MEDIA IN CHINA
A Whole Different World! Probably the Most Complicated  Media Market in the World Today...
Ad. Spend Increasing Every Year = Pressure On Media Costs, Inflation And Ad Clutter…  Source: Nielsen Media AdQuest +37% +...
In 2006-2007, China Will Become The 3 rd -  4 th  Largest Global Ad Market! Already The 2 nd  - 3 rd  Largest ‘Volume Mark...
Top 20 Advertisers Reflect China’s Full Embrace Of ‘CONSUMERISM’…  *Pepsi Group instead of Pepsi beverage only # Category ...
China Mass Media Development… 0 10 20 30 40 50 60 1979-1983 1984-1989 1989-1993 1995 + Local Production  Quality + More  T...
Media 2002 2005 TV Coverage 94.6% 95.2% # of CCTV Channels 12 16 # of Satellite Channels 30 40 # of Terrestrial Channels  ...
TV Rating Measurement Print Measurement OOH Monitoring Net Ratings Lifestyle & Media Consumption  Nielsen Media/CSM 100+ M...
China Media & Marketing Survey (CMMS) <ul><li>176 Products , 4949 Brands </li></ul><ul><li>Media </li></ul><ul><ul><li>347...
China New Rich (H3) Survey Sample cities are selected and classified to standards of GDP per capita, total volume of retai...
CHINA TV SCENE
‘ Blue-Print’ For TV Media In China…
Milestone Of TV Development In China 1978 ~ 2000 Mass Media Boom… 2000 2001 2002 2003 2004 2005 Start of media consolidati...
Rapid Growth In TV Media… Average HH Has Access To 30~50 Channels
Different Levels of TV Coverage…  CCTV Satellite TV Provincial TV Local City Terrestrials 16 Channels… National roll-out, ...
China TV Channel Share By City Tier… Data Source: CSM/Target 25-55/ Whole day average viewing  National level, CCTV viewin...
Time Spent Watching TV Is Steadily Declining As TV Fights For Consumer Attention. We Need To Integrate Communication Messa...
NO TIME : “I go to school, I have extra classes & homework after school, I hang out with my friends on weekends…  When do ...
‘ Exposure’ Is Not The Same As ‘Engagement’ Branded   Content Allows Us To Move From ‘One Way’ To ‘Two Ways’ Communication...
CHINA IP SCENE
Number Of Internet Users Soaring… Source: CINIC NB: User defined as person who accesses Internet at least 1 Hour per week....
My Consumption Habit Has Changed… Time Spent On Media (Hours) Source: CMMS 2005, All Adults
46% Of All People Look At The Internet First For Information… Source: CMMS A/W 2005 We are Sourcing Information Faster… Mo...
Did You Know… Internet & Instant Messenger Source: CNNIC, 17 th  Internet Survey
5 million bloggers 3 million blog accounts Surged from  1 million in 2004 Source: CINIC June 2005 & Analysys International...
Did You Know… Search Engine Marketing
Search is Becoming as BIG as all other forms of Online Advertising China – Search & Online Advertising Comparison Source: ...
Did You Know… Gaming <ul><li>China will overtake South Korea in terms of No. of Gamers, Average Time Spent per Gamer and R...
Did You Know… Impact of Gaming “ Last year a 40-year old man used a real knife to stab to death a younger man who had borr...
Is All this True only for Teens and Men? <ul><li>Diapers is a major category for online merchants like TaoBao (Premium tie...
30 – 40% of Mid Tier and Above Beauty Product Consumers are Online Data base: All female who have accessed internet in pas...
China Leads The World in Mobile Subscribers  Currently there are 388 mil subscribers
Always In Touch… Source: CMMS A/W 2005 Mobile Phones Making People Accessible 24/7… 388 million subscribers; 1-in-3 own a ...
Mobile Ownership – 388 Million Subscribers Today…  Will Increase To 535+ Million By 2009… <ul><li>China - One of the highe...
Did You Know… Mobile <ul><li>18/07/2004 – China’s first mobile newspaper “China Women” MMS edition was launched… </li></ul...
CHINA OOH SCENE
Explosion of IMPACTFUL OOH Catches Eyeballs of The Modern Mobile Chinese Consumers…
Increasing OOH Media Exposures… Data Source: China Media & Marketing Survey 2005 A/W Wave
High Traffic Area,  High Awareness  COVERAGE HIGH AFFINITY Role of OOH = High Traffic Area; Extended Reach Targeted Reach ...
