EDITION 2020 #9
Havas Group China 1 September 7th, 2020 Register now for September 24th and 25th In this edition
Key market developments • Economic outlook • Consumer behavior developments • Key category outlooks • Havas POV
China advertising market • Advertising market development • Media consumption update • Media market news • Campaigns worth mentioning • Havas POV
3 Key market developments
Economic outlook
4 China continues to have the most confident consumers in the world, as multiple economic factors further rebound
Ipsos, Aug research, China
Employment Expectation Investment index index index
+3.5 vs. last +3.5 vs. last +2.3 vs. last month month month
+5.7 vs. Jan 2020 +5.5 vs. Jan 2020 -
Source: Ipsos 5 Both online and offline retail are showing promising signs of further business growth
EC platforms had their largest quarter sales in Q2 # of new stores opened since June • Tmall sold 27% more worth of goods than the same period last year • Cross border platform Tmall Global was up 40%. 188 173 • JD's sales increased 47.4%
• Pinduoduo climbed 67%, with an extra 81.4 In Beijing including 96 In Shanghai including million monthly active users on its platform eateries/cafes 69 eateries/cafes since March. 192 128
In Shenzhen including In Guangzhou including 60 eateries/cafes 84 eateries/cafes
Source: China skinny 6 With more festivals (like Chinese Valentine’s day) turning into major shopping events
Besides marketing to couples, brands also focusing on single people with the rise of China’s single economy Sale increase from Y2019 same 118% period in Tmall & Taobao, with the peak a week prior to the festival
Tmall launched a ‘cheers to sourness’ campaign Hotel reservation vs. pior 40% week on Qunar
Cinema patronage recovered 90% vs. Y2019 same period Rio ‘happily drink alone at home’ campaign
Source: China skinny 7 China 6G is on the way, making the country even more competitive in the next decades
China has officially launched research and development work for its 6G mobile networks with speed up to 1 Terabyte per second
6G will be fully integrated with holograms. You won’t have to keep looking at your phone; there will be a 3D holographic map projected in front of your eyes. “6G, together with other technology areas such as artificial intelligence and quantum computing, will be at the center of the great power competition with China in the next decades.”
— Greg Austin, leader of international Institute for Strategic Studies
Source: CBNC 8 Key market developments
Consumer behavior developments
9 Shifting the focus from work to family, more and more people will spend more time to bond with the important ones
Chinese consumer think it is important to Chinese consumer claim they will take spend time to bond with important ones action to bond with important ones (family, lovers, friends, etc.)
Source: Kantar, 6.24-7.5 10 Meanwhile, consumers started putting more effort on self improvement while being less sensitive on money
Consumers value change (Kantar, research date 2020 6.15-7.5)
2020 Q2 vs. 2020 Q1 2020 Q2 vs. 2019 Statement (ranking change) (ranking change)
Learning new things +6 +2
Agility to new changes +3 +3
Diversity: get touch with people who +7 +2 have different background
Cost saving -2 -6
Have abundant of money - -13
Source: Kantar, 6.24-7.5 11 “Clean plates” policy against food waste: to reshape China’s tradition of hospitality and Mukbang live streaming industry
Aug 11th, President Xi has called on the Chinese people to stop wasting food. It might reshape China’s tradition of hospitality. Chinese livestream platforms asked to curb shows encouraging food waste.
Reform on menu, offering smaller Video platforms start to ban plate, encourage to order N-1 amount Mukbang live streaming
China inflation rose 2.7% in July, driven by higher food costs: China's food prices rose 13.2% in the year to July, with pork up 87.5%, not helped by floods and disrupted agricultural production
Source: South China morning post 12 Young consumer’s interest to protect nature is growing
Willing to pay more for sustainability products (%)
60%+ of Chinese Indonesia GenZ express their willingness China to protect nature Thailand Australia Japan Korea
Gen X Gen Y Gen Z
Source: McKinsey 13 And they show less price sensitive during live streaming, focusing on the products and KOLs they like
Post 80s & 90s are the main Younger live streaming consumers groups in live streaming cares more about the category and KOL
Source: ecommerceTOChina – China E-commerce live streaming analysis report 2020 14 Male cosmetic market is growing, more brands are launching specific products for men
Male cosmetic market sales estimation (billion) Chanel launched its male cosmetic line in China in Aug 2.5
2
1.5
1
0.5 US biggest pharmacy announced to launch male 0 2016 2019E 2020E cosmetics
Top 3 male cosmetics in Taobao 1. Foundation As other cosmetic brands offer male product lines 2. Concealer 3. Eyeliner
Source: Euromonitor, Taobao 15 Key market developments
Key categories outlook
16 Luxury and Lifestyle
17 Luxury retailers keep things new and fresh by rolling out pop-up stores aligned with festivals and trending themes
Luxury brands are using pop-up stores to launch new concepts and show off their omnichannel capabilities in the China market, to win over Chinese millennials
Bottega Veneta’s invisible pop-up store Dior’s pop-up shop and influencers Burberry delighted shoppers with its unique intrigued and impressed consumers celebrate love in time for the Qixi Festival Animal Kingdom-themed pop-up and AR tech
Source: WWD 18 Chinese shopping malls distribute coupons in creative ways for Chinese Valentine’s Day
Coupon delivery in creative picture Creative layout by combining social hot spots 2020 Chinese Valentine’s day seems to be more treasurable for pandemic outbreak.
