China eMarketing 2009<br />How does eMarketing work in China?<br />Milestone Team Research<br />April 15th 2009<br />
Objective<br />To provide ------- with knowledge about how eMarketing works in China.<br />2<br />
Content<br />The Chinese Online Space: an Overview<br />Search Engine Marketing in China<br />The Chinese Search Engine Ba...
1<br />The Chinese Online Space: an Overview<br />4<br />
The Chinese Online Space: an Overview<br />Let’s look at the entire Asian continent<br />Social Networking:S. Korea<br />M...
The Chinese Online Space: an Overview<br />Regional Search Spend is Growing<br /><ul><li>Japan, Korea & China represent al...
Japan represents the biggest search market in Asia
Korean search is proportionally the highest spend (almost 60% of total online spending)
China is the largest growth market</li></ul>Million<br />Source: Sozon, 2009<br />Search Engine Marketing will become more...
7<br />China is not one China<br /><ul><li> Special Economic Zones along the coast.
 People still communicate in Chinese and there are many dialects.
 Simplified or traditional Chinese depending on region.</li></ul>Chinese internet users mainly located in the coastal regi...
The Chinese Online Space: an Overview<br />The size of the Chinese Internet population is growing rapidly<br />Source: CNN...
The Chinese Online Space: an Overview<br />User profile & Key statistics<br />The use rate of search engines by Chinese ne...
high educated;
high income;
urban area
The proportion of Chinese internet users to the population (1.3 billion) is 22.6%  (82% in the Netherlands).
The percentage of Chinese internet users  accessing the internet via broadband is 96%.
The use rate of search engines is 68%, equal to 203,000,000 million Chinese internet users. </li></ul>Source: CNNIC, 2009<...
The Chinese Online Space: an Overview<br />What are the Chinese doing online?<br />Source: CNNIC, 2009<br />10<br />
Internet Community participation: more active, more vibrant than the West<br />11<br />The Chinese Online Space: an Overvi...
12<br />The Chinese Online Space: an Overview<br />Internet Community participation: More active, more vibrant than the We...
Chinese Internet users at a glance<br />The Chinese Online Space: an Overview<br />Profile:<br />Young, urban, high income...
Search Engine Marketing in China<br />The Chinese Online Space: an Overview<br />Internet Censorship: Meet JingJing and Ch...
In compliance with the “Internet censorship policies of the People’s Republic of China:, the Chinese language version of B...
85% of Chinese Internet users approve of Internet Censorship</li></ul>14<br />
Forecast of China’s internet sector<br />The Chinese Online Space: an Overview<br />Internet will play an increasingly imp...
Branded online advertising will have a YoY growth of around 35% in 2009
Brands use a multichannel approach, including internet-word-of-mouth
Paid-per-click advertising experienced 80% growth in 2008. Baidu is the dominant search engine with 65-75% market share. <...
Lack of domestic mass entertainment
Internet as the most influential medium</li></ul>Source: Business Week, XPD Media and<br />Trendspotting, 2008<br />15<br />
The Chinese Online Space: an Overview<br />The bigger picture of online marketing campaigns in China<br />You’ll need to r...
2<br />Search Engine Marketing in China<br />17<br />
Search Engine Marketing in China<br />Key statistics<br />Source: Sozon, 2008<br />18<br />
19<br />Search Engine Marketing in China<br />Engines preference varies by location<br />Source: Sozon, 2008<br />
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China Online Marketing Analysis

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Strategic marketing analysis of the Chinese online space. The presentation was the final stage of a large strategic marketing consulting project for a Dutch MNE that I worked on for about 3 months. The company considered and acted upon our recommendations.

