1. totem media
2017
SOCIAL MARKETING IN CHINA

2. Trends for 2017
10For brands marketing thru social media in China.

3. 2017 projects to be a year where social and content marketing make
a major leap forward. Social is swiftly moving into the center of
marketing plans for brands in China.
In 2016, there were a number of important developments that
inform the year ahead, including; the rapid emergence of live video,
further integration social with ecommerce, and increased
investments into social ads and KOLs.
In this social marketing preview of 2017, we have highlighted 10
trends that will prove to be critical for marketers. The trends
represent the most current conversations taking place with brands
and agencies in China.
These trends are placed in the context of China as a digital-first
market - with hot competition between Alibaba and Tencent for
dominance.
Prepared by Totem Media
ABOUT THIS PRESENTATION

4. 1. WeChat Has Peaked
2. Weibo Bounces Back
3. Live Video Is Hot
4. Realtime Social Hubs
5. Quality Content = Growth
6. Virtual Reality & AR
7. Social x Commerce
8. Tencent Social Ads
9. KOLs Get Small
10. Ask Me Anything

5. 1. WeChat Has Peaked
Quick and easy growth for official brand accounts has come to an end.

6. 1
Audience acquisition costs on WeChat are sky high! With 846m MAU and
556m official brand accounts on WeChat, its a very crowded environment.
Its challenging for brands to attract attention, obtain and keep fans. In
short, the honeymoon for brands (brand accounts) has come to an end.
WECHAT HAS PEAKED

7. It's many times more expensive to gain a follow on WeChat
than Weibo now. Its hard to attract new followers and hard
to keep them on official accounts.
Opportunities for organic (social) growth are shifting to the
“Moments” stream. To break into the “Moments” stream,
brands need to focus on creating content with strong viral
appeal.
However, Tencent is very protective of the “Moments”
stream …and links into it are monitored and often blocked
by Tencent. WeChat is preparing for greater expansion of
ads into the “Moments” stream.
There are still opportunities for organic social but WeChat
will become much more of a paid-media platform in 2017
- supported by a large number of new paid ad formats.
Implications for Brands

8. Source: Tencent March 2016
Pictures
Text
Short Videos
Articles
None of Above
0 15 30 45 60
3.8
22.3
45.2
50
50.7
Tencent Confirms Audiences Move to Moments
Browsing and posting onto “Moments” is the number one daily activity.
61% of users check “Moments” every time they open WeChat
AUDIENCES
PREFER
VISUAL &
SHORT-FORM
CONTENTS IN
MOMENTS
% of Respondents

9. Visuals Shared to “Moments”
For brands to really get the most out of WeChat for growth (reaching new audiences),
they must design content which is shareable to “Moments”

10. Expansion of Ad Formats on WeChat
WeChat will ad self-service “Moments” ads to support a wide range of objectives in 2017.
Lower minimum budgets also expected.
WEIBO
- STORE TRAFFIC
- COUPONS
WIN NEW FANS
PROMOTIONS
INCREASE VIDEO VIEWS
PROMOTE MOBILE APPS
LOCATION BASED
- FOLLOWER GROWTH
- LINKS TO H5 CAMPAIGNS
Source: WeChat 2016

11. WeChat has built an incredibly powerful ecosystem - it rivals
the desktop ecosystem in China. If WeChat is the new
online ecosystem for China, then WeChat official accounts
are its brand websites.
During the hyper growth period on WeChat over the last
few years, smart brands invested in growing audiences
(followers). Those brands are now focused on adding
“website” features/functions, including; more complete
navigation, utilities, CRM, ecommerce and a host of features
through H5 pages/links.
Social content on official accounts play the role of what a
blog would in a Website. At the same time, WeChat is in the
process of launching its “mini app” program to provide more
services/apps inside of its ecosystem …and ensure
continued audience retention.
Implications for Brands