New Innovative Media Formats Will Further Flourish the China OOH Scene…
OOH…The Last Frontier: Chaotic, Lack Of Regulation, Opaque Pricing…
CHINA PRINT SCENE
China Print Media; Still At Developing Stage… <ul><li>2,100+ titles in circulation… </li></ul><ul><li>High penetration med...
Newspaper In China…  <ul><ul><li>National Titles </li></ul></ul><ul><ul><ul><li>High circulation </li></ul></ul></ul><ul><...
Magazine In China…  <ul><li>Well dominant by Female Lifestyle Fashion Title, about 800 titles currently </li></ul><ul><li>...
… NEEDS A ‘LOCALISATION’ APPROACH –  Market-by-Market Integrated Considerations Media In China Highly Fragmented / Growth ...
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Media Scene China (Starcom) 2006 (Nx Power Lite)

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  • Media Scene China (Starcom) 2006 (Nx Power Lite)

    1. 1. MEDIA IN CHINA
    2. 2. A Whole Different World! Probably the Most Complicated Media Market in the World Today...
    3. 3. Ad. Spend Increasing Every Year = Pressure On Media Costs, Inflation And Ad Clutter… Source: Nielsen Media AdQuest +37% +33% +17% +41% +24% +22% +23% +20% +42% +21% RMB ‘000
    4. 4. In 2006-2007, China Will Become The 3 rd - 4 th Largest Global Ad Market! Already The 2 nd - 3 rd Largest ‘Volume Market’ For Many Marketers… Billion US$ Source: General Industry Forecasts / Ad Age
    5. 5. Top 20 Advertisers Reflect China’s Full Embrace Of ‘CONSUMERISM’… *Pepsi Group instead of Pepsi beverage only # Category 1 P&G 宝洁 FMCG 2 HAYAO NO.6 哈药六厂 Pharmaceutical 3 UNILEVER 联合利华 FMCG 4 JIANTE PHARM 健特生物 Healthcare 5 COLGATE PALMOLIVE 高露洁 FMCG 6 CHINA MOBILE 中国移动 Communication 7 SANCHINE PHARM 三精药业 Pharmaceutical 8 L'OREAL GROUP 欧莱雅 Skincare 9 LAFANG 拉芳 Skincare 10 PEPSI GROUP* 百事 Beverage 11 COKE 可口可乐 Beverage 12 ARCHE 雅倩 Skincare 13 KFC 肯德基 Fast F ood 14 TAITA 太太 Healthcare, Pharmaceutical 15 HAOJIXING 好记星 PDA 16 AOQILI 奥奇丽 FMCG 17 CNICE 纳爱斯 FMCG 18 JIANGZHONG PHARM 江中药业 Pharmaceutical 19 E BAIFEN E 百分 PDA 20 McDONALD'S 麦当劳 Fast Food Advertiser 2005 Top 20 Advertisers Source: Nielsen Media AdQuest
    6. 6. China Mass Media Development… 0 10 20 30 40 50 60 1979-1983 1984-1989 1989-1993 1995 + Local Production Quality + More TV Channels CCTV Outdoor Imported Programs Cable/Satellite Explosion Consumer Market Media Options 2006/07 2000+ TV Channels 165 Million Internet Users 450 Million Mobile Users
    7. 7. Media 2002 2005 TV Coverage 94.6% 95.2% # of CCTV Channels 12 16 # of Satellite Channels 30 40 # of Terrestrial Channels 1,800+ 2,000+ Average HH TV Ch Penetration 18+ 30+ # of Radio Channels 1,400+ 1,800+ # of Newspapers 2,137 2,119 # of Magazines 8,000+ 9,000+ # of Internet Users 45.0 mil 100.0 mil Mobile Phone Penetration 16% 26% PC Penetration (HHI %) 26% 29% China Media Scene – Very Fragmented
    8. 8. TV Rating Measurement Print Measurement OOH Monitoring Net Ratings Lifestyle & Media Consumption Nielsen Media/CSM 100+ Markets CMMS - 30 Key Cities 20+ Markets Nielsen Media Net Ratings CMMS - 30 Key Cities China New Rich (H3) - 12 Key Cities China Media Fragmentation Surprisingly Well Researched…
    9. 9. China Media & Marketing Survey (CMMS) <ul><li>176 Products , 4949 Brands </li></ul><ul><li>Media </li></ul><ul><ul><li>347 Newspapers </li></ul></ul><ul><ul><li>233 Magazines </li></ul></ul><ul><ul><li>450 TV Channels </li></ul></ul><ul><ul><li>282 Radio Stations </li></ul></ul><ul><ul><li>67 Websites </li></ul></ul><ul><ul><li>23 Outdoor Media </li></ul></ul><ul><ul><li>Cinemas </li></ul></ul><ul><li>156 Lifestyle Statements </li></ul><ul><li>Sample size 70,000 </li></ul>