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China Online Marketing Analysis

  1. 1. China eMarketing 2009<br />How does eMarketing work in China?<br />Milestone Team Research<br />April 15th 2009<br />
  2. 2. Objective<br />To provide ------- with knowledge about how eMarketing works in China.<br />2<br />
  3. 3. Content<br />The Chinese Online Space: an Overview<br />Search Engine Marketing in China<br />The Chinese Search Engine Baidu<br />5 Ground Rules for Email Marketing in China<br /> Conclusions<br /> Executive Summary<br />3<br />
  4. 4. 1<br />The Chinese Online Space: an Overview<br />4<br />
  5. 5. The Chinese Online Space: an Overview<br />Let’s look at the entire Asian continent<br />Social Networking:S. Korea<br />Most Online Users: <br />China<br />Broadband:S. Korea<br />Mobile eCommerce: Japan<br />Online Gaming: China<br />eGovernment:S. Korea<br />Mobile Search: Japan<br />Asia is already leading the world in the categories mentioned.<br />Asia now owns more than 40% of world’s total internet population and growing rapidly.<br />Blogging: <br />Japan<br />MicroTransactions via SMS: Philippines<br />Source: Morgan Stanley Research,<br />Internet World Stats<br />Business implication: if you want to build a strong brand in Asia, then you have to include the internet in your marketing communication.<br />5<br />
  6. 6. The Chinese Online Space: an Overview<br />Regional Search Spend is Growing<br /><ul><li>Japan, Korea & China represent almost 82% of Asian online ad spending in 2008
  7. 7. Japan represents the biggest search market in Asia
  8. 8. Korean search is proportionally the highest spend (almost 60% of total online spending)
  9. 9. China is the largest growth market</li></ul>Million<br />Source: Sozon, 2009<br />Search Engine Marketing will become more and more important for business in China<br />6<br />
  10. 10. 7<br />China is not one China<br /><ul><li> Special Economic Zones along the coast.
  11. 11. People still communicate in Chinese and there are many dialects.
  12. 12. Simplified or traditional Chinese depending on region.</li></ul>Chinese internet users mainly located in the coastal regions. <br />In order to be successful in market communication, you need to fill to language and culture gap.<br />
  13. 13. The Chinese Online Space: an Overview<br />The size of the Chinese Internet population is growing rapidly<br />Source: CNNIC, 2009<br />8<br />Online presence will become more significant in the future because the market will continue to grow<br />
  14. 14. The Chinese Online Space: an Overview<br />User profile & Key statistics<br />The use rate of search engines by Chinese netizens is higher when they conform to the following profile:<br /><ul><li>in the 20-40 age group;
  15. 15. high educated;
  16. 16. high income;
  17. 17. urban area
  18. 18. The proportion of Chinese internet users to the population (1.3 billion) is 22.6% (82% in the Netherlands).
  19. 19. The percentage of Chinese internet users accessing the internet via broadband is 96%.
  20. 20. The use rate of search engines is 68%, equal to 203,000,000 million Chinese internet users. </li></ul>Source: CNNIC, 2009<br />Internet World Stats<br />9<br />
  21. 21. The Chinese Online Space: an Overview<br />What are the Chinese doing online?<br />Source: CNNIC, 2009<br />10<br />
  22. 22. Internet Community participation: more active, more vibrant than the West<br />11<br />The Chinese Online Space: an Overview<br />Source: CNNIC, 2009<br />
  23. 23. 12<br />The Chinese Online Space: an Overview<br />Internet Community participation: More active, more vibrant than the West<br />Source: IAC and Netpop, 2007<br />“I have expressed personal opinions and/or written about myself online”<br />72%<br />56%<br />73%<br />“Online I feel free to say and do things I wouldn’t do or say offline”<br />32%<br />User-generated content influences purchase decisions<br />19%<br />58%<br />Percentage broadband users commenting blog, chat room or forum<br />28%<br />47%<br />
  24. 24. Chinese Internet users at a glance<br />The Chinese Online Space: an Overview<br />Profile:<br />Young, urban, high income, they love entertainment and new exotic stuff.<br />3 main activities on the internet:<br />Entertainment (music, video, games)<br />Communication and social media (email, instant messaging, blogs, forums)<br />Information retrieval (news, search, recruitment)<br />Business Implications:<br />Marketing campaigns have to be original and interactive. <br />Entertainment and social media can be utilized to connect intimately with the Chinese: creating blogs and communities are a first step.<br />13<br />
  25. 25. Search Engine Marketing in China<br />The Chinese Online Space: an Overview<br />Internet Censorship: Meet JingJing and ChaCha<br />察察<br />警警<br /><ul><li>The Virtual Internet Police.. They can walk drive or bike across the screen every 30 minutes warning users to stay away from illegal Internet content and bad websites.
  26. 26. In compliance with the “Internet censorship policies of the People’s Republic of China:, the Chinese language version of Baidu filters material from its search results as dictated by the government.
