467.8 436.6 466.8 415.0 373.0 428.2 433.0 384 371.8 353.0 318.6 325.3 298 294.5 272.0 284.0 244.2 308.6 275.1 280.8277.7 271.4 244.0 240.4 221.6 235.1 249.9 248.8 230.5 210 201.7 161.5170.9 161.8 175.9 137 148.0 144.0 149.3 120.5 129.1 120.8 94 111 102.0 117.0 119.0 76.3 63.0 40.0 46.2 46.5 50.6 34.7 49.4 19.6 4.6 15.8 47.3 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Microblog BBS SNS Video Blog IM Internet User Source: The 39th Statistical Survey Report on the Internet Development in China by CNNIC, January 2017 Notes: Internet user number includes mobile internet number; WeChat user was included into mobile IM user. According to Tencent Financial Report, Q3, 2016, WeChat user reached 846 million by the end of September, 2016. Notes: SNS user number isn’t counted from December 2014; blog user number isn’t counted from December 2015. Mobile is the most widely used device to access the Internet Mobile Internet Users in China Internet Accessing Facilities Mobile internet user scale Million Million the proportion of mobile users in total netizens Desktops 95.1% Mobile 800 92.5% 100% 680 656 88.9%90.1% 695 85.8% Laptops 619 83.4% 700 81.0% 594 78.5% Tablet 557 74.5% 695 580 72.2% 80% 527 600 69.3% 656 TV 65.9%66.2% 65.5% 620 500 594 464 459 457 465 459 60.8% 440 439 557 480 398 500 527 60% 500 377 380 46.0% 359 400 464 380 345 410 430 39.5% 420 388 309 388 420 356 40% 282 356 284 273 269 300 28.9% 277 272 276 280 266 303 318 259 24.0% 280 318 240 242 277 303 224 200 233 277 209 230 20% 233 225 155 180 155 226 216 217 183 100 118 118 50 73 101 106 150 0 0% 80 123 Source: The 39th Statistical Survey Report on the Internet Development in China by CNNIC, January 2017 Note: Since 2014.12, TV has been used as an Internet Accessing Facility Internet has become the leading media channel for ad spending in China Advertising Spending by Media Share of Spending by Media USD Billion 50 Internet Internet 42.3% 50.8% 40.6 Outdoor 40 9.0% 31.4 30.1 Outdoor 30 28.6 Magazines 8.5% 1.3% 2015 2016 20 Magazin es Newspapers 0.8% Newspa TV 10 6.7 6.8 4.1% TV pers 35.8% 3 Radio Radio 2 1.8 1.5 40.6% 1.9% 1 0.6 2.7% 2.3% 0 TV Radio Newspapers Magazines Outdoor Internet SOURCE: GROUPM 2015 2016 TV Radio Newspapers Magazines Outdoor Internet Note: The Internet category includes Mobile Internet, E-commerce, Search, Online Video and Social Media. Ad spending on Mobile Internet, E-commerce and Social Media grew with government support Advertising Spending by Category Internet, Smartphone and E-commerce has growing penetration in China USD Billion 60 80% Xinhua: Internet To Countryside 2.0 50 60% 58% 40 46% 30 40% 22.1 Xinhua: Traditional Mobile Service are Struggling 20 20% 14 and Goes to Rural Area for Survival 20% 10.2 10 8.5 2.2 3.2 0 0% People's Daily: Mobile Internet E-commerce Social Media Further Release E-commerce Potential 2015 2016 Growth Rate SOURCE: GROUPM / eMarketer / iResearch Note: Mobile Internet includes display and search. E-commerce includes Taobao, Tmall, JD, Qunar,etc, Search, Social Media includes blog, Baidu Tieba, Qzone, WeChat, Sina Weibo, etc. Skyrocketing Ad spending on social media in past few years Social Media Advertising Spending Mobile App Penetration in China, 2016 USD Billion 5 80% Jun-16 Dec-16 73% 69% 78.7% WeChat 4 86.8% 60% 3.2 67.4% QQ Zone 3 67.8% 44% 2.2 40% 34.0% Sina Weibo 2 37.1% 1.3 20% Douban 11.1% 1 8.1% Zhihu 0 0% 7.6% 2014 2015 2016 Tianya Social Media Ad Spending Growth Rate 7.0% SOURCE: iResearch SOURCE: CNNIC Note: Mobile Internet includes display and search. E-commerce includes Taobao, Tmall, JD, Qunar,etc, Search, Social Media includes blog, Baidu Tieba, Qzone, WeChat, Sina Weibo, etc. Impact of social campaigns in China Trending Stories