12. display
(Instream Ads)
online video
(Tencent Video)
social
(Moments)
search
(Sogou/WeChat)
ecommerce
(Tenpay/WePay)
WeChat Ecosystem
Where will Mini-Apps fit in? What will happen with Official Accounts?
subscription
account
Brand - Content
Interaction Modules
Ecommerce
Customer Service
Loyalty Management
Reservations
O2O
service
account
Brand - Interaction
mini-apps
Services/Apps

13. WeChat “Mini Apps”
“Mini Apps” currently in testing, are set to be a major focus in 2017.
Search
Chats Discover MeContacts Apps
Lite App 1
Lite App 2
Lite App 3
Lite App 4
Mini App 1
Mini App 2
Mini App 3
Mini AppsWith 700m MAUs, “Mini Apps” will provide
WeChat with an opportunity to disrupt the
messy app marketplaces in China. They can also
be seen as a move to lockdown users into its
ecosystem.
For ‘first mover’ brands there could be interesting
ways to gain audiences if they can create
valuable services/content (cool branded apps).
There is a risk that apps could overshadow
service accounts, making them obsolete. Unless
they are closely linked to (service) accounts,
then the effect will be to shift attention further
from brand accounts.
What it might look like.

14. 2. Weibo Bounces Back
While WeChat seeks more control, Weibo is more open/transparent for brands.

15. 2
Weibo added 70m MAU in 2016. With the support of the Alibaba
ecosystem behind it, Weibo will continue to be an essential part of the
social landscape in China. For brands trying to build awareness/reach,
Weibo may be more effective than WeChat. Its also more measurable.
WEIBO BOUNCED BACK

16. 0
75
150
225
300
2013 Q1 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2016 Q1
48.6 52.8
58.9 61.4
66.6 69.7
76.6 80.6
89 93
100
106
120
126
Weibo Monthly & Daily Active Users
Alibaba has organized itself around audiences with social features on Weibo, Taobao,
Alipay and Youku. Audience retention, engagement has risen across the network.
DAU
MAU
MILLIONS
Source: Sina Weibo 2016

17. Weibo has surpassed Twitter in value and appears to be
making the right moves to stay relevant in China, despite
the prevalence of WeChat.
In the last two years Weibo has added a host of new
features and partnerships to keep up with changing market
interests; adapting quickly to mobile-first, adding more
video content, aligning with news organizations and
creating more interest-based streams of information.
“We’re all-in with our strategies of going mobile, multimedia
and verticalization. In the past three years, these strategies
have worked,” says Julien Gong of Weibo.
They also have the support of the entire Alibaba ecosystem
working in their favor, allowing them to integrate with Tmall,
Youku, and live streaming applications like Yi Zhibo.
Implications for Brands

18. Alibaba Gets Social
Alibaba has organized itself around audiences with social features on Weibo, Taobao,
Alipay and Youku. Audience retention, engagement has risen across the network.

19. Alibaba Gets Social
Alibaba has organized itself around audiences with social features on Weibo, Taobao,
Alipay and Youku. Audience retention, engagement has risen across the network.
Buy buttons on WeiboSocial sharing from TmallSocial sharing from Alipay

20. WeChat’s 700m MAU continue to eclipse Weibo’s 282m
MAU. Despite this, 2016 was a bounce-back year for Weibo
- they added 70m new active users.
WeChat is crowded and expensive for brands to acquire
followers. By contrast, Weibo gave brands more opportunity
to grow. Weibo has proven itself to be brand-friendly,
making it easier to build audiences through ‘organic reach,’
and promoted posts/ads. They also provide much more
complete measurements and a more transparent system.
By some estimates it is 5-10 times cheaper/easier to build
followers on Weibo than on WeChat.
The competition between Weibo and WeChat’s “Moments”
will come into sharp focus in 2017. Weibo is purpose-built as
a social stream but WeChat has a big advantage in terms of
audience numbers.
Implications for Brands

21. 3. Live Video Is Hot
100’s of live video sites emerged in 2016. Brands will keep rushing in.