  27. 27. 85% of Chinese Internet users approve of Internet Censorship</li></ul>14<br />
  28. 28. Forecast of China’s internet sector<br />The Chinese Online Space: an Overview<br />Internet will play an increasingly important role in China<br /><ul><li>50% growth in online advertising market in China in 2008
  29. 29. Branded online advertising will have a YoY growth of around 35% in 2009
  30. 30. Brands use a multichannel approach, including internet-word-of-mouth
  31. 31. Paid-per-click advertising experienced 80% growth in 2008. Baidu is the dominant search engine with 65-75% market share. </li></ul>Drivers of growth<br /><ul><li>Lack of consolidated retail infrastructure in China
  32. 32. Lack of domestic mass entertainment
  33. 33. Internet as the most influential medium</li></ul>Source: Business Week, XPD Media and<br />Trendspotting, 2008<br />15<br />
  34. 34. The Chinese Online Space: an Overview<br />The bigger picture of online marketing campaigns in China<br />You’ll need to redesign completely for this market:<br />16<br />Source: BDL Media and Technorati<br />
  35. 35. 2<br />Search Engine Marketing in China<br />17<br />
  36. 36. Search Engine Marketing in China<br />Key statistics<br />Source: Sozon, 2008<br />18<br />
  37. 37. 19<br />Search Engine Marketing in China<br />Engines preference varies by location<br />Source: Sozon, 2008<br />
  38. 38. Search Engine Marketing in China<br />Search in China – 3 key differences<br />Language & Culture<br /><ul><li>Localization is essential
  39. 39. Key word / copy complexities</li></ul>Unique search engines<br /><ul><li>Local players: Baidu, Soguo
  40. 40. Unique ad layouts & structure
  41. 41. Different approach to natural search</li></ul>Multi channel<br /><ul><li>Mobile search
  42. 42. Offline search integration
  43. 43. Click to call
  44. 44. Video / social media content</li></ul>Source: Sozon, 2008, WebPro China 2009<br />20<br />
  45. 45. Search Engine Marketing in China<br />Baidu is the dominant preference for Search Engine Marketing in China<br /><ul><li>Companies in China who used search as a marketing tool, 86% used Baidu and 60.2% used Google.
  46. 46. Among all companies who just used one search engine for SEM, 72.2% selected Baidu; among those who chose multiple search engines, there were 93.1% who selected Baidu
  47. 47. 64.9% of search marketing advertisers use multiple search engines</li></ul>Source: China Internet Watch, 2009<br />21<br />
  48. 48. 3<br />The Chinese Search Engine “Baidu”<br />22<br />
  49. 49. The Chinese Search Engine “Baidu”<br />The Chinese Engine Baidu<br />Web search<br />Picture<br />News<br />Post-it<br />23<br />
  50. 50. The Chinese Engine versus Google<br />Search Engine Marketing in China<br />The Chinese Search Engine “Baidu”<br />“Fire Zone”<br />Exact Match Paid Listings<br />Intelligent Match<br />Natural Search Listings<br />Paid Search Listings<br />General Ads<br />Natural Search Listings<br />Source: Sozon, 2008<br />24<br />
  51. 51. The Chinese Engine: “Baidu”<br />Search in China – Comparative user search patterns<br />25<br />
  52. 52. Search Engine Marketing in China<br />The Chinese Search Engine “Baidu”<br />Baidu advertisement options: Pay-Per-Click<br />“Computer”<br />Paid Per Click<br />“Promote” (paid listing)<br /><ul><li>Natural search listing and paid listing are mixed.
  53. 53. Paid listing have a higher priority.</li></ul>“Cache” (natural listing)<br />26<br />
  54. 54. Search Engine Marketing in China<br />The Chinese Search Engine “Baidu”<br />Baidu advertisement options: Pay-Per-Year<br /><ul><li>Listing on the right of the search results, called “Fire Zone”.