Shopping malls tend to be bolder to deliver love information in form of promotion information delivery and social hot spots
19 Qixi-cases show that not all brands are successful in localizing their Chinese activations
Qixi, the Chinese Valentine’s day, is one of the biggest sales driving Chinese holidays for luxury brands. Brands are making lots of efforts for Qixi, with mixed results. Dolce & Gabbana, a company that was already on thin ice with Chinese consumers due to prior missteps, debuted what it called an exclusive Qixi collection, but the products are available globally and have no actual connection to Qixi beyond the way they were marketed. Exclusive, Qixi- themed collections are something Chinese consumers expect, and failing to offer that, especially with misleading marketing, led to immediate scorn on Chinese social media apps like WeChat and Weibo. Balenciaga also made a misstep with a campaign for a Qixi-themed bag. It was widely mocked on Weibo for its bizarre visual style and poor production quality. Some users negatively compared it to the slick campaigns the brand runs in Europe, calling the campaign insulting and misguided.
Source: glossy. 2020.08.25 20 Travel & Tourism
21 In China domestic travel recovered to almost pre-COVID level
China travel industry recovery situation China is one of the countries want to travel domestically most, while least on international travel
100% 98% 100%
2%
Domestic Domestic International International travel pre- travel Aug travel pre- travel Aug covid covid
Source: Ipsos, July 2020; Chinaskinny 22 Private group travel and custom travel have become unexpectedly leading the recovery of tourism industry
In July China announced that cross-province group travel can resume as of July 30. Since then, data from Ctrip shows that the number of bookings of vacation products, such as air tickets, hotels, group tours and flight-and-hotel packages is rising. Especially, private group tour and high-end customized tour have become the bellwether of recovery. • More than 70% of people choose group travel. • The private group tour has risen to 25%, compared with 9 % in the same period of last year. • The demand for high-end tailor-made travel on Ctrip platform has increased by 125% YOY.
Source: Ctrip The Popularity report: Cross-province group tourism resumes in China 23 Hubei scenic spots issued free ticket policy from Aug 8 to Dec 31
The travel industry in Wuhan is rebounding strong
• Nearly 4.68 million people booked in A-level scenic spots in eight days, and 40% of the group tours come from other provinces. • The occupancy rate of star hotels in Wuhan is increasing, in central Wuhan the occupancy rate of star hotels and resorts hotels reaching 80% to 90% of the same period last year.
On one hand, the Free Ticket Policy in Hubei province reflects their appreciation to people across the country. On the other hand, it boosts demand for travel across Hubei and provides a variety of business driving impulses for restaurants, hotels, shopping, entertainment, transportation and other relative industries.
24 Food & Beverage
25 Consumers show an appetite for meal replacement
Amid rapid economic development and increased awareness of healthy eating, the meal replacement market has grown at an annual rate of more than 30% in recent years. The market is expected to hit ¥120 billion ($17.5 billion) in China by 2022. 22% of consumers spend more than ¥1,000 ($146) a year on food replacements - more than 60% of them take meal replacements at least once a week, and some 20% do so once a day. Global brands have taken the lion's share of the Chinese market. About 50% of consumers in China bought "healthy eating products" over the past year, with those born in the 1990s showing increased awareness of this market. Consumers' increased health awareness, along with a range of demands, including weight loss, muscle enhancement, eating healthily and looking young, have fast-tracked this market.
Source: Chinadaily 2020.08.31 26 “Meal boxes for women” are introduced as part of anti-food waste campaign
China’s anti food waste campaign launched last month and is still in full swing and noticeable on social media where new initiatives to curb the problem of food loss are discussed every single day.
The special lunch boxes for women were introduced with 50g less rice after female customers had too much leftover.