22. 3
Live broadcasting has been added as a feature across almost all video
sites/apps. Brands using live broadcasting have gravitated towards using
KOLs & celebrities to sell products in real-time. Those spokespeople
demo/trial products and engage directly with audiences watching.
LIVE VIDEO IS HOT

23. Live Broadcasting burst onto the sceen in 2016
China has 150 major websites providing online live broadcasting platforms with a total
audience of more than 200 million, according to the Ministry of Culture (July 29, 2016).

24. Inke
YY
Douyu TV
Huya
Panda TV
Huajiao
Chushou TV
NOW
Longzhu TV
Yi Zhibo
0 5,000 10,000 15,000 20,000 25,000 30,000
2,666.2
2,672.3
3,438.2
3,546.4
5,623.4
8,234.9
8,291.6
9,631
24,883.7
27,716.3
Source: Quest Mobile 2016
Top 10 Live Streaming Apps
As ranked by Monthly Active Users (MAU)
MAU (,000)

25. A New Form of Entertainment
Livestreaming in China is like a video version of selfies.
The interaction between audience and host drives engagement.

26. Because of the two-way flow of discussion between
audience and host, this form of entertainment doesnt
require scripting, planning and raw talent ...its driven more
by engagement and attention. And when you add in the
element of gifting (where audiences pay to send virtual gifts
- money), there is real incentive for commitment and
relationships to form - deep engagement.
Portals like Taobao Live are central to brand involvement to-
date, with the results being live sales and product demos -
like QVC online.
For brands looking to go beyond live sales, there should be
interesting opportunities to do product placements and
create branded virtual gifts. In 2017, look for brands to add
more content and entertainment around live video
broadcasts.
Implications for Brands

27. Celebrities Show-off Products
Brands like L’Oreal, Maybelline and SK2 made big news in 2016, introducing elaborate
‘live video’ campaigns, supported by armies of KOLs.
MaybellineL’OrealSK2

28. Early efforts for brands using ‘live broadcasting’ have been
to feature Celebrities (& KOLs), showing off products and
doing live, realtime sales events.
This is likely to continue into 2017 but as the novelty wears
off, brands will have to start investing into more creative
ways of using live video...and building genuine audiences.
There are incredible opportunities for brands to connect
their products with locations, events, groups and other
scenarios - adding value to experiences.
Using Celebrities makes the effort more about the celebrity.
Audiences may only be tuning in to see the KOL. Instead of
putting Celebrities first, brands need to put scenarios first
and closely connect experiences to the brand.
Implications for Brands

29. “Scenario Ecommerce”
Brands are starting to go beyond the blunt use of Celebrities/KOLs to push products
and sell on live broadcasts. Connecting events/products/content puts the brand first.
EcommerceProduct ScenarioLive Show
Burberry demonstrated its
leadership in social again with its
“ ” Show in ’16.
Live broadcasts of fashion shows
were brought together with
ecommerce. A critical link was in
creating content to demonstrate
how the product can/should be
used. “Scenario Ecommerce” is
about showing when, where and
how to wear the product,
leading audiences to ...‘want a
product for when...’
IN CONTEXTCONTEXT

30. 4. Realtime Social Hubs
Large brands are bringing social in-house, setting up realtime capabilities.
24/7

31. 4
Social is moving to the center of brands’ approach to marketing. As this
continues, brands will move quickly to setup their own social media
operations, bringing a full suite of social capabilities in-house. Marketing is
moving realtime, brands need to get up to speed.
REALTIME SOCIAL HUBS

32. Source content in realtime from
a wide variety of people ...to fit
locations, trends, interest groups.
CONTENT PLATFORM
Manage followers by different
segments ...develop content
specific to audience types.
CRM & SCHEDULING
Learn about what audiences
are saying about you - prep
content based on deeper
insights.
SOCIAL LISTENING
Critical Tools/Resources for Success
Better Content - Audience Segmenting - Feedback/Data

33. Realtime Social Response
Brands are demonstrating more mature responses to realtime opportunities. The best
brands have focused in on the 2-3 themes that fit their narrative and audience interests.
Durex
World Car-Free Day
Coke
iPhone 7 Launch
Coke
Olympics

