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China Digital Market Space Presentation .ppt


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  • 1. China DigitalMarketplaceOverview: Q2 2010 Module 1: China Internet User Profile Module 2: Mobility Presented by: Shane Crombie
  • 2. A bit about me..●1996-2001: Digital creative production, ad serving & projectmanagement with Carat Fusion in San Francisco & Wundermanin Los Angeles●2001-2008: Digital media planning & buying with Tribal DDB &Carat in Australia & UM in China.●2008-2010: Executive sales consultant with Sina & Wanmo●Key category experience: IT, Travel, Auto & FMCG●Key client experience Microsoft, Intel, Tourism Australia, CathayPacific, Jaguar, Nissan, Unilever & Roche●Key specialisms: Ad serving, social media & haggling
  • 3. Presentation Structure1.0 Thought Starters1.1 Demographic Profiling1.2 Usage Trends2.0 Mobility- Global Survey2.1 Mobility- PRC Overview2.2 Conclusions
  • 5. Digital is a phenomenon … Average hours per week media consumption 1 09 00 Gam 8 es Wirele 0 7 Outdo ss 0 6 or Digital 0 Cine 5 radio ma 0 4 Analog Digital 0 ue TV 3 radio 0 Analogue 2 TV 0 1 Intern 0 Pr et 0 int 19 19 19 19 19 20 20 00 20 40 60 80 00 20 Source: Aegis
  • 6. What are we most curious about? China searches focused on badoo wealth Facebook managementDailymotion Webkinz Ebuddy Secondlife International Hi5 searchesClub penguin predominantly 2.0 social networks
  • 8. Key Demographic and Internet MetricsSource: eMarketer, March 2007
  • 9. China Internet Population Growth 2002- 2009 60.8% of Internet usage is mobile 8.9% of Internet usage is mobile onlySource: CNNIC Mar CNNIC WEBSITE2010
  • 10. Key Market Internet PenetrationSource: Dec 2009
  • 11. Internet Penetration by RegionSource: CNNIC Mar 2010
  • 12. Internet Penetration By ProvinceSource: CNNIC Mar 2010
  • 13. GDP Vs. Internet Penetration By ProvinceSource: CNNIC Mar2010
  • 14. Age Distribution Male/Female Ratio: 54.2/48.8 Over 30 now 38.5% Internet This situation population is M/F ratio still is consistent moving into lags mature with a new the over 30 markets internet category marketSource: CNNIC Mar 2010
  • 15. China and USA age profile comparisonSource: Internet June 2010
  • 16. Education Distribution Growth or pre Early adopters Primary tertiary usage more school uptick indicative of educated/high due to earlier rural usage er income age adoption growth *Tertiary education here refers to college education received through full-time study and also includes adult education andSource: CNNIC Mar other equivalent education2010
  • 17. Employment distribution Students & junior office staff like using the internet (!) Growth in Unemployed usage likely due to recessionSource: CNNIC Mar2010
  • 18. Income distribution Salaries are Greater rising leading to unemployed a skew in the using the Income usage internet profileSource: CNNIC Mar2010
  • 19. Urban Vs. Rural Usage 40% of non Rural usage due to Growth slowed knowledge gap lack on in rural areas in may develop knowledge, 20% 2009 vs. 2008 leading to socio- due to lack of economic divide accessSource: CNNIC Mar
  • 20. 1.1 USAGE TRENDS
  • 21. Access Time & Costs 2 hours per week is a considerable increase= 96 more hours online in 2009 per netizen At work audience relatively small in China, internet mainly used for leisure purposesSource: CNNIC Mar2010
  • 22. Access Device Profile The desktop is The computer is dead long live dead long live mobility!!! smart phones!!Source: CNNIC Mar
  • 23. Mobile Usage comparison by age Under 30 netizens prefer Small screen size mobile internet, is not a barrier for suggesting this is content the future for all consumption internet usageSource: CNNIC Mar
  • 24. Mobile Content Consumption Profile Reading content and txt Search is a messaging/IM popular aspect of predominant mobile internet, usage indicating no info on what lack of 3G the key topics are penetrationSource: CNNIC Mar
  • 25. Global Broadband Speed Comparison Korea has Yes China has fastest ‘broadband’ but broadband at at 800 kbps its 14.6 mbps, half the global HKG at 7.6 and average of 1.5 the USA 18th at mbps 3.9mbpsSource: CNNIC Mar
  • 26. Preferred Access Locations Home and work access continued iCafe usage usage growth due decline attrib. to to more mobile internet importance assoc usage increase with internetSource: CNNIC Mar2010
  • 27. Internet Content Consumption Profile Growth in Why the 5% eCommerce decline in IM signals greater usage? trust in internet 45% of netizens Gaming now at below to a social close to 70% network penetrationSource: CNNIC Mar2010
  • 28. Blog Usage Huge engaged 221 million audience but netizens now limited read blogs, 145 marketing million netizens penetration so author a blog far.Source: CNNIC Mar2010