on Social Media in China Celebrity & Fandom I.P. (Intellectual Property) Celebrity Endorsement Brand Sponsorship KOL & Cyber Star Flourishing E-commerce New Economy Traffic Guidance KOL: Key Opinion Leader Hot I.P. + Celebrity + Platform Integration Kiehl’s Tmall Flagship Store Opening Warm-up: Celebrity post & Promotion video Weibo Post High 93,243 14,709 Popularity 95,748 Link Short Video 7,430,000 Viewership @HERO趙又廷 12,170,884 Live Broadcasting for launch campaign Hot I.P. Effect Sales Volume (April 6th, 2017 ) 5,000,000+ 1 Month 24 Hours 10,000,000+ 1.5 M USD Brand + Celebrity + E-commerce Promotion of NBA #KB20# T-shirt Weibo + Short Video + E-commerce Link E-commerce Link + @KobeBryant Short Video 4,964,815 One Day . NBA Most Valuable Player . 5 Times NBA 7,000 Orders Campions . 18 Times All Star 67,643 32,611 189,451 Player Retweet Comment Like $380,000 Expert KOL and luxury brand cooperation Mr. Bag recommended Givenchy repeatedly Givenchy and Mr. bag fans image analysis 2 Fashion @Bags包先生 Delicacy High-end A fashion KOL Loves bag 1 Fan base： 400,000+ French Luxury Fashion Brand Average reads: Elegance, dignity, delicacy Rich and beautiful 100,000+ lady Mr. Bag Givenchy • Note: 1: Data source: Digitaling. 2: Data source: Kantar Media CIC. Success with limited editions for loyal fans Mr. Bag X Givenchy Limited edition bag: Givenchy Horizon The only purchase channel 80 Bags 12 Minutes Special color for Mr. Bag’s fans: Baby Pink 175,000 USD Crisis management in China’s digital world Response attitude directly impacts crisis scope and brand purchase intention Changes in Changes in Changes in purchase Average Duration purchase purchase Response Attitude intention% (Days) intention% intention% （within 24 hours） （within 4 Days） （within 1 week） Denial of issues 20 -403% -370% -312% Admit problems and apologize 28 -348% -301% -234% Immediately release a response indicating an investigation is underway before making 13 -219% -156% -113% any conclusion Quick, Convincing, and Considerate Communication during crisis Brand K Immediate response All aspects of information Caring tonality Brand D Brand A Quick response Lacks of responses Single message ‘our products are safe’ = Simply highlight ‘safety’ = not is not convincing convincing Consumers feel not taken care of Consumers feel being cheated Celebrity political views may lead to brand crisis Issue: Denise supported the independence of Hong Kong Key Milestone • Guardian Report every 4 hours • Continuous monitoring on weekend Denise HO 2% Topic Angles 5% Boycott involved brands Criticized involved brands/celebrity 13% Forwarded the news Others 80% Note：The final evaluation would be based on the most severe index Key takeaways Social content has become more rich, visual, interactive, real-time, and immersive 01 02 03 04 TEXT PICTURE AUDIO VIDEO Iterated from portals to Instagram and NICE: Rise of audio based Short-video apps: forums, from micro-blogs cross-platform social social platforms: Miaopai and Meipai to WeChat apps, social contents XiMaLaYa, Qingting FM mostly in pictures Integration of content, KOL and platform drives traffic & conversion FANS Interact Consumption Consume contents Generate contents Live-stream Incomes sharing Supply contents Interact, traffic diversion, Self-operated online stores promotion cooperated with brands Social Platforms KOL E-commerce Professional Incubate division of work Fans management Monetization KOL Agency In conclusion Chinese social media is not only unique….it is uniquely important in China as a source of information and as entertainment and purchase channel While good content is necessary, it may not be sufficient for success.
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