34. Analytics to
Optimize
Copywriting &
Design
Engagement
Strategy
Create
Online Trends &
Hot Topics
scout
Client
Approvals
Coordination
with Media
approve
Targeted
Amplification
launch
Publish & Realtime
Engagement

35. Camera White Boards Escape Hatch
Team
Work
Space
Strategy &
Decisions
Monitoring &
Analytics
Operations
Team
Creative &
Editorial
Main Screen
Featuring Hot Topics,
Trending Keywords...
Product Features/Benefits Topic Angles & Discussions Event & Content Schedules
TV Live
Broadcast
Camera
Command Center = Newsroom x Editorial Approach
Resources, team and layout necessary for effective realtime content.

36. The effective path to building quality, local content and
creating impact, lies with a ‘launch-listen-learn-respond’
approach.
Companies need to practice more dynamic brand
management ...and employ an editorial/publisher’s mindset
to get social right. This process starts by developing clear
brand style guides and a set of brand/audience themes.
Content (built around themes) can then be tested with
audiences. Starting with small tests, brands monitor-listen-
learn and then respond to success with bigger pieces of
content (campaigns).
What’s needed is an agile approach to brand
management - the type of approach that “lean startups”
use to learn and grow.
Implications for Brands

37. 5. Content Quality Rising
Brands who have focused on reach, will shift more to content quality.

38. 5
Brands that enjoy real growth in 2017 will take content quality seriously.
The honeymoon on WeChat is over (audiences are very selective), paid
media results are in decline, and big KOLs are becoming over-saturated.
There are increasingly few short-cuts. Content Quality = Growth.
CONTENT QUALITY = GROWTH

39. Relevant, Interesting Quality = Growth
Visual content designed for specific audience segments goes a long way toward
increasing brand performance on social.
“Beats” by Dre - Thoughtful Media - 4.0million++ views in China.

40. 0
10
20
30
40
50
Jan Feb Mar Apr May Jun
47
43
38
40
30
33
9
7
6
5
33
27
22
18
15
11
10
Source: Taotiao Aug 2016
Mobile Content Consumption By Format
Video rapidly rising against text - for content shared across social networks.
Even on news sites like “Taotiao” ...video is moving into leadership position.
VIEW COUNT
(BILLIONS)
Video
Picture
Text

41. Video is quickly becoming the key currency in social
engagement. The explosion of live broadcasting and the
emergence of Virtual Reality and Augmented Reality ...will
shift the focus even further towards video as the standard in
social.
Brands will need to be remarkable on their social channels
and take the time to thoughtfully build and execute content
plans. They must also increasingly focus on delivering
content which appeals to audience interests. Less PR and
more interest-based.
Tencent and Alibaba are both on top of this move. Tencent
(QQ) has announced the launch of its Entertainment
Quotient Plan (EQ Plan) to support third-party creators to
build content onto their platform(s). Youku is launching
similar programs to stimulate more, quality video content
production.
Implications for Brands

42. Content Creator Programs
Tencent, Youku ...among others have started creator programs to incentivize independent
creators to develop content for their platforms.
Tencent EQ Plan Youku Creator Plan Miaopai/Weibo Independent Creators
“PapiTube”

43. 6. Virtual Reality & AR
It’s still early. Creative brands can be remarkable with VR & AR

44. 6
Virtual reality (VR) and augmented reality (AR) are both at very early
stages for brands ...but setting up to have big years in 2017. VR/AR
highlight the need for (1)greater focus on video content and (2)the
importance of situational engagement - place x time x theme/topic.
VIRTUAL REALITY & AR

45. VR brings quality experiences to life
A natural fit for ‘high-involvement’ brands where the immersive element Virtual Reality
can help provide a more full experience of the product (think: travel, luxury, auto).
Rejoice ZanaduDior

46. AR holds immense promise for situations
Augmented Reality should allow brands to start adding value to special moments and to
location-based experiences.
PRODUCTS PLACE & TIME
Pokemon Go x CAPI WaterHäagen-Dazs Concerto App