  55. 55. Paid for a fixed fee for a year per keyword
  56. 56. Not popular among advertisers
  57. 57. Not all ads in the Fire Zone are; some are PPC</li></ul>27<br />
  58. 58. Search Engine Marketing in China<br />Baidu advertisement options: <br />Brand advertising<br />Animated image <br />Image<br />Product quick links<br />Competitors<br /><ul><li>Triggered by brand term (also possible thru Baidu Union, like AdSense)
  59. 59. Page wide advertising
  60. 60. Baidu brand click-trough rate up to 75% versus 21% on Google</li></ul>Source: China Internet Watch and IPA.co.uk<br />28<br />
  61. 61. Search Engine Marketing in China<br />Baidu Advertisement options <br />Baidu Union and Baidu TV<br /><ul><li>Baidu Union works like Google AdSense
  62. 62. Relevant advertisements for relevant website
  63. 63. Baidu TV is the video advertisement version of Baidu Union</li></ul>29<br />
  64. 64. 4<br />5 Ground Rules for Email Marketing in China<br />關係<br />30<br />
  65. 65. 5 Ground Rules for Email Marketing in China<br />5 Ground Rules for Email Marketing in China<br />31<br />In the end, the Chinese prefer to do business face-to-face.<br />Source: Danny Levinson, CEO of BDL Media<br />
  66. 66. Conclusions<br />The size of the Chinese Internet population is growing rapidly.<br />The use of forums, blogs and games has shown substantial growth and offers a new medium to connect brands with customers.<br />Marketing campaigns should revolve around the customer, creating an emotional bond, and use a multi-channel strategy to get it done.<br />Baidu is the dominant preference for SEM in China; firms advertise on multiple search engines.<br />Email marketing has to be done with extra precision; use a 100% opt-in list (database) and watch your content.<br />32<br />
  67. 67. Executive Summary<br />If you want to build a strong brand in Asia, then you have to include the internet in your marketing communication.<br />Search Engine Marketing will become more and more important for business in China<br />3 main activities on the internet:<br />Information retrieval (news, search, recruitment)<br />Communication and social media (email, instant messaging, blogs, forums)<br />Entertainment (music, video, games)<br />Touching clients at multiple points is essential: an integrated strategy of various online channels (email, websites and other forms) and offline .<br />The client should always be the center: guanxi. The challenge is to create a personal, intimate and emotional relationship with the client. <br />Social media (blogs and online communities) are an opportunity to connect with the Chinese, it is perceived as personal and intimate.<br />Baidu is the dominant search engine and consequently the best choice to reach internet users through online ads in China.<br />33<br />
  68. 68. How to start a successful Baidu campaign:<br />Start your BaiduSem campaign on a low level, include a test to figure out what works and what doesn’t<br />Determine the goal of your online marketing strategy<br />Clear and good ad test copywriting<br />Landing page and microsites using Chinese webdesign standards: it has to look slick, creative, innovative and most important interactive.<br />Tracking and daily campaign optimization<br />5 ground rules for email marketing in China<br />Use correct markup<br />Work with Internet Service Providers and Web portals in China<br />Keep a close watch on your content<br />Honor the feedback loop<br />All marketing activities require the use of a proficient Chinese and within the borders of Chinese law. <br />34<br />Executive Summary<br />
  69. 69. Case I: Proctor & Gamble’s Vidal Sassoon Brand in Hong Kong<br />35<br />Vidal Sassoon Introduction in 2006:<br />The first campaign in Hong Kong that made use of downloadable content to increase brand awareness. <br /><ul><li> revolved around a cat-woman type model
  70. 70. the campaign focussed on a game that consumers downloaded to their mobile phones
  71. 71. the campaign also included cat-stuited women dancing outside of bars handing out samples, a slick website, banner ads, email campaigns.</li></li></ul><li>36<br />Case II: Johnson & Johnson Olympics Marketing Campaign<br />Multichannel marketing campaign to increase brand awareness in China during the Olympics.<br />Main Message: Caring to Create a Healthier World<br /><ul><li> TV spots about Chinese people being unsung heroes as they care for others.
  72. 72. Exhibition Caring World on the Olympic green: 8 high-tech interactive exhibitions. “Our Aspirations” exhibit where individuals share stories, reflections and memories about giving and receiving care. “Vital Technologies” shows how medical technology can restore the joys of life. </li></li></ul><li>Olympic “Thank You, Mom” website featuring videos with links to YouTube of Olympic athletes thanking their moms for taking care of their children. This campaign shared the personal stories with the Chinese public and it was easy to realte the J&J to the message. <br />J&J helped bid up China in specific issues Chinese issues<br />Environment<br /> J&J installed green and sustainable building technologies to 18 building structures in China<br />Culture<br /> J&J launched a cultural website showcasing the actual Terracotta sculputers on the Pavilion. <br />37<br />Case II: Johnson & Johnson Olympics Marketing Campaign<br />Bottom Line : J&J’s reputation has been soaring because of its efforts to leverage their brand on the Olympics using social and digital media with good effect. <br />

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