On social media, the initiative was heavily criticized. Some netizens argued that it’s gender discrimination and that it would be more appropriate to offer big and small specifications.
Source: Weibo. 2020.08.25 27 Automotive
28 Monthly car sales above 2019 numbers for the 4th consecutive month
Unit: Thousand Monthly car sales in China 3,000 2,500 2,000 1,500 1,000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2,809 1,718 2,656 2,319 2,288 2,274 1,889 2,103 2,394 2,380 2,548 2,661 2019 2,367 1,482 2,520 1,980 1,848 2,056 1,808 1,958 2,271 2,284 2,457 2,658 2020 1,927 310 1,430 2,070 2,194 2,300 2,112
• July sales have reached a 3-year high, while MoM sales dropped by 8% • PV YoY sales also kept growing trend, SUV sales (14%) and minibus sales (8.5%) are still the main drive for the increasement, only MPV declined slightly in YoY sales. • In July NEV sales grew (+19.3% vs. last year), while the cumulated sales numbers have plummeted and are sales in 32.8% below the same period in 2019.
Source: China Association of Automobile Manufacturers (CAAM),China Passenger Car Association (CPCA) 29 Pinduoduo using Tesla for a marketing stunt
• On Aug 18th, a Tesla buyer finally got his Model 3 after Tesla refused to deliver the car to him. Tesla’s fight is aiming at Pinduoduo, whose group buy and platform subsidy has offered consumers a much better price than Tesla official stores. • PDD launched a promotion for Model 3 as a 3rd party seller without Tesla’s authorization, which highly damaged Tesla’s marketing mode and brand image, as PDD is famous for cheap products. • The main purpose of PDD is not gaining profits, but gaining traffic, attention and high-end consumer by taking advantage of Tesla brand. PDD offer subsidy up to 40,000 for Tesla official statement of no • Tesla was forced to sell cars in lower price and as a result Model 3 cooperation with PDD may lose their strong control over price and distribution channels.
Source: Gasgoo 30 AWS will help Toyota to build cloud data services
• On August 17, AWS and Toyota announced that Amazon's cloud computing department will help Toyota build a platform to help the company management and analyze data which collected from their global fleet. • Toyota said its Mobility Services Platform will enable the company to process and analyze data and use this data to develop vehicle services, such as car-sharing, insurance services based on driver habits, and vehicle maintenance notification service, etc. • In the automotive field, AWS has also previously reached cooperations with auto suppliers such as Aptiv, Panasonic and Nvidia, travel service providers such as Uber and Avis, as well as Embark, China’s TuSimple and other autonomous driving companies.
Source: Gasgoo 31 Key market developments
Havas POV
32 Brands fighting for their share in a rebounding China. Investing in EC, festivals and activation growth or branding?
• As multiple economic factors further rebound, Chinese consumers are back on spending. Next to online also offline retail shows promising signs of business growth. • Even categories beyond necessities have seen clear upsurges in the last few months: self improvement, family leisure, domestic traveling, luxury products, male cosmetics and Chinese Valentine’s day presents, to name a few. • This also attracts competition, with more intensity. Speaking of Chinese Valentine’s day, the campaigns started about one week earlier this year with an unprecedented amount of Chinese specific designed products. With good results, even leading to some market growth. Alibaba’s Tmall and Taobao saw pre-sales of Qixi gifts peak a week prior to the festival date, an increase of 118% from 2019. But as well huge investments for the brands. There won’t be winners only. • Hunger for sales recoup and the potential to especially recoup on the Chinese market, urges the discussion on how you can rely longer term on predominantly sales activations. We all know the cost of many activations and EC festivals are further inflating, due to continuously rising digital media cost, in all sorts, KOL’s included.
33 Brands fighting for their share in a rebounding China. Investing in EC, festival and activation growth or branding?
• It is certainly true that brands, in most of the categories, make the highest profitability on loyal consumers, consumers who buy non-discounted products beyond sales activations. • What happens to overall brand profitability when you get fully dependent on EC festivals, activations, EC life-streaming and discounts? • Back to Valentine’s day, there are a handful of brands that have been able to use their activations for brand building as well like Chanel, Hermes and Prada, but many lack a consistent brand support and message. However it shows that the Chinese market as well offers this opportunity, to build a brand pull effect in a more diverse and new way (branded content, gifting, festivals, special editions) along long term brand campaigns, but only when consistency and a clear brand message is supported.