    10. 10. China New Rich (H3) Survey Sample cities are selected and classified to standards of GDP per capita, total volume of retail sales, average salary of employees, urban population. <ul><li>New Rich: Urban residents aged 18-45 with high HHI </li></ul><ul><ul><li>Tier 1: BJ / SH / GZ / ShZ & HZ </li></ul></ul><ul><ul><li>Tier 2: NJ / WH / CQ / CD / XA / SY & QD </li></ul></ul><ul><li>Annual Household Income </li></ul><ul><ul><li>Tier 1: RMB 80K+ </li></ul></ul><ul><ul><li>Tier 2: RMB 60K+ </li></ul></ul><ul><li>Sample Size </li></ul><ul><ul><li>Tier 1: 1,500 each </li></ul></ul><ul><ul><li>Tier 2: 500 each </li></ul></ul>成都 H3 重庆 沈阳 广州 深圳 北京 西安 青岛 武汉 南京 上海 杭州
    11. 11. CHINA TV SCENE
    12. 12. ‘ Blue-Print’ For TV Media In China…
    13. 13. Milestone Of TV Development In China 1978 ~ 2000 Mass Media Boom… 2000 2001 2002 2003 2004 2005 Start of media consolidation in view of WTO, anticipating foreign threat but # channels still growing… Political driven consolidation ‘failed’… Central Govt. step in to speed up market consolidation <ul><li>SARFT # 17 </li></ul><ul><li>Sellers/Buyers looking for strong media for effective communication; better rating/coverage/content </li></ul><ul><li>Maintain ratecard for media, keep </li></ul><ul><li>CPM/CPRP for buyer… </li></ul><ul><li>Shake-up is the only market </li></ul><ul><li>equilibrium… </li></ul><ul><li>Year of digital TV… </li></ul><ul><li>2010: cover key cities </li></ul><ul><li>2015: shut down analog </li></ul>
    14. 14. Rapid Growth In TV Media… Average HH Has Access To 30~50 Channels
    15. 15. Different Levels of TV Coverage… CCTV Satellite TV Provincial TV Local City Terrestrials 16 Channels… National roll-out, cost efficient 200+ Channels … Cost effective regional coverage 33 Provincial Satellite Channels Secondary National Coverage 2000+ Terrestrial Channels… High Reach and Frequency... Enhance efficiency & frequency
    16. 16. China TV Channel Share By City Tier… Data Source: CSM/Target 25-55/ Whole day average viewing National level, CCTV viewing share ↑ Tier 1: Local TV maintain stronghold Tier 2: Satellite TV steals share from Local TV
    17. 17. Time Spent Watching TV Is Steadily Declining As TV Fights For Consumer Attention. We Need To Integrate Communication Messages With Other Media…
    18. 18. NO TIME : “I go to school, I have extra classes & homework after school, I hang out with my friends on weekends… When do I get time to watch TV?” SH 17 y/o Female High School Student MULTI-TASKING : “I sometimes create my own world to surround me. I listen to my music on my MP3, read my favourite magazine and chat with friends online at the same time...’ SH 19 y/o Female University Student STRICT CONTROL : “When I do get to watch TV I have to watch the programs my father allows. He won’t let me watch Korean drama as he thinks they have too much sex!” BJ 16 y/o Female High School Student Source: Starcom Media Pathways and strato sphere Consumers Are Not Simply Passive TV Viewers…
    19. 19. ‘ Exposure’ Is Not The Same As ‘Engagement’ Branded Content Allows Us To Move From ‘One Way’ To ‘Two Ways’ Communication To ‘ENGAGE’ Our Consumers <ul><li>Trend in Consumer Participation </li></ul><ul><ul><li>Branded TV content, SMS & Internet interaction are all increasing consumer participation and encouraging greater consumer involvement… </li></ul></ul><ul><ul><ul><li>2005 Super Girl, Coke Mini Movie </li></ul></ul></ul><ul><ul><ul><li>2006 CCTV ‘Win in China’ (based on US Apprentice series) </li></ul></ul></ul><ul><ul><ul><li>2006 Sprite Music Chart, Star in a Billion, World Cup Titan, icoke.com </li></ul></ul></ul><ul><li>Trend in Consumers as Content Creators </li></ul><ul><ul><li>Personalized play lists, multiple personalities – Chat, Email,etc </li></ul></ul><ul><ul><li>Role Playing and Fantasy Games, Personalized Avatars </li></ul></ul><ul><ul><li>SMS Voting, Blogging… </li></ul></ul>
