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Social Media Marketing



Social Media in China


Presenter: Dr Mathew McDougall


              MARCOM BEIJING 2010

              Your Performance Marketing Company



                                                   © 2010 SinoTech Group
                                                           (China) Limited
So you want to know about social media in
China.
So you want to know about social media in
China.
                                              This presentation will…

         Give you a basic overview of China’s social media
                                                landscape

     Offer some practical advice for companies looking to
        engage Chinese consumers through social media.

    Provide a starting point for learning more and staying
                      informed about the Chinese market.

  (Download this presentation to access hyperlinks for additional information)
China’s netizen population is increasing…




  420 million users in June 2010
… and adoption of social media is growing.
What about Facebook,
YouTube and Twitter?
China’s digital media landscape
is dominated by local players.




Government regulated   Local players
What makes China’s
 Internet landscape
            unique?
Who the netizens are.

Mostly urban (71.7%) – However, over 95 million rural
netizens and growing.

72.4% have a monthly household income of less than
2,000 RMB (~290 USD)

31.7% are students. 7.4% are unemployed.

Only 12.4% have a Bachelor’s degree or higher.

                         Source: CNNIC’s 24th Statistical Report, June 2009.
How they access the web.

65.9% of Chinese netizens
access the Internet by
mobile phone.


                                             33.6% access the web
                                            through Internet cafes.
                                                      (however, declining as
                                                         broadband access
Source: CNNIC’s 26th Statistical Report, June 2010.
                                                                 increases)
Why they access the web.




             Source: CNNIC’s 26th Statistical Report, June 2010.
Why they access the web.
   “Chinese netizens are
   looking for ways to
   express … their
   freedom on the
   Internet.” *   73% of Chinese netizens agreed with
                                    the statement: “Online, I feel free to
                                     say and do things I wouldn’t do or
                                   say offline,” compared to only 32% of
                                                           US netizens.*
*Source: “The Uniqueness of Social Media in China.”
How they’re participating.
              Chinese users are more engaged in their online lives.
86% of Chinese youth live “some of their lives” online, compared to
                                            42% of American youth.




                                       Source: 2007 survey by IAC and JWT
How influential it is.
                                            56.3% of users said that they
                                                   “got to know brands”
                                                through online channels.
81% of BBS and blog                                 58.7% actually made
users check online                           purchase decisions based
                                                on user-generated online
word of mouth                                info (compared to only 19%
before purchasing a                                             in U.S.).
product.*                                        Even when not making a
                                                purchase, 89.9% of users
                                              still pay attention to online
                                                           word of mouth.*
*Source: “Making Sense of Internet Word of Mouth.” CIC 2009.
5 points that companies
should consider when doing
     social media in China?
1.. Listen to your audience.
 •  What are they saying about your brand? Is it positive or
    negative?
 •  What are they saying about your competitors’ brands?
 •  What language are they using? Chinese, English, Japanese ….
 •  Is the conversation dominated by a small number of contributors
    or is there widespread involvement?
 •  Are they located in a particular part of China or is it
    geographically widespread?
2. Understand local
netizens.
 … and how they’re different from netizens in other markets.
 •  What are their motivations for using social media?
 •  How do they interact with different social media channels?
 •  How to they interact with each other across these channels?
 •  What drives them to participate and spread messages?
 •  What kinds of messages will they be receptive to?
3. Use the right channels.
  Before you jump on the social media bandwagon ensure
  you know where your target consumers are located and
  how this relates in a share of voice sector comparison-
  blogs vs. forums vs. social networking sites vs. micro-blogs.
4. Know what incentives work
for engaging a community
  Why should Chinese netizens engage with your brand
  and spread your message?
  Is it social currency?
  Opinion leadership among peers?
  Ego driven?
  Timely and compelling content?
  Access to exclusive promotions?
  Incorporate incentives that will drive interest and
  participation.
5. Gain and maintain trust.
  Be authentic and transparent in communicating across
  social media.

  Try to add legitimate value to netizens’ online
  experiences. Most importantly, don’t try to deceive
  netizens – it will only lead to backlash and reputational
  damage.
Some cool things companies have done
using Chinese social media:
Apple’s social networking site campaign
Some cool things companies have done
using Chinese social media:

Qatar Airline campaign develops online engagement
leveraging micro-blogs and BBS
Some cool things companies have done
using Chinese social media:

BMW launches niche, high end social community
in China
Some cool things companies have done
using Chinese social media:
Clinique/Sony Product Placement and “Sufei’s
Diary”
Some cool things companies have done
using Chinese social media:
Accor Hotels in China “Invite a friend”
And some not-so-cool things they’ve
    experienced across social media.
The Melamine Milk Powder Scandal


And some not-
so-cool things
      they’ve
  experienced
 across social
       media.
“Starbucks faces eviction from the Forbidden City”




     And some not-so-cool things they’ve
       experienced across social media.
Chinese netizens rally against Carrefour


   And some not-
   so-cool things
         they’ve
     experienced
    across social
          media.
The KFC Coupon Crisis




  And some not-so-
 cool things they’ve
experienced across
       social media.
China’s social media
landscape is constantly
growing, innovating,
evolving.
Consumers are adopting
new technologies and
interacting with them in
different ways.
And new conversations can
engage millions of netizens
in a matter of days, or even
                      hours.
By the time you view this
presentation, the facts will
have changed.
Knowing the market
requires you to stay
informed!

