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China Online Marketing Analysis
 

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. ...

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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  • Full Name Full Name Comment goes here.
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  • please send me this ppt at neerajkr12@gmail.com
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  • China is not 'one' China ... that is soooo true!
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  • The J&J campaign is an example how if you want to build your brand in China it is best to approach with respect, interest in Chinese culture, and investment in the future.

    We also suggest the info on Baidu to anyone that needs a brief overview of their PPC advertising.
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  • What a good presentation!
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  • Good overview of the chinese internet market
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    China Online Marketing Analysis China Online Marketing Analysis Presentation Transcript

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