    20. 20. CHINA IP SCENE
    21. 21. Number Of Internet Users Soaring… Source: CINIC NB: User defined as person who accesses Internet at least 1 Hour per week. If individual accesses from multiple outlets counted each time
    22. 22. My Consumption Habit Has Changed… Time Spent On Media (Hours) Source: CMMS 2005, All Adults
    23. 23. 46% Of All People Look At The Internet First For Information… Source: CMMS A/W 2005 We are Sourcing Information Faster… More Than 60% Connected Through Broadband… 6.2 Billion Hours/Month Are Spent On The Net…
    24. 24. Did You Know… Internet & Instant Messenger Source: CNNIC, 17 th Internet Survey
    25. 25. 5 million bloggers 3 million blog accounts Surged from 1 million in 2004 Source: CINIC June 2005 & Analysys International 2005 & China Daily 4/3/2005 5% of all Chinese Internet users blog Did You Know… Blogs
    26. 26. Did You Know… Search Engine Marketing
    27. 27. Search is Becoming as BIG as all other forms of Online Advertising China – Search & Online Advertising Comparison Source: iResearch - All figures in USD million
    28. 28. Did You Know… Gaming <ul><li>China will overtake South Korea in terms of No. of Gamers, Average Time Spent per Gamer and Revenue Generated by Gaming… </li></ul><ul><li>It is considered more of a social hangout activity with friends </li></ul><ul><li>Chinese government is concerned about the addiction angle </li></ul><ul><ul><li>New legislations classify >4 hours of gaming as a sign of addiction </li></ul></ul><ul><li>Mobile gaming will continue to grow with Post ‘05 phones… </li></ul>
    29. 29. Did You Know… Impact of Gaming “ Last year a 40-year old man used a real knife to stab to death a younger man who had borrowed his virtual sword from an online videogame and sold it for $870. There are no laws in china protecting virtual property; so Qiu Chengwei, the man whose sword had been stolen, got no help from the police.” Fortune Magazine, October 2005
    30. 30. Is All this True only for Teens and Men? <ul><li>Diapers is a major category for online merchants like TaoBao (Premium tier consumers buy diapers online) </li></ul><ul><li>Casual gaming in China is growing with housewives leading the growth… </li></ul>
    31. 31. 30 – 40% of Mid Tier and Above Beauty Product Consumers are Online Data base: All female who have accessed internet in past one month Internet usage Source: CMMS, top 30 cities
    32. 32. China Leads The World in Mobile Subscribers Currently there are 388 mil subscribers
    33. 33. Always In Touch… Source: CMMS A/W 2005 Mobile Phones Making People Accessible 24/7… 388 million subscribers; 1-in-3 own a mobile phone vs 1-in-15 5 years ago Chinese Consumers Sent 280 Billion SMS In 2005…
    34. 34. Mobile Ownership – 388 Million Subscribers Today… Will Increase To 535+ Million By 2009… <ul><li>China - One of the highest mobile usage market in the World; SMS / MMS / Downloads </li></ul><ul><li>Average mobile phone replacement cycle: 9 to 18 months </li></ul><ul><li>Multi-purpose handsets </li></ul><ul><ul><li>Voice, Email, Photo, Video, Music, Internet, Games… </li></ul></ul><ul><li>Mobile internet will grow faster once Wi-Fi or Wi-Max enabled phones come into market… </li></ul>Source: www.mii.gov.cn