34 China advertising market
Advertising market development
35 Monthly spending continues to rise inline with the overall market recovery, while the overall ad spend remains below 2019
• In Jun 2020, the total actual* Ad market in China achieved RMB 39 billion; compared with last Jun, the total category spending decreased by 17%. • YTD Jun 2020, the total actual* Ad market in China achieved RMB 207 billion; compared to last year this equals a decline of 26%
Month by month comparison YTD vs YTD comparison Monthly spending
60,000 500,000 2020 2019 2018 60,000 51,458 -17% 50,000 47,435 400,000 50,000
39,389 40,000 -26% 308,901 40,000 300,000 279,448 30,000 30,000 207,446 20,000 200,000 20,000 10,000
10,000 100,000 0 2018 Jun 2019 Jun 2020 Jun YTD 2018 YTD 2019 YTD 2020 1 2 3 4 5 6
Source: ADP (TV, Radio, Newspaper, Magazine, Cinema), CODC (OOH), Iresearch (Digital – PC & Mobile) 2018-2020 36 Note: excluding media spending on social and search; discounts are estimated based on Havas methodology In H1 most sectors did not catch up with their big decreases during the first few months of 2020 2020 H1 Media spending & YOY growth rate by category versus 2019 CLOTHING -40.4% REAL ESTATE & CONSTRUCTION -11.9% FINANCE INDUSTRY 0.0% • Although the advertising budget is TRANSPORTATION,LOGISTIC & AUTO -37.7% gradually recovering, most companies POST & COMMUNICATION -7.9% are still guarding budgets. HOUSEHOLD -41.7% LEISURE -40.6% • IT Products & Service industry is the COSMETICS & TOILETRIES -25.8% only one to increase advertising PERSONAL ITEMS -5.7% investment. ALCOHOL -11.7% • Financial sector show stable HOME ELECTRICAL APPLIANCES -7.4% investment levels compared to 2019 IT PRODUCT & SERVICE 37.7% BUSINESS & SERVICES -13.6% PHARMACEUTICALS -11.0% FOODSTUFF & BEVERAGES -10.3% - 15,000 30,000 45,000 60,000
Source: ADP (TV, Radio, Newspaper, Magazine, Cinema), CODC (OOH), Iresearch (Digital – PC & Mobile) 2018-2020 37 Note: excluding media spending on social and search; discounts are estimated based on Havas methodology Digital media remains the main battlefield, more and more the primary media choice for most advertisers • YTD Jun 2020, 68% of overall media investment are going to Digital and TV, which is similar to the same period last year. • OOH share has risen compared to last year, all other media continue with very low share of investment
2019 YTD Ad Spend Market Media Mix 2020 YTD Ad Spend Market Media Mix
Radio, 2.0% Newspaper, Magazine, Radio, 1.6% Newspaper, Magazine, Cinema, 2.9% 0.7% 0.5% Cinema, 0.7% 0.5% 0.4%
Outdoor, Digital, 41.4% Outdoor, Digital, 41.4% 23.2% 27.9%
TV, 29.3% TV, 27.5%
Source: ADP (TV, Radio, Newspaper, Magazine, Cinema), CODC (OOH), Iresearch (Digital – PC & Mobile) 2018-2020 Note: excluding media spending on social and search; discounts are estimated based on Havas methodology 38 China advertising market
Media consumption
39 TV rating show stable performance during summer months
9.5 Tier 1 10 6.9 7.2 6 5.7 5.4 5.4 5 5.9 6.4 5.5 5.4 5.4 5.3 5.5 0 Jan Feb Mar Apr May Jun Jul 2019 2020 Tier 2 10.2 10 7.2 7.2 6.5 5.4 5.1 5.3 5 6.2 6.8 5.2 5 5 5.1 5.3 0 Jan Feb Mar Apr May Jun Jul 2019 2020 9.2 Others 10 6.5 6.5 5 5.1 4.9 4.9 5 5.8 4.9 4.9 4.7 4.6 4.5 4.8 0 Jan Feb Mar Apr May Jun Jul 2019 2020
Source: Infosys, Target:P18-45, Period:2020/01/01 – 2020/7/31, Timeslot: All Day Tier1 including（BJ、SH、GZ、 SZ）,Tier2 including almost Provincial capital 40 TV dramas in HN STV achieved extraordinary performance
Drama Hunan STV dramas won the first and second place in July.
Hunan STV Hunan STV Zhejiang STV Hunan STV Zhejiang STV 二十不惑 蜗牛与黄鹂鸟 局中人 哪吒降妖记 爱之初 Ave Rtg 2.0 Ave Rtg 1.85 Ave Rtg 1.22 Ave Rtg 1.19 Ave Rtg 1.17
“LIGHT ON” Variety In summer vacations, fierce competitions of variety show encountered in HN STV, Dragon STV and ZJ STV.