Here is the leading tool to
get you started
Online Reputation
                                    Management




[click for more information]
outperforming our competition

Beijing:                   +86 (10) 6561 5818
Shanghai           +86 (21) 3363 2739
Email:             info@sinotechgroup.com.cn

Web:               www.sinotechgroup.com.cn




  @sinotechgroup         sinotechgroup         sinotechgroup   sinotechgroup

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Marcom Beijing 2010- Social Media Session

  • 1. Social Media Marketing Social Media in China Presenter: Dr Mathew McDougall MARCOM BEIJING 2010 Your Performance Marketing Company © 2010 SinoTech Group (China) Limited
  • 2. So you want to know about social media in China.
  • 3. So you want to know about social media in China. This presentation will… Give you a basic overview of China’s social media landscape Offer some practical advice for companies looking to engage Chinese consumers through social media. Provide a starting point for learning more and staying informed about the Chinese market. (Download this presentation to access hyperlinks for additional information)
  • 4. China’s netizen population is increasing… 420 million users in June 2010
  • 5. … and adoption of social media is growing.
  • 7. China’s digital media landscape is dominated by local players. Government regulated Local players
  • 8. What makes China’s Internet landscape unique?
  • 9. Who the netizens are. Mostly urban (71.7%) – However, over 95 million rural netizens and growing. 72.4% have a monthly household income of less than 2,000 RMB (~290 USD) 31.7% are students. 7.4% are unemployed. Only 12.4% have a Bachelor’s degree or higher. Source: CNNIC’s 24th Statistical Report, June 2009.
  • 10. How they access the web. 65.9% of Chinese netizens access the Internet by mobile phone. 33.6% access the web through Internet cafes. (however, declining as broadband access Source: CNNIC’s 26th Statistical Report, June 2010. increases)
  • 11. Why they access the web. Source: CNNIC’s 26th Statistical Report, June 2010.
  • 12. Why they access the web. “Chinese netizens are looking for ways to express … their freedom on the Internet.” * 73% of Chinese netizens agreed with the statement: “Online, I feel free to say and do things I wouldn’t do or say offline,” compared to only 32% of US netizens.* *Source: “The Uniqueness of Social Media in China.”
  • 13. How they’re participating. Chinese users are more engaged in their online lives. 86% of Chinese youth live “some of their lives” online, compared to 42% of American youth. Source: 2007 survey by IAC and JWT
  • 14. How influential it is. 56.3% of users said that they “got to know brands” through online channels. 81% of BBS and blog 58.7% actually made users check online purchase decisions based on user-generated online word of mouth info (compared to only 19% before purchasing a in U.S.). product.* Even when not making a purchase, 89.9% of users still pay attention to online word of mouth.* *Source: “Making Sense of Internet Word of Mouth.” CIC 2009.
  • 15. 5 points that companies should consider when doing social media in China?
  • 16. 1.. Listen to your audience. •  What are they saying about your brand? Is it positive or negative? •  What are they saying about your competitors’ brands? •  What language are they using? Chinese, English, Japanese …. •  Is the conversation dominated by a small number of contributors or is there widespread involvement? •  Are they located in a particular part of China or is it geographically widespread?
  • 17. 2. Understand local netizens. … and how they’re different from netizens in other markets. •  What are their motivations for using social media? •  How do they interact with different social media channels? •  How to they interact with each other across these channels? •  What drives them to participate and spread messages? •  What kinds of messages will they be receptive to?
  • 18. 3. Use the right channels. Before you jump on the social media bandwagon ensure you know where your target consumers are located and how this relates in a share of voice sector comparison- blogs vs. forums vs. social networking sites vs. micro-blogs.
  • 19. 4. Know what incentives work for engaging a community Why should Chinese netizens engage with your brand and spread your message? Is it social currency? Opinion leadership among peers? Ego driven? Timely and compelling content? Access to exclusive promotions? Incorporate incentives that will drive interest and participation.
  • 20. 5. Gain and maintain trust. Be authentic and transparent in communicating across social media. Try to add legitimate value to netizens’ online experiences. Most importantly, don’t try to deceive netizens – it will only lead to backlash and reputational damage.
  • 21. Some cool things companies have done using Chinese social media: Apple’s social networking site campaign
  • 22. Some cool things companies have done using Chinese social media: Qatar Airline campaign develops online engagement leveraging micro-blogs and BBS
  • 23. Some cool things companies have done using Chinese social media: BMW launches niche, high end social community in China
  • 24. Some cool things companies have done using Chinese social media: Clinique/Sony Product Placement and “Sufei’s Diary”
  • 25. Some cool things companies have done using Chinese social media: Accor Hotels in China “Invite a friend”
  • 26. And some not-so-cool things they’ve experienced across social media.
  • 27. The Melamine Milk Powder Scandal And some not- so-cool things they’ve experienced across social media.
  • 28. “Starbucks faces eviction from the Forbidden City” And some not-so-cool things they’ve experienced across social media.
  • 29. Chinese netizens rally against Carrefour And some not- so-cool things they’ve experienced across social media.
  • 30. The KFC Coupon Crisis And some not-so- cool things they’ve experienced across social media.
  • 31. China’s social media landscape is constantly growing, innovating, evolving.
  • 32. Consumers are adopting new technologies and interacting with them in different ways.
  • 33. And new conversations can engage millions of netizens in a matter of days, or even hours.
  • 34. By the time you view this presentation, the facts will have changed.
  • 35. Knowing the market requires you to stay informed! Here is the leading tool to get you started
  • 36. Online Reputation Management [click for more information]
  • 37. outperforming our competition Beijing:  +86 (10) 6561 5818 Shanghai +86 (21) 3363 2739 Email: info@sinotechgroup.com.cn Web: www.sinotechgroup.com.cn @sinotechgroup sinotechgroup sinotechgroup sinotechgroup