    35. 35. Did You Know… Mobile <ul><li>18/07/2004 – China’s first mobile newspaper “China Women” MMS edition was launched… </li></ul><ul><li>15/11/2004 – First mobile novel “Ju Li” launched in Beijing and </li></ul><ul><li>Shanghai… </li></ul><ul><li>1/1/2005 – Mobile TV launched by Shanghai Mobile & Shanghai </li></ul><ul><li>Media Group (SMG)… </li></ul>Source: www.mii.gov.cn
    36. 36. CHINA OOH SCENE
    37. 37. Explosion of IMPACTFUL OOH Catches Eyeballs of The Modern Mobile Chinese Consumers…
    38. 38. Increasing OOH Media Exposures… Data Source: China Media & Marketing Survey 2005 A/W Wave
    39. 39. High Traffic Area, High Awareness COVERAGE HIGH AFFINITY Role of OOH = High Traffic Area; Extended Reach Targeted Reach White Collars Frequent Travelers Upscale / Trendy Group MTR Stations City Centre Bus Shelters Downtown Billboards
    40. 40. New Innovative Media Formats Will Further Flourish the China OOH Scene…
    41. 41. OOH…The Last Frontier: Chaotic, Lack Of Regulation, Opaque Pricing…
    42. 42. CHINA PRINT SCENE
    43. 43. China Print Media; Still At Developing Stage… <ul><li>2,100+ titles in circulation… </li></ul><ul><li>High penetration medium in urban cities; provides broad </li></ul><ul><li>market coverage… </li></ul><ul><li>However, Newspapers are – </li></ul><ul><ul><li>With average printing quality... </li></ul></ul><ul><ul><li>No circulation audit/detail </li></ul></ul><ul><ul><li>breakdown </li></ul></ul><ul><ul><li>Well developed in key cities but still developing in smaller cities </li></ul></ul><ul><li>Currently, there are > 9,000 </li></ul><ul><li>magazine titles in China… </li></ul><ul><li>However, circulation are claimed by publishers; no 3rd party auditing system available… </li></ul><ul><li>The developing stages of Magazine in China : </li></ul><ul><ul><li>Local dominance; e.g. Readers </li></ul></ul><ul><ul><li>Early entries of JV; e.g. Elle, Ray, Cosmopolitan… competing in the female magazine arena </li></ul></ul><ul><ul><li>WTO Boom; more entries like Bazzar, Oggi, Seventeen and </li></ul></ul><ul><ul><li>Vogue etc… </li></ul></ul>
    44. 44. Newspaper In China… <ul><ul><li>National Titles </li></ul></ul><ul><ul><ul><li>High circulation </li></ul></ul></ul><ul><ul><ul><li>Government support </li></ul></ul></ul><ul><ul><ul><li>Different genres… </li></ul></ul></ul><ul><ul><ul><ul><li>News (Global Times) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Government Titles (People’s Daily) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sports (Sports Weekly) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Economic (Economic Observer, China Business News) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lifestyle (Modern Weekly) </li></ul></ul></ul></ul><ul><ul><li>Local Titles </li></ul></ul><ul><ul><ul><li>High regional coverage in local markets </li></ul></ul></ul><ul><ul><ul><li>Relevance; News closely related with local flavours </li></ul></ul></ul><ul><ul><ul><li>Immediate; hot news and instant report </li></ul></ul></ul>
    45. 45. Magazine In China… <ul><li>Well dominant by Female Lifestyle Fashion Title, about 800 titles currently </li></ul><ul><li>Vertical Titles on a growing trend </li></ul><ul><ul><li>Wedding </li></ul></ul><ul><ul><li>Postnatal </li></ul></ul><ul><ul><li>Healthy </li></ul></ul><ul><ul><li>Automobile </li></ul></ul><ul><ul><li>Business </li></ul></ul><ul><ul><li>Sports </li></ul></ul><ul><ul><li>IT </li></ul></ul><ul><ul><li>Travel </li></ul></ul>
    46. 46. … NEEDS A ‘LOCALISATION’ APPROACH – Market-by-Market Integrated Considerations Media In China Highly Fragmented / Growth In Emerging Media…

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