  • 29. "In just a decade, well have gone from half the world never having made a telephone call to half the world owning a phone" Pesce, 20072. MOBILITY
  • 30. 2.0 GLOBAL TRENDS
  • 31. Device penetration by market Device Laptop ownership is ownership is high in lower in China developing due to relative markets purchase costSource: UM ‘Anywhere Anytime’ Global Survey, 2007
  • 32. Percentage that completely agree with the statement“I like the idea of having one portable device to fulfill all my needs” Affluent markets prefer, China and can afford, consumers have multiple mixed aspirational preferences devices Source: UM ‘Anywhere Anytime’ Global Survey, 2007
  • 33. Penetration of content sources onmobiles Penetration of cameras on mobile phones Penetration of music players on mobile phones Both India and China the US fail to consumers love reach 60% to listen to uptake, music on the go, interesting given perhaps highly their differences cultural trend Source: UM ‘Anywhere Anytime’ Global Survey, 2007
  • 34. Global Mobile Usage Index: All datapoints US consumers use phones to make phone calls only All regions & continents evenly distributed in rankings, suggesting nation-unique usage profiles Source: UM ‘Anywhere Anytime’ Global Survey, 2007
  • 35. Acceptiveness to advertising on mobiledevices The key Developed question is will this markets have bifurcation change lower levels of as developing acceptiveness markets become more sophisticated over time Source: UM ‘Anywhere Anytime’ Global Survey, 2007
  • 37. We are: A L W A Y S THE GO ALWAYS ON D E M A N D
  • 38. The New Mobility We have a highly personalized relationship with our mobile phone. It’s with us 24/7, we depend on it and its a symbol of who we are. Itsour ‘mini me’ The traditional role of a phone, to send and receive calls &messages, is no longer relevant. Today, we ask for more:Customization: You order from a menu, a la carte isout.Personalization: You decorate in your own styleInteractivity: You react, respond & recordConvenience: You text & talk to anyone, anytime,anyplaceFreedom: You control your destiny *
  • 39. 2009 Mobile landscape in China750 million 61.6%mobile users Professionals, young executives and students 90%+ aged 18-40 51% education+ diploma 60 WAP users active million 27.3% Access 430 billion SMS were sent last (44 million users) to internet year 50 million active MMS users Source: Multiple *
  • 40. Selection of current PRC mobile marketers
  • 41. Available mobile marketing programs Interact with brands Drive brand User engagement / awareness participation Text / audio/ images / – survey, voting, etc. videos Event / product promotion CRM Performance CRM database marketing integration Click-to-call Customer retention – Lead generation coupons, reminders Customer acquisition Mobile Surveys
  • 42. Mobile targeting capabilitiesBy geography (i.e., Beijing, Shanghai or not Guangdong)By handset brand and model (i.e., Nokia Nseries with S60 platform)By handset retail price segment (i.e., Targeting only 2,000RMB handsetsand aboveBy handset classification (i.e., High-end and smart phones or female andmusic phones) Beijing User Nokia N70 Shanghai User Sony Ericsson W550
  • 43. Optimization capabilities Optimize ad serving by analyzing ad version CTR in a specific ad position by campaign and hour of the day, and automatically rotate in new versions for best performance. Ad Versions Day 1 Day 2 End of Campaign Ad Version 1 Time Time Rotation Optimized Time Ad Version 2 Period Period Period Fully Optimize Optimize Ad Version 3 Optimize d d Inventor Inventor …. d Inventor y y Ad Version 4 y Ad Version 5 Ad Version 6 New Ad Version New Ad Version
  • 44. Platform optimization ●Serving optimized mobile ad banner automatically to fit different screen resolutions of different phone models ●Optimize approx. 97% of the mobile handsets in China X √ X
  • 45. Conclusions●With less than 30% internet penetration and annual growth of 70million new users, China is on track to have half a billion netizens inlate 2011.●The internet is going mobile and the demand for custom content andplatforms will shift internet resources and thinking to mobility●The new popularity of social networking is showing signs it may impactpopularity of standalone platforms like Baidu, 10Cent and gamingverticals.●With close to 150 million active bloggers, marketers must executebrand building programs successfully in this space to maintain marketshare. Seeding & banners only offer so much.●Netizens are getting older and richer and looking for engaging contentexperiences that match their evolving interestsEPIC 2014