Zhejiang STV- Dragon STV- Hunan STV- Zhejiang STV- Hunan STV- 奔跑吧 挑战极限 笑起来真好看 青春环游记 元气满满的哥哥 Ave Rtg 2.88 Ave Rtg 2.15 Ave Rtg 1.97 Ave Rtg 1.55 Ave Rtg 1.0
Source: Infosys, Target:P18-45, Period: 2020/07/01-2020/07/31, Timeslot: All Day Market: 57 Markets 41 Compared to H1 2020 Travel & Navi apps have seen a steady growth while Education app usage dropped during summer holidays
2010 H1 VS. 2020 July Unit: Mil 2020 July DAU growth rate Social networking 12550 % Video services 766 +1%
EC 425 +4%
Financial service 426+2% General news 391+2% 2020 Jul 2020 H1 Gaming services 290 -1% Travel & Navi 182 +6% Education 79 -9% Food delivery & Recipes 24 +3% Health & medicare 22 +3%
Source: iResearch, period: 2020.01-2020.07 42 Social media app usage remains on a stable and very high level
2020 Social Networking Apps User Behavior 2020 Top 5 Social Apps by DAU Unit: Unit: Unit: Mil Mil mins 93.5 100.0 2019 avg. 92.5 90.5 91.2 922 1400 896 916 922 90.0 1220 1260 1255 1249 2020 H1 1200 80.0 2020 July 70.0 1000 2020 Aug(till 9th) 60.0 800 50.0 600 40.0 344 319 317 30.0 323 400 213 202 20.0 182 201 200 10.0 0 0.0 13 15 15 16 16 14 14 14 2019 avg. 2020 H1 2020 Jul 2020 Aug(till 9th) WeChat QQ Weibo LRB Baidu Tieba
Average DAU Average time spent
Sources: iResearch, period: 2019-2020.08.09 43 OTV usage has slightly declined during summer months
2020 Top 5 Online Video Apps by DAU 2020 Online Video Apps User Behavior Unit: Mil
2019 avg. Unit: Unit: 181 Mil 172172 mins 167 164 2020 H1 121.2 122.7 123.1 153 156157 500 112.1 120.0 2020 July 421 413 413 400 365 100.0 2020 Aug(till 9th)
80.0 92 300 88 87 78 60.0 200 49 49 40.0 44 32 31 32 100 26 20.0 22
0 0.0 2019 avg. 2020 H1 2020 July 2020 Aug(till 9th) iQIYI Tencent Video Youku Mango TV Bilibili
Average DAU Average time spent
Sources: iResearch, period: 2019-2020.08.09 44 The rise of short video continues, especially time spent has increased significantly in July and August 2020 Short Video Apps User Behavior 2020 Top 5 Short Video Apps by DAU Unit: Mil Unit: Unit: Mil mins 66.0 2019 avg. 900 62.2 298 300 58.3 280 2020 H1 800 60.0 2020 July 700 50.0 211 600 39.0 2020 Aug(till 9th) 40.0 500 468 474 476 430 140 136137 400 30.0 123 300 20.0 200 56 57 52 57 46 49 49 49 10.0 36 35 37 38 100 0 0.0 2019 avg. 2020 H1 2020 July 2020 Aug(till 9th) Douyin Kwai Watermelon Douyin Volcano Haokan Video Video Edition
Average DAU Average time spent
Sources: iResearch, period: 2019-2020.08.09 45 Both News and Gaming apps with stable usage compared to H1, but on a much higher level compared to last year
2020 General News Apps User Behavior 2020 Gaming Apps User Behavior Unit: Unit: Unit: Mil mins mins Unit: Mil 77.0 400 75.9 76.7 80.0 60.0 70.2 54.2 52.6 53.2 500 350 70.0 46.9 50.0 391 390 292 290 292 400 384 300 60.0 344 249 40.0 250 50.0 300 30.0 200 40.0 200 150 30.0 20.0 100 20.0 100 10.0 50 10.0
0 0.0 0 0.0 2019 avg. 2020 H1 2020 July 2020 Aug(till 2019 avg. 2020 H1 2020 July 2020 Aug(till 9th) 9th)
Average DAU Average time spent Average DAU Average time spent
Sources: iResearch, period: 2019-2020.08.09 46 During the summer months navigation apps see a significant rise in time spend, while OTA apps usage remains low
2020 Online Travel Apps User Behavior 2020 Navigation Apps User Behavior
Unit: Mil Unit: Unit: Unit: Mil mins mins 34.4 33.6 30 9.5 10.0 300 35.0 9.0 24 7.7 250 30.0 25 7.4 7.3 8.0 23.1 25.0 18 19 7.0 20 18 200 19.5 6.0 143 146 20.0 15 5.0 150 127 134 4.0 15.0 10 100 3.0 10.0 2.0 5 50 5.0 1.0 0 0.0 0 0.0 2019 avg. 2020 H1 2020 July 2020 Aug(till 2019 avg. 2020 H1 2020 July 2020 Aug(till 9th) 9th)
Average DAU Average time spent Average DAU Average time spent
Sources: iResearch, period: 2019-2020.08.09 47 Compared to H1 EC usage sees further growth in July and August, particularly Taobao increased its userbase