47. Virtual reality (VR) and augmented reality (AR) together
with live broadcasting should all lead to a much greater
focus on video content for brands.
As this shift continues, brands will have to up-their-game
and start producing much higher quality content. The path
to success for brands on social will increasingly rest with
quality. Until now, brands have been able to use short-cuts
on social (think KOLs). Future growth will come from
investing in quality, visual, social assets.
It’s still early for VR/AR and there are structural challenges
(people need headsets and software) but as they grow, so
too will audiences’ expectations for brand content.
Alibaba (and Youku) are however moving quickly into the
space, supporting with infrastructure investments.
Implications for Brands

48. 7. Social x Commerce
Brands will continue to push for sales as economy is slow.

49. 7
The economy in 2017 projects to be flat. With a tight economy, brands will
map clear customer journeys and will reset priorities to focus more on
sales. Social will be relied on to not only build awareness and
engagement ...but to also stimulate (convert) to acquisition.
SOCIAL X COMMERCE

50. Content unlocks quick awareness-to-sales path
Very high quality (localized) content, based on targeted interests can move audiences
from awareness to sales quickly.
Drunk Penguin Society - Video wine tutorials ...to sales

51. Brands tempted to focus on sales-first strategies with social
media need to be self-aware, and first understand whether
they have; (1)established strong awareness, and (2)created
affinity with customers.
Brands must ask whether they are top 2-3 on customers’
wishlist.
Without adequate levels of awareness and consideration, a
sales-first strategy will quickly devolve into price cutting. It
is very challenging to recover from price erosion.
Implications for Brands

52. Channel Planning - China Social
buy
EVALUATE
ADVOCATE
ENJOY
BOND
CONSIDER
AWARENESS

53. There are (as yet) very few compelling case studies of
brands selling on WeChat but the potential is very clear.
There are 200m users with credit cards linked to WeChat
and 70% of users spend more than RMB100 per month
already.
The most clear examples of success on WeChat come from
vertical-specific merchants who have (1)targeted an interest
group closely, (2)attracted large audiences with relevant
content, and (3)rallied customer interest with clear calls to
sales and promotions. Most brand owners have not yet
followed this path.
Implications for Brands

54. 23%
32%
22%
23%
Moments/Chat Groups
Links to Other Apps
Thru JD.com
Official Accounts
WeChat Ecommerce Rising Quickly
Reports from McKinsey show that the number of users paying thru WeChat doubled in 2016.
WeChat data claims that 70% of users spend >RMB100/mo.
Source: McKinsey iConsumer China 2016
TOP
CHANNELS
FOR SALES
THRU WECHAT

55. 8. Tencent Social Ads
Tencent is about to move forward with more social ad formats.

56. 8
It is still very early days for ads in WeChat. In 2016, WeChat focused on
supporting “Moments” ads but these efforts were tightly managed. In 2017
Tencent will rollout a host of new ad options including several formats in
“Moments” and aligned formats across the Tencent ecosystem (inc. QQ).
TENCENT SOCIAL ADS

57. “Coupons” showed real promise in 2016
“Coupons” help brands promote and sell from WeChat. They are in keeping with WeChat’s
long-term aim of being an ecommerce and CRM focused platform.
McDonald’s Details Use ItCoupon List Collect Coupons

58. Competition between Tencent and Alibaba is becoming
more heated. Tencent is playing catch-up in many areas,
including with social ads. They are poised to launch a
number of new ad formats to support social across the
Tencent ecosystem in 2017.
Social ads on Weibo (eg. Fanpass) have been around for
several years and accommodate a much wider set of
parameters, with more budget flexibility and more
audience-targeting options. When compared with WeChat,
Weibo is also much more transparent (measurable) and
provides much better post-campaign data.
For WeChat to truly move ahead with advertisers, they will
need to bring costs down on “Moments” ads, allow for more
precise audience targeting and more dynamic reporting.
Implications for Brands