2020 Top 5 EC Apps by DAU 2020 E-commerce Apps User Behavior Unit: Mil
2019 avg. Unit: Mil Unit: mins 286 300 300 2020 H1 17.9 16.1 279 500 16.9 16.4 18.0 2020 July 450 425 424 410 16.0 2020 Aug(till 9th) 400 363 14.0 350 12.0 300 10.0 250 200 8.0 150 6.0 86 89 88 73 100 4.0 50 2.0 37 40 38 37 18 18 19 0 0.0 16 10 11 11 11 2019 avg. 2020 H1 2020 July 2020 Aug(till 9th) Taobao Pinduoduo JD.com Xiaomi Mall Tmall Average DAU Average time spent
Sources: iResearch, period: 2019-2020.08.09 48 China advertising market
Media market news
49 iQIYI launched a new content library “Mist Theatre” dedicated to suspense dramas
In June 2020, iQIYI has launched the “Mist Theatre”, including six short suspense dramas series. The series focus on tracing the murderer, solving the murder case, and finding the truth. The launch aims to enhance users' viewing experience through curating a targeted content selection and offering a brand-new theater operating mode.
Mist Theatre • Build their own brand symbol to spread • The Mist Theatre has a fixed broadcast cycle which will form the ”Season“ concept as American series • Promoted with several series, such as using the 5 in 1 poster and the 5 in 1 Trailer video
Data source: Iqiyi Media Update 50 Variety shows diversify with more new niche genres and less celebrity involvement
Variety shows focused on three emerging areas in 2020:
• Pop Culture Based on pop culture, several variety shows are published in recent two years. Also producers derived products leverage the IP content. • Comedy Co-operations with the comedy industry not only produce online The variety show 《FOURTRY》Screenshot shows, but also start developing other elements like Audio “FOURTRY" is an original trend store management program launched by iQiyi, which is a typical Pop Culture variety show. products, video products, offline shows. • Culture & Creative Based on the representing of traditional culture, producers developed creative concepts around Imperial Palace or Summer Palace for example. These IP will stimulate or nurture offline industries, for example theme
The variety show launched IP relevant traditional clothing Data source: https://mp.weixin.qq.com/s/Og8KhCO-V03QcgEE5Qf2SA 51 Sponsorship formats: before & during drama / variety show production
Intensifies brand influence and develops a further long tail Creative integration propagation with the drama’s content
52 Sponsorship formats: after drama/variety show production
Via Video in product placement, the competitor’s product is replaced by LEE KUM KEE product Demo
Tencent Video in Products are integrated in appropriate scenes • Need to be censored by media concerning the copyright.
53 OTV – New program hot Variety
中国新说唱2020 – The Rap of China Period: 2020 Aug 14th Episodes: 12 Cast: 吴亦凡，潘玮柏，张靓颖，GAI（周延），朴宰范 Media: iQIYI Introduction
The show brought together label rappers, Internet celebrities, talented singers, and topic contestants. Under the selection of star producers Wu Yifan, Pan Weibo, Zhang Liangying, Zhou Yan (GAI), the program is going to create next Chinese rap Star.
54 OTV – New program hot Variety
乐队的夏天 – The Big Band season 2 Period: 2020 Jul 20th Episodes: 12 Cast: 周迅、大张伟、张亚东、马东 Media: iQIYI Introduction
The four super fans in “The Big Band Season 2” are Zhou Xun, Zhang Wei, Zhang Yadong, and Ma Dong. They have their own unique perspectives. They will lead the public to deeply understand the charm of the band's music and culture. The new lineup of 33 bands, with the help of content design and musical performances of different themed units, presents unique style and charm in multiple dimensions, and competes for the 2020 HOT5 band with wonderful live performances.
55 OTV – New program hot Drama
非常目击 – Crimson River Period: 2020 Aug 18th Episodes: 12 Cast: 宋洋，袁文康，尤靖茹 Media: iQIYI Introduction
An unsolved murder case of a young girl repeats itself twenty years later and awakens the memories of a peaceful town. Shan Feng, who was once a witness to the murder case, now returns to the town as a policeman, unable to forget the painful memories. He seeks out the truth and discovers all the people related to the case have undergone drastic changes.
56 OTV – New program hot Drama
摩天大楼 – A Murderous Affair in Horizon Tower Period: 2020 Aug 19th Episodes: 16 Cast: 杨颖，郭涛，杨子珊 Media: Tencent Introduction
A beautiful coffee shop owner Zhong Meibao suddenly dies in a condo at the Horizon Tower. This case shocks the whole tower, and after investigation the clues point to three suspects - security guard, architect and property manager. All three suspects were enthralled by Meibao's beauty, and all had an intimate relationship with her. All the clue seem to point to the possibility of a love crime. However in the midst of the investigation new clues begin to emerge and turn the focus to Zhong Meibao's complicated and painful youth. Her family, consisting of her step-father, mother, younger brother and foster mother, were implicated into the case. Just who could be the real murderer?
57 TV/OTV – New program hot Drama
以家人之名 – Go Ahead Period: 2020 Aug 10th Episodes: 40 Cast: 谭松韵、宋威龙、张新成 Media: MangoTV，湖南卫视 Introduction
The story revolves around three troubled youths who find solace in their common experiences. Growing up in dysfunctional households, three individuals treat each other like family. Eldest brother Ling Xiao, second brother He Ziqiu, and youngest sister Li Jianjian grow up together, experiencing life’s joy and strife. As Ling Xiao and He Ziqiu graduate from high school, they return to their original families. Nine years later, the three are reunited, but the heartaches from their complicated family past becomes a shadow that constantly lingers. Can they finally fix their personal issues to become better versions of themselves?
58 OTV – New program hot Drama
他其实没有那么爱你 – Love Yourself Period: 2020 Aug 18th Episodes: 36 Cast: 宋茜、郑恺、卢靖姗、张佳宁、李纯 Media: iQIYI Introduction
In the city of Shanghai, four women strive for growth, independence and ultimately find friendship and love. As four friends step into their thirties, their lives which seemed to be on the right track start to go off the rails. TV producer Sun Yihe may be bold and fearless at work, but she is at a loss when it comes to love. Wang Xinyi is a fitness coach and single mom. As she hesitates before a relationship, she discovers something about herself. Dingding is an aspiring manager who wishes to help her trainees become the best boy band in China. Corporate executive Renran has always been rational and on top of things, but she craves for love and finds that the harder she holds onto it, the faster it fades.
59 In August Little Red Book launched interactive opening ad format to enhance ad engagement • The new format will induce 30% of inflation based on net media cost for the opening ad • Deep impressions and higher engagement rate are expected for its interaction
Opening Video Selectable Button Select The Button Product Details Video Click Video To The Details Of Product After Video Display Will Display After Summary Page Of Notes Selection Product Notes
Data source: The Red 60 GQ expands it’s social ecosystem with video content
2019 presence GQ LAB GQ REPORT GQ LOVE 智族GQ HELLO悦己 WECHAT WECHAT WECHAT WEIBO WEIBO
1st post: 2020/2/9 1st post : 2019/12/29 1st post: 2019/9/9 Followers: 2,978,000 Followers : 58,000 Followers: 82,000 烦恼女孩 Content: Animation Of Girl’s Daily GQ VANITY Content: Video Of GQ Cover GQ VANITY Content: Video Of GQ Cover DOUYIN Life WEIBO DOUYIN Added in 2020
1st post: 2020/4/23 Followers: 223,000 This is a personal account and will be ran officially by GQ with 月薪两万的金子酱 Content: Video Of One GQ Editor‘s commercial cooperation in the near future. BILIBILI Life
Data source: GQ 61 Cinema – The movie market is expected to fully recover
After re-opening the Chinese box office is recovering fast • In August, the box office of the domestic blockbuster “八佰” exceeded 1 billion. • In September, multiple types of films will be on-air after “八佰” , led by “信条”, “通往春天的列车” .