59. To grow with niche audiences, brands must begin looking past big KOLs.
9. KOLs Get Small

60. 9
Web Celebs - called “Wang Hong” - are being minted every day in China
but the costs of working with big KOLs are becoming prohibitive. At the
same time, the results of using big KOLs can be very disappointing. In
2017 brands will turn to smaller KOLs.
KOLS GET SMALL

61. “Wang Hong” - Internet Celebrities
Models, Taobao shop owners, fashion bloggers and social commentators enjoyed a big
year in 2016, cashing in on helping brands reach audiences.
Ecommerce Fashion/Beauty Sports

62. “When a celebrity posts about a brand on their Weibo page, the post engagement
can be up to 6,000x that of the brand, and the post can reach a fanbase 1,800x
greater than the brand has. As more brands use celebrity endorsements, these
partnerships can become costly and may not guarantee the desired reach and
engagement amplification.”
L2 Research on KOLs in China

63. ARTS
HEALTH
TECHNOLOGY
ADVENTURE
Fashion
Music
Movies & TV
Sci-fi
Action Sports Fitness
Gadgets & Gear
Wellness
Auto (Toys)
Sports
Travel
BRAND
Brands must focus on growing into new groups.
Food & Drink
KOLs
KOLs
KOLs
KOLs
Systematic use of small KOLs offers more sustainable, cost-effective path. Connection to
interest-segments may prove more important that total follower count.

64. Celebrities (and big KOLs) have very large groups of fans
and they are convenient for agencies. The problem with
Celebrities is (1)they are costly, and (2)there is no assurance
that the attention brands get in using them is for their
products. In most cases the followers from Celebrity
promotions are there to see the Celeb ...not the product/
brand.
As costs continue to skyrocket for Big KOLs, brands will
turn to smaller, more authentic KOLs.
Finding interest-based, authentic influencers is shaping up
to be a more effective strategy for brands looking to grow
online and will become common place as brands become
more methodical with social.
Implications for Brands

65. 10. Ask Me Anything
Q&A is an important way to jumpstart social traction.
?
!

66. 10
Brands looking to create traction on social increasingly need to go to
where the conversations are happening on blogs/BBS and Q&A sites like
Zhihu. Posing questions and answering them is a great way to learn -
adapt, and ultimately build momemtum around core brand themes.
ASK ME ANYTHING

67. Conversation Starters
Brands looking to kickstart social momentum need to find out where the audiences are
chatting and what topics matter most. Q&A sites, blogs/BBS are critical.
DOUBAN ZHIHU WEIBO
UGC (Co-Created) Viewable (Video, Images)
Source of Content Distribution of Content
START CONVERSATIONS EXPAND TOPIC/THEME

68. Weibo and WeChat have become incredibly crowded and
noisy places.
Brands focused on interest-based marketing must locate
where discussions are being hatched...and seek out core
interest segments. Well defined interest groups are hiding in
blogs/BBS and Q&A sites.
From there, if brands can do a good job at adding value to
the interest groups ...they will be in a good position to
attract audiences as followers (to brand Weibo/WeChat
accounts).
Implications for Brands

69. 1. WeChat Has Peaked
2. Weibo Bounces Back
3. Live Video Is Hot
4. Realtime Social Hubs
5. Quality Content = Growth
6. Virtual Reality & AR
7. Social x Commerce
8. Tencent Social Ads
9. KOLs Get Small
10. Ask Me Anything

70. With organic growth slowing down dramatically on WeChat, it will
become much more challenging to make quick, cost-effective gains.
As a result, there will be a few paths for brands to growth on social:
1. Better quality content and in building interest-based audiences
2. Move into up-and-coming networks (namely video apps)
3. Invest in paid social promotions
Brands that want to take full advantage over the long-term will
need to cultivate interest-based audiences to take full advantage of
social media. Relevant, compelling, visual content will be a MUST!
And, as social media moves into the center of brand planning,
companies will need to build in-house capabilities to listen-measure-
respond to audiences ...ideally in realtime.
Prepared by Totem Media
SUMMARY

71. Chris Baker, Managing Director
Email: chris@totemmedia.net
Twitter/WeChat: Talktototem