62 New OOH Format - Drone show as media format at Shanghai Bund
Media Location： airspace above Bund Shanghai Location: Media Format： Drone 3D show Located in the most dazzling location high above the Media Qty： 1 set (usually 150-350 drones, Bund in Shanghai, it is accompanied by Shanghai depending on the specific plan) Tower, Aurora, Citi, Jinmao Tower, World Financial Media Rate Card： RMB 2,000,000/15min (including take-off & landing) Center, and Magnolia of the Future. The 360-degree 3D Production Fee: RMB 100,000/time (including site display, all areas of Shanghai are fully covered, adding a approval) beautiful scenery to the night of the North Bund. Visitor Flow： 1,000,000 people/day
63 China advertising market
Campaigns Worth Mentioning
64 Harbin Beer X Joyoung crossover celebrated Campaign Summary th • Indoor consumption has become main scene of consumption it’s 120 anniversary via multi-channel during the pandemic. To open in-home scenario, Harbin Beer cooperate with appliance brand for its 120th anniversary. • In Harbin Beer held a 120th anniversary offline event in its birthplace Harbin, where both brand and consumer celebrated together. Results • Weibo #Harbin Beer 120th anniversary topic: 1.7 mn views, 12k discussion • Douyin #Harbin Beer 120th anniversary topic: 580 k views Key Takeaways • Harbin Beer cooperates with Joyoung to expend in-home Key Visual Commercials Homemade Video Livestream marketing scene and Joyoung reaches Z generation Harbin Beer X Joyoung Happy Formula KOL in Weibo/Bilibili Tamia Liu supported by brand resources of Harbin Beer. • Harbin Beer and Joyoung shoot commercials under the topic and key visual of #宅家快乐自造机# and happy formula “XX+烤串啤酒=XX” to open in-home scene. They leverage Weibo and Bilibili KOLs to further reach Z generation. During Tamia Liu’s livestream for Joyoung, limited edition of Harbin Beer were given out which strengthened the crossover. • Harbin Beer held 120th anniversary event in Harbin and launched limited ice cream-flavor beer with the century-old brand to highlight the city feature. • The drone show created social buzz. To interact with consumers, Harbin Beer establish “wish train” to listen and record wishes of participants, QR code of wishes will be Drone Show Ice Cream Beer Wish Train Harbin Beer X Modern printed on bottle.
65 Heytea & Airbnb jointly build a homestay Campaign Summary hotel to attract a young audience As a virtual endorsement of Heytea , Axi is invited to be a host by Airbnb , who will launch “Inspiration Home” on the platform. Users will be able to book free “Inspiration Home” through a lucky draw on Airbnb and Heytea's official Weibo and WeChat accounts. The lucky user could check in with a friend over the weekend of July 25-26 and August 1-2.
Key Takeaway Excursion and short weekend trip have become a new trend for domestic travel, especially attracting young and experienced travelers. This co-branding taps into the interests of the younger generation and combines travel inspiration with seasonal features and products. High resonance with the young audiences led to social buzz.
66 China advertising market
Havas POV
67 Advertising activities are recovering, brands and platforms are fighting for audiences, attention and sales
• Advertising activities continue to recover and show a strong growth since the COVID-19 peak in February. Digital media continues to be the main battlefield for brands. • TV and OTV performance shows stable development during summer months. Content wise, variety shows diversify with more niche genres and have become popular platforms for sponsorships and brand integrations. New hot dramas and hot variety shows are launched on TV and OTV platforms. Your Havas team can help you evaluate and find the most meaningful shows to drive your brand visibility. • For OOH ensure to lock in premium resources as soon as possible as inventory will get tight. While Cinema is expected to make a full recovery given the remaining uncertainties and limitations ad placements are currently not recommended. • Overall digital media consumption showed strong increase vs. 2019. Social networking apps remain on a stable and very high level of usage and short form video continues to grow driven by longer use time, both continue to be the main battlefield to break through the intensifying clutter and gain audience attention. Try new and innovative formats as forerunners presence pays off and help you to break through the intensifying clutter.
68 Advertising activities are recovering, brands and platforms are fighting for audiences, attention and sales
• As EC continues to be at all time high level, platforms are competing in a fierce battle for audiences and traffic acquisition • Live streaming continues its growth momentum and more and more brands across all category leverage streaming in their comms activities on various platforms in order to drive sales. EC platforms continue to evolve and explore more new EC models, such as social EC, live EC • Key platforms launch new ad forms in their fight for audiences, media dollars and to enlarge inventory. • The right platform and content strategy will make a difference in this fast changing and dynamic marketplace. When increasing the number of activations and tactical campaigns including live streaming, EC and social commerce activities, consistency is key to drive efficiency. • Your Havas team can help you tailor your overall marcom strategy to drive brand and sales, including adjusting your EC strategy based on the latest developments.
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